Enduring Understanding Individuals must be responsible for creating and protecting their own wealth. The government and companies will not do it for you. A person s standard of living is determined by income and investments. During a person s lifetime, it is not what a person earns, but what an individual keeps and invests that counts. Essential Questions There are two essential questions that are the foundation of the Personal Finance and Investment course. One covers the first half of the year and the second question covers the second half of the year. The two questions are: 1. How does one go about gaining wealth and financial freedom in one s lifetime? 2. During the quest for financial freedom and the accumulation wealth, how does one protect what they have accumulated towards reaching financial freedom? Assessments Assessments used before, during and after instruction: diagnostic, benchmark, formative, summative. TRANSFER TASK FOR FINANCE AND INVESTMENT: The students will participate in a financial computer simulation. Students will complete lessons having a reading, writing and computer component that reinforce curriculum by applying topics to real-life scenarios. Students will progress to phase two of the simulation where they are high school graduates in charge of all aspects of life including finding a job, place to live, maintaining healthy eating and living habits, managing finances, building credit, obtaining further education, paying taxes and investing. Student performance is directly related to the financial decisions they independently make in the simulation and is assessed by the teacher.
Common Core Standards Cross Referenced with Finance Grades 9 12 PA Common Core Academic Standards for Reading in Science and Technical Subjects Craft and Structure CC.3.5.9-10.D. CC.3.5.11-12.D. Determine the meaning of symbols, key terms, and other domain-specific words and phrases as they are used in a specific scientific or technical context relevant to grades 9-12 texts and topics. Application Students will read a lease agreement between a landlord and tenant and then interpret key terms and phrases by completing a student activity requiring students to search the text for meaning. Grades 9 12 PA Common Core Academic Standards for Writing in Science and Technical Subjects Research to Build and Present Knowledge CC.3.6.9-10.H. CC.3.6.11-12.H. Draw evidence from informational texts to support analysis, reflection and research. Application Students will write a report that describes their investment strategies, research, decision-making, mistakes, successes and enduring understandings encountered throughout the stock market simulation.
Month: September Choosing a career Planning a career Careers of the future Types of careers Career and Personality matching Career goals Use a rational decision making process as it applies to the roles of citizens, workers and consumers Identify various forms of income and analyze factors the affect income as part of the career decision making process. BCIT 15.6.12.A Be able to identify various ways people earn a living Differentiate between earned and unearned income Distinguish between income and wealth How do taxes affect income? BCIT 15.6.12.E Conduct web based searches to find out which careers are best for them by analyzing characteristics and requirements of careers opportunities. BCIT 15.6.12.D Active class participation Financial literacy Pre-test, written by Federal Reserve Research and identify job /career opportunities for the future Job and career assessment research form Visual monitoring by teacher and cooperative activities Prioritize job skills employers seek from new hires\ CEW 13.3.11.A. Identify job opportunities and growth industries over the next 10 years BCIT 15.6.12.D Research careers using O Net online BCIT 15.6.12.D Personality and career assessment tests Be able to identify the personality type of the student and match that with careers that fit with that personality CEW 13.3.1.11.B, 13.3.11.A. Setting personal goals BCIT 15.6.12.F
Month: October Getting the job Job application The Job Interview Negotiating a position and salary Communicating and thriving in the workplace Correlate spending and savings plans to personal goals Managing finances how to set and reach FINANCIAL goals How to correctly fill out a job application Components of a job interview CEW 13.2.11.A, 13.3.11.A. Be able to respond to the 10 key questions of a job interview CEW 13.2.11.A Able to identify the pay range for the considered position BCIT 15.6.12.F Students will identify key phrases and negotiating tactics used during the interviewing process Identify conflict resolution skills as they relate to the workplace CEW 13.3.11.C Differentiate between saving and investing Fill out a job application Roll play in pairs. Evaluate participation and answers to questions. Writing assessment: Answer the question, Why should I hire you? on terminology EverFi Introduction - Module 1, Overview Unit test Develop and evaluate spending and savings plans. Evaluate saving and investment options to meet short and long term goals Be able to identify and describe opportunity cost associated with decision-making
