Personal Financial Literacy & Economics (2022): Grades 11, 12

Economics

Personal financial literacy

Personal financial literacy skills

The student understands the fundamental concepts of economics

The student understands that macroeconomic issues and policies have an impact on personal finance

Investing in education and skills. The student recognizes the costs and benefits of various types of postsecondary education and training throughout the student's lifetime

Earning. The student recognizes that a variety of factors influence income

Entrepreneurship. The student discusses the opportunities available for entrepreneurship

Spending. The student understands how to set personal spending goals

Credit and debt. The student understands the costs and benefits of borrowing

Saving and investing. The student understands the importance of saving and investing in creating wealth and building assets

Protecting and insuring. The student recognizes financial risks faced by individuals and families and identifies strategies for handling these risks to avoid potential loss of assets and earning potential

The student understands how to set personal financial goals

use problem-solving and decision-making processes to identify a problem, gather information, list and consider options, consider advantages and disadvantages, choose and implement a solution, and evaluate the effectiveness of the solution

develop a budget that addresses short-, medium-, and long-term financial goals

explain why earning income, spending, credit, debt, saving and investing, and protecting and insuring are important parts of a comprehensive financial plan and develop a plan that incorporates these components

analyze how the concepts of scarcity, choice, and opportunity costs apply to decision making

interpret a production-possibilities curve and apply the concepts of scarcity, choice, and opportunity costs

explain how the production-possibilities curve represents cost-benefit decision making

use the circular flow model to identify how households, firms, and governments interact in both resource markets and product markets

evaluate how prices and quantities are determined through supply and demand

interpret a supply-and-demand graph, including equilibrium point, surpluses, and shortages

analyze how non-price determinants of supply and demand affect equilibrium price and equilibrium quantity

explain how supply and demand exist in both resource and product markets

identify types of progressive and regressive taxes at the local, state, and national levels and explain the economic importance of each

examine and evaluate the reasons for federal income taxation, Social Security taxation, Medicaid taxation, and Medicare taxation, including earnings limitations as applicable

explain how all economic systems are mixed and exist on a spectrum between pure market and pure command systems

explain the benefits of the U.S. free enterprise system, including private property and incentives

discuss the importance of full employment, price stability, and economic growth in achieving the macroeconomic goals of the United States

explain the impact of fiscal policies enacted by government decisions on interest rates, inflation, and unemployment

explain the impact of monetary policies enacted by the Federal Reserve System on interest rates, inflation, and unemployment

analyze the relationship between education and training and earnings throughout the student's lifetime

investigate and evaluate the costs and benefits of various postsecondary education and training institutions

describe the process for completing grant and scholarship applications, including the Free Application for Federal Student Aid (FAFSA®) provided by the U.S. Department of Education or the Texas Application for State Financial Aid (TASFA)

analyze and compare various student grant and loan options, including private and federal loans

interpret data from a student aid report

research and align interests and skills with potential careers and postsecondary education to assure a life strategy that will produce employment the student enjoys with a desired standard of living

identify sources of income, including wages and salaries, profits, interest, rent, dividends, and capital gains

compare common employee benefits such as health insurance, sick leave, retirement plans, and other tax-favored health and dependent care plans

differentiate among and calculate gross, net, and taxable income

identify factors such as educational attainment and market demand for careers that can influence the labor market and affect income

describe the role of the entrepreneur in creating businesses

explain how an entrepreneur earns income, including through profits from the creation or ownership of businesses

compare total compensation and additional benefits and obligations as a self-employed or independent contractor with total compensation as an employee

discuss the resources available for entrepreneurship and the federal, state, and local agencies available to assist with or provide grants for the creation of a small business

analyze the risks and rewards of entrepreneurship, including those associated with starting a new business, owning a small business, and purchasing a franchise

explain the characteristics of business organization such as sole proprietorships, partnerships, and corporations

develop financial goals for the short, medium, and long term that are specific, measurable, attainable, realistic, and time based

analyze the opportunity costs of spending and saving in recognizing short-, medium-, and long-term goals

identify and prioritize types of purchases and charitable giving

evaluate various forms of financial exchange such as cash, checks, credit cards, debit cards, mobile payment applications, and electronic transfers

discuss the importance of tracking income and expenses to reconcile financial records

evaluate the impact of unplanned spending

analyze costs and benefits of owning versus renting housing

analyze costs and benefits of owning versus leasing a vehicle

compare and contrast sources of credit such as banks, merchants, peer-to-peer, payday loans, and title loans

identify the characteristics and dangers of predatory lending practices

compare and contrast types of credit, including revolving and installment credit, and collateralized loans versus unsecured credit

discuss how character, capacity, and collateral can adversely or positively impact an individual's credit rating and the ability to obtain credit

explain how to access and interpret a sample credit report and score

describe the importance of monitoring credit reports regularly and addressing errors

discuss how factors such as medical expenses, job loss, divorce, or a failed business could lead to bankruptcy

determine and discuss if and when to use credit by considering the truth in lending disclosures

determine the exponential growth benefits of starting early to invest with continuous contributions

determine the number of years it will take for savings to double in value by using the rule of 72

evaluate the costs and benefits of various savings options such as bank savings accounts, certificates of deposit, and money market mutual funds

evaluate risk and return of various investment options, including stocks, bonds, mutual funds, and exchange-traded funds (ETFs)

evaluate the relative benefits of pre-tax and post-tax investing

develop a short-term saving strategy to achieve a goal such as establishing and maintaining an emergency fund

develop an intermediate-term saving and investing strategy to achieve a goal such as accumulating a down payment on a home or vehicle

develop a long-term investing strategy to achieve a goal such as a financially secure retirement

apply risk management strategies, including avoiding, reducing, retaining, and transferring risk

define insurance terminology, including premiums, deductibles, co-pays, and policy limits

explain the costs and benefits of different types and sources of health insurance

explain the costs and benefits of disability and long-term care insurance

explain the costs and benefits of life insurance, including term insurance and whole life insurance

explain the costs and benefits of property insurance, including homeowner's and renter's insurance

explain the costs and benefits of automobile insurance and factors that impact the price of insurance, including the type of vehicle, age and sex of driver, driving record, deductible, and geographic location

identify ways to reduce risk of identity theft and protect personal information

describe and identify examples of common schemes and scams such as Ponzi schemes and pyramid, phishing, check cashing, and home renovation scams

explain how consumer protection agencies protect consumers against fraud

explain the importance of estate planning, including guardianship of minor children, wills, beneficiary designation, power of attorney, living will, and medical directives