Personal Finance Essential Questions: 1. Explain the difference between a career and an occupation and how it affects your future? 2. What can I do to ensure that I will be successful when making and managing money? 3. How will developing effective spending habits affect my financial future? I. Planning and Money Management Standard 1: Students will apply strategies to monitor income and expenses, plan for spending, and save for future goals. 1.1: Students will develop a personal financial plan. planning personal finance facilitates needs vs wants attaining financial goals. budget income fixed expenses variable expenses savings financial goals financial plan disposable income identify factors that affect personal financial decisions. list and apply the six steps to financial planning. Board Adopted June 27, 2016 1
1.2: Students will develop a system for keeping and using financial records while using different payment methods. checking accounts debit cards bank statements electronic transfers checkbook register reconciliation payment plans have pros and cons that need to be considered in personal financial planning. identify types of financial services. write checks accurately. record checks, deposits, electronic transfers, and debit cards in checkbook register. compare the costs and benefits of different types of checking accounts. reconcile a checkbook. label parts of a check. Board Adopted June 27, 2016 2
1.3: Students will apply consumer skills to spending and saving decisions. savings plans consumer values goals economy target market personal factors influence consumer spending. marketing strategies influence spending decisions. an individual s background will affect how they spend and save over a lifetime. explain features of different savings plans. list and describe factors (personal and marketing strategies) that influence spending decisions. analyze marketing strategies that influence spending decisions. create a spending and savings plan for major purchases. apply the decision-making process to solve consumer problems. explain economic needs and wants that influence consumer decision making. Board Adopted June 27, 2016 3
1.4: Students will prepare federal income taxes.. preparing federal income taxes is tax brackets the idea of paying your fair share taxes (federal, state, FICA) while taking advantage of the tax deductions breaks legally available. dependents itemize taxable income federal income tax Form W-2 Form 1040EZ prepare tax form 1040EZ. Board Adopted June 27, 2016 4
II. Credit and Debt Standard 2: Students will develop strategies to maintain creditworthiness, borrow at favorable terms, and manage debt. 2.1: Students will analyze the costs and benefits of various types of credit. fees and other hidden costs may credit occur when using different forms of borrowing credit. finance charge potential creditors will grant credit grace period based on your creditworthiness. annual percentage rate (APR) capital collateral principle creditor debtor line of credit down payment five C s of credit (character, capacity, capital, conditions, collateral) creditworthiness principle (loan) define the advantages and disadvantages of consumer credit. research various benefits and rewards offered by credit card companies. compute the true cost of credit using APR and terms. describe and explain the importance of the five C s of credit. Board Adopted June 27, 2016 5
2.2: Students will summarize a borrower s rights and responsibilities related to credit reports. various credit laws credit history credit report credit rating credit reports are used for purchases of homes, business loans, credit cards, and automobile loans, and for hiring. compare and contrast good vs poor credit. discuss various credit laws. (i.e consumer protection act, fair credit reporting act) 2.3: Students will apply strategies to avoid or correct debt management problems. bankruptcy laws 20/10 Rule (income to debt ratio) credit counseling bankruptcy debtor repossess confidential organizations (credit counseling services) will aid in avoiding debt problems and give options for managing finances. discuss methods for solving credit problems. outline bankruptcy laws and choices. Board Adopted June 27, 2016 6
III. Income and Careers Standard 3: Students will use a career plan to develop personal income potential. 3.1: Students will explore job and career options. choosing a career has both positives and job analysis negatives to consider. salary their personal career choice may come benefits with training and education expenses or promotion debt. work characteristics values aptitude discuss career and job trends. describe sources of job information. complete a job analysis, listing the positive and negative features of potential career choices. identify optional and required employee benefits and recognize their value. Board Adopted June 27, 2016 7