Month: October The paycheck and calculating net pay Components of a budget Budgeting - How to get the most of what they want now and later Banking concentration on checking accounts Differentiate gross pay, deductions and net pay Calculate tax, unemployment and social security deductions to arrive at net pay BCIT 15.6.12.E, 15.6.12.S Create a money plan and be able to allocate income with expenses so that they balance Evaluate spending and savings decisions in order to implement a budget CEW 13.3.11.D, BCIT15.6.12.B Evaluate services provided by financial institutions BCIT 15.6.12.G Complete problems that require net pay calculations. Given an income and the components of most households, students will create a budget that balances their incomes with expenses Given a specific set of bills to pay, students will simulate writing a check, entering the information on a register, endorse a check, make a deposit, and reconcile a bank statement. Steps involved in opening and using a checking account Write a check, make a deposit, endorse a check Keep a register balance Reconcile a check register with a bank statement Consequences of bouncing a check EverFi Module 3, Banking Unit test Grade notebooks at end of marking period
Month: November The magic of Compound Interest The Rule of 72 What can I do to prepare myself for retirement? Is it too early to start thinking about retirement? Saving vs Investing Stages of Investing Type of Investor Active vs. passive Diversification ROI Return on Investment Significance of Inflation Free Money, company match options, that increase ROI for retirement investments Investment options arranged by risk Functions of the Federal Reserve Distinguish between simple and compound interest Know how to calculate the future value of money using the Rule of 72 BCIT 15.6.12.Q Differentiate between saving and investing Clearly identify the importance of investing for the future BCIT 15.6.12.A Summarize and differentiate the stages of Investing Correlate saving and investing strategies to changes in the life cycle of a person BCIT 15.6.12.B, 15.6.12.G, 15.6.12.P, 15.6.12.R Determine what type of investor you are as it relates to risk and active vs. passive. Connect diversification to minimizing risk BCIT 15.6.12.A, 15.6.12.R Calculate ROI and determine effectiveness of investment, with the consideration of inflation. Calculate ROI for company matching percentages given for 401K BCIT 15.6.12.R Recall investment options in the order of lowest risk to highest risk BCIT 15.6.12.R Examine the functions of the Federal Reserve BCIT 15.6.12.I Calculate a future dollar value given specific parameters Complete case scenarios based on age and living circumstances for investment strategies. Perform the risk tolerance self-assessment test to determine one s emotional connection to risk. Calculate ROI for case scenarios Complete an Investment pyramid showing the low to high associated risk EverFi Module 2, Budgeting and Saving
Month: December / January Investing in stocks Features of common stock Features of preferred stock How to choose stock Process of buying stock Long and short term investment strategies Investment strategies Stock Listings Examine the history of stock performance and consequences of selling and buying Examine the features of common stock and preferred stock Identify terms frequently used to describe stocks such as PE ratio, Return, dividend, 52 week high and low. Identify types of stocks indexes ( Dow Jones, NASDQ, S & P 500) Contrast the classification of stocks ( Income, Growth, Penny, Defensive, Cyclical) BCIT 15.6.12.R Contrast Bull vs. Bear market. Calculate ROI for stock investments Differentiate - buy and hold, short selling, dollar cost averaging, direct investment and dividend reinvestment BCIT 15.6.12.A Access stock listings and profiles Formative assessment on vocabulary Complete stock indicator worksheet for a company Complete stock research for group activity and make oral presentation Complete worksheets on ROI for stock investments Student Stock Portfolio using online Simulation from MarketWatch
Month: January Investing in Bonds Valuing Bonds Profiting from falling interest rates Investing in Mutual Funds, Real Estate, and Other Alternatives Types of mutual funds Profiting from Mutual Fund Investment Identify the components and characteristics of bonds and the types of bonds Examine government securities including treasury bills notes, municipal bonds BCIT 15.6.12.S Discuss the bond rating system Calculate the value of bonds, realizing premium and discounted bonds BCIT 15.6.12.A Compare and contrast different types of bonds to determine investment options and tax advantages BCIT 15.6.12.E Identify components, characteristics and types of mutual funds (Growth, Income, balance, Bond, global, Index, Money Market) BCIT 15.6.12.A Connect types of funds to diversification and risk BCIT 15.6.12.G Include bond purchase in stock portfolio Case scenarios valuing bond options. Research mutual funds on Vanguard and Fidelity web sites. Include mutual fund purchase in stock portfolio EverFi Module 10, Investing
