Standard 5 : Identify and analyze the means, types and risks of financial investing including personal and societal influences and the government’s role in regulating investments.



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General Information

Number: SS.8.FL.5
Title: Identify and analyze the means, types and risks of financial investing including personal and societal influences and the government’s role in regulating investments.
Type: Standard
Subject: Social Studies
Grade: 8
Strand: Financial Literacy

Related Benchmarks

This cluster includes the following benchmarks
Code Description
SS.8.FL.5.1: Describe the differences among the different types of financial assets, including a wide variety of financial instruments such as bank deposits, stocks, bonds, and mutual funds. Explain that real estate and commodities are also often viewed as financial assets.
SS.8.FL.5.2: Calculate the amount of interest income received from depositing a certain amount of money in a bank account paying 1 percent per year and from owning a bond paying 5 percent per year in order to analyze that interest is received from money deposited in bank accounts as well as by owning a corporate or government bond or making a loan.
SS.8.FL.5.3: Discuss that when people buy corporate stock, they are purchasing ownership shares in a business that if the business is profitable, they will expect to receive income in the form of dividends and/or from the increase in the stock’s value, that the increase in the value of an asset (like a stock) is called a capital gain, and if the business is not profitable, investors could lose the money they have invested.
SS.8.FL.5.4: Explain that the price of a financial asset is determined by the interaction of buyers and sellers in a financial market.
SS.8.FL.5.5: Explain that the rate of return earned from investments will vary according to the amount of risk and, in general, a trade-off exists between the security of an investment and its expected rate of return.


Related Access Points

This cluster includes the following access points.

Access Points

Access Point Number Access Point Title
SS.8.FL.5.AP.1: Identify the difference among various types of financial assets.
SS.8.FL.5.AP.2: Calculate the amount of interest income received from depositing a certain amount of money in a bank account.
SS.8.FL.5.AP.3: Identify the amount of dividends paid from a selected stock and how much the price of the stock has appreciated or depreciated over the year.
SS.8.FL.5.AP.4: Identify how the price of a financial asset is determined by the interaction of buyers and sellers in a financial market.
SS.8.FL.5.AP.5: Identify how and why the rate of return earned from investments will vary.