Silver Student Workbook 2020 by Rock The Street, Wall Street

Student Workbook Silver Curriculum

Table of Contents Our Mission and Vision

Our Goals

Women Suffer More From Math Anxiety

Infographics

Silver Curriculum Workbook Sessions

Expectations for Classroom Sessions

Session 1 Agenda

Introduction and pre-assessment

The difference between Simple and Compound Interest

Simple and compound interest worksheet

Stock Portfolio activity

After Session 1: Important Activities Before Session 2

Session 2 Agenda

Financial Planning for Janella (Part One)

Quick Guide: College Costs

Janella’s College Cost Activity

Janella’s annual College Cost worksheet

Online Resources for Researching College Budgets

“7 Ways $1.6 Trillion in Student Loan Debt Affects the U.S. Economy”

After Session 2: Important Activities Before Session 3

Extra Resource: Applying For Financial Aid

Session 3 Agenda

Financial Planning for Janella (Part Two)

“How Credit Works: Understand The Credit History Reporting System”

Credit Score Infographics

“How Student Loan Debt Affects Women”

After Session 3

Session 4 Agenda

Financial Planning for Janella (Part Three)

“How To Calculate Your College Education Return On Investment”

AAUW “Deeper in Debt: Women and Student Loans” Charts

Janella’s College Financing Review

Classroom Discussion: Economic Lessons from COVID-19

How COVID-19 Has Affected Higher Education

10 Ways to Prepare for a Personal Financial Crisis

After Session 4

Post-Assessment Review Sheet

Session 5 Agenda

Post-Assessment and College Costs Presentations

Best Jobs for Graduates with a Finance Degree

“6 Simple Things Every College Student Should Avoid Spending Money On”

“4 Student Loan Questions Worth Asking”

Resources

ABOUT ROCK THE STREET, WALL STREET

Our Mission Rock The Street, Wall Street is a financial and investment literacy program designed to spark the interest of a diverse population of high school girls into careers of finance. Girls learn about saving, investments, budgeting, stock and capital markets and their role in maintaining the welfare of their families, communities and the economy, while simultaneously helping them see the real world application of the math content they learn in the classroom. Rock The Street, Wall Street believes to close the gender gap in the wages, wealth and in the financial services sector, we have to inspire girls to pursue the M in STEM and finance, by exposing them to real life role models. The number one reason why girls are not choosing STEM professions - they don’t see women in those professions. The number two reason - they don’t see their friends choosing those majors in college. We engage female financial pros who walk the talk on all matters financial. They teach and motivate the next generation. Our students see girls in their RTSWS cohort choosing finance, economics or a related computational field as their majors/minors. Whether they choose the profession, or head into another field, our students are far better prepared for critical decision making on all types of financial and career prep matters.

Our Vision Rock The Street, Wall Street hopes to break the cycle of multi-generational financial naivete so that girls have a better chance at improving their lives, their households and their communities. Forty years after the adoption of Title IX, women continue to confront barriers to full equality at all levels; most critically of which is in their financial lives. This is even more egregious for women of color, where they earn, save and invest at lower rates. In college finance and economics classrooms, girls are few in number. As a result, their opportunities in pay, promotion, and life are unequal. Equipping girls with financial skills is a vital part of ensuring equal opportunity. Financial literacy is The Great Equalizer. Rock The Street, Wall Street is reaching young women at their local high schools. We offer young women a flight path to a financial education through hands-on financial projects, workshops, role modeling, mentoring and real-life Wall Street experiences. Girls are introduced to financial concepts such as savings, investments, post-secondary and college financial preparedness, budgets, stocks, bonds, financial analysis, venture capital and private equity.

OUR GOALS

Our Goals • Address the economic inequality that exists among women and particularly among women of color. • Increase financial and investment literacy of girls at a young age so that they are aware of the financial responsibilities AND opportunities of post-secondary life, college life, at work, at home and in their communities. • Teach girls on how being financially independent is key to living a self-determined life. • Open girls’ minds to view math-focused fields of study as compatible with a career that has a positive impact on the world. • Spark girls’ enthusiasm for finance at a critical age and make them aware of the societal benefits personal financial knowledge and math-oriented careers can have. • Close the gender gap in wages, investments and wealth accumulation for all women, particularly for women of color. • Create the social capital between students and female financial professionals that will enable students to get a jumpstart on their personal money management behavior and on their college and work lives. • Increase the number of women studying finance, economics or related computational business field • Create an early pipeline of female talent so as to Increase the number of women who enter into the financial services industry. • Provide a pathway to better lifetime money management, academic performance, and college preparation. • Coach students on resume building • Provide career discovery by offering job shadowing and/or industry summer internships • Foster students’ continued growth in finance through their college years and into the workforce • Create a longitudinal cohort of girls who can network with each other across cities, socio-economic lines and industries.

ARTICLE Women suffer from ‘math anxiety’ more than men do — here’s how to reverse it By Alessandra Malito, MarketWatch (October 24, 2019) www.marketwatch.com/story/women-suffer-from-math-anxiety-more-than-men-heres-how-to-reverse-it-2019-10-24

This teacher-turned-financial adviser on the different ways men and women approach math and life Many Americans suffer from “math anxiety,” which inhibits their ability to solve problems — a potential issue when it’s time to balance a checkbook or save for retirement. Math anxiety may start in the classroom during childhood but it has a way of following students throughout their lives, said Maddie Parker, a financial adviser at Parker Financial Group in Overland Park, Kan., who started her career as a high school math teacher before switching to financial planning. She has seen people postpone their financial plans and refrain from saving for retirement because they don’t want to deal with the possibly complicated equations and complex investing topics. A fear of math can be debilitating — and not just because it could result in poor math grades. Many students, especially girls, may avoid careers that include a heavy amount of math, especially those in STEM (Science, Technology, Engineering and Math) fields. https://www.marketwatch.com/story/the-gender-gap-starts-inninth-grade-2018-08-20 Girls made up just 30% of the top 5,000 ninth-graders in the American Mathematics Competitions, according to research distributed by the National Bureau of Economic Research in 2017. Just 18% of the top 500 ninth-graders were girls, and only 8% of the top 50. That gender gap worsens as they age — by senior year, only 22% of the top 5,000 are girls (compared with the 30% in ninth grade), followed by just 12% of the top 500. Parker, 30, taught Algebra II and geometry to high-school students before switching to financial planning and working with her 76year-old father, who has his own firm. She also became a Certified Financial Planner. “I have a math background and the CFP puts me in a good position to do financial planning in a way that educates people about the planning and why,” she said. Their age difference also helps them work with clients of all ages and provide their own perspectives, she added. Parker spoke with MarketWatch about her education background, why people are so worried about math and how to mesh the two: MarketWatch: How exactly would you describe math anxiety? Maddie Parker: A lot of people would say “I have that” and to a degree, a lot of people do, but it’s more than feeling like you don’t do well on exams. Kids who have math anxiety almost always have a physical inability to respond to being tested or asked to perform on math-related tasks. It is just built up over the years of different experiences, and it stops them from being able to learn any further. MW: Is it something adults face?Parker: It translates from kids to adulthood. When you get out of school, you’re less exposed or have less experience being tested so the anxiety may seem like it’s gone away but any time math or that skill is required, the anxiety comes right back. I think it has been perpetuated as a weird acceptance in our country, that it’s OK to be bad at math. Like, “oh, math is hard and it’s OK not to get it.” It definitely follows into adulthood and affects people dealing with finances, because they have to do math and they don’t know how to do it, and they’re stressed or embarrassed to ask for help. MW: How can math anxiety impact personal finances? Parker: In high school, you’re not required to take personal finance and the math you’re doing is unrelated to what you do in real life. And that real life math in your brain is still tied to calculus so you think, “I couldn’t do that at 16, I probably can’t handle finances now.” But it is different math. It’s not to say it’s simple, but it’s different, and it is applicable in such a way that people do find it easier to understand. It is not quite as challenging as graphing logarithmic equations. It’s a lot different.

4 MW: There are many people who say women generally are more likely to have math anxiety than men. Is that something you’ve seen? Parker: There are great articles and podcasts and TED talks about the same concepts, of how we’re raising our girls to be perfect and raising our boys to be brave. And there was one example at a girls’ coding camp, where they have to learn to do coding and the girls specifically would type up all this stuff and then if they couldn’t figure it out they’d erase it all and call the teacher over. The teacher would press undo and show all of this work and that they were really close, but because the girls couldn’t make it work they wanted to tell the teacher to show them from the beginning. They didn’t want to show this not perfect work. It is just a good example that demonstrates that girls are being raised to be perfect and not in the same way as boys, who may say (like in that example) that they don’t care and at least they’ll get partial credit. The only way to learn is by making mistakes, but that gets lost on girls when they feel they have to be perfect. MW: Does that concept translate to adult couples in financial planning? Parker: It is more apparent for women when they are single individuals. They’re more comfortable saying “I don’t get it” or it’s more evident. They’re not as afraid to ask for help. It’s when they’re with their spouses it is easier to be quiet or let them talk and pretend you understand things because your partner is helping you, but it is still relevant. I always work with most clients together and I will ask them both “do you understand this?” or make sure they’re both on the same page. MW: How would you say your background as a math teacher benefits you and your clients? Parker: One of the biggest ways is in my ability to explain things. It’s funny, I majored in math and decided to be a high school math teacher, but when I was in high school, I struggled with math. I had good grades and I didn’t have math anxiety, but I wasn’t some freaky Einstein genius kid who got it all. It made sense when I didn’t get something right and because I liked it so much I worked hard to understand it. I was good at explaining things to my friends. But my own struggle made me good at explaining it. A lot of math teachers are geniuses who understand it, and that makes it hard to explain it to students who are struggling. That ability translates nicely to doing financial plans. I can see what is probably going to confuse them and where they’ll get lost. MW: Are there any math-related topics that clients typically have a hard time understanding? Parker: It varies, but one big thing we talk about is inflation and compound interest. The need to factor in inflation because a dollar today is not going to be a dollar 10 years from now, and that it is a slow climb. People are amazed at how different the numbers look when I factor in 2.5% inflation. MW: Is there any way to overcome math anxiety? Parker: It is important that there be no stigma about it. There’s this expectation people have of themselves that they should know more about finance because it applies to their life. I am a financial adviser and I don’t know how to fix my car, so I bring it to be serviced by professionals. I don’t feel stupid because I didn’t focus on that and I know nothing about it. It can be scary if you don’t know who you’re going to and unfortunately there are some bad people out there, but if you do your homework to find the people to help you, you don’t need to feel ashamed or embarrassed. That’s the whole reason you find a professional to begin with — someone who is trained. That’s their job.

Silver Curriculum Workshop Sessions Silver Curriculum learning outcomes: • To play the role of a financial adviser for Janella Sims, a 17-year-old college-bound female, where student teams analyze her college costs and her short and long-term financial goals. • To define basic investment terms. • To follow the price movements of Amazon (AMZN), Clorox (CLX) and Netflix (NFLX) stock, and the iShares Nasdaq Biotechnology ETF (IBB) over the weeks we’re together in class. • To understand credit and be able to explain its role and relationship to their personal financial life. • To understand interest (simple and compound) and its benefits and how it can be detrimental. • To analyze the costs of college and types of financial aid available. • To recognize the gender gaps in wages, college debt, home ownership and retirement savings. • To become familiar with the various types of careers in finance. Session Topics and Key Terms: Please write the date/time/location of each session in this book and in your phone calendar to set reminders.

Session

Key Terms

1: Introduction and Pre-Assessment

• Simple Interest • Compound Interest • Stock • Exchange-Traded Fund • Bond

2: Financial Planning for Janella (Part One)

• Scholarships • Grants • Loans • Work Study • FAFSA • EFC • Mortgage • Loan

3: Financial Planning for Janella (Part Two)

• Credit • Credit Utilization Ratio • Credit Score • Credit Report • Inflation

4: Financial Planning for Janella (Part Three)

• Return on Investment (ROI) • Subsidized Loan • Usubsidized Loan • Stock Market Volatility

5: Post-Assessment and Presentations

Date / Time / Location

Expectations For Classroom Sessions

We are all here to become financially literate, learn from fierce females in finance, and to have fun! In order to do so, we have classroom expectations so it’s a great experience for everyone. By participating in our program you are committing to these expectations. 1. Be on time and even better, early! 2. Let one of the school champions know if you will be absent or late to the session ahead of time. (Write below the name and contact information for the school champions) School Champion 1: _________________________________ School Champion 2: _________________________________ 3. Use the restroom before coming to the session. 4. All students are required to stay for the entire session. 5. You may eat during the session as long as it’s not disruptive. 6. Our expectation is that you will attend ALL sessions. If you miss any, please know it will impact your ability to attend our field trip and any ongoing opportunities. 7. Most of all - have fun and enjoy learning from these amazing women.

