formulas for a given variable. CC.2.2.HS.D.9 -- Essential Use reasoning to solve equations and justify the solution method Essential them.

Transcription

1 Topic: 03A-Major Financial Decisions - Personal Know: Understand: Do: CC.2.2.HS.D.8 -- Essential Apply inverse operations to solve equations or formulas for a given variable Essential Make sense of problems and persevere in solving them Essential Reason abstractly and quantitatively. CC.2.2.HS.D.8 -- Essential Apply inverse operations to solve equations or formulas for a given variable. CC.2.2.HS.D.9 -- Essential Use reasoning to solve equations and justify the solution method Essential Make sense of problems and persevere in solving them Essential Reason abstractly and quantitatively Essential Construct viable arguments and critique the reasoning of others Essential Model with mathematics Essential Use appropriate tools strategically Essential Attend to precision Essential Look for and make use of structure Essential Construct viable arguments and critique the reasoning of others Essential Model with mathematics Essential Use appropriate tools strategically Essential Attend to precision Essential Look for and make use of structure Essential Look for and express regularity in repeated reasoning Essential Look for and express regularity in repeated reasoning. CC.2.1.HS.F.5 -- Essential Choose a level of accuracy appropriate to limitations on measurement when reporting quantities. Page 1 of 3

2 Topic: 03A-Major Financial Decisions - Personal Know: Understand: Do: CC.2.1.HS.F.5 -- Essential Choose a level of accuracy appropriate to limitations on measurement when reporting quantities. Page 2 of 3

3 Topic: 03A-Major Financial Decisions - Personal Which standards are students learning in this unit? CC.2.2.HS.D.8 -- Essential Apply inverse operations to solve equations or formulas for a given variable. CC.2.2.HS.D.9 -- Essential Use reasoning to solve equations and justify the solution method Essential Make sense of problems and persevere in solving them Essential Reason abstractly and quantitatively Essential Construct viable arguments and critique the reasoning of others Essential Model with mathematics Essential Use appropriate tools strategically Essential Attend to precision Essential Look for and make use of structure Essential Look for and express regularity in repeated reasoning. CC.2.1.HS.F.5 -- Essential Choose a level of accuracy appropriate to limitations on measurement when reporting quantities. Page 3 of 3

4 Topic: 03A-Major Financial Decisions - Personal Key Learning: Personal Financial Decisions Unit Essential Question(s): What are some major personal financial decisions that you will have to make? Page 1 of 3

5 Topic: 03A-Major Financial Decisions - Personal Concept: Concept: Concept: Vehicle Transportation CEQ - How do you calculate the total costs of operating a car? CC.2.2.HS.D.8, CC.2.2.HS.D.9, CC.2.1.HS.F A, B, F A, C B, C, E ALL B, D B, C, D, H, N, O Housing Costs CEQ - What are some common costs involved in home ownership? CC.2.2.HS.D.8, CC.2.2.HS.D.9, CC.2.1.HS.F A, B, F A, C B, C, E ALL B, D B, C, D, H, N, O Insurance CEQ - What are the different types of insurance you can obtain and how do you know which ones you should purchase? CC.2.2.HS.D.8, CC.2.2.HS.D.9, CC.2.1.HS.F A, B, F A, C B, C, E ALL B, D B, C, D, H, N, O Lesson Essential Question(s): How do you calculate the sticker price of a new Lesson Essential Question(s): Lesson Essential Question(s): vehicle? (A) How do you calculate the dealer's cost of a new vehicle? (A) How do you calculate the average retail price or wholesale price of a used vehicle? (A) How do you calculate the mortgage loan amount?how can you use a table to determine the monthly payment and total interest of a mortgage? (A) How do you calculate closing costs?how do you allocate the monthly payment of a mortgage? (A) How do you calculate health insurance premiums? (A) How do you calculate the amount the patient pays for health care? (A) How can you use a table to calculate the annual premium for life insurance? (A) How can you use a table to compute the annual premium for vehicle insurance? (A) How do you calculate the total cost per mile of operating and maintaining a vehicle? (A) How do you calculate the total cost of leasing a vehicle? How do you calculate the cost to rent a vehicle? (A) How do you calculate real estate taxes for a home? (A) How do you determine the amount of coverage for homeowners insurance?how do you calculate the annual homeowner's insurance premium? (A) How do you calculate the cost of utilities? (A) How do you decide whether to rent or own a home? (A) What are the different types of life insurance? (A) Vocabulary: Sticker Price, Base Price, Options, Destination Charge, Dealer's Cost, Used-Vehicle Guide, Liability Insurance, Collision Insurance, Vocabulary: Mortgage Loan, Closing Costs, Real Estate Taxes, Assessed Value, Tax Rate, Market Value, Rate of Assessment, Homeowners Vocabulary: Health Insurance, Traditional Plan, Preferred Provider Organization (PPO), Health Maintenance Organization (HMO), Deductible, Comprehensive Insurance, Deductible Clause, Insurance, Property Damage Coverage, Personal Co-Insurance/Co-Payment, Life Insurance, Annual Premium, Variable Costs, Fixed Costs, Depreciation, Lease, Closed-End Lease, Open- End Lease, Rent Liability Coverage, Medical Coverage, Loss-of- Use Coverage, Replacement Value, Premium, Fire Protection Class, Utility Costs, Security Deposit Term Life Insurance, Beneficiary, Whole Life Insurance, Cash Value, Limited Payment Policy, Universal Life Insurance Page 2 of 3

