A Evaluate and demonstrate how career choices, education choices, skills, entrepreneurship, and economic conditions affect income.

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1 Wisconsin STATE STANDARD OR BENCHMARK: CORRELATES WITH: Personal Finance Literacy A. RELATING INCOME AND EDUCATION Students in Wisconsin will understand the relationship between education, income, career, and desired lifestyle and will develop the planning skills needed to achieve desired financial goals. A.1 Understand how career choice, education, skills, entrepreneurship, and economic conditions affect income. A Evaluate and demonstrate how career choices, education choices, skills, entrepreneurship, and economic conditions affect income. A Analyze how personal and cultural values may impact financial decisions., 12 A.2 Understand the sources of income and alternative resources. A Understand and critique sources of income and resources available that may substitute for income. A Describe alternatives to increasing income by displaying factors related to income and benefits.. A.3 Explain how income affects lifestyle choices and spending decisions.,2, 5 A Develop a plan to designate how income affects decisions to purchase and spend., 3, 5 A Understand and display the relationship of career income lifestyle., 3, 5 A.4 Explain how taxes and employee benefits relate to disposable income. A Demonstrate how taxes can change or affect income and lifestyle The Lampo Group LLC 1

2 A Analyze how payroll deductions modify an employee s disposable income. A Explain how taxable income impacts disposable income. A Research government programs and services that are available to employees and how they affect the quality of life. B. MONEY MANAGEMENT Students in Wisconsin will manage money effectively by understanding and developing financial goals and budgets. B.1 Demonstrate ability to use money management skills and strategies. Unit 1, 2, 3, 4 B Apply various money management strategies to authentic situations and predict results over time. B Analyze and compare income and spending plans as affected by age, needs, and resources. Unit 1, 2, 3, 4 B.2 Understand the purposes and services of financial institutions. Unit 1, Ch. 3 B Develop a plan that uses the services of various financial institutions to meet personal and family financial goals. B Describe and calculate interest and fees applied to various forms of spending, debt, and saving., 5 B.3 Develop a financial vision based on an examination of personal values., 3 B Compare various strategies for securing funding for a future event. B Correlate long-range personal goals with financial needs and resources., 3 B Estimate the impact of economic conditions, cultural values, age, and location on strategies for reaching personal financial goals., 3 B.4 Understand the history, purposes, roles, and responsibilities related to taxation The Lampo Group LLC 2

3 B Analyze the application and impact of various forms of taxation on individuals, families, and public agencies. B Develop personal financial planning strategies that respond to and use tax deductions and shelters., 3 B Analyze the relationship between various forms of taxation. C. CREDIT AND DEBT MANAGEMENT Students in Wisconsin will make informed decisions about incurring debt and will manage indebtedness to remain both creditworthy and financially secure. C.1 Identify and evaluate credit products and services., 5 C Compare the benefits and costs of spending decisions., 3, 5, 6 C Evaluate information about products and services. Unit 2, Ch. 6 C Differentiate and calculate the difference between a rapid access loan and a bank loan affecting long term/short term. C.2 Identify and compare sources of credit., 5 C Compare the financial benefits and services of different types of lending institutions. C Assess strategies of debt and credit management., 3, 5 C Explain credit. C Compare sources of consumer credit and apply them to consumer decisions., 5 C.3 Identify and evaluate interest rates, fees, and other credit charges. Unit 2. Ch. 4, 5 C Evaluate options for payment on credit cards and the consequences of each option. C Analyze the impact of using a credit card vs. a charge card vs. a debit card as it relates to money management. Unit 1, Ch The Lampo Group LLC 3

4 C Apply and assess balance sheet concepts: debit and credit. Unit 1, Ch. 3 C Analyze the advantages and disadvantages of different debt payment methods. C Explain terminology associated with mortgages. C.4 Interpret credit sources and reports. C Explain how a credit score is used. C Explain factors that affect creditworthiness and the purpose of credit records. C Apply strategies to avoid or correct credit problems., 3, 5 C.5 Calculate the cost of borrowing., 5 C Utilize business tools to compare and compute interest and compound interest, and to develop an amortization table. C Compute and assess the accumulating effect of interest paid over time when using a variety of sources of credit. C Calculate and compare the total cost of borrowing for various amounts and types of purchases. C.6 Explain the rights and responsibilities of buyers and sellers under consumer protection laws. C Apply credit counseling to various situations and assess the resources that could be used for it. C Explain the rights and responsibilities of buyers and sellers under consumer protection laws., 5, 5, 6, 9, 6, 9 C.7 Understand how to leverage debt. C Explain the advantages and disadvantages of debt., 5 C Assess and apply leveraged debt. C.8 Describe the implications of bankruptcy. C Compare the different types of bankruptcy and list the effects of each. N/A The Lampo Group LLC 4