Girls Who Invest is a non-profit organization that prepares undergraduates at U.S. colleges and universities for careers in investment management. There are two internship opportunities availablein college with Girls Who Invest. As a result of our close relationship with them, our students have a unique head start over other applicants. We will be recommending a minimum number of students who have excelled in RTSWS to be fast tracked in their application process. • Only those who have strong attendance and post-assessment scores will be taken into consideration for these opportunities • You must also have your RTSWS student release form filled out completely and correctly to be considered • We will continue to reach out about this opportunity and other career opportunities throughout high school and college

Silver Curriculum: SESSION ONE

Session 1 Agenda

1. Introduction: Volunteers and the Rock The Street, Wall Street Program 2. Get to Know Each Other: Class Discussion 3. Take the Pre-Assessment • You are NOT being graded we just want to know what you already know - it’s okay to put “I don’t know” as an answer • This will not be shown to your school or any teachers • You will receive a text message with the link to take the pre-assessment. It will also be written on the board if you need to type it into your web browser. 4. Learning Objectives and Key Terms • Definitions and visuals are provided in this session for you to review. 5. Understanding Interest Activity 6. Review Yahoo! Finance Portfolio • We will be following the same stocks each week 7. Connect with Rock The Street, Wall Street’s Social Media Platforms 8. Important Activities Before Session 2

Silver Curriculum: SESSION ONE

Session 1: Introduction and Pre-Assessment Learning Objectives 1.

Learn how the RTSWS program works and why it exists.

Understand the concept of interest as it pertains to saving, investing and debt. • Learn these related key terms: Simple Interest, Compound Interest and Stock.

Understand what a stock portfolio and watch list are and become familiar with the stocks we will follow on our watch list in the weeks ahead.

Learn the Key Terms below.

Study These Key Terms 1.

Simple Interest Interest is the charge for the privilege of borrowing money in other words, you are paying a certain amount for the use of money. Simple interest is a set rate on the principle originally lent to the borrower that the borrower has to pay for the ability to use the money. Example: If you borrow $1,000 (principle) with 10% interest annually. 10% of $1,000 = $100. If you’ve paid nothing on the loan after one year you will owe $1,100. Each year the amount you pay will only go up by the fixed amount of $100.

Compound Interest Compound interest is interest on both the principle (starting amount of the loan) and the compounding interest paid on that loan. Example: If you borrow $1,000 (principle) with 10% interest compounded annually. 10% of $1,000 = $100. If you’ve paid nothing on the loan after one year you will owe $1,100, but after the second year you will owe $1,210 because you now have to pay 10% of $1,100 instead of just the principle of $1,000.

Stock A share of ownership in a business or corporation. Companies sell shares as a way to raise capital.

Exchange Traded Fund (ETF) An exchange-traded fund (ETF) is a collection of securities—such as stocks— that tracks an underlying index. The best-known example is the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 Index. ETFs can contain many types of investments, including stocks, commodities, bonds, or a mixture of investment types. An exchange-traded fund is a marketable security, meaning it has an associated price that allows it to be easily bought and sold. The price of an ETF’s shares will change throughout the trading day as the shares are bought and sold on the market.*

Bond A bond is a low-risk debt investment, similar to an IOU, which is issued by companies, municipalities, states and governments to fund projects. When you purchase a bond, you are lending money to one of these entities (known as the issuer). In exchange for the “loan,” the bond issuer pays interest for the life of the bond, and returns the face value of the bond at maturity. Bonds are issued for a specific period at a fixed interest rate. Each bond type involves a varying degrees of risk, as well as returns and maturity periods. It’s important to note that bonds have an inverse relationship to interest rate. When interest rates rise, bond prices fall, and vice-versa.

Source: Investopedia

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Silver Curriculum: SESSION ONE

ARTICLE

The Difference Between Simple and Compound Interest by Amanda Dixon, SmartAsset (July 18, 2019) www.smartasset.com/investing/difference-between-simple-and-compound-interest

Anyone who takes out a loan has to think about the cost of doing so. If you need to borrow money to finance a home purchase or a renovation, you’ll want your interest rate to be as low as possible. From an investors’ standpoint, however, higher interest rates present the opportunity to earn higher rates of return. Interest can be simple or it can compound over time. Don’t understand the difference between simple and compound interest? We’ll define both concepts and give plenty of examples. What Is Simple Interest? The term interest indicates how much you can earn from the money you originally invest. As your investment sits in an account over time, interest accumulates and you can watch your funds grow. To calculate the amount of simple interest you stand to earn as an investor, you can use the following formula: Principal Balance x Interest Rate. You can then multiply the product by the number of years you’re investing your money to find out what your return rate would look like over time. For example, if you decide to invest $2,000 in a money market account with a simple interest rate of 8.5%, you’ll earn $170 in interest after one year ($2,000 x 0.085). After five years, you’ll earn $850 (170 x 5) in interest. Compound Interest: The Basics Compound interest represents the amount you earn from your initial investment in addition to the interest you earn – on top of the interest that has already accrued. You can calculate compound interest using the formula, A=P(1+r/ n)nt. A is the amount you have after compounding. The value P is the principal balance. The value r is the interest rate (expressed as a decimal), n is the number of times that interest compounds per year and t is the number of years. Interest can compound either frequently (daily or monthly) or infrequently (quarterly, once a year or biannually). The more often your interest compounds, the more interest you’ll earn on your investment. It’s easy to see that money grows more quickly when it’s earning compound interest than when it’s earning simple interest. To return to the example above, if you invest $2,000 at an interest rate of 8.5% compounding twice a year for 5 years, your end balance will be $3,032.43. You will have earned $1,032.43 in interest, compared to $850 in the simple interest example. But if that same investment compounds monthly (12 times a year) instead of twice a year, you’ll end up with a balance of $3,054.60. As you can see, the frequency of compounding makes a difference in terms of your overall return rate. If you want to take advantage of compound interest, it’s a good idea to find out how often your interest will compound before you invest your money.

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Silver Curriculum: SESSION ONE

Simple Interest vs. Compound Interest Compared to compound interest, simple interest is easier to calculate and easier to understand. If you have a temporary loan or one with interest that doesn’t compound, you’ll only have to worry about interest added onto the outstanding principal balance. With mortgages and most car loans, for example, simple interest accrues but does not compound. When it comes to investing, compound interest is better since it allows funds to grow at a faster rate than they would in an account with a simple interest rate. Compound interest comes into play when you’re calculating the annual percentage yield. That’s the annual rate of return or the annual cost of borrowing money. If borrowers can pay off their interest in a shorter period of time, they can then begin paying off their principal loan balance. They’ll be able to pay off their debt more quickly if they’re paying more interest up front. At the same, if a borrower has a loan that compounds often at a high interest rate, they’ll have higher monthly payments that might not be affordable. In that situation, a borrower might need to consider refinancing the loan to try to get a lower interest rate. For instance, if you’re in the process of paying off your private student loans, you can reach out to a lender to see if you can qualify for a reduced rate. The Takeaway Understanding the difference between simple and compound interest is crucial when you’re trying to pick the the right loan or find the best place to store your savings. If you’re a borrower who doesn’t want to get stuck with expensive debt that takes years to eliminate, you’ll probably want a loan with interest that doesn’t compound. But if you’re an investor looking to earn lots of money that you can use in retirement, it’s best to search for an account with interest that compounds frequently. “The Difference Between Simple and Compound Interest” by Amanda Dixon, SmartAsset retrieved from: https://smartasset.com/investing/ difference-between-simple-and-compound-interest

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Silver Curriculum: SESSION ONE

ACTIVITY - Simple and Compound Interest

Directions: Write down any notes or draw any visuals from the classroom discussion on simple and compound interest below. .

Simple Interest: –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Notes: ––––––––––––––––––––––––––––––––

Visual/Mathematical Example:

–––––––––––––––––––––––––––––––– –––––––––––––––––––––––––––––––– –––––––––––––––––––––––––––––––– ––––––––––––––––––––––––––––––––

Compound Interest: –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Notes: –––––––––––––––––––––––––––––––– –––––––––––––––––––––––––––––––– –––––––––––––––––––––––––––––––– –––––––––––––––––––––––––––––––– ––––––––––––––––––––––––––––––––

Visual/Mathematical Example:

Silver Curriculum: SESSION ONE

ACTIVITY - Stock Portfoilio Activity

• We will be following the Amazon (AMZN), Clorox (CLX), Netflix (NFLX) stock and the iShares Nasdaq Biotechnology ETF (IBB) each week so you can see how the prices fluctuate and start following the market. • A stock portfolio is a collection of stocks that you invest in with the hope of making a profit. By putting together a diverse portfolio that spans various sectors you are able to become a more resilient investor. (https://public.com/learn/what-is-a-stock-portfolio) • For the purposes of these sessions, we will only be following these three stocks and one ETF (exchange-traded fund) so you can begin to learn the world of investing. • After Session 1 you will create your own stock portfolio on Yahoo! Finance.

The Summary tab in your saved portfolio on Yahoo! Finance features a number of useful data points for each stock, including: Last Price, Change (in dollars), % Change, Volume, Average Volume over the past 3 months, Day Range, 52-Week Range, Day Chart’ Market Cap In addition, links to relevant news articles about stocks in your Portfolio are presented underneath.

Silver Curriculum: SESSION ONE

LinkedIn RTSWS Student & Alumnae Networking Group linkedin.com/groups/7029520/ If you are 16 years of age or older, join our RTSWS LinkedIn Students & Alumnae Networking Group. As a member, you will be able to learn about internship and job opportunities, connect with your peers, stay informed of relevant news and more. Students already in the group have successfully leveraged their membership to network with RTSWS students from all over the U.S. We strongly encourage you to join our RTSWS LinkedIn Students & Alumnae Networking Group.

LinkedIn RTSWS Company Page linkedin.com/company/rock-the-street-wall-street LinkedIn-company page is a social network that focuses on professional networking and career development. You can use LinkedIn to display your resume, search for jobs, and enhance your professional reputation by posting updates and linkedin.com/groups/7029520/ interacting with other people. Please follow our company page for Rock The Street, Wall Street and get to networking!

Instagram Follow us at: girlsrockwallstreet

Facebook Follow us at: facebook.com/girlsrockwallst

Twitter Follow us at: @girlsrockwallst

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Silver Curriculum: SESSION ONE

After Session 1 Important Activities Before Session 2 Activities During the week ahead, spend some time exploring the following activities before returning for Session 2. 1. Create a stock portfolio on Yahoo! Finance - www.finance.yahoo.com/portfolios/ • You will need to create your own username and password. (If you already have an existing account for other Yahoo! services, such as Yahoo! Mail, you can log in with that account.) Then, click on “My Portfolio” on the upper left side. Then, on the bottom right, click “+Create Portfolio”. Name the portfolio “RTSWS 2020.” Under “Summary”, click on “+Add symbol”. Type in the name or symbol for what we are following this year to add them to your portfolio and watchlist. • This is what we are following this year - Amazon (AMZN), Clorox (CLX), Netflix (NFLX) stock and the iShares Nasdaq Biotechnology ETF (IBB). 2.

Thoroughly review and get to know the key terms below. We want you to remember these long after RTSWS is over and all students will be taking a post-assessment in Session 5 to see how much you’ve learned. So make sure to study these!

Follow Rock The Street, Wall Street on our social media accounts.

Review of Key Terms from Session 1 1.

Compound Interest Compound interest is interest on both the principle (starting amount of the loan) and the compounding interest paid on that loan. Example: If you borrow $1,000 (principle) with 10% interest compounded annually. 10% of $1,000 = $100. If you’ve paid nothing on the loan after one year you will owe $1,100, but after the second year you will owe 1,210 because you now have to pay 10% of $1,100 instead of just the principle of $1,000. www.investopedia.com/terms/c/compoundinterest.asp

Silver Curriculum: SESSION ONE

Stock A share of ownership in a business or corporation. Companies sell shares as a way to raise capital. napkinfinance.com/videos/stock-market/

Silver Curriculum: SESSION TWO

Session 2 Agenda

1. Introduction: Welcome and any new volunteer introductions 2. Learning Objectives and Key Terms • Definitions and visuals are provided in this session for you to review. 3. Review Yahoo! Finance Stock Portfolio 4. Classroom Discussion: College Financial Aid 5. Financial Advisor Activity: Janella Sims 6. Important Activities Before Session 3

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Silver Curriculum: SESSION TWO

Session 2 Financial Planning for Janella (Part One) Learning Objectives 1.

Understand the types of financial aid available for college: Scholarships, Grants, Loans, and Work Study.

2.2 Explore the financial aid application process and become familiar with relevant key terms: FAFSA, EFC. 3 3. Assume the role of a financial adviser for Janella, a 17-year-old who is deciding where to attend college, in large part, to be determined by her financial aid package and projected financial situation upon college graduation. To help you advise Janella, you will begin researching the costs of tuition, room and board, and other basic expenses associated with college. 4.

Learn the Key Terms below.

Key Terms 1.

Scholarships Scholarships are merit-based gift aid. These can be based on accomplishments such as academic performance (grades or standardized test scores), artistic or athletic ability, leadership and community service. Scholarships (with rare exception) do not have to be repaid. Scholarships can come from state governments, corporations, non-profits. Often the largest source of scholarships are those awarded directly from the college or university.

