SchoolSchool

Your Investment in Your Investment in

Your Human CapitalYour Human Capital

Lesson 10:

VocabularyVocabulary

Financial CapitalFinancial Capital

Physical CapitalPhysical Capital

HumanHuman CapitalCapital

Financial CapitalFinancial Capital

stocksstocks & & bondsbonds and other financial assets and other financial assets

InvestmentInvestment in Financial Capital in Financial Capital purchasepurchase of stocks and bonds and other financial of stocks and bonds and other financial

assets assets today today out of out of today’s incometoday’s income ““SavingSaving” ” from today’s incomefrom today’s income

Opportunity Cost??Opportunity Cost??

Pay-offPay-off Earn more $$$$ in Earn more $$$$ in FutureFuture ““Delayed Gratification”Delayed Gratification”

Physical CapitalPhysical Capital

Factories,Factories, EquipmentEquipment & & ToolsTools

InvestmentInvestment in Physical Capital in Physical Capital purchasepurchase of factories, equipment, & tools of factories, equipment, & tools today today

using using today’s incometoday’s income““opportunity cost”???opportunity cost”???

Pay-offPay-off produces more goods & services produces more goods & services to sell in future to sell in future more more

$$ in future$$ in future ““Delayed Gratification”Delayed Gratification”

HumanHuman CapitalCapital

SkillsSkills & & KnowledgeKnowledge

InvestmentInvestment in Human Capital in Human Capital Going to Going to SchoolSchool & doing well & doing well todaytoday

““opportunity cost”???opportunity cost”???

Pay-off Pay-off Better job, higher earnings in Better job, higher earnings in futurefuture

““Delayed Gratification”Delayed Gratification”

SchoolSchool

Homework and StudyHomework and Studyinvestment in human capitalinvestment in human capital

Increasing skills and knowledgeIncreasing skills and knowledge

Investment in Human capitalInvestment in Human capital increases the quantity and quality of your increases the quantity and quality of your

alternatives in the future.alternatives in the future.

Richard Wright and the Richard Wright and the Library CardLibrary Card

Why did whites want to prevent African Why did whites want to prevent African American from learning to read?American from learning to read?

What can reading help people do?What can reading help people do?What can’t they do if they can’t read?What can’t they do if they can’t read?Why don’t some children want to learn Why don’t some children want to learn

things in school?things in school?

TomTomáás and the Library Ladys and the Library Lady

Migrant workerMigrant workerWriter, professor, university administratorWriter, professor, university administratorChancellor of the University of California, Chancellor of the University of California,

RiversideRiverside

More Than Anything ElseMore Than Anything Else

Why Was Booker so eager to learn?Why Was Booker so eager to learn?

1.1. --

2.2. --

3.3. --

4.4. --

5.5. --

Job Job ApplicationApplication

What can What can you do for you do for Uncle Jed?Uncle Jed?

Insert on this slide job application on page 123

Table II: SCANS 2000Table II: SCANS 2000(Labor) Secretary's Commission on Achieving Necessary Skills(Labor) Secretary's Commission on Achieving Necessary Skills

Skills DescriptionsBasics

Thinking

Personal

InterpersonalSystems

InformationTechnology

Resources

Reading, writing, mathematics, listening, speaking

Creative thinking, decision making, problem solving, knowing how to learn, reasoningResponsibility, self-esteem, sociability, self management, integrityPlanning, organizing, monitoring, assessing, evaluating, adjustingTeamwork, teaching, serving clients/customers, leadership, negotiating, working with people of diverse cultural backgrounds

Understand social, organizational and technological systems; monitor and correct systemsAcquiring and evaluating, organizing and maintaining, interpreting and communicating, using computers to process information

Selecting equipment and tools, applying technology to specific tasks, maintaining and troubleshooting technologies, learning new technologies

Your Personal 21Your Personal 21stst Century Century Human Capital ScoreHuman Capital Score

Score yourself Score yourself 11(low)—(low)—1010(high) for (high) for each of the items in each of the each of the items in each of the eight categories, (i.e., put a small eight categories, (i.e., put a small number by each item), then total number by each item), then total these to get a total for each these to get a total for each category, then total all eight category, then total all eight categories for a GRAND TOTAL.categories for a GRAND TOTAL.

I will ask some of you how you I will ask some of you how you “use” one or two of the skills and “use” one or two of the skills and “where acquired.”“where acquired.”