Personal Money Management

Student Learnings: What students should know and be able to do

• Define and give examples of economic wants and needs.

• Explain how economic wants and needs are satisfied. 

• Identify the resources used to satisfy economic wants and needs.

• Demonstrate understanding of rational economic decision making. 

• Recognize the consequences of making economic choices.

• Identify alternative economic choices within the decision making process. 

• Apply a rational decision-making process to various types of decisions at different stages of the life cycle. 

• Analyze the role that supply and demand play in determining the availability and price of goods and services.

• Use published consumer resources for making buying decisions. 

• Given a buying decision involving significant financial resources, use a rational decision making process to make effective buying decisions.

• Explain the role of credit in our economy. 

• Identify sources and types of credit.

• Select an appropriate form of credit for a particular buying decision. 

• Determine advantages and disadvantages of using credit

• Explain credit ratings and describe their importance. 

• Compare and contrast the legal aspects of different sources and forms of credit.

• Calculate the true cost of credit for various lending institutions.

• Define various types of income derived from investments.

• Compare a personal spending plan with typical consumer spending to determine appropriate levels of spending.

• Describe how income and spending patterns change throughout a person's life cycle.

• Analyze the factors that affect the rate of return on investments.

• Explain why a savings and investing plan changes as one proceeds through their life cycle. 

• Differentiate between interest, dividends, and capital gains.

• Identify services that financial institutions provide to customers.

• Perform steps involved in opening and using a checking account. 

• Reconcile a bank statement.

• Describe the functions of the banking system in the US economy.

• Explain the role of the Federal Reserve System in the banking system of the US. 

• Explain how all types of insurance are based on concepts of risk sharing and statistical probability.

• Identify the types of insurance.

• Explain why insurance needs change throughout a person's life cycle.

• Given a particular level of financial resources determine the level of insurance protection needed for various types of risks. 

• Explain taxes and describe the purpose of taxation.

• Calculate personal tax liabilities.

• Explain the impact of taxes on financial planning. 

• Develop spending and investment plans that maximize financial returns.

• Describe the purposes of various consumer laws and how they affect a consumer's well being.

• Explain the arbitration process that is available to consumers. 

• Describe legal actions that may be taken to resolve consumer disputes.

• Describe how legislation defines and protects consumer rights.