Grants Grants are need-based gift aid. Qualification for grants is based on a student’s financial need, as determined by the FAFSA or CSS Profile. Grants for college can come from the federal government, state governments and directly from the college or university.

Loan

A loan is money, property, or other material goods given to another party in exchange for future repayment of the loan value or principal amount, along with interest or finance charges Examples: mortgage, car loan, home renovation, starting a business Student Loans Student loans are borrowed funds that must be repaid with interest. Student loans provided by the federal government typically have lower interest rates and more flexible repayment options than loans from private lenders, and there are several types that students may qualify for based on their financial need.

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Silver Curriculum: SESSION TWO

Mortgage A mortgage, or deed of trust in some states, is a type of loan you can use to buy or refinance a home. Mortgages are also referred to as “mortgage loans.” Mortgages are a way to buy a home without having all the cash upfront. When you get a mortgage, your lender gives you a set amount of money to buy the home. You agree to pay back your loan – with interest – over a period of several years. You don’t fully own the home until the mortgage is paid off. It’s important to note that the period of years you have to pay back your mortgage will affect your monthly payment and how much interest you will pay in total. For example, a 15-year mortgage will have a higher monthly payment than a 30-year mortgage, but with a 15-year mortgage you will pay less interest since you are paying off your loan in a shorter amount of time.

Work Study Federal Work-Study provides part-time jobs for undergraduate and graduate students with financial need, as a way to help them pay for education expenses, while enrolled. Work-study eligibility is based on the student’s FAFSA and is administered by schools that participate in the Federal Work-Study Program.

5 7.

FAFSA — Free Application for Federal Student Aid This is the form the federal government, state government, colleges and universities and other organizations use to award financial aid. The FAFSA should be completed by the required deadline prior to each year of college, as financial aid is determined on a year-by-year basis.

EFC — Expected Family Contribution This is the amount of money that a student's family is expected to contribute to college costs for one year. Financial need is calculated as the difference between the cost of attending school and the expected family contribution. The EFC considers family income, assets, size of current household, and the number of family members currently enrolled in college.

Source: Investopedia

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Silver Curriculum: SESSION TWO

ARTICLE

“Quick Guide: College Costs” by The College Board www.bigfuture.collegeboard.org/pay-for-college/college-costs/quick-guide-

There are five main categories of expenses to think about when figuring out how much your college education is really going to cost: tuition and fees, room and board, books and supplies, personal expenses, and transportation. You can control some of these costs to some extent. And when you know how much you'll need to spend on these expenses, it makes it easier to create a college budget. Tuition and Fees Tuition and fees are the price you pay for taking classes at your college. This amount can change based on your academic program, the number of credit hours you take and whether you're an in-state or out-of-state student. Some colleges charge "comprehensive fees" — the total for tuition, fees, and room and board combined. Room and Board Colleges usually offer a variety of dorm-room options and meal plans to students who live on campus. The charges vary depending on what plan you choose. If you decide to live at home or off-campus, you'll have your own rent and meal costs to consider in your college costs. Books and Supplies You'll need books and other course materials. The yearly books-and-supplies in-state estimate for the average full-time undergraduate student at a four-year public college is about $1,298. You may be able to lower these costs by buying used textbooks or renting them. Personal Expenses These include laundry, cell phone bills, eating out and anything else you normally spend money on. Figure out what you spend and add that amount to your budget. Transportation Whether you commute to campus or take the occasional trip home, you'll have transportation costs. Of course, these will vary depending on how you travel and how often. You may be able to find student discounts on travel costs. Don't forget to factor in the cost of gas if you own a car.

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Silver Curriculum: SESSION TWO

ACTIVITY - Janella’s College Costs Activity

Introduction Janella Sims has hired your group to help with her college financial decisions. She needs to analyze the cost of her prospective colleges and the amount of student loan debt she may burden in order to decide which school is best for her financially.

Task Groups will use their phones, laptops or tablets to research the expenses and types of financial aid available at public and private colleges or universities using college and university websites, BigFuture.CollegeBoard.org, Net Price Calculators and the College Scorecard by the U.S. Department of Education. (There is more information about the online resources that will help you with this resource on the following pages)

Assumptions • Janella's family income is that of an average American family: $60,000. • Janella's standardized test scores are in line with the national average: 21 on her ACT and 1060 on her SAT (EBRW + Math). • Janella's current cumulative grade point average is a 3.0. Be prepared to present the group's college cost comparison and to give Janella advice on her college choice based on what the group deems the best financial decision.

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Silver Curriculum: SESSION TWO

Janellaâ&#x20AC;&#x2122;s Annual College Costs Worksheet

Costs & Funding Sources

Public College:

Private College:

A. Tuition (Full Time, 2 Semesters) B. Room (Housing) C. Board (Meal Plan) D. Fees, Books, etc. E. Personal Expenses F. Transportation G. Cost of Attendance (Sum of A:F) H. Scholarships I. Grants J. Loans K. Work-Study L. Estimated Net Cost (G-(SUM of H:K))*

* Janella is responsible to pay this amount per year of college (up-front or on a payment plan), in addition to any loans she may need to re-pay after college.

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Online Resources for Researching College Budgets

Here are some helpful websites to visit as you research college costs and ways to finance those costs:

BigFuture — The College Board The College Board is a non-profit organization founded in 1900 to expand access to higher education. It is responsible for adminstering the SAT, PSAT and Advanced Placement exams. BigFuture is a section of their website devoted to helping young people prepare for all aspects of college life, including researching and visiting colleges, choosing a major and career, paying for college costs, applying to colleges, adapting to campus life, and more. bigfuture.collegeboard.org

Net Price Calculators Net price calculators are available on college and university websites. They allow prospective students to enter information about themselves to find out what students like them paid to attend that institution in the previous year, after taking grants and scholarship aid into account. To go directly to any specific college or university’s net price calculator, visit the address below from the U.S. Department of Education and enter the name (or part of the name) of your desired school in the search box. Clicking on the search result will then take you to that institution’s net price calculator. collegecost.ed.gov/net-price

College Scorecard — U.S. Dept. of Education The U.S. Department of Education’s College Scorecard website allows prospective students to search for key information about colleges and compare data such as financial aid, graduation rates, salaries after college, etc.) collegescorecard.ed.gov

Silver Curriculum: SESSION TWO

ARTICLE “7 Ways $1.6 Trillion in Student Loan Debt Affects the U.S. Economy” by Christopher Ingraham, Washington Post (June 25, 2019) www.washingtonpost.com/business/2019/06/25/heres-what-trillion-student-loan-debt-is-doing-us-economy/

American families are carrying about $1.6 trillion in student loan debt, a massive burden that amounts to nearly 8 percent of national income. That share has roughly doubled since the mid-2000s. This week, Sen. Bernie Sanders (I-Vt.) and some of his House colleagues unveiled a proposal that would cancel student debt for 45 million Americans and make public higher education tuition-free. The 2020 presidential hopeful said he would put a tax on Wall Street, raising an estimated $2 trillion over 10 years, to pay for the plan. Without getting into the merits of his or other proposals, the idea does raise a basic question: What is student loan debt doing to the nation’s economy? Years of research show that such post-college debt compels people to put off marriage and home ownership. It also stifles entrepreneurship and career paths. Here are seven key findings:

Student loan debt is delaying marriage and family formation A 2014 study found a link between a woman’s student loan repayment schedule and marital timing. A $1,000 increase in student loan debt, researchers found, lowered the odds of marriage by 2 percent a month among female bachelor’s degree recipients in the first four years after graduation. That finding has been bolstered by more recent research showing a similar trend. Research has shown that marriage confers myriad economic benefits: For starters, married people, particularly men, tend to earn more. And children raised in two-parent households tend to be better off as adults.

Student loan debt is hampering the growth of small businesses A 2015 study by economists at the Federal Reserve Bank of Philadelphiafound “a significant and economically meaningful negative correlation” between rising student loan debt and falling small-business formation. The mechanism isn’t hard to grasp: If you’re paying off a student loan, you’re less able to pull together the cash needed to start a business. The effect is significant: The increase of one standard deviation in student debt translated into a decrease of 70 new small businesses per county — a decline of approximately 14.4 percent. The authors note that small businesses are responsible for “approximately 60 percent of net employment activity in the U.S.”

Student loan debt is taking a bite out of the housing market This year, the Federal Reserve issued a report showing that student loan debt prevented about 400,000 young families from purchasing homes, accounting for about a quarter of the drop in home-ownership rates in this demographic from 2005 to 2014. In addition to the obvious connection between loan payments and the ability to save for a down payment, researchers noted that the rise in education debt also increased those borrowers’ odds of default, which can adversely effect their credit scores and ability to qualify for a mortgage.

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Silver Curriculum: SESSION TWO

Student loan debt makes it harder to weather financial crises Another Federal Reserve report, this one from 2013, found that student loan debt jeopardizes the short-run financial health of households. Most obviously, it found that households with student debt had a lower median net worth ($42,800) than those with no student debt ($117,700). More troubling, however, was the finding that the Great Recession took a bigger chunk out of the net worth of student-loan-indebted households: From 2007 to 2009, households with student loans saw 12.4 percent of their total net worth evaporate, while the net worth of those without such loans fell by 9.3 percent.

Student loan debt is preventing young people from saving for retirement A 2018 study by the Center for Retirement Research at Boston College found that while student debt didn’t affect 401(k) participation rates, it did affect how much young workers were able to sock away. “Those with debt have only about half as much in assets by age 30 as those without debt,” the report found.

Student loan debt can cause graduates to give up on their dreams A 2017 working paper found that “students with debt are less ‘choosy’ on the job market: They are more inclined to accept part-time work and jobs that are less related to their degree and offer limited career potential." Earlier research showed that higher education debt “reduces the probability that students choose low-paid 'public interest’ jobs.” New graduates with loan debt, in other words, appear to have an understandably greater interest in paying off their loans than in making the world a better place.

The returns on higher education aren’t what they once were Some commentators have sought to play down concerns over rising student debt by pointing out that college degrees are associated with higher earnings and that, on net, a college education is still well worth the cost. However, progressive economists have recently begun to challenge this view. A 2018 Roosevelt Institute paper, for instance, contends that researchers need to account for the across-the-board wage stagnation that’s happened since the 1970s. “To the extent that individuals see an income boost based on college attainment, it is only relative to falling wages for high school graduates.” If a bachelor’s degree was an optional ticket to a better life in 1970, in other words, today it’s more like a baseline requirement for a living wage. The reason for this shift is that job markets have become more concentrated, giving employers more leverage to demand more skills and training from their workers. A 2018 paper, for instance, found that employers in concentrated labor markets “upskilled” their job postings by requiring various skills and abilities that employers in less-concentrated markets didn’t ask for. So while student debt was once largely confined to those who pursued graduate and professional programs to lock down careers with high earnings potential, rising tuition and changes in the labor market “have made it difficult for many to obtain a credential without resorting to borrowing,” according to the Roosevelt Institute report.

Silver Curriculum: SESSION TWO

After Session 2 Activities Before Session 3 Activities During the week ahead, spend some time exploring the following activities before returning for Session 3. 1.

If there were any articles or aspects of Session 2 you need to finish please do so before Session 3.

Spend some time engaging with RTSWS on our social media platforms.

Review of Key Terms from Session 2 1.

Loan A loan is money, property, or other material goods given to another party in exchange for future repayment of the loan value or principal amount, along with interest or finance charges Examples: mortgage, car loan, home renovation, starting a business www.investopedia.com/terms/l/loan.asp Student Loans Student loans are borrowed funds that must be repaid with interest. Student loans provided by the federal government typically have lower interest rates and more flexible repayment options than loans from private lenders, and there are several types that students may qualify for based on their financial need. mygreatlakes.org/educate/knowledge-center/student-loan-options.html

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Silver Curriculum: SESSION TWO

Source: Investopedia

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Silver Curriculum: SESSION TWO

Extra Resource: Applying For Financial Aid

How To Apply: • Apply for financial aid each year you plan to attend college, even if you think you won’t qualify. Complete the Free Application for Federal Student Aid (FAFSA) online at fafsa.gov. • For state financial aid, contact your state grant agency. You may be required to submit the FAFSA as well. • Apply for scholarships through the applicable agency or school. You should also ask the department you are majoring in if they offer scholarships. • How you apply for aid differs depending on the type of aid and who is offering it. Check www.fafsa.gov for application deadlines.

For more information, go to this website: www.studentaid.gov/understand-aid/types Source: https://www.usaa.com/inet/wc/adv_advice-career-applyingforfinaid-ig

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Silver Curriculum: SESSION THREE

Session 3 Agenda

1. Introduction: Welcome and any new volunteer introductions 2. Learning Objectives and Key Terms • Definitions and visuals are provided in this session for you to review. 3. Review Yahoo! Finance Stock Portfolio 4. Article: “How Credit Works: Understand The Credit History Reporting System” 5. Credit Score Infographic 6. Article: “How Student Loan Debt Affects Women” 7. Important Activities Before Session 4

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Silver Curriculum: SESSION THREE

Session 3 Financial Planning for Janella (Part Two) Learning Objectives 1.

