Unit Title: Personal Finance and Financial Literacy
Essential Understanding: Students will develop a comprehensive understanding of personal finance and financial literacy concepts to make informed decisions about their financial well-being in the present and future.
Standards: 1. Understand the importance of financial planning and budgeting to achieve personal financial goals. 2. Analyze the impact of various financial decisions on personal financial goals and long-term financial security. 3. Evaluate different types of financial institutions, products, and services to make informed choices. 4. Demonstrate knowledge of credit management, including credit scores, interest rates, and borrowing responsibly. 5. Apply principles of risk management and insurance to protect personal assets and manage financial risks. 6. Understand the basics of investing, including stocks, bonds, mutual funds, and retirement accounts. 7. Analyze the role of taxes and government policies in personal finance and make informed decisions. 8. Develop effective strategies for saving, investing, and planning for retirement. 9. Evaluate the ethical implications of financial decisions and practices.
Objectives: By the end of the unit, students will be able to: 1. Create a personal budget that reflects their financial goals and priorities. 2. Analyze the costs and benefits of different financial decisions, such as renting vs. buying a home or leasing vs. buying a car. 3. Compare and contrast different financial institutions and their services, such as banks, credit unions, and online financial platforms. 4. Calculate interest rates, minimum payments, and total costs associated with credit cards and loans. 5. Assess the need for insurance coverage and select appropriate policies based on individual circumstances. 6. Evaluate investment options and create a diversified investment portfolio. 7. Understand the impact of taxes on income and make informed decisions regarding deductions and credits. 8. Develop a long-term financial plan that includes saving for emergencies, major purchases, and retirement. 9. Analyze the ethical implications of financial decisions, such as predatory lending or insider trading.
Note: These standards and objectives align with the Washington State Essential Academic Learning Requirements (EALRs) for Career and College Readiness in the area of Personal Finance.