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Wy

The document discusses the author's perspectives on career choices, expected salaries, education financing, and student loan repayment. Specifically: - The author would maintain a budget even if earning less than expected and adjust expenses accordingly. With more income, the author would invest and save for non-essential wants. - The author finances their own education through summer work and pays off costs with financial aid, having no student loans. Grad school would require a tuition waiver or assistantship. - With a $20,000 student loan at 3.73% interest over 10 years, the monthly repayment would be $199.93.

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rodrigo baltazar
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56 views2 pages

Wy

The document discusses the author's perspectives on career choices, expected salaries, education financing, and student loan repayment. Specifically: - The author would maintain a budget even if earning less than expected and adjust expenses accordingly. With more income, the author would invest and save for non-essential wants. - The author finances their own education through summer work and pays off costs with financial aid, having no student loans. Grad school would require a tuition waiver or assistantship. - With a $20,000 student loan at 3.73% interest over 10 years, the monthly repayment would be $199.93.

Uploaded by

rodrigo baltazar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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1.

What are your observations regarding starting pay amounts based on your major and career
choices? How can different incomes impact your financial future? please refer to your chosen
major and the expected average starting salary (you may also explore additional information to
indicate what you think you will make in your specific field, major, or profession). Consider how
different incomes may impact your budget, both on the income side and on the expenses side.
In the Money Path Program, you can change some of the expenditures within the budget
portion; actually referring to these choices can help provide a deeper analysis of your own
situation.

To me, I think it is best to have a set budget to reach your goals in a timely manner. While the
app showed me the surplus each month that could be put towards savings and retirement for
the projected income, after viewing the budget and goal timeline I really liked what I saw and
would likely try to save a similar amount even if I made significantly less. I would have to adjust
my expenses to make up for the deficit. If I made more I’d likely have a few larger expenses like
a nicer apartment and car yet still maintain the budget from the other comes. I’d just use the
remaining money for investing and saving for items I want but don’t need.

2. How do you feel about how you are financing your education? What strategies can you take
to minimize the amount of student loans you may need to borrow? How might your answer
change based on your career choices and your potential future income? Describe how you are
financing your education - even if someone else is paying for it or you have military benefits.
What are the costs and benefits associated with your choices over working, borrowing, studying,
etc...?

I work a lot during the summer and usually end up paying off school by myself after financial aid
so that the only expenses I have to worry about is rent and a few other bills plus groceries. As of
now I have zero student loans and would not go to grad school unless I had a tuition waiver or
TA position. I don’t need to go to grad school, I just want to so I can continue my studies a little
more in depth. But theoretically if you were to gain a significant pay raise for a graduate degree,
I probably wouldn’t, you can take out more students and still comfortably pay it off and be better
in the long run.

3. Money Path shows you what your expected student loan payment will be once you start your
career. Let’s relate this back to what we have been learning using the Time Value of Money
calculations. Suppose that you owe $20,000 when you graduate from UWM. Your Direct
Subsided Student Loan has an annual interest rate of 3.73%. If you want to pay back the
entirety of your loan in 10 years, what would be your payment per month? (hint: don’t forget to
change the annual rate to a monthly rate for your calculation). Show your work. You may want
to refer back to the Unit 3 problems and answer key and be careful about which values are PV
and which are FV - you are looking for a monthly loan payment. This exercise can be useful for
other loans as well (e.g., car loans, house loans).

$199.93 a month
20000(.0373)/ (1- 1/(1.0373)^12)= $199.93

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