| (D) analyze various representations of exponential
functions with respect to compound interest situations and use the
rule of 72 to determine the number of years it will take for savings
to double in value;
(E) analyze a bank statement for accuracy;
(F) compare financial services offered in the community;
and
(G) identify the sources of funds such as savings,
earnings, or debt to be used to purchase consumable and nonconsumable
goods.
(6) The student applies mathematical process standards
to demonstrate an understanding of the various types of credit. The
student is expected to:
(A) determine the advantages and disadvantages of credit
cards such as cashback rewards, balance transfer, foreign currency,
interest rates charged, late payment fees, credit score, and bonus
incentives;
(B) calculate the cost of using credit cards, including
various financial fees;
(C) analyze and compare graphically, with or without
technology, the differences in the cost of borrowing such as using
a bank loan, a credit union loan, a student loan, and an easy-access
loan such as a pay-day loan and an auto title loan;
(D) analyze the risks for each type of loan;
(E) evaluate the process for a bank loan or a credit
union loan;
(F) collect and organize data, make and interpret scatterplots,
interpret the results, and make critical judgments about loan balances
when equal monthly payments are made;
(G) analyze credit scores and explain the meanings
of the scores;
(H) explain ways a negative credit report can affect
a consumer's financial options; and
(I) analyze a personal credit report.
(7) The student applies mathematical process standards
to demonstrate an understanding of the cost of housing by comparing
home purchases and renting. The student is expected to:
(A) analyze data of mortgage payments with various
additional principal payments involving exponential functions using
tables, graphs, or algebraic methods;
(B) create an amortization table using technology to
collect and organize data to make decisions and critical judgments
about varying the down payment, period of loan, special principal
payment, and interest rate for a home loan;
(C) compare options for saving for a down payment on
a home;
(D) determine costs associated with home ownership,
including property taxes; mortgage insurance; homeowner's insurance,
including property damage, liability, and flood and earthquake insurances;
and closing costs;
(E) analyze and interpret mortgage tax deductions;
(F) determine other costs associated with home ownership,
including cost of maintenance, repairs, utilities, and association
fees;
(G) determine the appropriate savings needed to maintain
home payments in the event of a financial emergency;
(H) demonstrate an understanding of the consequences
to individuals in times of recession and falling home prices such
as during the mortgage crisis of 2007-2008 and identify how the financial
and personal impact could have been reduced;
(I) compare the cost of homeownership versus renting,
identifying benefits and drawbacks to both homeownership and renting
such as the mortgage-related income tax deductions;
(J) use the multiple listing service to identify and
compare housing properties;
(K) analyze and explain a typical apartment lease such
as terms, deposit, occupancy, parking, and cancellation contract policy;
and
(L) compare options for coverage for renter's insurance.
(8) The student applies mathematical process standards
to demonstrate an understanding of the difference between a vehicle
purchase and a vehicle lease and costs associated with each. The student
is expected to:
(A) create an amortization table using technology to
collect and organize data to make decisions and critical judgments
about varying the down payment, period of loan, special principal
payment, and interest rates for a vehicle loan;
(B) determine the costs associated with owning and
leasing a vehicle, including insurance, maintenance, repairs, and
fuel;
(C) compare the total cost of buying and owning a vehicle
to leasing a vehicle;
(D) compare the total cost of purchase and maintenance
of several possible vehicles;
(E) identify and understand the costs and benefits
of maintenance contracts and vehicle warranties;
(F) calculate the funding needed to maintain vehicle
payments in the event of a financial emergency; and
(G) research various options for a driver's education
course and the benefits of the course and the impact of a moving violation
on insurance rates.
(9) The student applies mathematical process standards
to demonstrate an understanding of investment options. The student
is expected to:
(A) identify the factors involved in the various methods
of buying and selling stocks and mutual funds, including load and
no-load funds, by evaluating the stock dividend yield, price-earnings
ratio, return on investment, earnings per share, and net asset value;
(B) calculate the cost of buying and selling bonds
and analyze the investment return from bond yield and bond interest
payment;
(C) compare differences among investments, including
stocks, bonds, mutual funds, Exchange Traded Funds, and real estate;
and
(D) compare the risk and return for a diversified and
non-diversified investment portfolio in a student-created portfolio.
(10) The student applies mathematical process standards
to demonstrate an understanding of various types of insurance, including
life, health, disability, and income insurances, and special protection.
The student is expected to:
(A) analyze the costs and benefits of term and permanent
(whole) life insurance such as the cost of premiums, dividends, accumulation
of cash value, tax treatment of death benefits, and protection from
creditors of death benefits and cash values;
(B) estimate the amount of life insurance needed using
a needs approach or an earnings multiple approach;
(C) estimate the cost of healthcare coverage, including
the cost of health insurance premiums, co-payments, deductibles, and
out-of-pocket expenses;
(D) explain the need for disability income insurance
and research the cost;
(E) compare the benefits to the costs of special protection
coverages such as cancer, pet, vacation, burial, international travel,
and purchase protection;
(F) demonstrate an understanding of the actuarial process
used to set premiums; and
(G) demonstrate an understanding of insurance company
and agent selection and professional designations within the insurance
profession.
(11) The student applies mathematical process standards
to demonstrate an understanding of retirement plans. The student is
expected to:
(A) compare tax advantage retirement plans, including
Individual Retirement Accounts (IRAs), Roth IRAs, 401(k) plans, and
403(b) plans, and determine an appropriate investment for retirement;
(B) calculate and graph the exponential function showing
the benefits of starting early to invest with continuous contributions;
(C) calculate tax treatment penalty for early withdrawal;
and
(D) calculate, using technology, the amount that must
be saved annually to achieve financial independence by a desired age.
(12) The student applies mathematical process standards
to demonstrate an understanding of a fixed pension, a variable pension,
social security, and an annuity. The student is expected to identify
an annuity and calculate and display graphically the future value
of an annuity.
(13) The student applies mathematical process standards
to demonstrate an understanding of wills and trusts for the distribution
of assets at death. The student is expected to identify how wills
and trusts support the distribution of assets after death.
(14) The student applies mathematical process standards
to demonstrate an understanding of charitable giving. The student
is expected to demonstrate an understanding of the value and benefits
of charitable giving.
(15) The student applies mathematical process standards
to demonstrate an understanding of the budgeting process. The student
is expected to:
(A) create a comprehensive balanced personal budget,
including fixed and variable expenses, college savings, emergency
savings, and retirement savings;
(B) identify free resources to assist with maintaining
a budget; and
Cont'd... |
