JEFFERSON TOWNSHIP PUBLIC SCHOOLS
COURSE OF STUDY
BUSINESS
PERSONAL FINANCE
2013
Revised 2015
TABLE OF CONTENTS
Course Overview 1
Units of Study 2
Sample Student Learning Activities 8
Suggested Teaching Strategies and/or Activities 14
Teacher Assessment of Student Learning 15
Bibliography and Resources 16
PERSONAL FINANCE
Course Overview
Personal Finance is a course that is designed to assist students in understanding the affects that individual choices on job-related goals and objectives may have on future earnings possibilities. Topics covered in this course will include, money management, using credit, earning potentials through training and education, savings plans, managing checking accounts (online and manual) and insurance. Students will examine factors for preparation of budgets; demonstrate knowledge of finance, debt and credit; and recognize and evaluate insurance and taxes. This course is only available to students in grades 11 and 12. It is a one semester elective course, carrying 2.5 financial education credits toward graduation.
The course objectives are as follows:
§ Compare spending priorities, evaluating sensible and unwise spending practices and behaviors, as well as understand what influences spending decisions.
§ Understand the concept of borrowing and its impacts on spending power.
§ Discuss the value of investing in oneself, now and throughout their lives.
§ Identify how education can impact future earnings.
§ Classify the distinction between savings and investing; demonstrate how to calculate simple and compound interest; and compare the multitude of savings investments strategies and opportunities.
§ Explain how checking accounts (online and manual) are used to handle business and personal transactions; discuss reasons to use a checking account; demonstrate how to use a checking account; and demonstrate how to reconcile a checking account.
§ Understand the various types of insurance (home, auto, health and life). Categorize the insurances and understand the need for each. Recognize insurance is based on need and risk. Appreciate that all insurance needs are not the same and based on necessity and coverage, premiums will vary.
UNITS OF STUDY
I. Money Habits
Big Idea:
· Habits can help one succeed or keep one continuing in a constant routine, with success always far off. Money habits and spending attitudes can impact relationships and financial future. Students will learn to outline a personal money “motto” that describes their attitudes, values and uses of money. Students will understand what a cash inflow is versus a cash outflow. Also discussed will be surplus versus deficit.
1. Goals/Decisions/Cash Flow
A. Essential Questions
· Can you think of a time when you bought something on impulse or overspent money on something you did not need?
· When have you ever wasted money on something and wished you had not?
· What is a goal?
· How can goals transition us to understand needs versus wants?
· What is a spending plan? How does s spending plan compare to a budget?
· What are cash inflows? What are cash outflows?
· What is a surplus? What is a deficit?
B. Learning Objectives
Students will be able to:
1. Apply critical thinking and problem-solving strategies during class time to have students reflect on how money is spent.
(NJ CCCS: 9.1.12.B.1, 9.1.12.B.2; 21st Century Skills: CRP1, CRP2, CRP4, CRP7, CRP10 )
2. Define goals and objectives, and understand how individuals and businesses need goals and objectives. (NJ CCCS: 9.1.12.B.2 ; 21st Century Skills: CRP1, CRP2, CRP4, CRP7, CRP10 )
3. Discuss how journaling expenditures can have a positive effect on cash spent/saved. (NJ CCCS: 9.1.12.B.5, 9.1.12.B.7 ; 21st Century Skills: CRP1, CRP2, CRP4, CRP7, CRP10 )
4. Understand the use for a budget and spending plan.
(NJ CCCS: 9.1.12.B.3, 9.1.12.B.4 ; 21st Century Skills: CRP1, CRP2, CRP4, CRP7, CRP10 )
5. Compare and contrast what is a need versus a want.
(NJ CCCS: 9.1.12.B.5 ; 21st Century Skills: CRP1, CRP2, CRP4, CRP7, CRP10 )
6. Analyze and create spending plans/budgets to effectively use money. (NJ CCCS: 9.1.12.B.3, 9.1.12.B.6, 9.1.12.B.9 ; 21st Century Skills: CRP1, CRP2, CRP4, CRP7, CRP10 )
7. Construct a spending plan to assist in emergency circumstances. (NJ CCCS: 9.1.12.B.10 ; 21st Century Skills: CRP1, CRP2, CRP4, CRP7, CRP10 )
8. Classify various budget categories, understanding the utilization of each. (NJ CCCS: 9.1.12.B.6 ; 21st Century Skills: CRP1, CRP2, CRP4, CRP7, CRP10 )
II. Using Credit
Big Idea:
· Debt is a tool to buy something now and pay for it later. Credit can be good and bad – the trick is to assess the reasons when and when not to use credit.
1. Credit Cards – The Cost of Credit
A. Essential Questions
· Why do people borrow?
· What are examples of acceptable and unacceptable uses of credit? How is credit used?
· How does borrowing impact spending power?
· What is the cost of using credit?
· What is a credit application? What do lenders consider when deciding whether to approve or deny a credit request?
