Day 54: Dear Mr. Kanning...

My students' final test for our financial literacy unit was a business letter.  They needed to play financial advisor to the following client:

Name: Bradley Kanning

Age: 20

Occupation: Full-time student, with $15,000 in student loans; part-time manager at Wal-Mart, $15,000/year annual income

He currently takes the bus to work but is thinking of buying a car to save time.  He also has a credit card in his wallet “for emergencies,” but in general keeps his cash in an old ice cream container in his freezer.  

Goals: After graduating with a business degree, Mr. Kanning hopes to work in the Wal-Mart headquarters, making approximately $60,000/year starting annual salary.  He is also planning to propose to his girlfriend on New Year’s Eve.

And their prompt:

Write a letter to Mr. Kanning explaining at least four aspects of his financial future which he needs to consider in the short-term and the long-term. Use information from what we’ve talked about, as well as any readings, notes, the workbook, or personal experience.  You don’t have to do any advanced math, but you should demonstrate that you, as a financial advisor, have some idea of what you’re talking about.  Show that you understand the basics of major financial principles.  

_____________________________________

I got some awesome letters. Here's just a single example - two weeks ago these students didn't know how a mortgage worked, how much credit cards could charge for interest, or what a 401(k) was. They're not financial experts, but suddenly they have a grasp on the importance of budgeting, what an overdraft fee is, and that student loans are not bankrupt-able. I'm super proud of them. Also, many of our editorials will now make so much more sense now that they know what student loans are and how health insurance works.

*Obviously not his real name.

It is 8 o'clock on a Sunday and I have literally spent four hours catching up on one class's worth of grading.  The life of an English teacher...my students explained to me this week about how little they like homework, and how they procrastinate until the very last minute and sometimes it still doesn't get done.  I told them grading their essays was like homework for me.  They stopped harassing me as much for not getting grades entered on time.