Budgeting for Now and Saving for the Future: Which Job is the Best Choice?

• In Event: Effective Learning Strategies

Abstract

This teaching note requires students to watch videos, view online course material, and create a budget to choose between two job offers to develop an understanding of how personal budgeting, taxes, and retirement savings are linked. Students first view and read materials that explain the concept of compound interest and illustrate how a longer time horizon for retirement savings can result in significant differences in wealth accumulation. Students are then directed to online resources – videos and blogs – that illustrate techniques and provide resources for savings and budgeting. Students are then given two fictional job offers and asked to make a choice between the two, considering the effects of budgeting, retirement savings, taxes, and personal preferences. Students demonstrate technical skills and critical thinking skills through the analysis of various options that do not lead to one correct answer, but instead an answer that is supported by analysis and comparison of alternatives.

Authors

• Mitchell Franklin, Le Moyne College

• Michaele Lizabeth Morrow, Suffolk University