3.2: Students will analyze factors that affect personal income. compensation over-time pay net pay (income) gross pay (income) hourly wage salary Form W-4 taxes (federal and state) minimum wage withholding allowances pre-tax (e.g. flex funds for medical or childcare). college savings account net income is affected by hours worked, payroll taxes and other deductions. complete a Form W-4. compute payroll deductions and net pay. Board Adopted June 27, 2016 8
IV. Savings and Investing Standard 4: Students will implement a diversified investment strategy that is compatible with personal financial goals. 4.1: Students will explain how investing may build wealth and help meet financial goals. needs and wants can be achieved list and describe the financial stock market through long-term planning and institutions where you can save. Certificates of Deposit (CD s) investing. compute how money grows through annual percentage yield (APY) compounding interest. stockbroker describe different purposes of saving. compound interest compute scenarios using the Rule of principal 72. interest securities maturity date money market account liquidity Rule of 72 diversification Board Adopted June 27, 2016 9
4.2: Students will evaluate investment alternatives. Corporate and Municipal Bonds U. S. Government Savings Bonds Treasury Securities stocks mutual funds annuities real estate futures penny stocks collectibles financial pyramid the degree of risk in investments will vary with the expected return. to make wise investments you need to define your goals, go slowly, keep good records, get good advice, keep your knowledge current and know your limits. list and define basic investment options, rated by risk. describe sources of financial information to make investment decisions. Board Adopted June 27, 2016 10
4.3: Students will demonstrate how to buy and sell investments. when buying a share, they will own a stockholders part of a company. common stock stocks can be used as a short or long stock split term investment. short selling a securities exchange is a marketplace market value where brokers buy and sell securities. par value stocks can be located on the blue chip stocks NASDAQ or NYSE. New York Stock Exchange (NYSE) National Association of Securities Dealers Automated Quotation System (NASDAQ) accurately buy and sell stock using a stock market simulation. (i.e. What if ) discuss stock investing classifications. define factors that affect a stock s price. read and explain the stock listings and stock indexes. Board Adopted June 27, 2016 11
V. Risk Management and Insurance Standard 5: Students will apply appropriate and cost-effective risk management strategies. 5.1: Students will identify common types of risks and basic risk management methods. risk-management involves three risk (financial loss) steps: identify risks of loss, assess the premium seriousness of financial impact and deductible select the best ways to handle the insurance risks. claim a risk management plan needs to be types/terms completed. compare local insurance companies and rates. analyze personal property and liability risks. 5.2: Students will justify reasons to use property and liability insurance. renter s policy homeowner s policy liability coverage collision coverage comprehensive coverage negligence liability insurance is used to protect against claims for bodily injury to another person or damage to another person s property due to negligence of the insured party. discuss common types of automobile insurance coverage. explain the concept (the 5 W s) of liability insurance. explain the purpose of renter s and homeowner s insurance. Board Adopted June 27, 2016 12
5.3: Students will justify reasons to use health and life insurance. life insurance can be a type of health insurance investment. life insurance choices are available for individual long term care insurance and group health insurance plans. beneficiaries analyze and compare common types of health insurance coverage and plans. describe the characteristics of different life insurance plans. Board Adopted June 27, 2016 13
VI. Financial Decision-Making Standard 6: Students will apply reliable information and systematic decision-making to personal financial decisions. 6.1: Students will recognize the responsibilities associated with purchasing a vehicle, buying a home, or renting. a person should carefully weigh the evaluate several housing rental renting- advantages, costs, and responsibilities alternatives. dormitory when renting or buying a home. discuss potential living arrangements landlord when buying or renting a home you and moving choices. analyze advantages and disadvantages of tenant should consider such factors as renting a place to live. lease location, accessibility, nearness to describe the elements of a rental contract security deposit employment, type and quality of and lease agreement. eviction construction, cost and effort of identify landlord and tenant buying a home- maintenance, and personal likes and responsibilities. market value dislikes. determine the advantages and closing costs when purchasing a vehicle you must disadvantages of home ownership. multiple listing service (MLS) consider the cost of insurance, examine the costs and responsibilities of mortgage licensing and registration, gas, home ownership. counter offer maintenance and repairs. discover how to obtain financing and the closing process. lien buying a car starts with identifying breakdown the process of buying a car. deed and prioritizing your needs and elaborate on advantages and title wants, then determining what you disadvantages of automobile leasing purchasing a vehicle- can afford. costs and processes. pre-approval identify the costs of owning and sticker price operating a vehicle. vehicle identification number (VIN) discuss consumer protection available for lemon new- and used-car buyers. Board Adopted June 27, 2016 14
