Ownly and Standard 9.1, Personal Financial Literacy

Explain the difference between saving and investing.

• Unit 3 Emergency funds
• Unit 5 Stocks
• Unit 5 Index funds

Prioritize financial decisions by considering alternatives and possible consequences.

• Unit 1 Opportunity cost
• Unit 1 · Gold Opportunity cost as a discipline

Design a personal budget that will help you reach your long-term and short-term financial goals.

• Unit 3 Budgeting systems
• Unit 3 · Bronze Sinking funds and irregular expenses

Analyze how changes in taxes, inflation, and personal circumstances can affect a personal budget.

• Unit 1 Inflation
• Unit 3 Taxes
• Unit 1 · Bronze Real vs. nominal

Describe and calculate interest and fees that are applied to various forms of spending, debt and saving.

• Unit 2 Interest rates
• Unit 2 Checking vs. savings
• Unit 4 Credit cards
• Unit 5 Mutual funds

Identify the purposes, advantages, and disadvantages of debt.

• Unit 3 Debt management
• Unit 4 Loans

Compare and contrast the advantages and disadvantages of various types of mortgages.

• Unit 4 Mortgages

Determine ways to leverage debt beneficially.

• Unit 3 Debt management
• Unit 4 Mortgages
• Unit 1 · Silver Inflation’s winners and losers

Identify the types of characteristics of predatory lending practices and the importance of collateral (e.g., payday loans, car title loans, high-risk mortgages).

• Unit 4 Loans
• Unit 3 Debt management

Compute and assess the accumulating effect of interest paid over time when using a variety of sources of credit (e.g., student loans, credit cards, auto loans, mortgages, etc.).

• Unit 2 Interest rates
• Unit 4 Credit cards
• Unit 4 Loans
• Unit 3 · Silver The real cost of a longer loan

Calculate a mortgage payment based on type of loan, down payment, credit score, and loan interest rate.

• Unit 4 Mortgages
• Unit 4 Credit scores
• Unit 4 · Silver How much house, really
• Unit 4 · Silver Points and refinancing: break-even math

Compare and compute interest and compound interest and develop an amortization table using business tools.

• Unit 2 Interest rates
• Unit 1 · Bronze Compounding, written down
• Unit 4 Mortgages

Summarize the causes and consequences of personal and corporate bankruptcy and evaluate the implications for self and others.

• Unit 4 · Gold Default, collections, and bankruptcy
• Unit 2 · Silver Anatomy of a failure: Silicon Valley Bank

Identify the advantages of maintaining a positive credit history.

• Unit 4 Credit scores

Summarize factors that affect a positive credit rating, including on-time payments, debt versus available credit, length of open credit, and how often you apply for credit.

• Unit 4 Credit scores

Identify the skill sets needed to build and maintain a positive credit profile.

• Unit 4 Credit scores
• Unit 4 Credit cards

Create a plan to improve and maintain an excellent credit rating.

• Unit 4 Credit scores
• Unit 4 · Bronze The CARD Act and the fine print

Summarize factors that affect a particular credit scoring system.

• Unit 4 · Gold How credit scores are built

Identify different ways you can protect your credit.

• Unit 4 · Bronze Your report, disputes, and freezes

Analyze the information contained in a credit report, how scores are calculated and used, and explain the importance of disputing inaccurate entries.

• Unit 4 · Bronze Your report, disputes, and freezes
• Unit 4 · Gold How credit scores are built

Review the tax rates on different sources of income and on different types of products and services purchased.

• Unit 3 Taxes
• Unit 3 · Gold How investment gains get taxed

Explain why various forms of income are taxed differently.

• Unit 3 · Gold How investment gains get taxed
• Unit 5 REITs
• Unit 3 · Silver Roth vs. traditional, with math

Explain how individuals and businesses influence government policies.

• Unit 10 How people and businesses shape policy

Explain the relationship between your personal financial situation and the broader economic and governmental policies.

• Unit 10 Monetary policy
• Unit 10 Fiscal policy
• Unit 10 Recessions
• Unit 1 · Silver Why interest rates move every price

Analyze the rights and responsibilities of buyers and sellers under consumer protection laws.

• Unit 4 · Bronze The CARD Act and the fine print
• Unit 13 Financial regulation
• Unit 2 · Bronze Holds, pending charges, and clearing
• Unit 2 FDIC insurance

Identify ways to protect yourself from identity theft.

• Unit 4 · Bronze Your report, disputes, and freezes
• Unit 4 Credit scores

Explain ways to manage your accounts that maximize benefits and provide you with the utmost protection.

• Unit 2 Checking vs. savings
• Unit 2 FDIC insurance
• Unit 2 Online banking
• Unit 2 · Silver Sweeps, money funds, and idle cash

Develop a plan that uses the services of various financial institutions to prepare for long term personal and family goals (e.g., college, retirement).

• Unit 3 · Bronze The Roth IRA, for anyone with a job
• Unit 3 · Bronze The employer match and pre-tax pay
• Unit 2 · Bronze CD math: ladders and early exits

Relate the concept of delayed gratification (i.e., psychological distance) to meeting financial goals, investing and building wealth over time.

• Unit 1 Time value of money
• Unit 1 Behavioral economics

Identify how unconscious beliefs like “money scripts” (money avoidant, money worship, money status, money vigilant) influence financial decision-making.

• Unit 1 Money scripts

Evaluate how behavioral bias (e.g., overconfidence, confirmation, recency, loss aversion, etc.) affects decision-making.

• Unit 1 Behavioral economics
• Unit 1 · Silver Prospect theory, in full
• Unit 5 · Silver Why investors earn less than their funds

Evaluate the relationship of familial patterns, cultural traditions, and historical influences on financial practice.

• Unit 1 Where your money habits come from

Identify types of investments appropriate for different objectives such as liquidity, income, and growth.

• Unit 5 Stocks
• Unit 5 Bonds
• Unit 5 REITs
• Unit 6 Asset allocation
• Unit 3 Emergency funds

Explain what self-insuring is and determine when it is appropriate.

• Unit 3 Insurance
• Unit 3 Emergency funds

Evaluate individual and family needs for insurance protection using opportunity-cost analysis to determine if the amount of protection is adequate or over-insured.

• Unit 3 Insurance
• Unit 3 · Silver Choosing a deductible with numbers

Compare and contrast the role of philanthropy, volunteer service, and charities in community development and quality of life in a variety of cultures.

• Unit 3 Giving well

Summarize causes important to you and compare organizations you seek to support to other organizations with similar missions.

• Unit 3 Giving well

Research companies with corporate governance policies supporting the common good and human rights.

• Unit 8 Researching how a company treats people

Demonstrate an understanding of the interrelationships among attitudes, assumptions, and patterns of behavior regarding money, saving, investing, and work across cultures.

• Unit 1 Where your money habits come from

Summarize the purpose and importance of estate planning documents (e.g., will, durable power of attorney, living will, health care proxy, etc.).

• Unit 3 The documents that speak for you