Academic Strategies Course Readings (ENGL 1003)

Why are you in school? C’mon. Why are you in school…really?! You must have grand expectations for your future career goals and are thinking of other great things to do with your degree. Believe me, everyone here at Tulsa Community College is hoping that these come true for you. But, at the end of the day (for many students at least), it comes down to one word: money. Of course, students want to be a success in the workplace and at life. It’s also nice to have a little financial security too. I suspect that you have thought about your dream home. You know, the one with the theater room and the backyard Koi pond. You might also have dreams about the perfect car to take you and your family to your vacation home in Aspen. Am I close yet?

While these dreams are not entirely unrealistic, they can be difficult to achieve. Unfortunately, many students have the impression that someone will greet them at graduation with an awesome job and a large starting salary. Some students might be this lucky, but it doesn’t really happen for the rest of us. You will need to (what some people call) “pay your dues” and work your way to that six-figure dream job. It will take some time, but be patient. And, if that job never comes, you can still live very comfortably with a bit of money management.

For millionaires and minimum wage earners alike, proper money management really comes down to knowing the difference between two very simple terms: “wants” and “needs." Do these terms sound familiar to you? They should. These are ideas that even your middle school instructors tried to explain to you as you slep…I mean, paid close attention in their classes. Do you know the difference between “wants” and “needs?" If nightly gaming marathons have erased these terms from your vocabulary, let me try to help. Here is a very, very basic definition:

“Needs” - Items that contribute to your daily survival:
· food/drink (and I don’t mean steak or beer – ramen noodles and water could work)
· hygiene products (toothpaste and deodorant, not perfume and hair products)
· clothing (yes, you can still be “cool” without name brand clothes)
· shelter (basic utilities are included here, but not cable television)

“Wants” – Everything else.
Once you truly start to understand and embrace these concepts, you are able to budget your monthly income wisely and carefully.

Activity: Let’s try something. I am going to give you a list of items, and I want you to determine which of these are “wants” and which of these are “needs.” Ready? Set? GO!

20 oz. Dr. Pepper	Perfume / Cologne	2007 Honda Civic EX
McDonald's French Fries	Can of Red Bull	Netflix Subscription
High-Speed Internet	Concert Tickets	Playstation 4

Did you see my little trick here? While you might feel that some of these items are “needs” in your personal life, these are in fact all “wants.” This means that your life would be just fine without them; there are suitable alternatives. In fact, I want you to take a few moments and think about (or discuss with your classmates) why these items are “wants” and what you can do to replace them with cheaper alternatives.

Now that you understand the basic difference between “wants” and “needs,” I would like you to do something.  On a piece of paper, make a list of the wants and needs in your own life right now.  After you review the list, is there anything you could do differently to help your money management?  Take a few minutes to complete this, and be prepared to discuss your findings with the class.

Now you are ready for a “real life” simulation of what it is like for many people to manage their monthly income.  First, I am going to give you a monthly salary.  Next, I want you to manage this money on certain monthly bills.  As you go through this exercise, you should constantly be asking yourself “is this a want or a need?” and make the best choice accordingly.  Sound good?  Here we go.

 

If your last name begins with…                                 You will make…a month (after taxes)

·         A, B, C                                                                                    $2100.00

·         D, E, F                                                                                    $1900.00

·         G, H, I                                                                                      $1750.00

·         J, K, L                                                                                      $2300.00

·         M, N, O                                                                                    $1650.00

·         P, Q, R                                                                                    $1800.00

·         S, T, U                                                                                     $2000.00

·         V, W, X                                                                                   $1500.00

·         Y, Z                                                                                          $1400.00

 

Activity:  Note the amount that you “make” at the top of a blank sheet of paper.  This is how much money you have to live on for the month.  Spend it wisely!

 

(1)  Since you are an adult now, you need to find your own place to live.  I am sure that your parents love you, but it’s time to have a place of your own for those late nigh…I mean, quiet weekend study sessions.  Here are some apartments for you to consider.  They all have different amenities, but each should fit your needs quite well.  Your mission:  choose one of these and then subtract the rent (the total includes utilities) from your monthly income.

·         $600.00/month = 1 bed / 1 bath – all bills paid (utilities paid), no amenities/no pets

·         $825.00/month = 2 bed / 1 bath – gated complex, private parking, small pets accepted

·         $980.00/month = 2 bed / 1 ½ bath – 24hr maintenance/security, pool, garage, private yard

 

(2) Of course, your parents respect your decision to be on your own.  However, (in this scenario) they will not let you take any of your furniture with you (bed, chairs, etc.).  So, you need to purchase these items for your new apartment.  Never fear!  The local furniture store is very happy to extend you a line of credit to help with these purchases.  But, be careful!  Credit cards can be tricky for college students.  If you do not pay them off every month, interest accumulates.  In the case of this furniture store, they will add 20% to your bill for every month you do not pay the entire balance.  With this in mind, here are your options:

·         $50.00/month = $1000.00 credit line (enough for a bed and chair)

·         $75.00/month = $1500.00 credit line (enough for a bed, chair, and couch)

·         $100.00/month = $2000.00 credit line (enough for a bed, chair, couch, and recliner)

 (Remember to subtract this amount from your running total.)

