Essential Concept and/or Skill: Create long and short term goals based on a prioritization of wants and needs.
Develop short–term and long–term financial goals.
- Distinguish between short– and long–term goals.
- Explain the importance of goal setting, how to prioritize those goals, and the need for both short– and long–term goals.
- Create a timely, attainable goal.
Understanding needs vs. wants.
- Explain difference between wants and needs.
- Explain prioritization factors to consider when determining expense–related decisions.
Essential Concept and/or Skill: Recognize how one’s personal career choice and attitude can impact financial planning decisions.
Develop a realistic spending plan for financial independence.
- Illustrate that career choice, education and skills, and economic conditions affect income.
- Determine own attitudes and behaviors toward spending, saving, and investing.
- Recognize sources of money (earned or gifted).
Understand various sources of compensation.
- Recognize multiple sources of income as well as alternative sources (family members, neighbors, friends for jobs or gifts).
- Recognize other types of compensation (bartering, trading).
Understand the distribution of resources.
- Explain the benefits of savings versus spending.
- Describe the impact of spending on savings.
Understand financial instruments.
- Identify the different ways to pay for items (cash, check, credit, and debit).
- Explain how non–cash methods of payment still require adequate funds.
Essential Concept and/or Skill: Identify the concept of debt and an individual’s responsibility for that debt.
Identify responsible credit management.
- Recognize the uses of credit.
- Identify appropriate times to use credit.
Understand different types of debt.
- Recognize that borrowing is a debt to be repaid.
- Explain the role of interest regarding debt.
Understand rights and responsibilities as borrowers.
- Recognize the importance of repaying a debt.
- Explain potential consequences for not returning a borrowed item.
- Explain the positive consequences of repaying debt on time.
Essential Concept and/or Skill: Recognize common risks to one’s identity and demonstrate the ability to protect that identity.
Establish strategies for protection of identity.
- Explain what it means to have a personal financial identity stolen.
- Identify ways of protecting their identity.
Recognize different types of insurance.
- Describe what insurance is and why it is important.
- Describe the impact of losses, financial and non–financial.
Recognize different types of non–insurance protection.
- Recognize the importance of written documentation and other types of protection available for students.
- Explain the various people who provide protection and the roles they play.
Essential Concept and/or Skill: Determine the importance of saving/investing in relation to future needs.
Recognize investment options.
- Identify various ways to save.
- Explain the importance of saving in relation to future needs.
Distinguish investment options.
- Identify various options for saving/investing.
Understand the relationship between investment risk and return.
- Explain how an investment can grow in value.
- Explain how an investment might decrease in value.
Essential Concept and/or Skill: Recognize that spending choices differ between groups of people and settings.
Recognize the local, state, national, and international impact of personal financial habits and actions.
- Recognize that different people have different needs, wants, and financial priorities.
- Explain how one’s actions impact others.
Demonstrate responsible financial behaviors, at the personal, local, state, national, and international levels.
- Recognize consequences for both good and bad decisions.
- Recognize that an individual’s behavior impacts the decisions and consequences of the broader community.