| (A) compare and contrast sources of credit such as
banks, merchants, peer-to-peer, payday loans, and title loans;
(B) compare and contrast types of credit, including
revolving and installment credit, and collateralized loans versus
unsecured credit; and
(C) evaluate the impact of credit decisions on monthly
budget, income statement, and net worth statement.
(9) Credit and borrowing. The student identifies factors
that affect credit worthiness. The student is expected to:
(A) discuss how character, capacity, and collateral
can adversely or positively impact an individual's credit rating and
the ability to obtain credit;
(B) describe how to access and interpret a sample credit
report and score;
(C) describe the importance of monitoring credit reports
regularly and addressing mistakes;
(D) identify factors that could lead to bankruptcy
such as medical expenses, job loss, divorce, or a failed business;
and
(E) appraise the impact of borrowing decisions on credit
score, including consequences of poor credit management and bankruptcy.
(10) Credit and borrowing. The student evaluates a
decision to use credit. The student is expected to:
(A) examine the components of the cost of borrowing,
including annual percentage rate (APR), fixed versus variable interest,
length of term, grace period, and additional fees such as late payment,
cash advance, and prepayment penalties;
(B) explain strategies to reduce total cost of borrowing
such as making a higher down payment and additional principal payments;
and
(C) differentiate between the use and cost of debit
and credit cards.
(11) Insuring and protecting. The student recognizes
financial risks faced by individuals and families and identifies strategies
for handling these risks. The student is expected to:
(A) identify risk as potential loss of assets or earning
potential; and
(B) apply risk management strategies, including avoiding,
reducing, retaining, and transferring risk.
(12) Insuring and protecting. The student identifies
the costs and benefits of insurance for transferring risk. The student
is expected to:
(A) define insurance terminology, including premiums,
deductibles, co-pays, and policy limits;
(B) explain the costs and benefits of different types
and sources of health insurance such as individual health plans, employer-provided
health plans, and government-provided health plans;
(C) explain the costs and benefits of disability and
long-term care insurance;
(D) explain the costs and benefits of life insurance,
including term insurance and whole life insurance;
(E) explain the costs and benefits of property insurance,
including homeowner's and renter's insurance;
(F) explain the costs and benefits of automobile insurance
and factors that impact the price of insurance, including the type
of vehicle, age and sex of driver, driving record, deductible, and
geographic location; and
(G) explain the costs and benefits of supplemental
types of insurance such as extended warranties, mortgage protection
life insurance, accidental death and dismemberment life insurance,
car loan payoff coverage, debt cancellation coverage, and credit life
coverage.
(13) Insuring and protecting. The student understands
how to identify and protect themselves from frauds, schemes, and scams.
The student is expected to:
(A) identify ways to protect personal information and
reduce risk of identity theft;
(B) recognize common schemes and scams such as investment,
pyramid, phishing, check cashing, and home renovation scams; and
(C) demonstrate an understanding of how to use consumer
protection agencies such as the Better Business Bureau, Consumer Financial
Protection Board, or the Texas State Securities Board to research
and report fraud.
(14) Insuring and protecting. The student understands
the legal instruments available for estate planning. The student is
expected to:
(A) explain the importance of guardianship of minor
children, wills, and beneficiary designation; and
(B) explain the importance of a power of attorney,
living will, and medical directive.
(15) College and postsecondary education and training.
The student recognizes the costs and benefits of various types of
college, postsecondary education, and training. The student is expected
to:
(A) analyze the relationship between education and
training and earnings;
(B) identify types of costs associated with college,
postsecondary education, and training;
(C) compare costs among postsecondary education and
training institutions such as public universities, private universities,
certification programs, and community colleges; and
(D) analyze the quality of education investment using
measures such as academic reputation, selectivity and rigor in a chosen
area of study, average starting salary of students graduating in chosen
field, and likelihood of student graduation.
(16) College and postsecondary education and training.
The student understands various options for paying for college, postsecondary
education, and training. The student is expected to:
(A) understand how, why, and when to complete grant
and scholarship applications and the Free Application for Federal
Student Aid (FAFSA) provided by the U.S. Department of Education;
(B) research various sources of funds for postsecondary
education and training, including student loans, grants and scholarships,
and other sources such as work-study and military programs; and
(C) analyze the advantages and disadvantages of various
sources of funds for postsecondary education and training, including
student loans, grants and scholarships, and other sources such as
work-study and military programs.
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