Module One

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Module One By: Ashlyn Haywood [[Begin]] [[Sources Cited]] A Note on this Project's Creation Aside from the resources provided by sugarcube and the twine engine that was used to create it, this project was created entirely with raw html and css code. Each page, disregarding the sources cited, should have a header with an image attached and a functional back button. Please email me if you discover any errors while reading through the pages of this project. Thanks, Ashlyn Haywood

Dealing with money is an integral part of life. Knowing how to manage one’s finance can greatly improve several aspects of their lifestyle. Covering college to retirement, click on a topic below to begin learning more about it. [[College, Student Loans, and Dealing with Debt.]] [[What to Consider when Choosing a Career.]] [[Saving Money and Reaching Retirement Goals.]] In order to demostrate my financial knowledge, below is a monthly budget prepared as an example of how money should be spent in an average household. [[Monthly Budget]]

http://studentaid.ed.gov/sa/types/loans https://www.edvisors.com/ask/faq/subsidized-vs-unsubsidized/?utm_source=staffordloan https://www.debt.org/students/types-of-loans/ http://www1.salary.com/Pediatric-Physician-Salary.html http://www.nationwidechildrens.org/pediatric-residency-salary-benefits http://learn.org/articles/What_Type_of_Degree_Does_a_Pediatrician_Need.html https://www.debt.org/credit/loans/ http://www.investopedia.com/terms/c/credit.asp https://www.creditkarma.com/article/types-of-credit https://studentaid.ed.gov/sa/repay-loans https://www.debt.org/students/how-to-pay-back-loans/ http://www.investopedia.com/terms/r/rateofreturn.asp http://www.saveandinvest.org/sites/default/files/Opportunity-Costs.pdf http://www.dol.gov/ebsa/publications/10_ways_to_prepare.html http://www.moneyandstuff.info/pdfs/samplebudgetforadults.pdf <<back>>

From a financial perspective, going to college is an incredibly daunting task. Below one will find almost everything they need to know when preparing to persue a higher education. [[Choosing a College.]] [[Recieving Financial Aid]] [[How to Deal with Loans.]] [[Getting a Good Credit Score.]] [[Dealing with Debt.]] <<back>>

On the subject of choosing a career, the amount of time it takes to pay off one’s debts depends on their chosen employer. The starting salary one makes can determine when their first payments are made and how quickly they can make payments in the future. Alongside the occupation’s starting salary, a career’s future demand needs to be taken into consideration as well. After all, one will most likely have a hard time finding employment in a field that is rarely accepting new applicants. I, for example, want to study to become a pediatrician after I graduate high school. In order to eventually achieve this goal, I will need to finish four years of college, four years of medical school, and three years of general pediatric training. The demand for those employed in pediatrics is incredibly high with strong growth predicted in the next twenty years. This is happening as a result of the “echo boom”, which encompasses the large number of grandchildren that will be born to the offspring of baby boomers in the coming years. The median salary for an employed pediatrician is around a hundred and fifty thousand dollars, but one begins earning a regular salary during the first years of their pediatric training. While working under a residency program, a trainee can earn something around fifty thousand dollars. The cost of medical school is bound to be ridiculously high, but keeping the salary I will eventually be earning in mind, I’m sure I can manage the debt I will have accumulated by the end of my higher education. <<back>>

When attempting to reach any expensive goal, good investment practice are important to know. Below one will find almost everything they need to know about saving their money. [[The Ins and Outs of Saving.]] [[Calculating Opportunity Cost.]] [[Reaching Retirement Goals.]] <<back>>

[img[http://i.imgur.com/ys2VTMU.png]][img[http://i.imgur.com/JY9MRCi.png]] This budget is loosely based off of the monthly finances of my own family. Because of this, all the numbers were calculated with the needs of two adolescent children in mind. There was no income tax taken from the gross income earned by both heads of household. <<back>>

There are several different kinds of schools to choose from when one has decided to attend a college or university. Colleges are split into public and private organizations, with both having their own unique advantages and disadvantages. Public schools are operated by the state and local governments. Because they receive money from the aforementioned, they usually cost less than private schools within the same state. Private schools are often operated by either private foundations or for-profit businesses. Although they may seem to cost more than public schools, they can be cheaper for a student who wants to attend an out-of-state school. Offered financial aid, however, can drastically change the prices of both public and private schools. If a private school, for example, has given you more aid, its cost can be reduced below that of a public school in the same state. <<back>>

With the average cost for attending a private college for a year rising to more than thirty thousand dollars, one will most likely need some kind of financial aid. There are, of course, scholarships and grants that will be provided by schools that want an applicant to attend. These people usually have a incredibly high grade point average or can perform well in one of their extracurricular activities. Scholarships can provide some relief, but often there is still much more that needs to be paid for. By filling out the free application for federal student aid, one can discover that they are eligible for an assortment of different kinds of monetary assistance. <<back>>