6.2: Students will recognize major consumer protection laws that apply to them. people are protected by the fraud Consumer Bill of Rights. consumer individuals are provided protection advocate by major federal consumer protection recall laws. care labels identify laws to protect consumers from unsafe products and unfair or deceptive business practices. 6.3: Students will analyze the requirements of contractual obligations. contracts have to be legal in contract order to be enforceable. breach of contract terms contained in an agreement warranty need to be read and understood. co-signer negotiable discuss the elements of legal contracts and responsibilities regarding contracts. describe negotiable instruments and warranties. 6.4: Students will control personal records. W-2 form Statement of Net Worth assets liabilities net worth personal records provide the road map to financial security. keeping a good filing system will help you organize, store, and retrieve needed information. complete a Statement of Net Worth. discuss ways to set up a filing system (paper and electronic) for personal records. Board Adopted June 27, 2016 15
VII. Business Ethics Standard 7.1: Students will define, develop, and apply a code of ethics to various issues. ethics conduct social responsibility customer honesty moral commitment Acceptable Use Policy ethics applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations. they must take accountability for their actions. there are impacts of ethical and unethical or illegal use of technology on individuals and society. discuss the ethical and social responsibilities of a business. demonstrate personal responsibility by engaging in positive, respectful business behavior. document properly both print and digital sources to avoid plagiarism. (Refer to District Technology Standard 1) Board Adopted June 27, 2016 16
VIII. Communication Achievement Standard 8: Students will develop basic skills in active listening and written communication. 8.1: Students will listen actively, use the communication process, read and research information, and integrate technology to enhance communication effectiveness. active listening resources active listening is a vital part of the communication process. the communication process involves written communication. problem solving requires researching a variety of information sources. listen for information. demonstrate courteous attention when listening to others. follow verbal and written directions. use technology to solve problems independently and effectively. listen to and read information to create professional business documents. 8.2: Students will prepare clear, complete, concise, correct, and courteous written messages for personal and professional uses. revisions clear, correct, concise, complete, consistent, and courteous documents effectively communicate a message. mistakes will undermine the credibility of written communications. use correct spelling, grammar, word and number usage, punctuation and formatting. proofread and edit business documents to ensure that they are clear, correct, concise, complete, consistent, and courteous. Board Adopted June 27, 2016 17
8.3: Students will demonstrate professional speaking techniques and strategies. organizational strategies for a presentation organization is critical presentation. for audience understanding. strategies to avoid vocal segregates a presentation introduction aides in such as um, uh, er, like, etc. audience understanding. vocal segregates need to be avoided. speed, tone, emphasis and volume contribute to a quality presentation. as a presenter, they are taking responsibility for delivering the correct information. establishing rapport and building credibility with the audience are required with any presentation. preparation & practice will reduce vocal segregates. technology enhances communication. a presentation conclusion aides in audience understanding. organize thoughts to reflect logical thinking before speaking. identify vocal segregates such as um, uh, er, like, etc. adjust speed, tone, emphasis, and volume to deliver content professionally. use strategies to reduce or eliminate vocal segregates such as um, uh, er, like, etc. discuss the importance of taking responsibility for all spoken communication. establish rapport and build credibility with the audience. Board Adopted June 27, 2016 18