Financial Planning and Career Prospects after Graduation

Abstract

Income and Projection How does the given Current Income on the Income and Projection tab compare to your expected salary and desired area of living upon graduation? The income of $90,625 that is shown as the current income on the Income and Projection page is far less than what I had anticipated for my desired salary and the cost of living in my intended region after graduation. I expect a higher beginning salary—probably more than $120,000—given the state of the labour market and the expense of living. The given salary would not allow me to comfortably maintain the lifestyle I have chosen in the selected region; thus, in order to reach my financial objectives, I will need to look for higher-paying jobs or adjust my budget. How much of a single one-time raise would you need to request after working in your career for 5 years to cover the rate of inflation you found? (Assume no other changes in income or expenses. Include a dollar amount and percentage along with how you calculated both in your answer.) In order to meet the anticipated five-year inflation rate, I would need a one-time raise of $4,861.87, or a 5.36% increase in my present salary of $90,625. The difference between the present income and the predicted income over the next five years is the basis for this computation. I must ask for this change in my profession to retain my financial security since the rise would help me keep up with the growing cost of living and preserve my buying power. What careers in your program of study will provide enough income to cover your expected real-world expenses upon graduation? Careers in computer science, engineering, and finance are likely to pay enough when I graduate from my program of study to afford my anticipated post-graduation living expenditures. These industries are good options for funding a nice lifestyle since they often provide competitive pay that matches the cost of living. These professions have strong earning potential, which would help me handle my finances, reach my ideal level of life, and successfully pay for daily needs. Student Loans How much of your future monthly salary would you need to use to pay for the loans calculated in the project? (Assume no projection due to inflation and express your answer in a dollar amount along with a percentage. Include how you calculated both in your answer.) First, figure out the total monthly payment for both loans to get an idea of how much of your future paycheck you would have to pay for both. For the subsidized loan, the monthly payment is around $344.75, and for the unsubsidized loan, it is roughly $6.98. Now, think about your monthly pay in the future. For instance, if your monthly income is $3,000, the subsidized loan payment would be around 11.49% of your take-home pay, whereas the unsubsidized loan payment would be roughly 0.23%. To pay for these loans, you would thus need to set aside around $344.75 (11.49%) for the subsidized loan and $6.98 (0.23%) for the unsubsidized loan from your monthly income. From your Student Loans tab, was the subsidized loan or unsubsidized loan a better investment? Will that type of student loan always be the better investment? Explain. The statistics on the Student Loans page indicate that the subsidized loan is a wiser choice. It has a smaller monthly payment and pays back a lot less interest throughout the loan. Subsidized or unsubsidized loans are a better investment, depending on a number of variables, including interest rates and individual financial situations. Because they accrue less interest while the borrower is in school, most borrowers find that subsidized loans are preferable. But because every scenario is different, it's important to take the conditions and your financial objectives into account when choosing the best loan option. How does student loan debt affect your personal spending and the global economy? (Use academic references to support your answer.) Debt from student loans may significantly affect both individual expenditure and the world economy. High student loan debt may make it more difficult for a person to invest, save, and make big purchases, which can have an impact on their capacity to manage their finances. Moreover, it could discourage young individuals from going into business for themselves and becoming homeowners. Macroeconomically, rising student loan debt might result in decreased consumer spending and slower economic growth. The effects of student loan debt on family finances and the overall economy have been shown in academic research and publications from organizations like the Federal Reserve and the Brookings Institution (Daniels & Kakar, 2022). Credit Cards How can you effectively use a credit card to build a positive credit history without accruing debt? (Use academic references to support your answer.) Academic sources suggest a few tactics for using a credit card wisely to establish a good credit history without taking into debt. First, keep credit card balances far below the credit limit in order to maintain a low credit use percentage. Secondly, in order to have a reliable payment history, pay your payments on schedule every time. Furthermore, appropriate credit utilization may be shown by making modest, manageable purchases with the credit card and paying the whole debt each month. Scholarly research, such as that which appears in the Journal of Consumer Affairs, highlights how crucial these behaviours are to establishing a good credit history and preventing debt accumulation (Leis-Newman, 2011). How could credit card debt impact the global economy? (Use academic references to support your answer.) The global economy may be significantly impacted by credit card debt. Decreased consumer spending, unstable economies, and financial crises are all consequences of high levels of consumer debt, especially credit card debt. Scholarly investigations, such as those documented in periodicals such as the "Journal of Money, Credit and Banking," underscore the influence of excessive consumer debt on the general state of the economy. Consumers who suffer from credit card debt tend to spend less on discretionary items, which may impede economic expansion. Furthermore, credit card failures have the potential to upset the financial system and exacerbate wider economic issues. Explain the difference between borrowing money from a credit card versus a loan such as a mortgage on a house. There are important distinctions between borrowing money through a credit card and taking out a loan, such as a mortgage on a home. Although they usually have higher interest rates, credit cards provide a variable interest rate revolving line of credit that allows for flexible spending. Mortgage loans are often longer-term, fixed-rate instalment loans with lower interest rates that are secured by an asset, usually a home. Whereas mortgages utilize the property as collateral, credit card debt is unsecured and does not....