(H) develop a long-term investing strategy to achieve
a goal such as a financially secure retirement.
(9) Personal financial literacy--protecting and insuring.
The student recognizes financial risks faced by individuals and families
and identifies strategies for handling these risks to avoid potential
loss of assets and earning potential. The student is expected to:
(A) apply risk management strategies, including avoiding,
reducing, retaining, and transferring risk;
(B) define insurance terminology, including premiums,
deductibles, co-pays, and policy limits;
(C) explain the costs and benefits of different types
and sources of health insurance;
(D) explain the costs and benefits of disability and
long-term care insurance;
(E) explain the costs and benefits of life insurance,
including term insurance and whole life insurance;
(F) explain the costs and benefits of property insurance,
including homeowner's and renter's insurance;
(G) 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;
(H) identify ways to reduce risk of identity theft
and protect personal information;
(I) describe and identify examples of common financial
schemes and scams such as Ponzi schemes and pyramid, phishing, check
cashing, and home renovation scams;
(J) explain how consumer protection agencies protect
consumers against fraud; and
(K) explain the importance of estate planning, including
guardianship of minor children, wills, beneficiary designation, power
of attorney, living will, and medical directives.
(10) Personal financial literacy skills. The student
understands how to set personal financial goals. The student is expected
to:
(A) use problem-solving and decision-making processes
to identify a problem, gather information, list and consider options,
consider advantages and disadvantages, choose and implement a solution,
and evaluate the effectiveness of the solution;
(B) develop a budget that addresses short-, medium-,
and long-term financial goals; and
(C) explain why earning income, spending, credit, debt,
saving and investing, and protecting and insuring assets are important
parts of a comprehensive financial plan and develop a plan that incorporates
these components.
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