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Financial Planning Worksheet

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Financial Planning Worksheet

Calculator and money illustration

💰 Part 1: Loan Costs and Interest Calculations

1. Sarah wants to borrow $2,500 for a laptop. Compare these two loan options by calculating the total amount she will pay back:

Option A: 3% interest rate for 2 years

Option B: 5% interest rate for 1 year

2. Which loan option costs Sarah less money overall?

Option A (3% for 2 years)

Option B (5% for 1 year)

Both cost the same

3. Marcus borrows $1,200 at 4% interest. Calculate how much he pays in total for each loan length:

a) 1 year: $__________

b) 3 years: $__________

c) 5 years: $__________

4. Based on your calculations above, what happens to the total cost as the loan length increases?

📈 Part 2: Savings and Growth

5. Emma saves $25 every month in an account that earns 3% interest per year. How much will she have after:

a) 2 years: $__________

b) 5 years: $__________

6. What are two benefits of starting to save money early? Explain your reasoning.
7. Which factor has the biggest impact on savings growth?

The amount saved each month

The interest rate earned

The length of time saving

All factors are equally important

🎓 Part 3: College Savings Plan

8. The average cost for one year at a Texas community college is $3,800. For a 4-year university, it's $11,200 per year. Choose one option and create a savings plan:

I choose:

Community College
4-Year University

Target amount needed for first year: $__________

Time until college (years): __________

Amount I need to save each month: $__________

9. What are two realistic ways a middle school student could start saving money for college?
10. Reflection: Why is it important to understand loans and savings as a teenager? How might this knowledge help you make better financial decisions?

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