6 Topic: 03A-Major Financial Decisions - Personal Concept: Concept: Concept: Investments CEQ - In what ways can you invest to make your money work for you? CC.2.2.HS.D.9, CC.2.2.HS.D.8, CC.2.1.HS.F A, B, F A, C B, C, E ALL B, D B, C, D, H, N, O Lesson Essential Question(s): How do you calculate interest on certificates of Lesson Essential Question(s): Lesson Essential Question(s): deposit?how do you determine the APY? (A) How do you calculate the total cost of a stock investment?how do you calculate the profit or loss from a stock sale?how do you calculate the annual dividend of a stock investment? (A) How do you calculate the profit or loss of a mutual fund? (A) How do you calculate the annual interest of a bond investment? (A) How can investing in Real Estate be beneficial to you? (A) In what ways can you invest for your retirement? (A) Vocabulary: Certificate of Deposit (CD), APY (Annual Percentage Yield), Stocks, Stock Certifcate, Profit, Loss, Dividend, Mutual Fund, Net Asset Value (NAV), Loading Charge, Bonds, Rental Property, Rent, Individual Retirement Account (IRA), Roth IRA, Required Minimum Distribution (RMD) Vocabulary: Vocabulary: Additional Information: Attached Document(s): Page 3 of 3

7 Concept: Vehicle Transportation CEQ - How do you calculate the total costs of operating a car? Sticker Price - Laws require that a dealer display the price of a car. This price includes three charges: base price, options, and destination charge. Base Price - Price of the engine, chassis (vehicle frame), and any other standard equipmen for a particula model. Also known as the Manufacturer's Suggested Retail Price (MSRP) Options - Extra equipment for convenience, safety, or appearance, such as a sunroof, air conditioning, and tinted glass, that is not included in the base price. Destination Charge - Cost of shipping the vehicle from the manufacturer to the dealer. Dealer's Cost - How much the dealer had to pay for the vehicle. Consumer magazines report this cost as a percent of the base price plus a percent of the options price plus the destination charge. Used-Vehicle Guide - A publication or website that gives the average prices for used vehicles Liability Insurance - Gives the policyholder financial protection against claims for bodily injury and property damage as a result of an accident Collision Insurance - Pays for damage to the insured vehicle caused by a collision with another motor vehicle or an object such as a telephone pole. Comprehensive Insurance - Page 1 of 7

8 Pays for damage to the insured vehicle from losses due to fire, vandalism, theft, and just about any cause other than a collision. Deductible Clause - A clause in the insurance policy that requires the insured to pay a certain amount to cover repairs before the insurance company pays. Annual Premium - The amount you pay for insurance coverage. Variable Costs - Costs that increase as the number of miles you drive increase. Gas, oil, tires, filters, repairs Fixed Costs - Remain about the same regardless how many miles you drive. insurance, registration fees, loan interest, depreciation Depreciation - Decrease in value of your vehicle from one year to the next because of its age and condition. Lease - You do not own the vehicle but are essentially renting it. You make monthly payments to the leasing company, the dealer, or the bank for two to five years. Closed-End Lease - Most common type of lease - A contract that allows you to use a vehicle for a set time period by making a specified number of payments. You return it owing nothing, unless you damage it beyond normal wear and tear. Open-End Lease - Same as a closed-end except you have the option to buy the vehicle at the end of the specified time period. Rent - Agreeing to use a vehicle by agreeing to pay a set fee. Page 2 of 7