Explore the concept of credit and how it relates to student loans.

Understand the relevant key terms: Credit, Credit Utilization Ratio, Credit Score, Credit Report, Inflation.

Become familiar with gender gaps in wages, homeownership and retirement savings.

Key Terms 1.

Credit A contractual agreement in which a borrower receives something of value now and agrees to repay the lender at some later date with consideration, generally interest. The three major credit reporting bureaus are Equifax, Experian and TransUnion.

Credit Utilization Ratio The percentage of a borrower’s total available credit that is currently being utilized. This is a component used by credit reporting agencies in calculating a borrower’s credit score. Lowering the credit utilization ratio can help a borrower to improve their credit score.

Credit Score A credit score is a three-digit number based on data in your credit report that indicates how likely you are to repay a loan on time in relation to other borrowers.

Credit Report A credit report contains information that identifies you and your borrowing activity. This can include things like credit inquiries, open loans, credit cards, closed accounts, collections accounts, and public records.

Source: Investopedia

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Silver Curriculum: SESSION THREE

ARTICLE

“How Credit Works: Understand The Credit History Reporting System” by David Weliver, Money Under 30 (May 20, 2019) www.moneyunder30.com/how-credit-works

Learn what information goes on your credit report, how credit scores are calculated and how banks use your credit history to make lending decisions. If you only have 15 seconds to learn how credit works, memorize the graphic above. It shows you the six key factors that make up your credit score, the three-digit number that summarizes the entire US credit reporting system and determines whether you can get approved for a loan or a credit card. The keys to a good credit score are paying your bills on time, having a mix of accounts (credit cards and loans), and keeping these accounts in good standing for many years. But, have you ever wondered: How does credit work? Why do you need a credit report, anyway? Why do we have credit reports and scores? The credit history reporting system helps banks avoid lending money to customers who are already overextended or who have a history of not paying their debts. Less than 100 years ago, banking was a very personal experience. If you wanted to borrow money, you would need to walk into a local bank and personally convince a loan officer to give you the loan. You would have needed to show proof of employment and, quite possibly, personal references who could vouch for your character. Back then, nearly all lending was secured, meaning you would need to put up collateral in order to take out the loan. The most common example of a secured loan is a home mortgage in which the bank takes an interest in the property. Since then, the rise of credit cards as a convenient, electronic purchasing tool has made unsecured lending quite common. And although unsecured lending can be more profitable for banks, it’s also highly risky because there’s no collateral for the bank to repossess if the debtor doesn’t pay back the loan. As a result, the credit report system was created to give banks a centralized source of information about potential borrowers. When did credit reporting start? By the late 1950s and early 1960s, banks began collaborating to share customer credit data including account balances and payment histories. These early “credit bureaus” were small and limited to individual communities. By 1970, however, a few large companies emerged as leaders in credit reporting. These companies would become the three credit bureaus we know today: TransUnion, Experian (with enrollment in Experian CreditWorksSM), and Equifax. In 1970, Congress first passed the Fair Credit Reporting Act (FCRA) to regulate how credit reporting companies handled consumers’ personal information, but credit reporting was still primitive compared to the comprehensive reports we have today. By the early 1980s, credit bureaus began to electronically store the detailed personal information (Social Security numbers, addresses, dates of birth) as well as the loan, inquiry, and payment data that still comprise our credit reports today. What information is on your credit report? Your credit report contains information that identifies you, such as your name, address, and Social Security number and information about your borrowing activity, such as loan applications, balances, and payment histories. In addition to your name, Social Security number, and date of birth, your report may also contain previous addresses and employment information. Despite all of this unique information, credit report mix-ups are still quite common, especially if you have a common last name like Jones or Brown.

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Silver Curriculum: SESSION THREE

The bulk of your credit report contains detailed information about recent activity on your financial accounts. This includes: Credit inquiries: Any time you apply for credit—whether or not you are approved. Open loans: Data will include the bank, the loan amount, the date you opened the loan, your monthly payment amount, and your payment history. Open revolving accounts: These are your credit cards. Data includes the bank, your credit limit, the date you opened the account, your payment history, and the balance on the account as of your last statement date. Closed accounts: Accounts will remain on your report even after they are closed for up to seven years. Collections accounts: In the event you have a bill sold to collections, this account will appear on your credit report. This can happen even if the original debt wasn’t included on your credit report, such as a medical bill. Public records: These include tax liens, court judgments, and bankruptcy filings. Comments: Credit bureaus give you the ability to add comments to your credit report to explain records. Creditors can also add comments. How do banks use your credit report? Today, companies use the data in your credit report to create credit scores, which most lenders will use in their underwriting as an alternative to manually reading your credit file. That said, you can expect an underwriter to look more closely at your credit report when you’re applying for a larger loan—such as a mortgage—or in cases where your credit score is “on the fence.” In addition to approving your loan, your credit may determine how much you’ll pay for the credit. The higher your credit score is, the less interest bank will charge you for the loan. Who cares? Well, you should if you care about saving money. For example, the difference in total interest payments on a $250,000, 30-year mortgage between a 5-percent interest rate and 8-percent interest rate is about $179,000. That is the cost of less-than-perfect credit. Sometimes, companies will use your credit score for other decisions, too. For example, you might be asked to submit to a credit check when renting an apartment or applying for a job that involves financial responsibility. (Some employers have used credit checks more broadly in their hiring process. I think that practice has dubious value, but it’s yet another reason to take care of your credit.) Finally, insurance companies often use a specific version of your credit score in determining how much you’ll pay for car insurance. What is a credit score? A credit score is a three-digit number derived from the data in your credit report that indicates how likely you are to repay a loan on time in relation to other borrowers. Different companies produce different credit scores under brand names like FICO Score and VantageScore. Each of these companies may have several different versions of their score for different end uses (for example, one for mortgage lenders, one for credit card banks, another for car insurance companies). Finally, each of these credit scores may differ depending on which of your three credit reports was used to pull the data. There are three credit bureaus: TransUnion, Experian with enrollment in Experian CreditWorksSM, and Equifax. Although most of your credit report will be the same across all three, there can be differences. In general, however, all credit scores fall somewhere on a range between 350 and 900. The higher the score, the better your payment history and creditworthiness. A lower score means banks will consider you a higher risk customer.

Silver Curriculum: SESSION THREE

What is a good credit score? Although it depends on which score you’re looking at, you can be confident that a score of 720 is “good” on most scales, while a score of 800 is “very good” on most scales. If you have a score of at least 700, you’ll have the best chance of getting approved for the best credit card offers, auto loan rates, and mortgage rates. Scores in the high 600s aren’t necessarily bad, but they won’t qualify you for all loans or the best rates. With a sub-700 credit score, you could also still be declined for many of the best credit card offers. Finally, it’s important to note that once your credit score approaches the high 700s to low 800s, any further increases won’t do much for you…banks will already give you the best rates. (It’s like if a prof awards an A+ to numerical grades of of 97-100, once you hit 97 there’s no additional benefit to getting a 98 or 99, etc.) How do you get a good credit score? There are three big components to a good credit score: establishing a healthy mix of loans and revolving accounts over time, paying bills on time (every time), and avoiding high levels of debt. How long does it take to build a good credit score? The first step—building credit by establishing a healthy mix of loans and revolving accounts—is often the trickiest, because it’s a catch-22: You need to get credit before you have a credit history, but it’s difficult get credit before you have a credit history! There are several ways to establish credit for the first time, but it’s arguably easier to do when you’re young and either in college or still dependent on your parents. For example, you can: • • • • • •

Ask a parent to make you an authorized user on one of their credit cards. Take out a federal student loan, which generally does not require a credit check. Take out a loan with a cosigner. Get a secured credit card, which works like a prepaid debit card except it builds credit. Get a credit builder loan. Use a free service like Experian Boost, which allows you to benefit from on-time payments that otherwise wouldn’t be included in your credit profile.

Once you have one open account, it becomes easier to get additional accounts after about six months. Over time, you’ll get the best credit score when you have at least one or two credit cards and one or two loans (like student or auto loans). That said, having more accounts is not necessarily better. Finally, a key part of credit scoring is time. It typically takes three years of responsible credit use to have an average credit score in the mid to high 600s and up to seven years to develop a very good credit score of 700 or more. Why is paying your bills on time so important? Your payment history accounts for approximately 35 percent of your credit score, more than any other factor. Making consistent on-time payments is the number one thing you can do to build a good credit score. Not surprisingly, nothing will wreck your credit score faster than failing to pay these bills on time. The longer you take to pay them (and the more often you’re late), the lower your credit score will fall. An example: I’ve had fairly good credit all my life, but once many years ago I screwed up and paid two bills late (just by a few days). My credit scores fell by an average of 60 points and it took two years to fully recover. How does debt affect your credit score? Too much debt is bad for your finances and it’s bad for your credit score, too. Your overall debt level accounts for 30 percent of your credit score.

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Silver Curriculum: SESSION THREE

Credit-card utilization (or how much of a balance you carry in relation to your credit limit) affects your credit score. The higher your combined balances in relation to your combined credit limits, the more your credit score will suffer. For the best credit score, you want to keep this “utilization ratio” as low as possible. Keep in mind that even if you pay your balance in full every month, your credit report reflects your card balance on the last day of your billing cycle. If you frequently use most of your available credit each month, your credit score will suffer even though you’re paying the balance in full every time. You can avoid this by paying off most of your balance on the day before your credit card billing statement closes. Your credit report will show a $0 balance—or close to it. Other factors affecting your credit score Other factors that affect your credit score include the average age of your credit accounts (credit file age), account diversity, recent credit inquiries, and public records. With the exception of public records, each of these factors make up about 10 to 15 percent of your credit score. The longer you have had credit accounts open, the better. If you don’t have to cancel an old, unused credit card, don’t. Your credit score won’t be as good as it could be if you only have credit cards or only have loans. Finally, try to limit credit applications to no more than two every six months. Checking your own credit score is known as a “soft inquiry” and does not count toward this limit. Too many credit applications in a short period of time can cause your score to go down because it looks like your desperate for credit. There’s an exception, however, for credit inquires of the same nature that indicate you’re rate shopping. If these inquiries are within a month or so of each other, they will generally only be counted as one inquiry. Public records are one thing you definitely do not want on your credit report, because it usually means that someone has taken you to court over a debt. Many, like tax liens or credit judgments, can drag your score down for years. A bankruptcy filing can be the kiss of death to your credit score, at least for a number of years. Your credit score can recover from bankruptcy, but it will take between seven and 10 years. Like building credit from scratch, the hardest part will be getting your first one or two credit accounts after bankruptcy. With few exceptions, this usually means starting with a secured credit card. How do you fix bad credit? The same way you build good credit! By paying your bills on time and staying out (or getting out) of debt. Unless you’ve been the victim of identity theft or otherwise have errors on your credit report, the only way to “repair” your credit is to pay your bills, pay down debt over time, and limit applying for new credit. Expect it to take between one to two years of responsible credit management to make an impact on a troubled credit score (longer in the case of bankruptcy), and be wary of anybody who tries to sell you shortcuts to a better credit score. For more, read our article on how to repair your credit on your own. How do you track your own credit? These days it’s easy to track your credit score with any number of free credit monitoring apps or paid subscriptions. Many credit cards even provide your FICO Score on monthly statements, too.

Silver Curriculum: SESSION THREE

You can sign up for a monthly credit monitoring service. There are both free and paid credit tracking services. The free services will typically give you one version of your credit score and a limited look at your credit report. Paid services are more likely to give you access to all of your credit scores and/or complete access to your credit report. In the United States, the best way to review all three of your credit reports for free is to go to annualcreditreport.com. The US government mandates that all consumers can receive each of their three credit scores from this site once a year for free. While checking your complete reports at least once a year is the bare minimum, I would also recommend using another free credit monitoring service to routinely monitor your score and get alerted to any problems. Credit monitoring is also really helpful if you’re getting ready to apply for a mortgage or you suspect you’re susceptible to someone else trying to use your credit information. To get an immediate idea of where your score is without creating any new accounts, use our simple credit score estimator tool. Summary Credit reports record your payment history on all of your installment loans and credit cards. Credit scores quickly summarize your creditworthiness on a scale between 300 and 900 based on the data contained in your credit report—the higher your score, the higher your chance of getting the best rates on loans and credit cards. Banks use credit reports and scores to decide whether to loan money, but your credit information may also be used for apartment rentals, employment screening, and insurance underwriting. Maintaining a good credit score isn’t difficult. Don’t overextend yourself, but don’t avoid credit altogether. Get a loan and a couple of credit cards and pay the bills religiously.