5 C Evaluate strategies that may be used to avoid bankruptcy., 3, 5 C Evaluate the implication(s) of bankruptcy to self and others. C.9 Analyze the pros and cons of high cost alternative financial services. C Explain products and practices such as instant tax refunds and payday lending. C Identify and discuss examples of predatory lending practices. D. PLANNING, SAVING, AND INVESTING Students in Wisconsin will understand the value, features, and planning processes associated with saving and investing, and be able to apply this knowledge to long-term financial security and wealth. D.1 Apply strategies for creating wealth/building assets. D Evaluate the effect of compounding earned interest. D Explain the concept of asset allocation. D Identify and assess various means of building wealth. D Assess factors that influence financial planning (age, income, liabilities, assets, goals, family size, risk tolerance, etc.). D.2 Match appropriate financial services and products with specified goals., 3 D Demonstrate the use of financial services and products to achieve personal financial goals. D Create a model for comparing savings and investment results using a graphing or internet calculator., 3 D Differentiate between various investment products. D Select appropriate financial services and products based on evaluation of service/product information The Lampo Group LLC 5

6 D.3 Describe the relationships between saving and investing D Understand the role of revenue-generating assets in building wealth (e.g., rental property, small business, etc.). D Explain how government agencies regulate financial markets, where they do and do not protect investors, and other roles they may play in the financial industry (e.g., SEC, NASD, State s Attorney General). D Describe the processes and vehicles for buying and selling investment D Compare the risk, return, and liquidity of various investment alternatives. D.4 Apply the concepts of supply and demand to stock market price changes. D Determine the impact of various market events on stock market prices. D.5 Demonstrate ability to use decision-making processes in making financial decisions related to planning, saving, and investing. D Develop and justify the best investment and/or savings options to achieve particular goals., 3 E. BECOMING A CRITICAL CONSUMER Students in Wisconsin will know and use available consumer resources and make responsible choices by applying economic principles in their consumer decisions. E.1 Understand the impact of contextual factors associated with consumer decision making. (e.g., social, historical, political, family, cultural, philosophical). E Compare and contrast individual differences and influences on consumer decisions related to money. E.2 Investigate the purposes, strategies, and effects of various business practices, including sales schemes or scams E Evaluate the influence of advertising and the media on decision making and spending. E Evaluate selected business practices for consequences to individuals, families, and society., 9, 6, 6 E.3 Understand the cost of interest rates and fees associated with financial services. Unit 1, Ch. 3 E Determine the cost of various interest rates and fees to a consumer The Lampo Group LLC 6

7 E.4 Understand that verbal contracts are as binding as written agreements. E Examine sample written and verbal contracts for essential components and meaning. E Evaluate contracts for their completeness and usefulness. E.5 Identify sources of consumer protection and assistance including public institutions and private organizations (professionals, publications, and internet)., 6, 9 E Evaluate how fraudulent activities affect consumers and the creation of laws. Unit 2, Ch. 6 E Analyze and apply multiple sources of financial information when making consumer decisions. E.6 Examine critically the impact of socio-cultural norms and demographics related to money, saving, and spending., 5, 6 Unit 3, CH. 7, 8, 9, 5 E Evaluate and rank the functions of money. Unit 1, Ch. 3 E Evaluate the benefits and risks of various products., 3, 5, 9 E Assess the power and impact of consumer movements. F. COMMUNITY AND FINANCIAL RESPONSIBILITY Students in Wisconsin will understand the personal and social impact of their own financial decisions within the family, the local community, and the global community, as well as understand the ethical and legal issues related to income, profit, and personal wealth. F.1 Understand factors that affect citizen financial decisions and actions. Unit 1, 2, 3, 4 F Evaluate individual, social, and cultural differences in understanding the use of money and other financial resources. F Synthesize attitudes, assumptions, and patterns of behavior regarding money, saving, investing, and work. Unit 1, 2, 3, The Lampo Group LLC 7