· What are a person’s legal rights and responsibilities when agreeing to a credit contract? What is a “borrowing limit”?
· What is identity theft?
B. Learning Objectives
Students will be able to:
1. Discuss how making informed choices regarding credit can lead to a better understanding of how to use credit. (NJ CCCS: 9.1.12.C.1, 9.1.12.C.4 ; 21st Century Skills: CRP1, CRP3, CRP4, CRP5, CRP7, CRP11 )
2. Investigate credit card scores and their usefulness. Understand how credit card companies and banks utilize credit scores in individual and business borrowing situations. (NJ CCCS: 9.1.12.C.2, 9.1.12.C.3 ; 21st Century Skills: CRP1, CRP3, CRP4, CRP5, CRP7, CRP11 )
3. Compare and contrast credit choices, types of credit, and compute simple versus compound interest. (NJ CCCS: 9.1.12.C.1, 9.1.12.C.2 ; 21st Century Skills: CRP1, CRP3, CRP4, CRP5, CRP7, CRP11 )
4. Discuss identify theft and what individuals and businesses can do to protect themselves. (NJ CCCS: 9.1.12.C.5, 9.1.12.C.8 ; 21st Century Skills: CRP1, CRP3, CRP4, CRP5, CRP7, CRP11 )
III. Investing in Yourself
Big Idea:
· What you do today can greatly expand or limit the choices you have for many years to come. Some of these options may include entrepreneurship versus working for someone else. Students will outline career choices and the schooling and/or training needed to achieve these.
A. Essential Questions
· What is an entrepreneur? What are the characteristics of an entrepreneur?
· How can education impact future earnings?
· What are the benefits and costs of job options?
· How can the cost of living impact cash flow and lifestyle?
· Does where I live affect my job opportunities?
· What is take-home pay versus gross pay?
· What is the cost of employment (i.e., deductions)?
· What skills, knowledge, and attitudes do employers value in the workplace?
· How does one deal with an irregular or temporary drop in income?
B. Learning Objectives
Students will be able to:
1. Discuss various career opportunities utilizing the Internet to investigate careers that interest students. Discuss and evaluate the academic and career skills needed for such fields. Investigate additional schooling, training and and/or licensing needed for such careers. Analyze and discuss various technologies needed to ascertain goals and objectives. (NJ CCCS: 9.2.12.C.1 ; 21st Century Skills: CRP2, CRP4, CRP6, CRP8, CRP9, CRP10, CRP11)
2. Discuss entrepreneurship and the characteristics of an entrepreneur and the entrepreneurial spirit. Using the Internet and books, investigate successful entrepreneurs. (NJ CCCS: 9.2.12.C.5, 9.2.12.C.6 ; 21st Century Skills: CRP2, CRP4, CRP6, CRP8, CRP9, CRP10, CRP11 )
3. Discuss strategies to minimize the cost of advanced education, and identify how education can impact future earnings. (NJ CCCS: 9.2.12.C.9 ; 21st Century Skills: CRP2, CRP4, CRP6, CRP8, CRP9, CRP10, CRP11 )
4. Discuss and list examples of the hidden costs of employment. Discuss the common types of employee benefits, with a general understanding of each. (NJ CCCS: 9.1.12. E.3, 9.1.12.E.6 ; 21st Century Skills: CRP2, CRP4, CRP6, CRP8, CRP9, CRP10, CRP11 )
5. Discuss examples of work-related changes that can impact financial status. (NJ CCCS: 9.1.12. E.6, 9.1.12.F.3 ; 21st Century Skills: CRP2, CRP4, CRP6, CRP8, CRP9, CRP10, CRP11 )
6. Encourage students to list factors that impact personal income tax liability and net pay. (NJ CCCS: 9.1.12.D.14, 9.1.12.D.15 ; 21st Century Skills: CRP2, CRP4, CRP6, CRP8, CRP9, CRP10, CRP11 )
7. Discuss government programs (i.e., Social Security, Medicare) and how they protect eligible recipients against loss of income. (NJ CCCS: 9.1.12.E.7, 9.1.12.F.6 ; 21st Century Skills: CRP2, CRP4, CRP6, CRP8, CRP9, CRP10, CRP11 )
IV. Savings and Investing
Big Idea:
· Being wealthy is not about how much you earn; it is about how much money you keep and what you do with it. What is the definition of wealth? How do lifestyle decisions contribute to spending and investing? The best reason to invest is that your money has the potential to make more money for you. There are no guarantees that an investment will grow, but in the long run, investments have the potential to earn more than typical savings accounts.
A. Essential Questions
· How does the time value of money impact saving and investing?
· What are stocks and how are they purchased? What is their role in investing?
· How do I choose investments?
· What are various types of investments? How is diversification used as an investment strategy?
· What are my consumer rights and responsibilities?