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Silver Curriculum: SESSION THREE

Credit Score Infographics

Credit Score Ranges

Excerpted from “Credit Score Ranges: How Do You Compare?” by Bev O’Shea, NerdWallet, www.nerdwallet.com/blog/finance/credit-score-ranges-and-how-to-improve/

Five Basic Components of Your Credit Score

Excerpted from “Payment History is the Biggest Part of Your Credit Score: Here’s How To Fix It,” by Curtis Westman, The Penny Hoarder, retrieved from: https://www.thepennyhoarder.com/credit-scores/payment-history/

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Silver Curriculum: SESSION THREE

ARTICLE

â&#x20AC;&#x153;How Student Loan Debt Affects Womenâ&#x20AC;? by Bruce McClary, U.S. News & World Report (May 29, 2019) www.usnews.com/education/blogs/student-loan-ranger/articles/2019-05-29/how-student-loan-debt-affects-women

Billionaire Robert F. Smith made headlines recently when he told the 2019 graduating class of Morehouse College, a historically black all-male school in Atlanta, that he would be paying off their student loans. While this is fantastic news for those 396 students, it is a drop in the bucket compared with the $1.46 trillion student loan debt crisis affecting an estimated 44 million borrowers. And according to a new report by the nonprofit American Association of University Women, women hold nearly two-thirds of outstanding student loan debt in the U.S., at nearly $929 billion, and a disproportionate number of these borrowers are women of color. The report also shows disparity in loan amounts between men and women, with an average cumulative debt for women graduating with a bachelor's degree at $21,619 versus $18,880 for men. Plus, women take about two years longer than men to repay student loans, per the AAUW report, with black and Hispanic women paying off student loan debt even more slowly. There are a number of reasons for the disparities, including the gender pay gap that women face upon graduating from college and child care issues, both of which affect minority women in dramatic fashion. Equal Pay Day for Women was established by the National Committee on Pay Equity to symbolize the number of days a woman must work into the next year in order to earn what a man earned in the previous year. The 2019 date was April 2, but for black women, that day won't arrive until Aug. 22. It's even worse for Native American and Hispanic women, who will have to wait until Sept. 23 and Nov. 20, respectively, to reach the equal pay day. As a result of the pay gap, women find it more difficult to pay off their student debt. The lack of quality affordable child care is especially hard on minority women, contributing to many being unable to finish school or even work at all. A report by the Center for American Progress says that this lack of child care causes a systemic problem that is repeated generationally since many mothers are unable to finish school or work to afford child care and provide for their family. Compounding the problem is that if a woman starts school and borrows student loans to do so, being unable to finish a program leaves her not only with debt but with few prospects of making a living that will pay enough to cover that debt and basic needs. Unfortunately, the chances of a billionaire paying off student loans are akin to winning the lottery. Grants and scholarships, which are forms of financial aid that do not require repayment, are the best ways to reduce the amount of student loan debt taken on or to eliminate the need for loans entirely. While the research can be daunting, especially for minority women, there are resources that can help.

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Silver Curriculum: SESSION THREE

The Charlotte W. Newcombe Foundation, for example, provides scholarships for mature women over the age of 25, which are provided as grants to partner colleges and universities. There are also federal grants based on financial need that are available and cost nothing but time to apply for, such as the Pell Grant, which is awarded to undergraduate students who demonstrate exceptional financial need. To apply for the Pell Grant, all a student needs to do is fill out the Free Application for Federal Student Aid, or FAFSA. Some grants don't require the recipient to be a current college student, which could be of tremendous help to those already struggling with student loan debt. Look for grants that you may qualify for based on need or merit, or that are specific to programs or schools. Singlemothersgrants.org, for instance, offers information on all kinds of grants and assistance. The Student Loan Ranger also suggests that that anyone struggling to pay off student loans research all repayment options, including lowering payments through income-driven repayment plans or consolidation. Programs that help exist but it does take time, patience and perseverance to search for them.

Silver Curriculum: SESSION THREE

After Session 3 Important Activities Before Session 4 Activities During the week ahead, spend some time exploring the following activities before returning for Session 4. 1.

If there were any articles or aspects of Session 3 you need to finish please do so before Session 4.

Spend some time engaging with RTSWS on our social media platforms.

Review of Key Terms from Session 3 1.

Credit Score A credit score is a three-digit number based on data in your credit report that indicates how likely you are to repay a loan on time in relation to other borrowers. www.investopedia.com/terms/c/credit_score.asp

Source: Investopedia

Silver Curriculum: SESSION THREE

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Silver Curriculum: SESSION FOUR

Session 4 Agenda

1. Introduction: Welcome and any new volunteer introductions 2. Learning Objectives and Key Terms • Definitions and visuals are provided in this session for you to review. 3. Review Yahoo! Finance Stock Portfolio 4. Article: How to Calculate Your College Education Return On Investment 5. Class Discussion: Student Loan, College Enrollment, and Full-Time Earnings Charts 6. Janella’s College Financing Review Activity 7. Class Discussion: Economic Lessons from COVID-19 8. Important Activities Before Session 5

NOTES & QUESTIONS

Silver Curriculum: SESSION FOUR

Session 4 Financial Planning for Janella (Part Three) Learning Objectives 1.

Explore the concept of a college education as a financial investment

2.2 Understand the relevant key terms: Return on Investment (ROI), Subsidized Loan, Unsubsidized Loan. 3. Learn the effects the coronavirus pandemic had on the capital markets and what lessons we can apply to the future.

Key Terms 1.

Return on Investment (ROI) A performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments. ROI tries to directly measure the amount of return on a particular investment, relative to the investment’s cost. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment. The result is expressed as a percentage or a ratio.

Subsidized Loan This is a Federal Direct loan offered by the U.S. Department of Education based on financial need as determined by a student's FAFSA. Subsidized loans are only available to undergraduate students, and the government does not usually charge interest while the borrower is in school at least half-time, for the first six months after leaving school.

Unsubsidized Loan A type of Federal Direct loan offered by the U.S. Department of Education available to undergraduate or graduate students regardless of income or financial need. The government charges interest from the time the loan is disbursed through the life of the loan, with few exceptions.

Stock Market Volatility Stock market volatility in the simplest sense, measures fluctuations in stock prices. Low volatility means small fluctuations and high volatility means large fluctuations. Low volatility can be interpreted as investors being complacent, not worried. High volatility implies an element of fear in investors’ current attitudes.

Source: Investopedia

Silver Curriculum: SESSION FOUR

ARTICLE

â&#x20AC;&#x153;How To Calculate Your College Education Return On Investmentâ&#x20AC;? by Robert Farrington, Forbes (Mar. 27, 2019) www.forbes.com/sites/robertfarrington/2019/03/27/how-to-calculate-your-college-education-return-on- investment/#49421142499c

With all the talk about changes to student loan repayment plans, popular student loan forgiveness programs potentially ending, and now limits on student loan borrowing, it's essential that you fully understand what your college return on investment (ROI) is. Going to college is an investment - just like buying stocks or investing in real estate. You are spending money (tuition, room, board, and more) with the goal of earning more money in the future - due to better paying jobs and opportunities. And this has shown to be true for the last several decades according to the National Center for Education Statistics. Adults who complete a bachelors degree, on average, earn 57% more than those who are high school graduates. That's a significant boost in earnings. But, if you spend too much to achieve it, it might not be worth it. The Basic Math Of College Return On Investment When you're 17 or 18 years old, thinking about your lifetime return on investment of your college expenses is challenging. When you're that age, it's hard to even plan what classes to take, let alone your college major, future career, the implications of borrowing money to pay for school. Luckily, we live in an era where there is more data than ever to help us make decisions. To think about your return on investment, you want to look at what you spend - the cost of tuition, room, board, and more, and then compare it to what you have the potential to earn. The Social Security Administration has some aggregate data on earnings that's useful here. Controlling for various socio-demographic variables, men with bachelor's degrees would earn $655,000 more in median lifetime earnings than high school graduates and women with a bachelor's degrees would earn $450,000 more in median lifetime earnings than high school graduates. Here's the more interesting part - let's take that lifetime earnings potential and discount it for the present day value. Applying a 4 percent annual real discount rate, the net present lifetime value at age 20 of a bachelor's degree relative to a high school diploma is $260,000 for men and $180,000 for women. For those with a graduate degree, it is $400,000 for men and $310,000 for women. So, adjusting for nothing else (such as career choice), men should never spend more than $260,000 for a bachelors degree, and women should never spend more than $180,000 for a bachelors degree. The Advanced Math Of College ROI Now that we have the basics, you can take some of that same math and apply it to your situation and see if you're getting a potentially positive ROI or a negative ROI on your education costs. You can look at your school's cost of attendance (COA), which can typically be found on their financial aid webpage. Using that data, you can see the cost to attend four or five years. Then, look at what you'd expect to earn over your lifetime. This can be a challenge, but tools like Glassdoor (which show salaries in various industries and jobs) or even government websites like Transparent California, where you can view ever Californian Public Worker's salary. Using that data, you can see what you'd expect to make throughout your career, and add up your earning potential. Once you do the math, you can see how the cost of your education stacks up for ROI.

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Silver Curriculum: SESSION FOUR

Easy Rules Of Thumb To Remember Doing the math can be challenging, but there are also some simple rules to remember when calculating your ROI. First, while it may not seem like it, you can adjust your variables. You can attend a less expensive college (or do a path like community college first, then a state school). You can also earn more after graduation. Look at not just a career but adding in a side hustle as well. Maybe you are really passionate about a certain career, even though it doesn't pay very well. You can still have a positive ROI, but you'll earn that ROI with other jobs. Second, borrowing to pay for school is expensive. It is a drag on your ROI due to the interest that will be accruing on your loans. And easy way to keep your ROI in balance with student loans is to never borrow more than you expect to earn in your first year after graduation. This is very career dependent, but it highlights how you can borrow more if you plan on going into a higher paying industry. Finally, this math only includes high school versus bachelor degree. However, the same logic can apply to trade school or graduate school. You just need to get data around what you expect to make after graduation versus the cost of your education program. There's More Than Money When Going To College Some will argue that there is more than a money ROI when it comes to higher education. And I'd be remiss to ignore that because it's true. There is more to higher education than dollars in, dollars out. Going to college has a variety of secondary benefits, such as a student moving out from home and learning how to handle communication, problem solving, and more. These real world skills are tough to put a monetary value on. But, on the flip side, college is an expensive way to find yourself. While moving out of the house and having new experiences can be a very positive thing, it can easily become a future regret if the burden of student loans and poor financial choices weighs on you for a large portion of your life. And my challenge would be, are there other ways to get these experiences while trying to build a positive ROI on education spending? My answer is yes. Final Thoughts Thinking about the ROI of your education spending can be a challenge. But it's a must for every high schooler and parent.

Silver Curriculum: SESSION FOUR

AAUW “Deeper in Debt: Women and Student Loans” Charts www.aauw.org/research/deeper-in-debt/

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Silver Curriculum: SESSION FOUR

ACTIVITY - Janella’s College Financing Review

Gather with your group to review Janella's prospective college choices, taking into consideration what you've learned about credit, student loan debt and ROIs. As you do, complete the following activities and answer these questions: 1. What were the primary reasons for selecting the two colleges your group researched for Janella?

2. 2 What major/career is Janella considering? How much can she expect to make in her first year of employment after earning her degree? Use PayScale’s research to identify the starting salary for a college graduate with the degree your group has identified. Be sure to review starting (not average) salary and location due to varying costs of living. The relevant PayScale webpage is found at: https://www.payscale.com/research/US/Degree

3.3How much student loan debt is Janella expecting to take to help finance four years of college? Based on her starting salary, what amount of student loan debt is reasonable for Janella, if she follows the rule of thumb that her student loan payments should not exceed 10% of her take home pay? Use Nerdwallet’s “Is College Worth It? Here’s How to Do the Math” to look up salaries and calculate her monthly payments. You can find it via Google search. The actual web address is: https://www.nerdwallet.com/blog/loans/student-loans/is-college-worth-it/

As a group, compare the ROI for each of the colleges that Janella is considering using PayScale’s 2018 College ROI Report. You can find it via Google search. The act web address is: https://www.payscale.com/college-roi Which of the two schools provides a better ROI for Janella’s education?

Given the estimated cost for Janella to attend either school, which would you recommend she attend? Why? How do you recommend she finance her education? Are there additional opportunities for scholarships based on a change in her standardized test scores, interested, major, etc.?

