| (a) General requirements. This course is recommended
for students in Grades 10-12. Students shall be awarded one-half credit
for successful completion of this course.
(b) Introduction.
(1) Personal Financial Literacy will develop citizens
who have the knowledge and skills to make sound, informed financial
decisions that will allow them to lead financially secure lifestyles
and understand personal financial responsibility. The knowledge gained
in this course has far-reaching effects for students personally as
well as the economy as a whole. When citizens make wise financial
decisions, they gain opportunities to invest in themselves, build
businesses, consume goods and services in a responsible way, and secure
a future without depending on outside assistance. The economy benefits
from the optimal use of resources, increased consumption, and strong
local businesses. State and local governments benefit with steady
revenue streams and reduced future obligations as our society ages.
(2) Personal Financial Literacy is designed to be an
interactive and research-based course. The course will teach students
to apply critical-thinking and problem-solving skills to analyze decisions
involving earning and spending, saving and investing, credit and borrowing,
insuring and protecting, and college and postsecondary education and
training. There are many references to conducting a cost-benefit analysis
for spending and investing decisions. Students evaluate the necessity
of the purchase, the quality or value of the purchase or investment
compared to other alternatives, and the total cost of acquisition,
particularly in the context of financing options. Students also understand
the power of both compound growth on investments and compound interest
on debt and how these concepts affect the ability to build wealth
over time.
(3) This one-half elective credit course includes instruction
in methods of paying for college and other postsecondary education
and training along with completing the application for federal student
aid provided by the U.S. Department of Education. Students analyze
the relationship between education and training and earnings potential;
evaluate the quality of potential college, postsecondary education,
and training courses; evaluate the total cost of these programs; and
analyze the advantages and disadvantages of various sources of funds
to pay for their education.
(4) Students understand that a constitutional republic
is a representative form of government whose representatives derive
their authority from the consent of the governed, serve for an established
tenure, and are sworn to uphold the constitution.
(5) State and federal laws mandate a variety of celebrations
and observances, including Celebrate Freedom Week.
(A) Each social studies class shall include, during
Celebrate Freedom Week as provided under the Texas Education Code, §29.907,
or during another full school week as determined by the board of trustees
of a school district, appropriate instruction concerning the intent,
meaning, and importance of the Declaration of Independence and the
U.S. Constitution, including the Bill of Rights, in their historical
contexts. The study of the Declaration of Independence must include
the study of the relationship of the ideas expressed in that document
to subsequent American history, including the relationship of its
ideas to the rich diversity of our people as a nation of immigrants,
the American Revolution, the formulation of the U.S. Constitution,
and the abolitionist movement, which led to the Emancipation Proclamation
and the women's suffrage movement.
(B) Each school district shall require that, during
Celebrate Freedom Week or other week of instruction prescribed under
subparagraph (A) of this paragraph, students in Grades 3-12 study
and recite the following text: "We hold these Truths to be self-evident,
that all Men are created equal, that they are endowed by their Creator
with certain unalienable Rights, that among these are Life, Liberty
and the Pursuit of Happiness--That to secure these Rights, Governments
are instituted among Men, deriving their just Powers from the Consent
of the Governed."
(6) Students identify and discuss how the actions of
U.S. citizens and the local, state, and federal governments have either
met or failed to meet the ideals espoused in the founding documents.
(7) Statements that contain the word "including" reference
content that must be mastered, while those containing the phrase "such
as" are intended as possible illustrative examples.
(c) Knowledge and skills.
(1) Earning and spending. The student understands how
to set personal financial goals. The student is expected to:
(A) differentiate between needs and wants in evaluating
spending decisions;
(B) investigate the student's money personality, including
spending and saving propensity;
(C) demonstrate an understanding of the value and benefits
of charitable giving; and
(D) develop financial goals for the short, medium,
and long term that are specific, measurable, attainable, realistic,
and time based.
(2) Earning and spending. The student understands how
financial statements are used to assess and monitor financial well-being.
The student is expected to:
(A) reconcile a bank statement with personal records
to ensure the accuracy of deposits, withdrawals, and transfer activities;
(B) track income and expenses and develop an income
statement;
(C) develop a budget that incorporates short-, medium-,
and long-term financial goals;
(D) identify assets and liabilities;
(E) construct a balance sheet or net worth statement;
and
(F) evaluate the impact of unplanned spending on a
budget.
(3) Earning and spending. The student analyzes components
of compensation from employment. The student is expected to:
(A) identify benefits such as health insurance contributions,
retirement benefits, sick leave, vacation pay, flexible spending account,
health savings account, workers compensation, life insurance, and
disability insurance;
(B) identify taxes that are deducted from paychecks,
including Federal Insurance Contributions Act (FICA) and federal income
taxes; and
(C) calculate gross and net pay using information on
a paycheck.
(4) Earning and spending. The student critically evaluates
consumption decisions. The student is expected to:
(A) analyze costs and benefits of owning versus renting
housing;
(B) analyze costs and benefits of owning versus leasing
a vehicle;
(C) compare total costs of alternative methods of payment
such as rent-to-own, store credit, installment agreements, cash, bank
credit card, and debit card; and
(D) apply strategies for making informed decisions
about purchasing consumer goods such as comparing prices per unit,
looking for sales or promotions, and negotiating price.
(5) Saving and investing. The student understands the
importance of saving and investing in creating wealth and building
assets. The student is expected to:
(A) develop a short-term saving strategy to achieve
a goal such as establishing and maintaining an emergency fund;
(B) develop an intermediate-term saving and investing
strategy to achieve a goal such as accumulating a down payment on
a home or vehicle;
(C) explain the tax benefits of charitable contributions;
and
(D) develop a long-term investing strategy to achieve
a goal such as a financially secure retirement.
(6) Saving and investing. The student understands the
implementation of a saving and investing plan. The student is expected
to:
(A) discuss the role of financial institutions and
markets in saving and investing;
(B) demonstrate the impact of compound growth over
time;
(C) evaluate the costs and benefits of various savings
options such as bank savings accounts, certificates of deposit, and
money market mutual funds; and
(D) evaluate risk and return of various investment
options, including stocks, bonds, and mutual funds.
(7) Saving and investing. The student demonstrates
an understanding of the importance of planning for retirement. The
student is expected to:
(A) identify costs of retirement such as living expenses,
health care expenses, and long-term care expenses;
(B) identify and explain sources of income during retirement,
including Social Security, individual savings, and employer-sponsored
plans; and
(C) demonstrate an understanding of the importance
of saving early and at a sufficient level to achieve financial security
in retirement.
(8) Credit and borrowing. The student understands the
use of credit to make purchases. The student is expected to:
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