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Financial Literacy


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.