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Silver Curriculum: SESSION FOUR

ACTIVITY - Classroom Discussion: Economic Lessons from COVID-19

Volatility Explained: • Different events or occurrences like a pandemic can greatly affect the capital markets/stock market and cause volatility in the market • Volatility in the market measures fluctuations in stock prices. Low volatility means small fluctuations and high volatility means large fluctuations. Low volatility can be interpreted as investors being complacent, not worried. High volatility implies an element of fear in investors’ current attitudes. • During volatile times, many investors get spooked and begin to question their investment strategies. This is especially true for novice investors, who can often be tempted to pull out of the market altogether and wait on the sidelines until it seems safe to dive back in. • The thing to realize is that market volatility is inevitable. It's the nature of the markets to move up and down over the short-term. Trying to time the market is extremely difficult. One solution is to maintain a long-term horizon and ignore the short-term fluctuations. Finance Industry and Economy Takeaways: • Due to COVID-19 people all over the world have had to remain quarantined following Stay at Home orders in order to control the overall spread and impact. Due to these drastic measures of containment, there has been a substantial impact on the global economy. • Economic activity has decreased significantly as people are no longer traveling for work or vacation, companies have had to temporarily shut down or close facilities, and Americans aren’t spending as much money. • Uncertainty around the economy lead people to sell their stocks and take their money out of the stock market. This causes the stock prices to drop and the value of the company decreases. However, some stocks did increase because of its use during the coronavirus, such as, Zoom and Clorox. • All of these measures have caused unemployment rates to reach record highs. More than 38 million people filed for unemployment due to the coronavirus, predicted to be nearly 16% by July 2020 – higher than at any point since the Great Depression. This also means there is a severe lack of jobs due to coronavirus. • The US government passed a stimulus bill of roughly 2 trillion dollars to financially support American citizens and companies who are heavily impacted by the pandemic. Personal Finance Lessons: • Make sure to have at least a 3-6 month emergency fund that can cover all of your expenses • Your emergency fund should be saved where it can quickly be liquidated if needed - a bank savings account, CDs, money market accounts, etc. • Create a budget now so you can start saving and investing and also create a crisis budget to be prepared if a financial crisis happens • Don’t let credit card debt build up, this has a high interest rate so this can easily build when you can’t pay this off

“Sources: Investopedia, Forbes, Statista

Silver Curriculum: SESSION FOUR

HOW COVID-19 HAS AFFECTED HIGHER EDUCATION: • College campuses across the country closed due to coronavirus safety concerns. Schools and teachers had to quickly transfer their courses online, while students adjusted to the new normal of online learning. This also meant school residential buildings were closed and students had to move out. Students who worked on campus also lost those jobs. • Students not only had to adjust to online learning, but also many were given just days to have to pack up their lives, put their possessions in storage, and find a new living arrangement, along with often a new job as well. • This has disproportionately and substantially affected international students, students with health concerns, students unable to go home or afford alternate housing, and students who were struggling to stay in college to begin with. • College campuses are still trying to figure out what to do in the fall. Will they be back in-person, completely virtual, or a hybrid of both? They are preparing for lower enrollment numbers and balancing campus life/quality of courses and safety. • Many students are factoring the changes on college campuses into their college decisions: ◦ Where they decide to go to college - many students have decided to stay closer to home ◦ Their college budget - Due to uncertainty and some discontent with the online courses, some students are choosing colleges with lower tuition - state schools or community colleges vs. out-of-state and private colleges (even if they are elite) ◦ If they should defer or wait to enroll in college - as of right now most colleges are still allowing students to defer and some students have decided to take a gap year or delay college until the situation is remedied ◦ If virtual learning is worth the high tuition? As mentioned before there is some discontent among students with the online version of their courses not having the same quality, access to resources, or personal connection. As of right now, most colleges if not all are not planning on reducing their tuition. • On a positive note, since colleges are seeing declines in enrollment students on waitlists are making it to the top at a faster pace than typical, including elite colleges. • So far experts say COVID-19 will have some lasting effects on colleges across the country, but it won’t change higher education altogether. They believe... • Eventually, once safety concerns are alleviated, colleges will still be mainly in-person and have campus life as usual. • Schools and teachers/courses will most likely be incorporating more technology into their courses, along with having a virtual platform in place and to receive training on virtual learning • Unfortunately, many small or medium-sized colleges will not make it through this difficult financial time or will have to make extreme financial cuts. This will also depend on how much federal aid is given to higher education institutions over the next few months.

Sources: NY Times, CNBC, Forbes

Silver Curriculum: SESSION FOUR

ARTICLE How COVID-19 Has Affected Higher Education NY Times, CNBC, Forbes • College campuses across the country closed due to coronavirus safety concerns. Schools and teachers had to quickly transfer their courses online, while students adjusted to the new normal of online learning. This also meant school residential buildings were closed and students had to move out. Students who worked on campus also lost those jobs. • Students not only had to adjust to online learning, but also many were given just days to have to pack up their lives, put their possessions in storage, and find a new living arrangement, along with often a new job as well. • This has disproportionately and substantially affected international students, students with health concerns, students unable to go home or afford alternate housing, and students who were struggling to stay in college to begin with. • College campuses are still trying to figure out what to do in the fall. Will they be back in-person, completely virtual, or a hybrid of both? They are preparing for lower enrollment numbers and balancing campus life/quality of courses and safety. • Many students are factoring the changes on college campuses into their college decisions: • Where they decide to go to college - many students have decided to stay closer to home • Their college budget - Due to uncertainty and some discontent with the online courses, some students are choosing colleges with a lower tuition - state schools or community colleges vs. out-of-state and private colleges (even if they are elite) • If they should defer or wait to enroll in college - as of right now most colleges are still allowing student t defer and some students have decided to take a gap year or delay college until the situation is remedied • If virtual learning is worth the high tuition? As mentioned before there is some discontent among students with the online version of their courses not having the same quality, access to resources, or personal connection. As of right now, most colleges if not all are not planning on reducing their tuition. • On a positive note, since colleges are seeing declines in enrollment students on waitlists are making it to the top at a faster pace than typical, including elite colleges. • So far experts say COVID-19 will have some lasting effects on colleges across the country, but it won’t change higher education altogether. • They believe... • Eventually once safety concerns are alleviated, colleges will still be mainly in-person and have campus life as usual. • Schools and teachers/courses will most likely be incorporating more technology into their courses, along with having a virtual platform in place and to receive training on virtual learning • Unfortunately, many small or medium-sized colleges will not make it through this difficult financial time or will have to make extreme financial cuts. This will also depend on how much federal aid is given to higher education institutions over the next few months.

Silver Curriculum: SESSION FOUR

ARTICLE

10 Ways to Prepare for a Personal Financial Crisis By Amy Fontinelle, Investopedia, Updated April, 2020

The thought of being hit with a major negative event that could affect your finances, such as a job loss, an illness, a car accident—or a pandemic—can keep anyone awake at night. However, the prospect of something expensive and beyond your control happening becomes less threatening if you’re properly prepared. Here are 10 steps for how to deal with an economic crisis. 1. Maximize Your Liquid Savings Cash accounts, such as checking, savings, and money market accounts—as well as certificates of deposit (CD) and short-term government investments—will help you the most in a crisis. You’ll want to turn to these resources first because their value doesn’t fluctuate with market conditions, unlike stocks, index funds, exchange traded funds (ETFs), and other financial instruments in which you might have invested. This means you can take your money out at any time without incurring a financial loss. Also, unlike retirement accounts, you won’t face early withdrawal penalties or incur tax penalties when you withdraw your money, except for CDs, which usually require you to forfeit some of the interest you’ve earned if you close them early. Don’t invest in stocks or other higher-risk investments until you have several months’ worth of cash in liquid accounts. How many months’ worth of cash do you need? It depends on your financial obligations and risk tolerance. If you have a major obligation, such as a mortgage or a child’s ongoing tuition payments, you might want to have more months’ worth of expenses saved up than if you’re single and renting an apartment. A three-month expense cushion is considered a bare minimum, but some folks like to keep six months or even up to two years’ worth of expenses in liquid savings to guard against a long bout of unemployment. 2. Make a Budget If you don’t know exactly how much money you have coming in and going out each month, you won’t know how much money you need for your emergency fund. And if you aren’t keeping a budget, you also have no idea whether you’re currently living below your means or overextending yourself. A budget is not a parent—it can’t and won’t force you to change your behavior—but it is a useful tool that can help you decide if you’re happy with where your money is going and where you stand financially. 3. Prepare to Minimize Your Monthly Bills You might not have to do it now, but be ready to start cutting out anything that is not a necessity. If you can get your recurring monthly expenses as low as they can be, you’ll have less difficulty paying your bills when money is tight. Start by looking at your budget to see where you might currently be spending more money than necessary. For example, are you paying a monthly fee for your checking account? Explore how to switch to a bank that offers free checking. Are you paying $40 a month for a landline you rarely use? Learn how you might cancel it or switch to a lower rate emergency-only plan. You might find ways you can start cutting your costs now just to save money. Maybe you're in the habit of letting the heater or air conditioner run when you’re not home or leaving lights on in rooms you aren’t using. You may be able to trim your utility bills. Now might also be a good time to shop around for lower insurance rates and find out if you can cancel certain types of insurance, such as car insurance, in the event of an emergency. Some insurance companies might give you an extension, so look for the steps involved and be prepared.

Silver Curriculum: SESSION FOUR

4. Closely Manage Your Bills There’s no reason to waste money on late fees or finance charges, yet families do it all the time. During a job loss crisis, you should be extra studious in this area. Simply being organized can save you a lot of money when it comes to your monthly bills. One late credit card payment per month could set you back $300 over the course of a year. It could even get your card canceled at a time when you might need it as a last resort. Set a date twice a month to review all your accounts, so you don’t miss any due dates. Schedule electronic payments or mail checks so that your payment arrives several days before it’s due. This way, if a delay occurs, your payment will probably still arrive on time. If you’re having trouble keeping track of all your accounts, start compiling a list. When your list is complete, you can use it to make sure you’re on top of all your accounts and to see if there are any you can combine or close. Don’t neglect your non-cash assets, such as frequent flier miles, credit card rewards points, and gift cards. 5. Take Stock of Your Non-Cash Assets and Maximize Their Value Being prepared might include identifying all of your options. Do you have frequent flyer miles you can use if you need to travel? Do you have extra food in your house that you can plan meals around to lower your grocery bills? Do you have any gift cards you can put toward entertainment or sell for cash? Do you have rewards from a credit card that you can convert to gift cards? All these assets can help you lower your monthly expenses, but only if you know what you have and use it wisely. Knowing what you have can also prevent you from buying things you don’t need. 6. Pay Down Your Credit Card Debt If you have credit card debt, the interest charges you’re paying every month probably take up a significant portion of your monthly budget. If you make it a point to pay down your credit card debt, you will reduce your monthly financial obligations and put yourself in a position to start building a better nest egg. Getting rid of interest payments frees you to put your money toward more important things. 7. Get a Better Credit Card Deal If you’re currently carrying a balance, it could really help you to transfer that balance to another card with a lower rate. Paying less interest means that you can pay off your total debt faster and/or gain some breathing room in your monthly budget. Just make sure that what you save from the lower interest rate is greater than the balance transfer fee. If you’re transferring your balance to a new card with a low introductory annual percentage rate (APR), aim to pay off your balance during the introductory period, before your rate goes up. It's also worth asking if your current credit card company will lower your monthly interest rate. Sometimes companies will do this to keep you as a customer; it's cheaper for them to keep an existing customer than it is to recruit a new one. There are always ways for you to earn extra money, whether it’s selling unneeded possessions, freelancing in your off hours, or even getting a second job.

8. Look for Ways to Earn Extra Cash Everyone has something they can do to earn extra money, whether it’s selling possessions you no longer use (either online or in a garage sale), babysitting, chasing credit card and bank account opening bonuses, freelancing, or getting a second job. The money you earn from these activities may seem insignificant compared to what you earn at your primary job, but even small amounts can add up to something meaningful over time. Besides, many of these activities have side benefits: You might end up with a less cluttered house or discover that you enjoy your side job enough to make it your career. 9. Check Your Insurance Coverage In step three we recommended shopping around for lower insurance rates. If you’re carrying too much insurance—or could be getting the same coverage from another provider for a better price—these are obvious changes you can make to lower your monthly bills. That being said, having excellent insurance coverage can prevent one crisis from piling on top of another.

Silver Curriculum: SESSION FOUR

There are always ways for you to earn extra money, whether it’s selling unneeded possessions, freelancing in your off hours, or even getting a second job. 8. Look for Ways to Earn Extra Cash Everyone has something they can do to earn extra money, whether it’s selling possessions you no longer use (either online or in a garage sale), babysitting, chasing credit card and bank account opening bonuses, freelancing, or getting a second job. The money you earn from these activities may seem insignificant compared to what you earn at your primary job, but even small amounts can add up to something meaningful over time. Besides, many of these activities have side benefits: You might end up with a less cluttered house or discover that you enjoy your side job enough to make it your career. 9. Check Your Insurance Coverage In step three we recommended shopping around for lower insurance rates. If you’re carrying too much insurance—or could be getting the same coverage from another provider for a better price—these are obvious changes you can make to lower your monthly bills. That being said, having excellent insurance coverage can prevent one crisis from piling on top of another. It’s also worth making sure that you have the coverage you really need and not just a bare minimum. This applies to policies you already have, as well as to policies you may need to purchase. A disability insurance policy can be indispensable if you sustain a significant illness or an injury that prevents you from working, and an umbrella policy can provide coverage where your other policies fall short. 10. Keep Up With Routine Maintenance If you keep the components of your car, home, and physical health in top condition, you can catch problems while they’re small and avoid expensive repairs and medical bills later. It’s cheaper to have a cavity filled than to get a root canal, easier to replace a couple of pieces of wood than to have your house tented for termites, and better to eat healthy and exercise than end up needing expensive treatments for diabetes or heart disease. You might think you don’t have the time or money to deal with these things on a regular basis, but they can create much larger disruptions of your time and finances if you ignore them. The Bottom Line Life is unpredictable, but if there’s anything you can do to stave off disaster, it’s to be prepared and careful. With the right preparation you can turn a potential financial tragedy into a merely temporary setback.