8 F.2 Practice skills related to fiscal responsibility and personal decision making. Unit 1, 2, 3, 4 F Create consumer-citizen action strategies to influence decisions by government, business, and other consumers. N/A F.3 Integrate and apply financial knowledge, attitudes, and skills. Unit 1, 2, 3, 4 F Present significant questions/public policy issues of concern to citizens as family members, workers, and community members. F Apply cost-benefit and opportunity-cost analysis, information processing, and essential reasoning skills to address significant questions/issues. F Take informed and responsible action to address significant personal financial literacy questions/issues. F.4 Understand the interdependent role of government, business, consumer, and personal finance in the economy. F Appraise the concept and forms of taxation and its role in public activities and initiatives. F Critique interrelationships between the management of personal financial resources, the economic system, and significant social values. F Explain how the economic system of production and consumption is a means to achieve other significant societal goals. F Theorize how citizen decisions and actions can influence the use of economic resources to achieve basic societal and individual services. F Evaluate the impact of taking responsibility, individually and/or collectively, to change questionable business, government, and consumer practices. F.5 Examine the impact that government, business, consumer, and financial decisions and actions have on the individual, family, community, society, and world. F Assess the impact of emerging global economic events on personal financial planning. F Examine critically the consequences of consumer-citizen decisions and actions on the economy, broader society, and the environment. Unit 2, Ch. 6, 8 Unit 1, 2, 3, 4, 5 Unit 2, Ch. 6 Unit 3, Ch. 11, 5 Unit 3, Ch. 11, 6, 6 Unit 4, Ch. 12 Unit 4, Ch. 12, 6 Unit 4, Ch The Lampo Group LLC 8

9 F Contrast the importance and impact of business, government, and consumer fiscal responsibility. F Project and substantiate the role of philanthropy, volunteer service, and charities in community development and quality of life., 6 Unit 4, Ch. 12 Unit 4, Ch. 12 G. RISK MANAGEMENT Students in Wisconsin will understand the features and role of insurance in financial planning and be able to analyze and balance risk against benefits in financial planning. G.1 Understand the nature of personal financial risk and the importance of protecting against financial loss. G Analyze risk vs. benefit in various financial situations., 9 G Develop a personal concept of financial risk management. G Explain how risk management strategies protect against financial loss. G.2 Examine the need for and value of various types of insurance (such as health, property, life, disability, and liability) within the life cycle. G Investigate and apply different types of insurance coverage to selected situations (such as automobile insurance). G Review and apply criteria to choose insurance coverage for selected situations (such as automobile insurance). G Compare insurance rates, premiums, and deductibles to minimize costs in selected situations. G.3 Integrate and apply concepts related to personal financial risk, protection from loss, and financial planning. G Evaluate the results of opportunity-cost analysis to determine individual and family needs for protection. Unit 2, Ch. 6 G Create an individual or family insurance plan for selected situations The Lampo Group LLC 9

10 Standard D: Economics Social Studies, Grade 12 D.12.1 Explain how decisions about spending and production made by households, businesses, and governments determine the nation's levels of income, employment, and prices D.12.2 Use basic economic concepts (such as supply and demand; production, distribution, and consumption; labor, wages, and capital; inflation and deflation; market economy and command economy) to compare and contrast local, regional, and national economies across time and at the present time D.12.3 Analyze and evaluate the role of Wisconsin and the United States in the world economy D.12.4 Explain and evaluate the effects of new technology, global economic interdependence, and competition on the development of national policies and on the lives of individuals and families in the United States and the world D.12.5 Explain how federal budgetary policy and the Federal Reserve System's monetary policies influence overall levels of employment, interest rates, production, and prices D.12.6 Use economic concepts to analyze historical and contemporary questions about economic development in the United States and the world D.12.7 Compare, contrast, and evaluate different types of economies (traditional, command, market, and mixed) and analyze how they have been affected in the past by specific social and political systems and important historical events D.12.8 Explain the basic characteristics of international trade, including absolute and comparative advantage, barriers to trade, exchange rates, and balance of trade D.12.9 Explain the operations of common financial instruments (such as stocks and bonds) and financial institutions (such as credit companies, banks, and insurance companies) D Analyze the ways in which supply and demand, competition, prices, incentives, and profits influence what is produced and distributed in a competitive market system, 3, 5, 6, 6, The Lampo Group LLC 10

11 D Explain how interest rates are determined by market forces that influence the amount of borrowing and saving done by investors, consumers, and government officials D Compare and contrast how values and beliefs, such as economic freedom, economic efficiency, equity, full employment, price stability, security, and growth, influence decisions in different economic systems D Describe and explain global economic interdependence and competition, using examples to illustrate their influence on national and international policies D Analyze the economic roles of institutions, such as corporations and businesses, banks, labor unions, and the Federal Reserve System, 3, 5, The Lampo Group LLC 11