Monthly Archives: July 2016

Jul 30 2016

Paying for College

It’s more important than ever for students and former students to make smart decisions about financing their college education.  Whether you are attending college soon, are a current student, or already have student loans, Consumer Financial Protection Bureau has put together some tools and resources to help you make the best decisions for you.

If you are considering student loans to help pay for school, you not alone—many students need loans to cover their full cost of attendance.  If you have to take out student loans, comparing your options can help you find the student loan best suited for your needs.

Consumer financial Protection Bureau has prepared student financial guides, financial aid shopping sheet adopted by more than 500 colleges and universities, and other helpful information on its website.

For more information, click here.

Teaching Suggestions

You may want to use the information in this blog and the original sources to

  • Help students appreciate that the Consumer Financial Protection Bureau overseas private lenders, debt collectors, and loan services that manage borrowers’ payments and billings.
  • Describe why one-in-four student loan borrowers are past due or in default on a student loan.

Discussion Questions

  1. When borrowers default on a student loan, what might be some adverse consequences on their credit?
  2. Do you believe the student loan market lacks consistent standards that cover the servicing of all private and federal student loans?
  3. What can the federal and state governments to protect consumers in this market?
Jul 16 2016

10 Job Interview Questions You Should Ask

“Many job seekers focus so hard on answering interview questions well that they forget something very important:  You are there to ask questions, too.”

In this Forbes article, Joe Konop explains why job applicants need to be proactive when they are interviewing for employment.  Specifically, you should strive to achieve three things during the interview

  • Make sure the interviewer has no reservations about you.
  • Demonstrate your interest in the employer.
  • Find out if you feel the employer is the right fit for you.

Mr. Konop also provides 10 possible questions (and the rationale for asking each question) that you could ask during an interview.  For example

  • What is the single largest problem facing your staff and would I be in a position to help you solve this problem?
  • What can you tell me about your new products or plans for growth?
  • What is the next step in the process?

For more information, click here.  Then enter the title of this article “10 Job Interview Questions You Should Ask” to read the actual article.

Teaching Suggestions

You may want to use the information in this blog post and the original article to

  • Help students understand that the job market is very competitive, and they must be proactive to get the employment position they want.
  • Describe how preparing for an interview can make the difference between obtaining the employment position they really want and unemployment.

Discussion Questions

  1. Choose a specific job and describe the traits that you would need to be successful.
  2. Assume you are a college senior and are interviewing for a position with a major employer in the marketing, banking, or accounting industry. How would you prepare for a job interview with this company?
  3. What factors make the difference between a good employee and a bad employee?
Jul 9 2016

Bonds and Interest Rates

“Interest rate changes are among the most significant factors affecting bond return.”

When it comes to how interest rates affect bond prices, there are three cardinal rules.

  1. When interest rates rise–bond prices generally fall.
  2. When interest rates fall–bond prices generally rise.
  3. Every bond carries interest rate risk.

This article describes how each of the “3 cardinal rules” described above affects a bond investment.  It also explains the role the Federal Reserve plays in determining interest rates in the economy.  Specifically it describes the federal funds rate, the discount rate, and basis points for bond investments.

Finally, this article provides information on where to find economic indicators that measure not only changes in interest rates but also other economic indicators for the nation’s economy.

For more information, click here. 

Teaching Suggestions

You may want to use the information in this blog post and the original article to

  • Review why investors choose bonds for their investment portfolio.
  • Explain how the three cardinal rules described in this article affect a bond’s value.

Discussion Questions

  1. Assume you are 35 years old, married, and earn $85,000 a year. In what circumstances would bonds be a good choice for your investment portfolio?  In what circumstances would bonds be a poor choice?
  2. What happens to a bond’s price if interest rates in the economy increase? If interest rates in the economy decrease?
  3. In addition to interest rates, what other factors that could affect the value of a bond?
Jul 2 2016

How to Invest in Stocks

“Before you buy your first stock, you should master the basics of stock investing.”

This article provides basic information that you can use to help students learn more about investing.  For example, there are over 25 different links to more detailed information including:

  • Basic Stock Terms for Beginners
  • What Is a Balance Sheet?
  • What Is an Income Statement?
  • What Is Investment Risk?
  • How to Buy Your First Stock
  • How to Value Stocks
  • How to Analyze Stock Fundamentals

For more information, click here. 

Teaching Suggestions

You may want to use the information in this blog post and the original article to:

  • Stress the importance of learning about stocks before making a stock investment.
  • Use a specific link(s) and show how students can use detailed information to become a better stock investor.

Discussion Questions

  1. Assume you are 35 years old and have $40,000 for investment purposes. Would you choose stocks or some other investment alternative?  Explain your answer.
  2. Access one or two of the links listed in this article. How could the information in this link help you evaluate a possible stock investment?