Personal Finance and Money Management Honors (#2102373) 

Clarification 1: Instruction includes how values may vary from person to person.

Clarification 2: Instruction includes how societal values impact personal financial decisions.

Clarification 1: Instruction includes students working in collaborative groups to discuss various scenarios in which information may have been influential to financial decision-making.

Clarification 2: Instruction includes the analysis of correct and incorrect and relevant and irrelevant information to inform financial decisions.

Clarification 1: Instruction includes the identification of non-income factors and the importance of these factors as compared to potential income.

Clarification 2: Instruction includes the ways that an individual can earn income: full-time employee, part-time employee, self-employment, investment, or passive income.

Clarification 1: Instruction includes how people’s willingness to wait or plan for the future affects their decision to get more education or job training in a dynamic and changing labor market.

Clarification 2: Instruction includes how discounting the future benefits of education and training may lead some people to pass up potentially high rates of return that more education and training may offer.

Clarification 3: Instruction includes the barriers people may face when investing in education and training.

Example: Speculate how a high school student might assess the future benefits of going to college and describe how that assessment will affect the student’s decision to attend college.

Example: Speculate how a high school student might assess the future benefits of entering the workforce after completing a vocational training program, and the implications of that assessment on possible future benefits.

Clarification 1: Instruction includes comparing the benefits, costs, and the return on investment of a college education to those of a technical school.

Clarification 2: Instruction includes comparing the unemployment rates of workers with different levels of education.

Clarification 3: Instruction includes various career pathways including those that do not require college attendance.

Clarification 1: Instruction includes the identification of the governmental agency that receives tax revenue for a specific tax.

Clarification 2: Instruction includes the identification of the use of specific tax revenues.

Clarification 3: Instruction includes the major types of taxes: income, payroll, property, and sales tax.

Clarification 1: Instruction includes tax rates on earned income, interest, and capital gains.

Clarification 2: Instruction includes how federal tax brackets illustrate a progressive tax and a sales tax is viewed as a regressive tax as well as the differences between each type of tax.

Clarification 3: Instruction includes types of goods that are subject to sales taxes and those that are exempt.

Clarification 1: Instruction includes evaluating the benefits and costs of entrepreneurship.

Clarification 2: Instruction includes identifying the roles and characteristics of an entrepreneur and understanding that taking on risk is an implicit part of being an entrepreneur.

Clarification 3: Instruction includes understanding how owning a small business can be a person’s primary career or can supplement income from other sources.

Clarification 4: Instruction includes the tax implications of being an entrepreneur such as the self-employment tax.

Clarification 1: Instruction includes the identification of various payroll taxes and withholdings (e.g., Social Security, Medicare, federal withholding, etc.).

Clarification 2: Instruction includes formally (using tax tables) and informally (estimating) calculating taxes.

Clarification 3: Instruction includes understanding why calculating one’s taxes may differ from the government’s calculations.

Clarification 1: Instruction includes understanding that states, counties, and municipalities may have different tax rates and taxes.

Clarification 2: Instruction includes understanding that local taxes are dedicated to a particular use, such as schools or local infrastructure projects.

Example: Given a product and a price, develop three advertisements for a retailer using the following information: 50% off, buy one get one free, and two items for a single price (e.g., buy 2 for $5 or 1 for $3).

Example: Write an expository paragraph that explains why a store might advertise the price of a TV expressed as an amount per day or week rather than the actual full price.

Clarification 1: Instruction includes understanding various forms of payments and associated costs: cash, checks, debit cards, credit cards, mobile payments, prepaid cards, buy now pay later, layaways, and rent to own.

Clarification 2: Instruction includes understanding that while the seller of a good being purchased may not explicitly charge the consumer, the consumer may bear a portion of the fees by paying a higher price.

Clarification 1: Instruction includes developing budgets with fixed and variable expenses, unexpected expenses (including emergency funds) and savings.

Clarification 2: Instruction includes understanding that budgets can be developed using paper, digital spreadsheets, websites, mobile phone applications, or using other financial applications.

Clarification 1: Instruction includes common contracts such as cell phone plans, leases of apartments or homes, car leases, car purchases and mortgages.

Clarification 2: Instruction emphasizes that contracts are legally binding and breaking a contract may have consequences.

Clarification 1: Instruction includes understanding terms and conditions may include, but are not limited to, duration, termination, payment terms, dispute resolution, privacy and sharing of personal information.

Clarification 2: Instruction emphasizes that users may be entering into a contract when agreeing to terms and conditions on webpages or applications.

Clarification 1: Instruction includes the functions of each account (checking, savings, money markets, and certificates of deposit (CDs)), and the advantages and disadvantages of each.