Silver Curriculum: SESSION FOUR

After Session 4 Important Activities Before Session 5 Activities During the week ahead, spend some time exploring the following activities before returning for Session 5. 1.

Complete any activities or read any articles you weren’t able to finish in Session 4.

Study session 4 key terms and the post-assessment review with all key terms from Sessions 1 through 4. All students will be taking the post-assessment next session to see how much you’ve learned!

Now that you’re connected with us on social media, check out our recent posts this week.

Review of Key Terms from Session 4 1.

Source: Investopedia

Silver Curriculum: SESSION FOUR

Post-Assessment Review Sheet Study these terms below for the post-assessment quiz. Please check with your instructor for a link to a visual reference of the terms below.

Compound Interest Compound interest is interest on both the principle (starting amount of the loan) and the compounding interest paid on that loan. Example: If you borrow $1,000 (principle) with 10% interest compounded annually. 10% of $1,000 = $100. If you’ve paid nothing on the loan after one year you will owe $1,100, but after the second year you will owe 1,210 because you now have to pay 10% of $1,100 instead of just the principle of $1,000.

Stock A share of ownership in a business or corporation. Companies sell shares as a way to raise capital.

4 5. Scholarships Merit-based gift aid. These can be based on accomplishments such as academic performance (grades or standardized test scores), artistic or athletic ability, leadership and community service. Scholarships (with rare exception) do not have to be repaid. Scholarships can come from state governments, corporations, non-profits. Often the largest source of scholarships are those awarded directly from the college or university. 6.

Grants Need-based gift aid. Qualification for grants is based on a student’s financial need, as determined by the FAFSA or CSS Profile. Grants for college can be come from the federal government, state governments and directly from the college or university.

Mortgage A mortgage, or deed of trust in some states, is a type of loan you can use to buy or refinance a home. Mortgages are also referred to as “mortgage loans.” Mortgages are a way to buy a home without having all the cash upfront. When you get a mortgage, your lender gives you a set amount of money to buy the home. You agree to pay back your loan – with interest – over a period of several years. You don’t fully own the home until the mortgage is paid off. It’s important to note that the period of years you have to pay back your mortgage will affect your monthly payment and how much interest you will pay in total. For example, a 15-year mortgage will have a higher monthly payment than a 30- year mortgage, but with a 15-year mortgage you will pay less interest since you are paying off your loan in a shorter amount of time.

Silver Curriculum: SESSION FOUR

Student Loans Borrowed funds that must be repaid with interest. Student loans provided by the federal government typically have lower interest rates and more flexible repayment options than loans from private lenders, and there are several types that students may qualify for based on their financial need.

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FAFSA — Free Application for Federal Student Aid The form the federal government, state government, colleges and universities and other organizations use to award financial aid. The FAFSA should be completed by the required deadline prior to each year of college, as financial aid is determined on a year-by-year basis.

12.

EFC — Expected Family Contribution The amount of money that a student's family is expected to contribute to college costs for one year. Financial need is calculated as the difference between the cost of attending school and the expected family contribution. The EFC considers family income, assets, size of current household, and the number of family members currently enrolled in college.

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Credit Score A three-digit number based on data in your credit report that indicates how likely you are to repay a loan on time in relation to other borrowers.

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Credit Report A report that contains information that identifies you and your borrowing activity. This can include things like credit inquiries, open loans, credit cards, closed accounts, collections accounts, and public records.

17.

Inflation Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling. Inflation can be viewed positively or negatively depending on the individual viewpoint and rate of change. Those with tangible assets, like property or stocked commodities, may like to see some inflation as that raises the value of their assets. People holding cash may not like inflation, as it erodes the value of their cash holdings. Increasing prices result in your money not going as far as it once did. Maybe you could buy four candy bars with a dollar in 1980, but today you could only buy half of one; that's Inflation. This can directly affect your bank accounts, for example, If inflation outpaces the interest you earn on your bank account, it will feel like losing money. Your balance might be increasing, but not enough to keep up with higher prices. Ideally, an optimum level of inflation is required to promote spending to a certain extent instead of saving, thereby nurturing economic growth.

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Silver Curriculum: SESSION FOUR

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Silver Curriculum: SESSION FIVE

NOTES & QUESTIONS

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Silver Curriculum: SESSION FIVE

Session 5 Agenda 1. Introduction: Welcome and any new volunteer introductions 2. Learning Objectives and Recommended Resources for Your Future 3. Post-Assessment • Remember this is only so we can see how much you’ve learned! We will not show your results to your school or the volunteers • Take your time to answer and remember we give our prizes for top scores! 4. Review Yahoo! Finance Portfolio 5. Janella's College Financial Planning Presentations 6. Reminder About the Upcoming Field Trip 7. Review the Resources at the end of this workbook

Session 5 Post-Assessment and Janella's College Financial Planning Presentations

Learning Objectives 1.

Complete the RTSWS post-assessment to help us evaluate the impact of our program and see how much you have learned in Sessions 1 through 4.

Present your group’s completed financial plan for Janella to the entire class.

In anticipation of your upcoming field trip, explore and discuss possible future career paths in the world of finance and the strengths you could bring to the industry as a woman.

Silver Curriculum: SESSION FIVE

ARTICLE

Best Jobs for Graduates with a Finance Degree by Mike Profita, The Balance (Apr. 5, 2019)

If youâ&#x20AC;&#x2122;re intrigued by the financial markets, stocks, bonds, and other investment vehicles, and you also like to think about numbers, then a finance major is worth considering. Read on to learn about the top jobs for college graduates with a finance degree. Skills Acquired by Finance Majors Finance majors develop analytical skills in order to dissect financial statements and appraise the financial standing of companies, municipalities, and other entities. They can assess the quantitative and qualitative dimensions of business problems and evaluate the financial implications of corporate and individual actions. Graduates with a degree in finance also acquire the ability to deal with spreadsheets and with other software used to process and represent financial data. They learn to present financial information to clients and colleagues with varying levels of financial sophistication. Tip: An academic background in finance can be applied to a broad range of careers in virtually every industry. Before arriving at a final career direction, consider your unique combination of skills, interests, values, and personality traits. Top 10 Jobs for Finance Majors Here are some options to consider as you explore careers related to a finance degree. 1. Financial Planner Finance majors learn about a variety of investment vehicles, and this knowledge can help financial planners to advise clients about how to manage their finances. Finance majors can decipher trends in the securities markets and apply this perspective to their planning sessions. Financial planners must crunch numbers and apply principles of accounting in order to devise plans suitable for individual investors. They also need to inspire trust in people and promote their services. Therefore, finance majors with strong interpersonal skills and persuasive abilities will be most likely to succeed in this profession. Salary and Employment Outlook: According to the Bureau of Labor Statistics (BLS), personal financial advisors earned an average of $90,640 in May 2017 and jobs are predicted to expand at a much faster than average rate of 15% through 2026. 2. Financial Analyst Financial analysts research stocks, bonds, companies, and industries to assist bankers, investors, and corporate finance officers with mergers, acquisitions, and stock/bond offerings, as well as corporate expansions and restructuring. They can capitalize on their finance major training as they dissect financial statements and other financial data. Financial analysts build financial models and conduct complex quantitative analyses. Financial analysts also produce reports detailing their findings and present their analyses to other members of the banking or finance team. Salary and Employment Outlook: According to the BLS, financial analysts earned an average of $84,300 in May 2017 and jobs are predicted to grow at a faster than average rate of 11% through 2026.

Silver Curriculum: SESSION FIVE

corporate expansions and restructuring. They can capitalize on their finance major training as they dissect financial statements and other financial data. Financial analysts build financial models and conduct complex quantitative analyses. Financial analysts also produce reports detailing their findings and present their analyses to other members of the banking or finance team. Salary and Employment Outlook: According to the BLS, financial analysts earned an average of $84,300 in May 2017 and jobs are predicted to grow at a faster than average rate of 11% through 2026. 3. Investor Relations Associate Finance majors with strong writing, organizational, and communication skills can thrive in this role. Investor relations professionals prepare and present financial information about their company or corporate clients to investors, analysts, and business media. Investor relations professionals must digest, interpret, highlight, and present information from financial statements. The analytical and software tools developed through their finance major training facilitate this process. Salary and Employment Outlook: According to Payscale, investor relations associates earn an average salary of $64,352. 4. Budget Analyst Budget analysts apply principles of finance to projects and proposals in the business, educational, governmental, and not-for-profit sectors. They analyze budgets and evaluate the financial impact of continuing ventures and new ventures. Budget analysts must have refined communication skills because they interview managers in order to gather information for proposals. They also train staff regarding the budget development processes for their organization. Finance majors develop the essential analytical and communication skills needed to become a successful budget analyst. Salary and Employment Outlook: According to the BLS, budget analysts earned an average of $75,240 in May 2017 and jobs are predicted to grow by as much as 7% on average through 2026. 5. Actuary Actuaries play a leadership role in financially oriented businesses such as insurance, banking, rating agencies, and accounting firms. The finance graduate with strong mathematical skills is ideally positioned to calculate the likelihood of various events and to assess the financial consequences for those outcomes. Just like the finance major, actuaries manipulate software to perform calculations and represent their findings. They present their recommendations to managers at their firm and convince others of the soundness of their decisions. Salary and Employment Outlook: According to the BLS, actuaries earned an average of $101,560 in May 2017 and jobs are predicted to grow at a much faster than average rate of 22% through 2026. 6. Accountant Finance majors learn to construct, interpret, and critique financial statements while completing the accounting component of their studies. Thus, they become capable of carrying out complex accounting work in financially oriented industries. â&#x20AC;&#x153;Best Jobs for Graduates With a Finance Degreeâ&#x20AC;? by Mike Profita, The Balance retrieved from: https:// www.thebalancecareers.com/top-jobs-for-finance-majors-2064048

Silver Curriculum: SESSION FIVE

Just like the finance major, actuaries manipulate software to perform calculations and represent their findings. They present their recommendations to managers at their firm and convince others of the soundness of their decisions. Salary and Employment Outlook: According to the BLS, actuaries earned an average of $101,560 in May 2017 and jobs are predicted to grow at a much faster than average rate of 22% through 2026. 6. Accountant Finance majors learn to construct, interpret, and critique financial statements while completing the accounting component of their studies. Thus, they become capable of carrying out complex accounting work in financially oriented industries. â&#x20AC;&#x153;Best Jobs for Graduates With a Finance Degreeâ&#x20AC;? by Mike Profita, The Balance retrieved from: https:// www.thebalancecareers.com/top-jobs-for-finance-majors-2064048 Students of finance develop a number of accountancy skills as they learn to analyze business problems with precision and attention to detail, which prepares them for the world of accounting. Just like accountants, finance majors learn to present financial information to clients and colleagues by using charts, graphs, and other visual aids. Entry level accounting jobs can be gateway jobs leading to corporate financial management positions, or leadership positions with non-profits and government agencies. Salary and Employment Outlook: According to the BLS, accountants earned an average of $69,350 in May 2017 and jobs are predicted to grow at a faster than average rate of 10% through 2026. 7. Credit Analyst Credit analysts evaluate the financial standing of loan prospects and assess the risks involved with offering them financing. Finance majors learn to appraise the financial viability of entities and interpret their financial records and data. The investigative mindset of a finance major would enable the credit analyst to scrutinize the legitimacy of financial information furnished by clients. Finance majors analyze trends in industries that can impact the ability of organizations to generate the income necessary to repay loans. They have the communication skills necessary for credit analysts to extract information from prospective clients and convey their analyses to colleagues. Salary and Employment Outlook: According to the BLS, credit analysts earned an average of $71,290 in May 2017 and jobs are predicted to grow by as much as 8% on average through 2026. 8. Attorney Lawyers in many areas of practice, including divorce, product liability, civil litigation, corporate, labor, and securities law, benefit from a knowledge of finance. Attorneys who investigate financial irregularities must read and understand financial statements. Lawyers in civil cases need the skills to estimate appropriate compensation for settlements. Research and analytical skills developed by finance majors enable attorneys to prepare their cases. Presentation skills and knowledge of presentation software help attorneys to deliver arguments and prepare exhibits. Salary and Employment Outlook: According to the BLS, lawyers earned an average of $119,250 in May 2017 and jobs are predicted to grow by as much as 8% on average through 2026. 9. Commercial Real Estate Agent Finance majors with strong verbal skills and a sales orientation should consider a career as a commercial real estate agent. Commercial real estate agents analyze the business plans and financial status of clients in order to recommend appropriate spaces for their enterprises.