 

(3) Now, let’s get to the fun stuff…the entertainment expenses.  You know that local cable companies always offer great deals to new customers.  What you might not know is that these “deals” expire after a few months and you are then committed to pay the company the new rate for up to two years!  Think about this before you agree to any expense here:

·         $0.00/month = HDTV antenna (10-20 local channels only)

·         $70.00/month = basic cable (60-75 channels and you can watch Honey Boo Boo!)

·         $120.00/month = digital cable (200-250 channels but no HBO or Showtime, sorry)

·         $150.00/month = digital cable with a DVR (every channel available plus you can record!)

 

Wait…there are other “entertainment” expenses to consider:

·         $8.00/month = Netflix streaming video subscription

·         $16.00/month = Netflix streaming + 2 DVDs subscription

·         $8.00/month = Hulu Plus subscription

·         $5.00/month = XBOX Live subscription

 

How about high-speed internet?  You need this if you signed up for any of the above services:

·         $30.00/month = basic internet service (not fast enough for HD movies or gaming)

·         $60.00/month = advanced internet service (HD and gaming will work here)

·         $90.00/month = uber-fast-ultra-super-duper-supreme internet (do you really need this?)

 

(4) Do you “need” your cell phone?  I’m certain that some of you have been using yours throughout this exercise.  Think about it.  How much would your life change without access to your cell phone?  This is another monthly expense to consider:

·         $40.00/month = unlimited talk and text + 1 GB of data

·         $70.00/month = unlimited talk and text + 5 GB of data

·         $95.00/month = unlimited talk, text, and data

 

(Are you still keeping track of your money?  Take a moment to subtract your expenses from your monthly income.  How are you doing?)

 

(5) Let’s talk about your car now.  More importantly, let’s talk about your car…insurance!  Here is an insurance scale based on the year of the car you drove to school today:

·         $125.00/month = 2011-2014 model car

·         $90.00/month = 2008-2010 model car

·         $65.00/month = 2004-2007 model car

·         $45.00/month = 2003 or older model car

 

And, let’s not forget about gas.  Since some older cars get horrible gas mileage, they will need gas more often.  And, since your job is 45 minutes away, you need gas:

·         $80.00/month = 2011-2014 model car

·         $100.00/month = 2008-2010 model car

·         $110.00/month = 2004-2007 model car

·         $120.00/month = 2003 or older model car

 

Now that we have worked through some of your major monthly bills, how much money do you have left to live on for the remainder of the month?  Are you able to put anything back in a savings account?  What would you buy with the rest of your money?  Take a few minutes to discuss any possibilities with your classmates.  Also, review your choices and see if you could have done anything different. 

 

There’s just one more thing. 

 

Unfortunately, your new boss isn’t very impressed with you.  I know, I know.  I’ve told him that you are a hard worker and that you are committed to the company.  He’s just not buying it.  So…

 

YOU’RE FIRED!

 

(Gulp!)  What should you do now?  You just invested in all of these new items, and now you won’t have the money to cover it!  NEVER FEAR!  I am here to help you.  I just found you a brand new job, and you can start tomorrow!  You will still have money.  But, the amount might change a bit.  So, here is your new monthly salary:

 

If your first name begins with…                                 You will make…a month (after taxes)

·         A, B, C                                                                                    $1600.00

·         D, E, F                                                                                    $1800.00

·         G, H, I                                                                                      $1750.00

·         J, K, L                                                                                     $1900.00

·         M, N, O                                                                                   $1450.00

·         P, Q, R                                                                                    $1300.00

·         S, T, U                                                                                     $2000.00

·         V, W, X                                                                                  $2100.00

·         Y, Z                                                                                         $2200.00

 

Are you still able to pay your monthly bills?  Would you need to make any changes?  Discuss your new outcomes with your classmates as well as any options to consider.

That’s it for me.  Thanks for your attention and your work through this activity.  I know that managing your money can be a bit stressful, and there are always new things to think about.  With proper techniques and a positive attitude, you can do it!  And, while this scenario has you living on your own, this is still a few months/years away for some of you.  So, in the meantime, please go home tonight…and thank your parents for everything they provide. 

 

For those of you who are already living on your own and managing your monthly finances, how was this exercise?  Was it close to reality?  Are there any missing items?  If you don’t mind, would you take a few moments to discuss your reality with the class?  I know they would be very thankful to hear from you.