Clarification 2: Instruction includes credit unions, commercial banks, traditional banks, and online banks.

Clarification 1: Instruction includes online banking, minimum balance requirements, monthly fees, overdraft penalties, and interest rates.

Clarification 2: Instruction includes understanding the process for opening and managing a bank account.

Clarification 3: Instruction includes understanding the different components of an account, such as the routing number and the account number.

Clarification 1: Instruction includes understanding that the real interest rate is calculated as the nominal interest rate minus the rate of inflation.

Clarification 2: Instruction includes understanding why savers should expect a higher nominal interest rate when inflation is expected to be high.

Clarification 1: Instruction includes understanding the role that government agencies charged with regulating financial institutions play in helping to protect the safety, soundness, and legal compliance of the nation’s banking system.

Clarification 2: Instruction includes the purpose and function of the following agencies: Federal Reserve, Office of the Comptroller of the Currency, Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), National Credit Union Administration (NCUA), and state banking departments.

Clarification 1: Instruction includes understanding how matches of retirement savings by employers may change the incentives for employees to save.

Clarification 2: Instruction includes understanding why having employees “opt out” of savings programs results in a higher level of saving than having them “opt in” due to the idea of default bias.

Clarification 1: Instruction includes the motivating factors for a bank offering low-rate introductory credit offers.

Clarification 2: Instruction includes understanding the possible negative impacts of low-rate introductory credit offers on consumers.

Clarification 1: Instruction includes explaining why secured loans are viewed as having less risk and why lenders charge a lower interest rate than they charge for unsecured loans.

Clarification 2: Instruction includes understanding unsecured versus secured credit cards.

Clarification 1: Instruction includes how a down payment reduces the total amount financed and why this reduces the monthly payment and/or the length of the loan.

Clarification 2: Instruction includes understanding why a borrower who has made a down payment has an incentive to repay a loan or make payments on time.

Clarification 3: Instruction includes discussing why people make a down payment and why lenders may consider loans made with a down payment to have less risk.

Clarification 1: Instruction includes the different aspects of a loan application, which include its basic requirements, limits, and credit check.

Clarification 2: Instruction includes understanding the typical choices made on a car loan such as amount of down payment, interest rate, term of loan, and monthly payment.

Clarification 1: Instruction includes understanding that while credit cards are useful for making purchases, interest rates on credit card loans are generally higher than other types of loans and may also have additional fees.

Clarification 2: Instruction includes understanding that credit card interest rates are higher for people considered to have a higher risk of nonpayment as determined by their credit scores.

Example: Provide two examples of how having a good credit score can benefit a person financially.

Example: Explain why employers find it useful to hire someone with a higher credit score.

Example: Predict what might happen should a homeowner fail to make his or her mortgage payments.

Example: Given the specifications of a home and a salary for an individual, investigate the steps required to complete an application for a mortgage.

Clarification 1: Instruction includes understanding why it is important to check the accuracy of the information recorded on a credit report and knowing what steps to take to correct errors on credit reports.

Clarification 2: Instruction includes understanding that credit report errors may increase the cost of credit.

Clarification 1: Instruction includes understanding the process and importance of completing the Free Application for Federal Student Aid (FAFSA).

Clarification 2: Instruction includes identifying scholarships and grants for which an individual student may be eligible.

Clarification 1: Instruction includes understanding Parent Loan for Undergraduate Students (PLUS) loans, private student loans, direct subsidized loans, and direct unsubsidized loans.

Clarification 2: Instruction includes understanding the long-term costs of student loans such as accrued interest during periods of deferment or forbearance.

Clarification 1: Instruction includes understanding that each investment has its own risk, and the consumer must decide whether the risk is worth the reward by examining available data.

Clarification 2: Instruction includes discussing tax implications of each type of investment.

Example: Identify and compare the administrative operating costs (expense ratios) of several mutual funds and estimate the differences in the total amount accumulated after 10 years for each mutual fund, assuming identical market performance.

Example: Given several mutual funds, determine how much an investor may be paying in costs.

Clarification 1: Instruction includes understanding that each account that holds an investment has its own risk, and the consumer must decide whether the risk is worth the reward.

Clarification 2: Instruction includes analyzing the advantages and disadvantages of each account that holds an investment.

Clarification 3: Instruction includes understanding various investment applications (mobile applications) that may be used to hold investment accounts.

Clarification 1: Instruction includes understanding the dollar price of a digital currency can be very volatile as it depends on the digital currency’s supply and demand.

Clarification 2: Instruction includes understanding that a digital currency is a digital asset secured by cryptography and recorded on a block chain that may be used to send or receive payments on the internet.

