Transcript Chapter 1: Foundations in Personal Finance


Examine the charts, graphics, and reading
excerpts in Chapter 5: Life After High School.
o Make a list of questions you would like to have
answered as we go through the chapter.

WB: Before You Begin, pgs. 102-103
o Review the Learning Outcome objectives and Key Terms
o Complete the “Before” column on the “Measure Your
Progress” chart

Journal: Not every career requires a four-year degree.
1.
2.
3.
Have you researched the education requirements for your
career choice?
If so, what education options do you have?
If not, research the education requirements for your career
choice and write them in your journal.
Section 1

Video 1.1 (7 minutes): Why People Invest in
Themselves

Journal:
1.
What is your plan after high school graduation?

What are some ways in which you can invest in
yourself?
o Read a lot of books – leaders are readers
o Avoid spending too much time on distractions that in no
way enrich your life.
o Surround yourself with people who have a positive
influence on you.
o Find a mentor.

In what ways can you do a better job of investing
in yourself now?

Video 1.2 (10 minutes): Pay Cash for College

Journal:
1.
Why might people refer to student loans as “good
debt?”

Review: List the first three Foundations. What is
the fourth Foundation?
o Save $500 in an emergency fund, get out of debt, pay
cash for your car.
o Pay cash for college.

What is the student loan myth?
o Believing that student loans are “good debt” because
they are a path to getting an education.
o You can get your education without becoming a slave
to debt.

Dave uses the analogy that “piling up student
loans throughout your college career is like
keeping a monster locked in your closet.”

Draw a picture representation of the student loan
monster!

Activity: Beware of the Student Loan Myth (30
minutes)
Section 2

Video 2.1 (6 minutes): Start With the End in Mind

Journal:
1.
Imagine if your reality at age 24 was that you were
$70,000 in debt but your income was only $30,000.
Write down some words describing how you might feel.

What are some excuses people make for taking
out student loans?
o Tuition is too expensive; they have no other options;
everyone takes out student loans; student loans are
good debt because I’m buying an education with
them.

What percentage of student loan borrowers had
difficulty paying their student loan?
o 63% either had to postpone payments or became
delinquent on repayment.

Activity: Don’t Steal From Your Future (30
minutes)
Section 3

Video 3.1 (10 minutes): What your credit score
really measures.

Journal:
1.
Has money affected your decision on whether or not
to attend college? Why or why not?

What does it mean to cash-flow your college
education?
o Pay as you go, instead of using credit or debt.

What are things you can and should be doing
right now in order to cash-flow your post-high
school education?
o Plan ahead – know how much money you’ll need and
consider all education options in order to determine
which is most cost-effective.
o Get good grades!
o Consider all college living options in order to determine
which is most cost-effective.

Activity: Case Study: Ethan and College
Expenses (20 minutes)

Video 3.2 (7 minutes): Applying for Financial Aid

Journal:
1.
What money-saving options will you consider in order
to cash-flow your college education?

Why is it important to fill out the FAFSA (Free
Application for Federal Student Aid) even though
you are not going to take out student loans?
o The FAFSA is the first step to receiving any kind of
financial aid, including scholarships or grants.

What are grants?
o Grants can be offered by both federal and state
governments and are usually need-based.
o Like scholarships, grants are free money!

What are some reasons you may need to visit your
financial aid office?
o If your financial situation has changed or if some other
financial emergency arises.

Will working through college mean that you
cannot focus on being a good student?
o Research shows that working more than 20 hours a
week may have a negative effect on your grades, but
students who work up to 20 hours a week typically have
higher GPA’s.

What does living on a zero-based budget have to
do with cash-flowing your college education?
o Money will be tight during college and managed money
can go farther.

What are your two main goals while in college?
o Stay in school
o Stay OUT of debt

In what ways can you save money by attending a
college close to home?
o You could live, eat meals, and do laundry at home, save
on travel expenses for home visits, etc.

Interview someone you know who graduated from,
or went to, college using student loan debt.

Write a case study similar to the ones highlighted
in this chapter explaining the realities of using
student loans to fund your college education.
Section 4

Video 4.1 (10 minutes): Be a Lifelong Learner

Journal:
Think about what careers you might be interested in
pursuing.
2. What type of education or training will you need to
enter that field?
1.

Do all career paths require a four-year education?
o No. There are a variety of education options
depending on your career path.

How do you know what education and career path
is right for you?
o If you do your research, you can be sure to find the
education and career path that meets your specific
passions and strengths as well as your financial
goals.
o It’s important to assess what your interests are, how
you like to learn, and what motivates you.

What are some important things to consider if you
are thinking of starting your own business?
o There are risks involved, you should create a solid
business plan and establish financial resources first,
stick with a debt-free plan, be enthusiastic, and be
prepared for lots of hard work and some bumps in the
road.

What are some post-secondary education
alternatives to a four year degree?
o Trade school, certifications, self education, on-the-job
training, associate’s degree, and military.

Activity: Cost of Living Calculator (20 minutes)

Budget Builder – foundationsU.com/5

Complete the “After” column on the “Measure
Your Progress” chart, pg. 103.

Take Action Challenge, pg. 125

Study Guide: Money in Review, pgs. 126-127