| Code |
Description |
| SS.912.FL.4.1: | Describe the different types of accounts and financial products offered through banking institutions.Clarifications:
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.
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| SS.912.FL.4.2: | Compare and contrast the characteristics of the various accounts and services offered by depository institutions.Clarifications:
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.
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| SS.912.FL.4.3: | Explain how people should regularly track and manage funds in their account to ensure enough funds are available in those accounts to cover any outstanding transactions or future automated withdrawals.Clarifications:
Clarification 1: Instruction includes understanding that account holders should regularly check the deposits and withdrawals to the accounts to ensure that these transactions were authorized by the account holder, in addition to checking for any fees charged and whether appropriate interest was credited to the account. |
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| SS.912.FL.4.4: | Analyze the impact of spending versus saving.Clarifications:
Clarification 1: Instruction includes the benefits and drawbacks of saving and spending in various situations. |
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| SS.912.FL.4.5: | Describe how inflation reduces the value of money.Clarifications:
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.
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| SS.912.FL.4.6: | Compare the difference between the nominal interest rate and the real interest rate. |
| SS.912.FL.4.7: | Describe ways that money received (or paid) in the future can be compared to money held today by discounting the future value based on the rate of interest. |
| SS.912.FL.4.8: | Explain ways that government agencies supervise and regulate financial institutions to help protect the safety, soundness, and legal compliance of the United States banking and financial system.Clarifications:
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.
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| SS.912.FL.4.9: | Describe government policies that create incentives and disincentives for people to save.Clarifications:
Clarification 1: Instruction includes understanding how traditional IRAs (individual retirement accounts), Roth IRAs, and educational savings accounts provide incentives for people to save. Clarification 2: Instruction includes understanding the difference when taxes are paid with a traditional IRA versus a Roth IRA. Clarification 3: Instruction includes understanding how taxes on interest reduce the incentive for people to save.
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| SS.912.FL.4.10: | Explain how employer benefit programs create incentives and disincentives to save and how an employee’s decision to save can depend on how the alternatives are presented by the employer.Clarifications:
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. |
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