9 Concept: Housing Costs CEQ - What are some common costs involved in home ownership? Mortgage Loan - A long-term loan extended to someone to buy property Closing Costs - When you purchase a home, you will be required to pay for several fees related to this purchase, such as; property survey, appraisal, title search, points, application, etc. Real Estate Taxes - City or County taxes that you pay on the home you own. These taxes are used to pay for roads, schools, etc. Assessed Value - The dollar value a tax assessor assigns to a property for taxation purposes Tax Rate - The percentage you pay in tax, expressed in mills per dollar of the property's assessed value Market Value - The price that people are willing to pay to buy your property Rate of Assessment - The percent of the market value of a property, that is taxed Homeowners Insurance - The amount you must pay to insure your home against loss Property Damage Coverage - Pays for damage to the home and personal property such as computers, furniture, and clothing. Fire, wind, rain, ligntning are usually covered but you must pay extra for flood insurance coverage. Personal Liability Coverage - Page 3 of 7

10 Protects you as a homeowner if someone alleges that your negligence caused her or him bodily injury or property damage Medical Coverage - Pays for medical expenses for non-family members accidently injured on your property Loss-of-Use Coverage - Pays for the expenses for living away from home while your damaged home is being repaired Replacement Value - The amount required to reconstruct your home if it is destroyed Premium - The amount you pay for insurance coverage Fire Protection Class - A number assigned by the insurance company that reflects how fire resistant your home is and how close you are to a water source Utility Costs - May include charges for electricity, gas, water, telephone, cell phone, cable TV, Internet service, and heating fuel Security Deposit - When you rent, you must pay an extra amount (usually equal to one month's rent). This is usually returned to you when you terminate your rental agreement provided that there was no damage done to the property. Concept: Insurance CEQ - What are the different types of insurance you can obtain and how do you know which ones you should purchase? Health Insurance - Protects you against overwhelming medical expenses Traditional Plan - Page 4 of 7

11 Offers health care coverage where the provider is paid a predetermined dollar amount for the service given. You may use any provider. Preferred Provider Organization (PPO) - A group of selected providers who offer comprehensive services at preset reimbursement levels. You must choose one of these providers. Health Maintenance Organization (HMO) - A prepaid health plan in which [providers contract with employees of the HMO. You choose a primary care physician and he/she refers you to a specialist if he/she feels you need one. Deductible - Usually annual, Amount of money you must pay each year before your insurance company starts paying. Co-Insurance/Co-Payment - Requires you to pay either a set amount or a certain percent of medical expenses, including prescription drugs. Life Insurance - Financial protection for a family in case the main source of income dies Term Life Insurance - Least expensive form - You buy life insurance for a specified term or a specific age. You must renew your policy at the end of the term or it ends. Beneficiary - The person you choose to receive the amount of coverage you had obtained in life insurance. Whole Life Insurance - Also known as permanent insurance; offers financial protection for your entire life Cash Value - The amount of money you will receive if you cancel your policy Limited Payment Policy - Page 5 of 7

12 A whole life insurance policy that allows you to make payments up to a certain age and then you are still covered but don't have a premium. Universal Life Insurance - Whole life insurance but is also a savings account. Part of your premium goes into an investment account which you have full access to. Concept: Investments CEQ - In what ways can you invest to make your money work for you? Certificate of Deposit (CD) - A savings accounts that you purchase for specific amounts and specific terms which earn a higher rate of interest. If you withdraw them early you pay a penalty in interest. APY (Annual Percentage Yield) - Rate of return on investment for a one-year period In other words, how much money are you getting for the money you are putting in Stocks - Shares of ownership in a company Stock Certifcate - Proof of purchase of a stock Profit - If the money you make (by selling the stock) is more then the initial money you invested (price of stock + commission)- If you buy low and sell high, you usually earn a profit Loss - The money you lose if The money you invest (price of stock + commission) is more than the money you receive from the sale Dividend - Many stocks pay you interest - usually per share Page 6 of 7

13 Mutual Fund - Offered by an investment company. The company pools the savings of many individuals and invests them in a portfolio of stocks, bonds, or both. Net Asset Value (NAV) - Calculated daily by dividing the total market value by the number of shares outstanding. Loading Charge - Charge you pay for either buying or selling shares in a mutual fund. Bonds - A way for corporations and governments to raise money. Written pledges by these entities that you will be repaid your specified amount of money plus interest. Rental Property - Property that is not purchased but rented out. Rent - The monthly payment a person pays you for use of your property Individual Retirement Account (IRA) - A savings account with defers interest tax. Roth IRA - A retirement account that is totally interest tax free. Required Minimum Distribution (RMD) - The amount you must begin withdrawing from your IRA Page 7 of 7