1. Personal Finance Management
Career Related Learning Experience
Step 4
1. Create a financial plan (long-term budget) for your college career
a. List costs and income (grants and loans) for each year until graduation
b. Add up all loans and find your total college debt
2. Make a budget for after you graduate and are working in your chosen career
a. Figure 25% of your income goes to a mortgage/rent
b. Research average costs for other items depending on where you plan to live
c. Add your loan payment for college loans (use an amortization calculator) - 10
years for repayment, at 6.5% interest
3. Make a budget for age 25 having chosen not to go to college
a. Figure at least $600 is spent on rent
b. Research average costs for other items
c. Plan on making $12.00 per hour at this point making $2,000 per month
4. Calculate and compare lifetime earnings
a. Go to http://allthecalculators.com and click on personal finances then click on
the lifetime earnings calculator. Assume the following:
i. Went to college:
1. Current Salary – Average salary for your career
2. Annual Raise – 3%
3. Your Age – 25
4. Retirement Age – 70
ii. Didn’t go to college:
1. Current Salary – Average salary for your career
2. Annual Raise – 3%
3. Your Age – 25
4. Retirement Age - 70
iii. Classmate of a different profession
1. Salary
2. Years of School
3. Loan Amount