Lesson 4:
The Cost of College:
Financing Your Education
“I love the campus.” “I want a small school.” “College isn’t for me.” When considering their options after high school, many teens have an idea of what they’d like to do, but don’t think about the factors that go into such a big decision. College is expensive, but choosing not to attend can be expensive too (in terms of its impact on career opportunities and on your future salary). In this lesson, you will examine options for financing your education, discuss college choices and learn ways to manage your money wisely during your college years.
Learning Objectives:
- Analyze factors of smart money management during college
- Evaluate the costs and benefits of a student loan
- Discuss how repaying student loans affects future finances
Essential Question: “Is College worth the expense? What financial factors do I need to consider in deciding what the right choice is for me?”
Investigate: The Price of Education
[Time Required: 5 minutes]
- Start by looking up the yearly tuitions of five local colleges and universities. Understand that college tuition varies widely depending on whether a school is public or private, among other factors.
Student Preparation: Determining its “Worth”
[Time Required: 5 minutes]
- How do people pay for college? Answers might include: parents or other family members cover costs, scholarships, student loans, and/or student jobs.
- Do you think college is worth the cost? Why or why not? What are the long-term rewards? How would you go about determining whether college is “worth it” for you? One approach is to compare the value of a college degree to its impact on future salary.
Challenge: Cost vs. Benefit
[Time Required: 25 minutes]
- Next, research the value of a college education by analyzing cost versus benefit on websites like earnmydegree.com. You will likely find that the income benefit is far greater than the cost, especially if you consider income over a lifetime.
- Is deciding whether college is “worth it” as simple as weighing cost versus salary? Consider other financial factors that weigh into the decision. For example, many people have to borrow money for college and graduate school. Because “student loans” include both the principal (the cost of the loan) and interest (the fee the lender charges to borrow money), the cost of college is higher when student loans are used.
- Can you think of other pros and cons related to student loans? If graduates must begin repaying their loans six months after graduation, what does that necessitate for a starting salary?
- What other factors help determine if college is “worth it”? What are the pros and cons of attending college (e.g., some people may value education over experience; others may feel the opposite)?
- Finally, download the student activity sheet Your Life, Your Decision: Researching College Costs. Research and reflect on the questions on the sheet. Do you think college is a smart financial decision? Why or why not?
Reflection
[Time Required: 10 minutes]
Record your opinion on college in your journal. Does it seem like a smart financial decision for you? Why or why not? What other information do you need before you make your decision? If you are considering other options, reflect on career goals and to consider next steps you should take in order to get there.
Americans aren’t typically known for their financial responsibility – yet many are already using complex financial strategies. For example, shopping at the mall calls for cost comparisons, and saving for a skateboard requires budgeting. To learn about responsible money management, it’s important to take a look at the building blocks of financial decision-making. In this lesson, we will examine the spending decisions students already make. Then examine real-life spending scenarios and research, analyze, and present their recommendations.
Learning Objectives:
- Explore personal financial choices
- Learn to make informed financial decisions
- Consider what it means to be financially responsible
Worksheet One: