PF1 - Major Life Decisions Lesson

Major Life Decisions

In this lesson you will learn how to consider an economic or financial decision, weigh and evaluate the alternatives, and come to a rational decision where the marginal benefits are greater than the marginal costs. Making smart financial decisions will help you create generational wealth. Learning how to save and invest will allow you to pass down assets like property, stocks, and bonds to future generations of your family.

P.A.C.E.D. Decision Making Guide

PACED is a method to assist decision-making. Watch the following video to learn how to use the guide.

Let’s say you chose to further your education using the PACED process. How are you going to pay for college? Several options exist. What are they and why are some options better than others?

Ways to Pay for College

	Scholarships	Grants	Loans
What are they?	Free money awarded for reasons other than financial need	Free money, typically from the government	Money offered by federal or private sources that must be paid back
Pros	You don’t have to pay back scholarships	You don’t have to pay back grants	Do not require you to be a good student or star athlete
Cons	Requires research, applications, and meeting minimum requirements like GPA	You have to fill out the FAFSA; some require minimum a GPA	You have to pay them back; you have to fill out the FAFSA for federal loans and apply for private loans.
Examples	HOPE Scholarship	Federal Pell Grant	Stafford Direct Subsidized Loan, Stafford Direct Unsubsidized Loan, Federal Perkins Loan, Direct PLUS Loan

Other options to pay for college are your own savings, prior investments like 529 education savings accounts, and getting a job. Another option is a work-study program that provides funds to eligible students in exchange for part-time employment.

Costs and Benefits of Education Finance Practice

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