Clarification 3: Instruction includes understanding reasons for the use of digital currency: financial privacy concerns, international payments, the ability to execute smart contracts, and speculation.

Clarification 1: Instruction includes understanding self-insurance and the practice of having an emergency fund.

Clarification 2: Instruction includes understanding the potential effects on premium costs if in an emergency fund.

Clarification 1: Instruction includes understanding that having insurance may result in the policyholder taking more risks.

Clarification 2: Instruction includes understanding that deductibles and copayments are cost-sharing features that encourage the policyholder to take steps to reduce the potential size of an insurance claim.

Clarification 1: Instruction includes understanding multiple types of insurance: health, disability, long-term care, travel, auto, renter, life, homeowner, and property and casualty.

Clarification 2: Instruction includes comparing the coverage and costs of hypothetical plans for a set of scenarios utilizing various types of insurance.

Clarification 1: Instruction includes describing problems that can occur when an individual is a victim of identity theft.

Clarification 2: Instruction includes giving specific examples of how online transactions, online banking, email frauds, and telemarketing calls can make consumers vulnerable to identity theft.

Clarification 3: Instruction includes describing the conditions under which individuals should and should not disclose their Social Security number, account numbers, or other sensitive personal information.

Clarification 1: Instruction includes understanding that an inheritance is money or assets a person has been bequeathed when someone passes.

Clarification 2: Instruction includes creating a detailed plan for an inheritance.

Clarification 3: Instruction includes understanding the impact to one’s taxes from receiving an inheritance.

Clarification 1: Instruction includes understanding state and federal laws concerning personal finance.

Clarification 2: Instruction includes identifying state and federal agencies regulating personal finance.

Example: Joe won $25,000 on a lottery scratch-off ticket. How many years will it take at 6% interest compounded yearly for his money to double?

Clarification 2: Personal financing options include debit cards, credit cards, installment plans and loans.

Clarification 2: Instruction includes pay off plans for a business and for an individual.

• Cultivate a community of growth mindset learners. 
• Foster perseverance in students by choosing tasks that are challenging. 
• Develop students’ ability to analyze and problem solve. 
• Recognize students’ effort when solving challenging problems.

• Help students make connections between concepts and representations.
• Provide opportunities for students to use manipulatives when investigating concepts.
• Guide students from concrete to pictorial to abstract representations as understanding progresses.
• Show students that various representations can have different purposes and can be useful in different situations. 

• Provide students with the flexibility to solve problems by selecting a procedure that allows them to solve efficiently and accurately.
• Offer multiple opportunities for students to practice efficient and generalizable methods.
• Provide opportunities for students to reflect on the method they used and determine if a more efficient method could have been used. 

• Establish a culture in which students ask questions of the teacher and their peers, and error is an opportunity for learning.
• Create opportunities for students to discuss their thinking with peers.
• Select, sequence and present student work to advance and deepen understanding of correct and increasingly efficient methods.
• Develop students’ ability to justify methods and compare their responses to the responses of their peers. 

• Help students recognize the patterns in the world around them and connect these patterns to mathematical concepts.
• Support students to develop generalizations based on the similarities found among problems.
• Provide opportunities for students to create plans and procedures to solve problems.
• Develop students’ ability to construct relationships between their current understanding and more sophisticated ways of thinking.

• Have students estimate or predict solutions prior to solving.
• Prompt students to continually ask, “Does this solution make sense? How do you know?”
• Reinforce that students check their work as they progress within and after a task.
• Strengthen students’ ability to verify solutions through justifications. 

• Provide opportunities for students to create models, both concrete and abstract, and perform investigations.
• Challenge students to question the accuracy of their models and methods.
• Support students as they validate conclusions by comparing them to the given situation.
• Indicate how various concepts can be applied to other disciplines.

2-3 Students include relevant textual evidence in their written and oral communication. Students should name the text when they refer to it. In 3rd grade, students should use a combination of direct and indirect citations.

4-5 Students continue with previous skills and reference comments made by speakers and peers. Students cite texts that they’ve directly quoted, paraphrased, or used for information. When writing, students will use the form of citation dictated by the instructor or the style guide referenced by the instructor. 

6-8 Students continue with previous skills and use a style guide to create a proper citation.

9-12 Students continue with previous skills and should be aware of existing style guides and the ways in which they differ.

In grades 1-2, students build upon these skills by justifying what they are thinking. For example: “I think ________ because _______.” The collaborative conversations are becoming academic conversations.

In grades 3-12, students engage in academic conversations discussing claims and justifying their reasoning, refining and applying skills. Students build on ideas, propel the conversation, and support claims and counterclaims with evidence.