Personal Finance provides students with essential personal financial planning and management techniques. Students develop essential money management skills, prepare for life beyond high school, and gain the confidence they need for personal and financial success. Students engage in interactive online simulations in both budgeting and investing. Students construct an interactive personal budget model using spreadsheet software. Emphasis will be on understanding personal, social, and economic factors that influence choices in achieving economic satisfaction. Investment strategies, including stocks, bonds, and mutual funds will be a highlight of this course.

CSDE Standards are from the Connecticut State Department of Education.

ESSENTIAL QUESTIONS

• Why is it important to set short and long term financial goals?
• How does the role of money impact individuals over a lifetime?
• How do the financial actions of individuals/businesses impact future generations?

ENDURING UNDERSTANDINGS

• Sound financial planning is essential for personal and societal well being.
• An individual’s financial choices will result in benefits, costs, and future consequences.
• The results and ideals of financial actions are often transferred to future generations.

STANDARDS

CSDE

1.0 Personal Decision-Making - Students will use a rational decision-making process as it applies to the roles of citizens, workers and consumers.

CT Common Core

9-10.RH.4 - Determine the meaning of words and phrases as they are used in a text, including vocabulary describing political, social, or economic aspects of history/social studies.

CONTENT OBJECTIVES

Students will learn to . . .

• interpret the role of goal setting as an integral part of financial planning.
• explain why goal setting is important.
• construct a well‐written SMART goal.
• apply goal setting to their personal life.

ESSENTIAL QUESTIONS

• What is the significance of taxes and payroll deductions?
• What are the most common tax forms that people encounter?
• Is taxation in the United States fair?

ENDURING UNDERSTANDINGS

• Taxes pay for services that benefit society.
• Many people will be required to complete a W-2, W-4, and I-9 for employment.
• The rate of taxes you pay in the United States are based on value, income, and wealth.

STANDARDS

CSDE

2.0 Earning and Reporting an Income - Identify various forms of income and analyze factors that affect income as a part of the career decision-making process.

CT Common Core

9-12.A.SSE.1 - Interpret expressions that represent a quantity in terms of its context.

9-10.RH.4 - Determine the meaning of words and phrases as they are used in a text, including vocabulary describing political, social, or economic aspects of history/social studies.

CONTENT OBJECTIVES

Students will learn to . . .

• define terms associated with a paycheck.
• compare advantages and disadvantages of three methods for paying employees.
• point out the systematic deductions removed from each paycheck.
• complete sample standard tax forms required on the job to benefit each individual's situation.

ESSENTIAL QUESTIONS

• What is the economic importance of depository institutions?
• Why is it beneficial for me to use a depository institution?
• When do I use a checking account vs a savings account?

ENDURING UNDERSTANDINGS

• Depository institutions play a key role in establishing monetary policies for our economy.
• Depository institutions provide beneficial monetary services to meet consumers wants and needs.
• Checking accounts should be used for spending purposes, savings accounts should be used as a safety net in the event of unplanned circumstances.

STANDARDS

CSDE

6.0 Banking and Financial Institutions - Evaluate services provided by financial deposit institutions to transfer funds.

CT Common Core

11-12.RH.7 - Integrate and evaluate multiple sources of information presented in diverse formats and media in order to address a question or solve a problem.

CONTENT OBJECTIVES

Students will learn to . . .

• explain the role of the Federal Reserve in the U.S. economy.
• identify types of financial institutions.
• compare financial products.
• read promotional information to make good financial decisions.
• identify the functions of a checking account.
• describe the procedure of using checks and a debit card.
• demonstrate how to use all elements of a checking account.

ESSENTIAL QUESTIONS

• How will developing effective spending habits affect my financial future?
• Why is budgeting a good practice?

ENDURING UNDERSTANDINGS

• Establishing healthy financial habits early in life helps you to achieve your personal and financial goals.
• Budgeting helps you maintain a standard of living.

STANDARDS

CSDE

3.0 Managing finances and budgeting - Develop and evaluate a budget plan.

CT Common Core

11-12.RH.7 - Integrate and evaluate multiple sources of information presented in diverse formats and media in order to address a question or solve a problem.

CONTENT OBJECTIVES

Students will learn to . . .

• define financial planning.
• describe the benefits of financial planning.
• understand the components of a spending plan.
• review how financial goals can be met by using a spending plan.
• analyze the spending plan process.
• create a spending plan.
• analyze why it's important to create a spending plan.
• implement the process of developing a spending plan.

ESSENTIAL QUESTIONS

• How can credit be managed responsibly?
• What are the consequences of excessive debt and how can one correct it?
• Why is it important to establish credit?

