Transcript Slide 1

GLOBAL DEBT MAP
Ask: Why is there an increase in debt?
POVERTY STATISTICS
• POVERTY THRESHOLD = $23,021 FOR A
FAMILY OF 4 (SINGLE = $14,000)
• BASIC NEEDS BUDGET = $45,000 FOR A
FAMILY OF 4
• NEARLY 47 MILLION AMERICANS LIVE IN
POVERTY
• That’s 15% of our population (poverty rate)
• CHILDREN IN POVERTY HAVE HIGHER
RATES OF ABSENTEEISM
• DROPOUT RATES OF LOW INCOME
FAMILIES ARE 7X GREATER THAN HIGH
INCOME FAMILIES
• 31% OF YOUNG ADULTS WITHOUT A HIGH
SCHOOL DIPLOMA LIVE IN POVERTY
• LESS THAN 30% OF STUDENTS IN THE
BOTTOM QUARTER OF INCOMES ENROLL
IN 4 YEAR SCHOOL.
• OF THIS GROUP, LESS THAN 50%
GRADUATE.
CAUSES OF POVERTY
Unemployment is NOT always the reason.
• $9.00/hr for 40hrs/week = $18,720 / year (before taxes)
Shifts in family structure
• 41.5% of single parent families live in poverty
Location
• Higher-wages are often in suburban areas (more expensive
areas)
Racial and gender discrimination
• This is diminishing but still exists.
• Growth of low-skill service jobs
• Globalization, the decline of manufacturing, and the rise
of the service economy has led to a decline in the
number of high paying manufacturing jobs.
• Lack of education
• The average dropout can expect to earn an annual
income of $20,241, according to the U.S. Census
Bureau (PDF). That's a full $10,386 less than the typical
high school graduate, and $36,424 less than someone
with a bachelor's degree
ANTIPOVERTY POLICIES
Earned Income Tax Credit
• Tax credit for low-income families based on number of
children
• A tax credit is a sum deducted from the total amount a
taxpayer owes
Enterprise Zones – zones for tax free business
Employment Assistance – minimum wage; Work One
Housing Assistance – to landlords, vouchers or gov’t owned
Welfare Reform – TANF – shift to workfare
EDUCATION AND
JOB MARKET
COMPOSITION OF THE U.S. LABOR
FORCE
SKILL LEVELS
1.
Unskilled labor


2.
Hourly
Dishwashers, janitors, farm workers
Semi-skilled labor


Hourly, minimal specialized skills
Lifeguards, short-order cooks, construction and factory workers
3. Skilled labor


4.
Hourly, specialized skills
Mechanics, bank tellers, plumbers, firefighters
Professional labor


Salary, advanced skills and education
Managers, teachers, doctors, actors, computer programmers
S O W H AT D O E S A L L T H I S M E A N ?
Education and training are more important now
than they have ever been.
Your generation is one of the first to experience a
job market like this.
Invest in Yourself
MAXIMIZE YOUR FUTURE EARNING POTENTIAL
SO YOU CAN ACHIEVE YOUR DREAMS
AND LIVE A LIFE YOU ENJOY
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©2012 National Endowment for Financial Education | Lesson 3-1 Invest in Yourself
What is your personality? What might
you be good at?
Take the personality survey.
Take the Online Career Assessment
http://tinyurl.com/d867tjr 10-15 minutes
Discuss
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©2012 National Endowment for Financial Education | Lesson 3-1 Invest in Yourself
An Education is an Investment in You
Invest in education throughout your career:
• Gain new skills and sharpen existing skills so you
are “marketable”
• Keep up to date in the job market
• Adapt to changes in employment trends
• Provide flexibility to make career moves
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©2012 National Endowment for Financial Education | Lesson 3-1 Invest in Yourself
Education Options
• Four-year colleges
• Two-year colleges
• Apprenticeships
• Military
Which option(s) seem a good match for you?
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©2012 National Endowment for Financial Education | Lesson 3-1 Invest in Yourself
How to Manage Education Costs
One of the most important and expensive events in your life
should not be handled with haphazard decisions.
Streamline
Expenses
•Stick to a budget
•Avoid nonessential
expenses
•Use discounts
•Look for freebies:
scholarships, grants,
credit in high school,
testing out options
Comparison Shop
Be Strategic About
Income Sources
•Establish minimum
criteria
•Consider the long-term
value
•Weigh value with
what you can afford
•Explore or jumpstart your
career
•Match to your
situation and future
plans
•Earn while you learn
•Apply for tuition
reimbursement or
scholarships
•Use loans with caution
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©2012 National Endowment for Financial Education | Lesson 3-1 Invest in Yourself
More Ways to Manage Education Costs
More students drop out of college programs due to finances than because of grades.*
Know Before
You Go
• Find out
prerequisites
• Prepare to meet
requirements
Finish on Time
(or Early)
•Map out a plan
•Save and invest money
•Stick to the plan
•Take care of required
courses in high school
•Minimize need for
catch-up courses
• Plan to cover
costs (tuition and
living costs)
*Source: www.publicagenda.org/theirwholelivesaheadofthem/reality1
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Take Steps Now
©2012 National Endowment for Financial Education | Lesson 3-1 Invest in Yourself
•Explore options
•Position self for
eligibility (entrance
requirements, entrylevel jobs, scholarships,
internships)
17 Brutal Realities of Being a
College Student in 2014
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©2012 National Endowment for Financial Education | Lesson 3-1 Invest in Yourself
Salary
Health
Insurance
Dental
Insurance
Tuition
Assistance
Offer A1
Offer B
$24,000 a year
Employer pays $360 a month, Jordan pays
$40 a month
$24,000 a year
Employer pays $300 a month, Jordan pays
$100 per month
Employer pays $15 per month, Jordan pays $5
per month
Not offered
Employer will pay 100% of tuition costs per
Employer will pay 50% of tuition costs per year,
year toward a bachelor’s or advanced
up to a total of $4,000
degree, up to a total of $2,000
Jordan gets a $25 discount off the monthly
Transportation parking fee of $100 or a monthly public
None
Assistance
transportation pass of up to $50 or $300 a
year toward purchase of a bike
Retirement
Plan
Gym
Membership
Paid Holidays
Employer matches 50% of Jordan’s
contributions a year, up to 6% of salary
Jordan gets 30% off a $40 a month
membership at the nearby gym
Employer pays for 11 holidays a year
Paid Time Off
Employer provides five paid vacation days
and three paid sick days the first year
Total Package
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Value
©2012 National Endowment for Financial Education |
Lesson 3-1 Invest in Yourself
$
Employer matches 100% of Jordan’s
contributions a year, up to 3% of salary
Jordan gets a free membership at the gym in
the building, which is normally $30 a month
Employer pays for nine holidays a year
Employer provides 10 days a paid leave the
first year, which employee can use for vacation
or sick leave
$
Reflection (Key Questions)
• What are the three greatest challenges I will face when
preparing for my first career? (This includes the education
and training your career choice may require.)
• What are the greatest opportunities I might encounter while
preparing for my first career?
• How can education decrease my chances of living in
poverty?
• Why is an education more important in today’s job market?
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©2012 National Endowment for Financial Education | Lesson 3-1 Invest in Yourself