Overview: How can individuals effectively manage and preserve their financial resources in order to achieve long-term financial stability and security?

In this unit, students explain how saving is linked to overall wealth, describe how saving and investing are different, how much to save, and strategies to enable saving, as well as acknowledge the role of delayed gratification in saving.  Students then compare different savings vehicles and identify important criteria to consider when selecting a savings account, and they make a systematic and informed decision by gathering, evaluating, and comparing information.  Students then conduct various banking activities and appreciate the range of online and mobile banking services, and they compare and contrast banks and credit unions and conduct online research to select a checking account.  Students name the components of a credit score and how they’re calculated, with a specific focus on credit utilization rate, and they describe how credit score impacts the ability to borrow money and at what rate.  Students compare saving and investing strategies and understand the difference between stocks, index funds, mutual funds, and other more or less risky investments and the costs and benefits associated with each, and they then calculate the rate of return on investments.

The highlighted evidence outcomes are the priority for all students, serving as the essential concepts and skills. It is recommended that the remaining evidence outcomes listed be addressed as time allows, representing the full breadth of the curriculum.

Students Can (Evidence Outcomes):

• Use reliable information resources when making financial decisions. (5.1.b)

• Formulate strategies to protect personal and financial information. (5.1.c)

• Develop a system for keeping and using financial records. (5.1.d)

• Compare financial institutions and products. (5.1.e)

• Analyze the impact of economic conditions and cost of living factors on income and purchasing power. (5.2.b)

• Analyze the monetary and non-monetary value of employee benefits in addition to pay. For example: Benefits, flexible work options, and retirement plans. (5.2.g)

• Explain how an individual’s credit history can affect borrowing power. (5.3.c)

• Describe how to use and manage different types of accounts and payment methods.  (5.3.e)

• Compare the advantages and disadvantages of various types of credit. (5.3.f)

• Summarize the advantages and disadvantages of leasing versus purchasing automobiles, homes, and other large purchases. (5.3.g)