Silver Curriculum: SESSION FIVE

Research and analytical skills developed by finance majors enable attorneys to prepare their cases. Presentation skills and knowledge of presentation software help attorneys to deliver arguments and prepare exhibits. Salary and Employment Outlook: According to the BLS, lawyers earned an average of $119,250 in May 2017 and jobs are predicted to grow by as much as 8% on average through 2026. 9. Commercial Real Estate Agent Finance majors with strong verbal skills and a sales orientation should consider a career as a commercial real estate agent. Commercial real estate agents analyze the business plans and financial status of clients in order to recommend appropriate spaces for their enterprises. When listing a property, brokers must estimate the value of the property based on its financial potential for prospective buyers. Agents advise clients about options for financing property acquisitions and launching new businesses. Salary: According to Payscale, commercial real estate agents earn an average salary of about $94,500. 10. Business Teacher Finance majors hone the communication and presentation skills that are essential to the teaching profession. Business teachers tap a broad knowledge of business as they instruct high school students about the fundamentals of accounting, management, marketing, and investments. Finance majors with an intense curiosity about the business world and an enthusiasm for business issues are well suited for this role. Individuals who earn advanced degrees in business can also pursue teaching jobs at junior and four-year colleges. Salary: According to Payscale, business teachers earn an average salary of $41,654.

Silver Curriculum: SESSION FIVE

ARTICLE 6 Simple Things Every College Student Should Avoid Spending Money On by Abigail Hess, CNBC Make It (July 2, 2019) www.cnbc.com/2019/07/01/simple-things-college-students-should-avoiding-spending-money-on.html

Attending college is more expensive than ever before. According to the College Board’s 2018 Trends in College Pricing Report, from 1988 to 2018, sticker prices tripled at public four-year schools and doubled at public two- year and private non-profit four-year schools. Fortunately, there are several steps that students can take to cut costs and make sure that their college experience pays off — without giving up coffee. College finance consultant Kathy Ruby tells CNBC Make It that for most students, starting college is their “first step towards financial independence.” That means students need to learn what not to waste money on. “There are decisions that you can make that are going to make a difference in what [students and families] end up having to pay,” she says. Here are six costs college students can avoid overspending on: Cars Sure, having a car on campus may make you popular when someone wants you to pick up late-night snacks or to chauffeur them to the airport, but these requests can quickly feel like you are being used for your ride. On top of that, having a car is expensive. “Don’t take a car to college. It is one of the biggest expenses for students,” says Ruby. “Most campuses have good public transportation systems, so if you can avoid taking a car, that’s going to save money on insurance and the cost of parking.” The American Automobile Association (AAA) estimates that the costs of owning and operating a car is $8,469. Factors like gas, insurance and parking can make the costs of bringing a car to college add up. According to Affordable Schools and Discover, parking on colleges campuses can range anywhere from $40 to $2,500 per semester. While extreme rates like $2,500 per semester are rare, there are many colleges that charge more than $1,000 a year. A parking pass for a full-time student costs $752.26 a semester at Columbia University and $668 a semester at Boston College. Overpriced textbooks “Students think about tuition when they enroll in a course,” Michael Hansen, CEO of education company Cengage, tells CNBC Make It. “But textbook costs are often unexpected, and that makes it even more stressful.” According to a survey of 1,651 current and former college students by Cengage, 85% say that textbook and course material expenses are financially stressful, and 43 percent say they have skipped meals in order to afford these costs. “Historically what happened is the industry, including us many years ago, made a mistake in thinking, ‘Oh, we have a lot of pricing power because faculty decide what to teach with and the student has to pay for it,’” says Hansen. “Over time, the industry just ratcheted up the prices — sometimes 10 percent, twice a year — and that led to an unsustainable model.” The biggest step students can take to save money on textbooks is consult with their local librarian to see if they can borrow their books from their library or a nearby one. If renting is not an option, textbook comparison sites such as BookFinder.com, SlugBooks and Campusbooks.com help students search their required reading by title or ISBN and allow them to see which outlet offers the cheapest price for a given text. Once they have purchased or rented a textbook, students can further lower their costs by sharing with a classmate.

Silver Curriculum: SESSION FIVE

While it is illegal to make photocopies of a textbook, there’s nothing wrong with splitting textbook custody. By taking turns with the textbook, students can reduce their costs significantly. Storage In the United States, self-storage is a $38 billion industry. According to Curbed, approximately one in 11 Americans pays an average of $91.14 per month to store their belongings with a self-storage company. Since college students often move several times throughout their college careers and typically leave campus during the summer, it makes sense they’d be tempted to take advantage of these kinds of services. But students can save serious cash by not paying for storage. Instead, students can try to keep their belongings on campus to a minimum, transport them back home over the summer or make a connection with a person who lives nearby and is willing to store their belongings for free. Swanky housing The College Board estimates that students at public universities spend an average of $10,800 on room and board each school year. But schools often offer a wide range of housing options, and students can save money by choosing wisely. “Many colleges have variable housing prices. A nicer, newer apartment-style living situation is going to be more expensive than the traditional two-person dorm,” says Ruby. “The more roommates you have, the better.” It may sound like fun to live in the nicest dorm on campus all by yourself, but your wallet will thank you when you graduate with less debt to pay off just because you had a classic college dorm room for four years. Plus, having roommates is a great way to build a community and make friends. Credit cards One of the biggest traps that students can fall into in college is amassing credit card debt. Students should arrive on campus with one credit card on hand and a plan for paying off their balance each month. John Ganotis, founder of CreditCardInsider.com, recommends the Capital One Journey Student Credit Card to CNBC Make It. Students should be particularly wary of wasting money on flashy highly-advertised cards. In 2009, the Credit Card Accountability, Responsibility and Disclosure (CARD) Act banned banks from aggressively marketing credit cards and financial products on college campuses, but this regulation does not stop banks from actively pursuing college students. “There are regulations that are still in effect, but students still need to do a little bit of homework,” Suzanne Martindale, a consumer finance expert and attorney for Consumers Union, tells CNBC Make It. She explains, “A lot of times these companies have marketing deals with the campus that make them look like the ‘school approved’ product, but it doesn’t necessarily mean that the school has made sure that those products are in fact the best products for their students.” Extra semesters The biggest thing that college students can do to save money is graduate on time. According to the National Center for Education Statistics, just 40 percent of first-time full-time students earn a bachelor’s degree in four years, and only 59 percent earn their bachelor’s in six years. This means that millions of Americans are forced to pay for extra years of tuition, and some are taking on thousands of dollars in debt without a diploma to show for it. Bill Gates says these dropout rates are “tragic.” Students should avoid wasting money on extra years of college by planning their path to graduation early. Map out what classes you will need to take in order to earn your diploma on time, make an appointment with your dean and find a professor who is willing to guide you. By staying on track, students can save thousands of dollars on the cost of college.

Silver Curriculum: SESSION FIVE

ARTICLE 4 Student Loan Questions Worth Asking by Arianne Hutchins, U.S. News & World Report (July 3, 2019) www.usnews.com/education/blogs/student-loan-ranger/articles/2019-07-03/4-student-loan-questions-you- shouldnt-be-afraid-to-ask

Here are answers to seemingly silly questions about student loans that aren't so silly. Many consumers are ashamed of what they don't know about their student loans. That's understandable, because it's easy to be overwhelmed by the sheer volume of information and advice available online these days. Here are four seemingly silly questions about student loans that aren't so silly: • How do I find my interest rates? • Do I really have to repay my student loans? • I can't afford to repay my student loans. Can I lower my payments? • Can't I just combine all my loans? How Do I Find My Interest Rates? Like most loans, student loans have interest rates. In this case, the rates are set based on the first disbursement date of the loan, the type of loan and whether you were an undergraduate or graduate student, for example. Once they've been established, fixed student loan rates won't change. Confusing? Don't worry. Simply visit the National Student Loan Data System, or NSLDS, and follow the login instructions for the MyStudentData Download to access all of the details of your federal student loans. The interest rates for private student loans are set by the lender, so you'll have to contact your lender to find out the specifics of your loans. Private student loans offer fixed and variable interest rates, which should be monitored on your statements so you can maintain an accurate monthly budget. Do I Really Have to Repay My Student Loans? Yes, you do have to repay your student loans. Federal student loans aren't subject to the various statutes of limitations that states impose on private loans; and even if the statute expires, a collector can continue to contact you to ask you to make voluntary payments. If you miss a payment, your loan becomes delinquent, and the loan servicer will report the delinquency to the national credit bureaus if the delinquency lasts more than 90 days. This will have a negative impact on your credit. In addition, default on a federal student loan occurs after 270 days without a payment. The federal government can withhold your wages and tax refund, and federal sources of income, like Social Security, can also be garnished. It's nothing personal. The government needs to get its money back from you to lend out to next year's students. Private lenders will first try to get money from your co-signer, and they can take legal action, too, all while your debt increases as collection charges mount. Every lender has its own policy as to how they'll attempt to collect from you, but that process is never pleasant.

I Can't Afford to Repay My Student Loans. Can I Lower My Payments? If you have federal student loans, there's a good chance you'll be able to lower your monthly payments by switching to an incomedriven repayment plan. By filling out an application and recertifying your information each year, you can have a new payment calculated that should fit your budget.

Keep in mind that the monthly income-based payments are lower, but because interest will continue to accrue, it will take you longer and cost you more to pay off your total debt. If your income is particularly low, it's entirely possible that your loan balance will increase while you're on an income-

Silver Curriculum: SESSION FIVE

driven plan. If that's the case, don't panic. You still have to maintain housing, eat and get to work somehow â&#x20AC;&#x201C; those bills come first. But staying current on your student loan by making payments, even very low payments, can help preserve your credit and avoid burning up deferment and forbearance options for no reason. If you can't afford your private student loan payments, talk to your lender. They typically don't offer incomedriven plans, but they might offer alternative repayment plans on a case-by-case basis. Keep in mind that they have no obligation to do so, but they do want their money. Defaulting on your loans is the last thing anyone wants in this situation. Can't I Just Combine All My Loans? If you're thinking about consolidating your student loans, there are pros and cons to consider. Sure, you'll have the convenience of a single monthly payment, but it might be higher than your current payments. Consolidating can also have an impact on your debt forgiveness plan. For instance, say you're a candidate for Public Service Loan Forgiveness, a program that forgives the remaining balance on eligible federal student loans after you have made 120 qualifying monthly payments while working full time for a government or nonprofit organization. If you consolidate your loans, you'll go back to payment No. 1 on your march toward 120 qualifying payments. Keep in mind that the Department of Education will consolidate your loans into a direct consolidation loan for free. Third-party companies will charge you unnecessary fees. Your private student loans can also be consolidated through refinancing. Doing so may lower your rates and monthly payment, but that's up to the company you choose, your credit score and a few other factors. You can even refinance your federal student loans and private student loans together through a growing number of private lenders, but if you do, you'll lose all federal repayment plan options and benefits. Above all, do your research. People tend to make quick decisions to solve their immediate problems, often without complete information. It's your responsibility to understand all your options, and that can sometimes be a daunting task, but never be afraid to ask questions about your student loans. There are plenty of professionals who can help.

Resources We hope that your experience this semester in RTSWS’s five workshop sessions has been a positive and enriching one. Here are some ways to continue growing in the weeks, months and years ahead.

WE SUGGEST… 1.

Connecting with our LinkedIn Group: Rock The Street, Wall Street - Students and Alumnae. We share potential job shadowing opportunities, summer or college internship opportunities, job opportunities, and other great resources and information related to the Finance Industry and female empowerment in this group. Please email info@rockthestreetwallstreet.com your name and personal emai address so we can contact you with internship and job opportunities while you are in college. Also, ask friends, family members and anyone you meet in the financial field about possible job shadowing and internship opportunities. These will be strong additions to your resume and give you firsthand experience in the field.

Checking out the Rock The Street, Wall Street website where you can find lists of reference sources for careers in finance and more.

Seeking out podcasts, books, websites, online courses or videos about finance, savings, investing and the economy. Here are a few relevant podcasts with hundreds of episodes to explore: NPR’s Planet Money, The Fairer Cents: Women, Money and the Fight to Break Even, So Money with Farnoosh Torabi, The College Investor Audio Show.

WEBSITES Rock The Street, Wall Street • www.rockthestreetwallstreet.com Career Girls • www.careergirls.org Girls Who Invest- http://www.girlswhoinvest.org Napkin Finance • www.napkinfinance.com Keep your eyes and ears on the financial markets through sources such as CNBC and The Wall Street Journal

GENERAL Private Equity/Venture Capital: Consider courses in Entrepreneurship which teach basics about how to start a business, budgets, etc. • If you are more quantitative and technically inclined, consider majors in math and careers in quantitative analysis - good preparation for analyst positions in fixed income, credits, hedge funds, etc. • Do a Google search on “College Majors for Financial Careers” - there are useful websites on college, general articles, etc.

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