B. Learning Objectives
Students will be able to:
1. Ability to plan and discuss various investment options utilizing financial planning, lifestyle and goals/objectives. (NJ CCCS: 9.1.12.D.1, 9.1.12.D.2, 9.1.12.D.3 ; 21st Century Skills: CRP1, CRP4, CRP5, CRP7 )
2. Understand the various roles to obtain revenue-generating income and the various tools that help to manage these investments. (NJ CCCS: 9.1.12.D.4, 9.1.12.D.5 ; 21st Century Skills: CRP1, CRP4, CRP5, CRP7 )
3. Evaluate how savings (i.e., personal, college) and retirement plans help those save for various points/milestones in their lives. (NJ CCCS: 9.1.12.D.7, 9.1.12.D.8, 9.1.12.D.9 ; 21st Century Skills: CRP1, CRP4, CRP5, CRP7 )
4. Discuss generally how stock market prices and various other investments are impacted by the economy. (NJ CCCS: 9.1.12.D.13 ; 21st Century Skills: CRP1, CRP4, CRP5, CRP7 )
5. Utilize stock-tracking software (i.e., We Seed, Excel) to invest in virtual stock portfolios. (NJ CCCS: 9.1.12.D.10 ; 21st Century Skills: CRP1, CRP4, CRP5, CRP7 )
V. Checking Accounts (Online/Manual)
Big Idea:
· As you move into life after high school, cash is not always an option to pay off debt and other various real-life situations. Credit cards may not always be the best choice either (i.e., interest rates!). A checking account, whether online or utilizing check writing, are used to handle numerous business transactions. Checking accounts can be maintained via a checkbook register that is done manually. Banks today offer another way to handle checking accounts: online banking. While online banking may serve as a quick and convenient way to handle business transactions, caution must be observed to understand what the “real balance” is in a checking account! Banks also offer many different types of checking accounts, which will also be explored and discussed.
A. Essential Questions
· What is a checking account?
· How is a checking account used?
· What is the correct way to write a check?
· What is a bank reconciliation and why is this important?
· What is online banking? When is online banking used?
· What is an EFT? Mobile banking? PayPal? Virtual Wallet?
B. Learning Objectives
Students will be able to:
1. Understand and evaluate how a checking account can help to make financial decisions about wants versus needs. (NJ CCCS: 9.1.12.B.3, 9.1.12.C.1, 9.1.12.D.9 ; 21st Century Skills: CRP1, CRP4, CRP7, CRP11 )
2. Budgeting helps individuals, families and businesses “live within their means”. Understand what this statement means. (NJ CCCS: 9.1.12.B.3, 9.1.12.B.4 ; 21st Century Skills: CRP1, CRP4, CRP7, CRP11 )
3. Discuss how a bank reconciliation form works and is beneficial to understanding what a current checking account balance is. Understand and calculate how to prepare one. (NJ CCCS: 9.1.12.C.1, 9.1.12.C.2, 9.1.12.C.3 ; 21st Century Skills: CRP1, CRP4, CRP7, CRP11 )
VI. Managing Risks (Insurance)
Big Idea:
· Over 1.5 million people work in the insurance industry. There are many types of insurance available to consumers and each type needs to be carefully investigated to find out if it is right for the consumer to purchase. The top four insurances that will be discussed will be vehicle (auto), property (home/apartment), life, and health insurances.
A. Essential Questions
· What are motor vehicle risks? What is auto insurance coverage and what factors affect auto insurance costs?
· What is property insurance coverage? What factors affect property insurance costs?
· What is a will and why does one need one?
· What are the types of life insurance?
· What is health insurance? What is a health insurance provider?
· What is disability and long-term care insurance? What is the difference between them?
B. Learning Objectives
Students will be able to:
1. Discuss how insurance companies provide automobile, property, life and health insurance for a premium based on the amounts of insurance purchased. (NJ CCCS: 9.1.12.B.10, 9.1.12.G.1, 9.1.12.G.2, 9.1.12.G.3 ; 21st Century Skills: CRP2, CRP5, CRP7, CRP8, CRP11, CRP12 )
2. Differentiate between the four insurances listed above. Discuss how insurance is designed to protect the consumer against unplanned losses. (NJ CCCS: 9.1.12.G.1, 9.1.12.G.4 ; 21st Century Skills: CRP2, CRP5, CRP7, CRP8, CRP11, CRP12 )
3. Differentiate between renter’s insurance versus homeowner’s insurance policies. (NJCCCS: NJ CCCS: 9.1.12.G.5 ; 21st Century Skills: CRP2, CRP5, CRP7, CRP8, CRP11, CRP12 )
4. Discuss the need for life insurance, estate planning, and premium payments. (NJ CCCS: 9.1.12.G.6, 9.1.12.G.7 ; 21st Century Skills: CRP2, CRP5, CRP7, CRP8, CRP11, CRP12 )
5. Discuss government-related plans and how in certain circumstances, and where appropriate, these plans are viable. (NJ CCCS: 9.1.12.G.7 ; 21st Century Skills: CRP2, CRP5, CRP7, CRP8, CRP11, CRP12 )