Standard #: SS.912.FL.7.1


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Describe how individuals vary with respect to their willingness to accept risk and why most people are willing to pay a small cost now if it means they can avoid a possible larger loss later.


Examples


Example: Discuss whether a premium paid to insure against an accident that never happens is wasted.

Clarifications


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.



Related Courses

Course Number1111 Course Title222
2102305: Economics and Personal Finance Honors (Specifically in versions: 2023 - 2024, 2024 and beyond (current))
2102371: Personal Finance and Money Management (Specifically in versions: 2023 - 2024, 2024 and beyond (current))
2102373: Personal Finance and Money Management Honors (Specifically in versions: 2023 - 2024, 2024 and beyond (current))


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