| (D) identify factors such as educational attainment
and market demand for careers that can influence the labor market
and affect income.
(5) Personal financial literacy--entrepreneurship.
The student discusses the opportunities available for entrepreneurship.
The student is expected to:
(A) describe the role of the entrepreneur in creating
businesses;
(B) explain how an entrepreneur earns income, including
through profits from the creation or ownership of businesses;
(C) compare total compensation, additional benefits,
and obligations as a self-employed or independent contractor and as
an employee;
(D) discuss the resources available for entrepreneurship
and the federal, state, and local agencies available to assist with
or provide grants for the creation of a small business;
(E) analyze the risks and rewards of entrepreneurship,
including those associated with starting a new business, owning a
small business, and purchasing a franchise; and
(F) explain the characteristics of business organizations
such as sole proprietorships, partnerships, and corporations.
(6) Personal financial literacy--spending. The student
understands how to set personal spending goals. The student is expected
to:
(A) develop financial goals for the short, medium,
and long term that are specific, measurable, attainable, realistic,
and time based;
(B) analyze the opportunity costs of spending and saving
in recognizing short-, medium-, and long-term goals;
(C) identify and prioritize types of purchases and
charitable giving;
(D) evaluate various forms of financial exchange such
as cash, checks, credit cards, debit cards, mobile payment applications,
and electronic transfers;
(E) discuss the importance of tracking income and expenses
to reconcile financial records;
(F) evaluate the impact of unplanned spending;
(G) analyze costs and benefits of owning versus renting
housing; and
(H) analyze costs and benefits of owning versus leasing
a vehicle.
(7) Personal financial literacy--credit and debt. The
student understands the costs and benefits of borrowing. The student
is expected to:
(A) compare and contrast sources of credit such as
banks, merchants, peer-to-peer, payday loans, and title loans;
(B) identify the characteristics and dangers of predatory
lending practices;
(C) compare and contrast types of credit, including
revolving and installment credit, and collateralized loans versus
unsecured credit;
(D) discuss how character, capacity, and collateral
can adversely or positively impact an individual's credit rating and
ability to obtain credit;
(E) explain how to access a credit report and score
and interpret a sample credit report and score;
(F) describe the importance of monitoring credit reports
regularly and addressing errors;
(G) discuss how personal factors such as medical expenses,
job loss, divorce, or a failed business could lead to bankruptcy;
and
(H) determine and discuss if and when to use credit
by considering the truth in lending disclosures.
(8) Personal financial literacy--saving and investing.
The student understands the importance of saving and investing in
creating wealth and building assets. The student is expected to:
(A) determine the exponential growth benefits of starting
early to invest with continuous contributions;
(B) determine the number of years it will take for
savings to double in value by using the rule of 72;
(C) evaluate the costs and benefits of various savings
options such as bank savings accounts, certificates of deposit, and
money market mutual funds;
(D) evaluate risk and return of various investment
options, including stocks, bonds, mutual funds, and exchange-traded
funds (ETFs);
(E) evaluate the relative benefits of pre-tax and post-tax
investing;
(F) develop a short-term saving strategy to achieve
a goal such as establishing and maintaining an emergency fund;
(G) develop an intermediate-term saving and investing
strategy to achieve a goal such as accumulating a down payment on
a home or vehicle; and
(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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