Background

This model is written in a modeling program called Stella, which allows us to input numbers and analyze the results when the model is "run." In this way, a person can model their income and expenses instead of finding out about these things through experience (which can sometimes be bad if, for instance, a person has more expenses than income). A computer model allows you to set up certain situations in a computational environment and find out about the results without having to deal with all of the repercussions of real-world situations.

In order for you to run this model, it is not necessary that you know how to use Stella software. Instead, you will simply have to enter in the numbers, then run the model, and the computer predicts the ways in which your level of education can effect limits on income and expenses.

This is what the model looks like:

The "income statement" section of the model deals with the interrelatedness of various aspects of an individual's income. The "salary and education" part of the model deals with how a person's choices about education are related to starting salary and the amount of growth in salary over time. The "expenses" part of the model includes any expenses that an individual makes on a monthly basis. The Stella software that runs this model will do the computing needed to show trends resulting from decisions regarding level of education.

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