Describe a sunk cost and situations in which losses should be accepted to avoid further loss.
Compose an argument supporting the concept of paying yourself first.
Determine the amount of savings needed for a given household.
Describe strategies for managing income to align with financial goals.
Describe the impact of career choice, education, skills, and economic conditions on income and financial stability.
Prepare a monthly budget for an individual or a family given their income, savings goals, taxes, and list of fixed and variable expenses.
Evaluate the impact of taxes, government payments, and employee benefits on budgeting decisions.
Examples: FICA, income taxes; SNAP, Medicaid, unemployment insurance, farm subsidies; health insurance, retirement plan contributions
Describe methods of allocating resources to meet savings and investment goals.
Analyze how changes in life circumstances can affect a personal spending plan.
Examples: job change, having a child, major illness, theft of property, automobile accident
Locate and use technology to help with financial management.
Examples: online banking, mobile banking apps, direct deposit, money transfer apps, online payments
Gather and share information on income, benefits, and deductions.
Distinguish between gross and net income.
Analyze the impact of payroll deductions and employee benefits on income.
Examples: state and federal income tax, FICA, flexible benefit plans
Calculate the monetary value of employee benefits when determining earnings.
Describe sources of income not derived from employment.
Examples: alimony, unemployment insurance, stock dividends, government transfer payments
Demonstrate procedures for completing and filing income tax forms, utilizing tax terminology.
Examples: dependent, exemption, credit, deduction
Explain the requirements for filing annual tax returns and the consequences of not paying income tax.
Examples: full or partial payments; penalties, federal tax lien, asset seizure, prison, passport revocation
Credit and Debt
Research and share information on credit options available to consumers.
Examples: revolving, installment, open
Explain how credit card grace periods, methods of interest calculation, and fees affect borrowing costs.
List the types of information required on credit applications.
Calculate the total cost of a loan.
Differentiate among various types of student loans and compare to alternate means of paying for post-secondary education.
Research and report on factors that affect creditworthiness and credit scores.
Examples: payment history, credit mix, credit utilization
List steps for obtaining a credit report from the three major reporting agencies.
Describe effective methods for improving credit scores.
Describe consequences of accumulating credit card debt and defaulting on loans, especially for young consumers.
Identify sources, types, and risks of loans for consumers.
Investigate and report on ways that a low credit score can affect a consumer’s financial options.
Apply strategies to avoid or correct debt management problems.
Examine and report on the types of services offered by consumer credit counseling agencies.
Explain the economic consequences of personal bankruptcy and the financial responsibilities associated with filing for bankruptcy under Chapters 7, 11, and 13.
Examples: negative effects on assets, employability, future cost and availability of credit
Investigate how student loan obligations differ from other kinds of debt.
Research and report on a financial institution’s debt reduction services.
Saving