Month: February Real-estate as an investment Mortgages Amortization Schedules Identify the types of commercial real-estate investments (land, duplexes, apartments, condominiums, REIT s) BCIT 15.6.12.H Document terminology Use amortization schedules. BCIT 15.6.12.J Given parameters such as % down payment and interest rate, use the amortization calculator to determine monthly payments. Compare and contrast payments based on length of time and interest rate. BCIT 15.6.12.J Interview individuals having real estate investments Complete case scenarios using amortization schedules Precious Metals, Gems and Collectibles Profiting from collectibles Identify potential investment choices in precious metals, gems and collectables and their investment value BCIT 15.6.12.P Identify sources for purchase of gems and collectables. Examine terminology associated with diamond purchases Using the Internet trace present and historic gold values, as well as silver and copper Calculate the value of a pre 1964 silver coins for the silver contained in the coin. Calculate the value of copper and gold coins based on the content of the precious metal Grade notebooks at end of marking period
Month: February Taxes Our tax system Progressive and regressive taxes Components of the tax system Terms of our tax system Filing status Exemption Deductions AGI (adjusted gross income) Taxable income Tax owed Refunds Define terminology, examine history of tax system and the purpose of tax revenue BCIT 15.6.12.E, 15.6.12.S Determine the tax implications from certain decisions they make such as buying a house, investing in taxable or tax free investments BCIT 15.6.12.E Identify components of a typical tax filing and how they affect overall income BCIT 15.6.12.E Given a set of parameters and fictitious W-2, file a 1040 EZ tax return Formative assessment Complete various tax filings using fictitious w-2, tax tables and other parameters EverFi Module 8, Taxes & Insurance Filing a tax return 1040EZ form
Month: February / March Credit in America Analyze factors that affect the choice of credit, the cost of credit and the legal aspects of using credit The history of credit in America Credit today Advantages and disadvantages of credit Credit terms and credit card terms APR Grace period Annual fees Finance charge or interest charge Credit vs. Debit cards Loans as credit Closed end credit or installment credit Revolving credit Home equity line of credit Identify when and why to use credit, as well as methods of establishing credit BCIT 15.6.12.K Identify various types of credit ( Installment, revolving, mortgage student loan, etc.) BCIT 15.6.12.L Compare and contrast various credit card offers and other types of loan offers. BCIT 15.6.12.H Calculate payment strategies using the Rule 20/10 Examine case scenarios that look at the relevance of using credit for specific purchases. BCIT 15.6.12.H Pre Test Research credit card offers on line. Compare and contrast at least 3 credit card offers and determine which the best offer is. Formative assessment Worksheet on Payment Strategy Cooperative activity on smart borrowing Where to obtain loans Banks, credit unions, S&L, finance companies, mortgage companies, pawn shops, pay day lenders
Month: February / March The 5 s of Credit Your information and credit scores The Big 3 credit rating companies What goes into making and maintaining a good credit score? Cost of Credit How poor credit scores cost more Bankruptcy Identity theft Credit fraud and credit card fraud List the 5 C s of credit and how they relate to the individual student BCIT 15.6.12.K Access one of the three credit bureaus to determine if fraud as occurred. BCIT 15.6.12.K Connect credit scores to good or bad ratings Summarize the consequences of decisions and give examples of good opportunities for securing and building credit BCIT 15.6.12.H Determine how to fix a bad credit score and utilize the PA Attorney General s website BCIT 15.6.12.L, 15.6.12.M Calculate the financial impact of the consequences for not paying credit obligations on time. BCIT 15.6.12.K Examine the various types of bankruptcy and how they affect credit BCIT 15.6.12.L Request a real credit report. Note: Every year a few students identify that they have been victims of identity theft from a relative, usually a parent. These students are to be shown the sites on line to correct this and be referred to guidance. We are NOT to give any advice or counsel these students. The only advice is to go on line and to go to guidance. EverFi Modules 4, 5 & 9 Credit Explore the ever present threat of identity theft and how it can affect credit BCIT 15.6.12.M Determine how to correct identity theft problems BCIT 15.6.12.M
Month: March Housing Housing alternatives Advantages and disadvantages to renting & owning Rental Leases Mineral Rights Mortgage Calculations, impact of changing terms Closing on a house Compare and contrast housing alternatives and living arrangements BCIT 15.6.12.A List advantages and disadvantages of possible housing alternatives Examine lease agreements to determine meaning of symbols, terms and specific phrases relevant to obtaining housing Explore the impact of mineral rights and the mining of natural gas to property sellers and buyers Determine the financial impact of mortgage terms and rental payments on personal wealth by performing calculations BCIT 15.6.12.B, 15.6.12.H, 15.6.12.J Research housing based on a given amount of money to spend on a place to live. Must stay within 28% of net income Complete leasing assignment that requires access to actual leases and terminology EverFi Module 7, Renting vs Owning Grade notebooks at end of marking period