One may be offered student loans as a part of the financial aid they have applied for. A loan is money borrowed that must be payed back with interest, the amount charged on an annual basis often expressed as a precentage. Student loans can come from the federal government or from private sources, such as a bank or financial institution. Loans made by the federal government, called federal student loans, usually offer borrowers lower interest rates and have more flexible repayment options than loans from the other mentioned sources. [[Federal Student Loans.]] [[Private Student Loans.]] <<back>>

Credit is borrowed money that you can use to purchase goods and services when you need them. Good credit, obtained when one makes payments on schedule, is necessary to do things that utilize services available to credit card holders such as renting a car. Getting credit for the first time can be challenging, especially when one does not have a credit history. Having a parent or legal guardian cosign to accept equal responsibility can help one convince lenders to allow them credit. Once one has signed an agreement, they are responsible for it unless the creditor agrees to release them from it. <<back>>

With the amount tuition skyrocketing, one will most likely leave the school of their choosing in some kind of financial debt. One should make an effort to keeper track of the lender, balance, and repayment status for each of their loans. Different loans have different grace periods, the amount of time one can wait after leaving school before making their first payment, and different payment options, which determine how often payments will be made. Although one can extend their payment period beyond ten years, they’ll have to be pay more interest over the life of the loan. It’s recommended that one choose an income-driven repayment plan, which caps monthly payments at a reasonable percentage of one’s income. If one is unable to make payments because of unemployment, health problems, or unexpected financial challenges, they should attempt to postpone their payments through deferments and forbearance. However, some private loans do not offer the aforementioned services and one should take that into consideration when choosing loans. There are various programs that will forgive all or some of one’s federal student loans if they work in a certain fields or for a certain type of employer. There is for example, forgiveness offered to those that work in service-related jobs after ten years have passed since their graduation. <<back>>

The William D. Ford Federal Direct Loan, also known as the Direct Loan Program, is the country’s largest federal student loan program. There are two main types of loans available: Direct Subsidized Loans are loans made to eligible undergraduate students who demonstrate great financial need. Direct Unsubsidized Loans are loans made to eligible undergraduate, graduate, and professional students regardless of financial need. The main difference between subsidized loans and unsubsidized loans is that the federal government pays the interest on subsidized loans during periods of authorized deferment, such as the in-school and economic hardship deferments, while the interest remains the responsibility of the borrower on an unsubsidized loan. On both subsidized and unsubsidized loans that were discussed above, there is an interest rate of near four percent. <<back>>

Private loans can come from a variety of different kinds of financial institutions and the terms and conditions of the offered loans depend on whatever organization is offering them. Some require a cosigner, do not offer forbearance or deferment options, and are usually unsubsidized. Additionally, interest rates on private can vary greatly, with some rising above eighteen percent. When applying for private loans, one must also consider establishing a credit record to ensure a good credit score. <<back>>

It is impossible to consider paying off massive debts without knowing how to save one’s money. Rather than immediately spending the money one receives, saving the aforementioned can allow an opportunity to receive more after a period of time. Interest may seem like a bad thing when it concerns student loans, but interest can work in one’s favor when it concerns the money they’ve saved. As time passes, interest is added to the amount one has put in a bank, providing an incentive to continue to using that financial institution. The gain or loss on an investment over a specified period of time is expressed as a percentage increase over the initial investment cost. This is called the investment's rate of return. The future value of one’s money can rise because of the added interest. Using rate of return, one can calculate the value of their accumulated finances by using the compound interest formula, which is shown on the graph below. [img[http://i.stack.imgur.com/8pvNI.png]] <<back>>

But how does one determine if saving their money is the right choice when given an opportunity to spend it on something worthwhile. This can be evaluated by finding the opportunity cost of either decision. Opportunity cost is what you missed out on getting when you chose to do something else. This means that one will be calculating if the amount of money they receive by saving is enough to warrant not purchasing whatever is offered. <<back>>

Saving one’s money can not only help pay off debts, but can also help one afford other expensive goals, such as their retirement. Although one may believe that it is two early to begin saving for retirement, it is important to begin as soon as one graduate’s from their chosen college. Retirement is an expensive goal, costing around seventy percent of one's preretirement income. Using interest to their advantage, one who begins saving for retirement early can expect a higher future value of their investments. One should see if their employer offers a savings plan, such as a 401(K) plan. If so, one should consider signing up because it can lower one’s taxes and set up a system of automatic deductions. <<back>>