ENDURING UNDERSTANDINGS

• Paying close to attention to your credit, the amount of credit you accumulate, and paying bills on time are all factors in managing credit responsibly.
• Excessive debt can have costly consequences. Practicing responsible management of credit can help in correcting excessive debt.
• Establishing credit provides financial independence.

STANDARDS

CSDE

7.0 Using credit - Analyze factors that affect the choice of credit, the cost of credit and the legal aspects of using credit.

CT Common Core

9-10.RH.4 - Determine the meaning of words and phrases as they are used in a text, including vocabulary describing political, social, or economic aspects of history/social studies.

CONTENT OBJECTIVES

Students will learn to . . .

• distinguish between a credit card and other forms of credit.
• assess the advantages and disadvantages of using a credit card.
• interpret the impact a credit card has on an individual’s credit history and credit score.
• understand how to use a credit card responsibly.
• analyze a credit card statement.
• review safety tips when using credit cards.

ESSENTIAL QUESTIONS

• Why is it important to have a savings plan to ensure financial success?
• How can saving and investing help me earn additional income?
• Which investments should be used to reach each of my financial goals?

ENDURING UNDERSTANDINGS

• A savings plan acts as a safety net for unplanned events.
• Saving and investing may benefit in providing additional income through gaining interest and dividends.
• Depending on individual financial goals, investments may include savings accounts, employee or individual retirement arrangements, stocks, or bonds.

STANDARDS

CSDE

4.0 Saving and Investing - Evaluate savings and investment options to meet short- and long-term goals.

CT Common Core

9-12.F.LE.1b - Recognize situations in which one quantity changes at a constant rate per unit interval relative to another.

CONTENT OBJECTIVES

Students will learn to . . .

• define risk vs. return in investment terms.
• compare basic investment vehicles.
• discuss appropriate investment strategies along the life continuum.
• create and monitor an online stock portfolio.
• enumerate personal investment goals.

ESSENTIAL QUESTIONS

• How do you decide between buying or leasing a car?
• What are the costs involved in operating a car?

ENDURING UNDERSTANDINGS

• Choosing to buy or lease a car depends on an individual’s income, lifestyle, needs, and wants.
• There are basic costs involved in operating a car such as gas, insurance, routine maintenance, however, additional costs may occur depending on individual needs and wants.

STANDARDS

CSDE

5.0 Buying Goods and Services - Apply a decision-making model to maximize consumer satisfaction when buying goods and services.

CT Common Core

9-10.RH.4 - Determine the meaning of words and phrases as they are used in a text, including vocabulary describing political, social, or economic aspects of history/social studies.

CONTENT OBJECTIVES

Students will learn to . . .

• use reliable online resources to research a purchase.
• differentiate between MSRP (Manufacturer's Suggested Retail Price), Invoice and TMV (True Market Value) prices.
• estimate the total cost of vehicle ownership.
• explain the factors that influence insurance premiums.
• describe various types of automobile insurance.

ESSENTIAL QUESTIONS

• How can you protect yourself from risk?
• How do insurance needs change throughout a life cycle?

ENDURING UNDERSTANDINGS

• Individuals can protect themselves from risk by obtaining proper insurance.
• As individuals face different stages and events in their life, different types of insurance to protect their assets may be required.

STANDARDS

CSDE

8.0 Protecting against risk - Analyze choices available to consumers for protection against risk and financial loss.

CT Common Core

9-10.RH.4 - Determine the meaning of words and phrases as they are used in a text, including vocabulary describing political, social, or economic aspects of history/social studies.

CONTENT OBJECTIVES

Students will learn to . . .

• explain the relationship between risk and insurance
• identify how insurance is a form of income to help cover financial losses when unexpected events occur
• define common insurance terms
• evaluate the sources which provide insurance
• analyze the risks covered by each type of insurance

ESSENTIAL QUESTIONS

• What are the advantages/disadvantages of owning a home vs renting?

ENDURING UNDERSTANDINGS

• Renting and buying a house both have important economic advantages and disadvantages.

STANDARDS

CSDE

5.0 Buying Goods and Services - Apply a decision-making model to maximize consumer satisfaction when buying goods and services.

CT Common Core

9-10.RH.4 - Determine the meaning of words and phrases as they are used in a text, including vocabulary describing political, social, or economic aspects of history/social studies.

CONTENT OBJECTIVES

Students will learn to . . .

• recognize the variety of forms for rental agreements
• identify the components of a lease agreement
• describe the purpose of security deposits
• consider the importance of rental insurance