Month: April FINANCING HIGHER EDUCATION Good Debt vs Bad Debt Contrast grants, scholarships, work study and loans Benefits/costs of private and federal student loans Seeing examples of debt labeled as good and bad, students will formulate and write a definition of good and bad debt. Determine the ideal choices for financial assistance. BCIT 15.6.12.B Identify sources of funding for student assistance. BCIT 15.6.12.H Examine a FAFSA form and connect its relevance to student aid. Written definitions will be screened by instructor. Students will label areas of a FAFSA form and it will be collected for accuracy. Teacher will examine flowcharted notes. Initiate and evaluate discussion stemming from financial video and published opinion on student loan debt. Summarizing current tuition and housing costs Flowchart options for private and federal student loans. Contrast private and federal student loans. Identify at least four types of federal student loan programs. Cooperative class activity where teacher compiles student data and guides students to interpret results. Unit test. BUYING A CAR Steps and strategies Research and compare Pricing schemes Financing Cost to operate Warranties Investigate tuition and housing costs for community, state and private colleges/universities. Draw conclusions from the data, indicating a relationship between cost and type of education. Students will demonstrate the ability to purchase a car including picking a model within their budget, negotiate the best price and secure financing using the available tools on the internet BCIT 15.6.12.B, BCIT 15.6.12.G Calculate the financial impact of miles per gallon, depreciation and car repair on cost. EverFi Module 6, Financing Higher Education Research automobiles and complete evaluative worksheets. Stock market simulation paper is due, showing investment strategies used for student portfolios.
Month: May / June Personal Risks and Insurance Basic insurance terms Why insurance and how does it work? Automobile Insurance Homeowners Insurance Renter s Insurance Life Insurance Health insurance Personal Umbrella Policy Connect the need for insurance to possible financial loss. BCIT 15.6.12.N Recall terminology Solve insurance scenarios by selecting accurate insurance coverage to protect financial loss. BCIT 15.6.12.N Cooperative activities with teacher monitoring Virtual Business Personal Finance simulation From Knowledge Matters Read, write and complete computer component to simulation for finding a job, place to live, maintain healthy eating, manage finances, build credit, obtain further education, pay taxes and invest. BCIT 15.6.12.A, 15.6.12.B, 15.6.12.F, 15.6.12.G, 15.6.12.H, 15.6.12.R The Virtual Business Finance simulation is the transfer task for this course. Lessons in this simulation will be assessed. Review for the final Final Exam Re-examine course content by studying notebook and taking notes from teacher review. Grade notebook for the marking period. Final Exam
Business, Computer and Information Technology Standards - 15.6 FINANCE AND ECONOMICS 15.6.12.A. Evaluate the impact of internal and external influences on financial decisions. 15.6.12.B. Analyze financial decisions for major purchasing events occurring at different stages in life, systematically considering alternatives and consequences. 15.6.12.C. Reference Career Education and Work13.3.11.D Develop a personal budget based on career choice, such as, but not limited to: Charitable contributions, Fixed/variable expenses, Gross pay, Net pay, Other income, Savings, Taxes 15.6.12.D. Develop criteria to evaluate employment options. 15.6.12.E. Assess the purpose, source, and impact of various taxes. 15.6.12.F. Evaluate criteria for personal spending in relation to the economic climate. 15.6.12.G. Identify strategies for personal financial management 15.6.12.H. Evaluate payment methods for major purchases. 15.6.12.I. Analyze the functions of the Federal Reserve and other financial institutions. 15.6.12.J. Analyze the total cost of a major purchase loan agreement using fixed and variable interest rates, calculated over time. 15.6.12.K. Analyze the impact of a positive or negative credit history. 15.6.12.L. Research major consumer credit laws and their impact on individuals in debt. 15.6.12 M. Assess the impact of identity theft; develop a plan for correcting a negative credit report. 15.6.12.N. Compare and contrast various suppliers of insurance products and develop criteria to evaluate individual insurance needs. 15.6.12 O. Develop criteria for a disaster management plan that includes provisions for secure storage of digital and paper documents, inventory of household items, cash reserves, and medical records. 15.6.12.P. Develop financial investment plans to accommodate various economic and personal scenarios. 15.6.12.Q. Apply the Rule of 72 to estimate the number of periods required to double an investment. 15.6.12.R. Compare and contrast various investment plans to achieve goals of liquidity, income, and growth. 15.6.12.S. Analyze the role of government in investment planning and retirement planning.