Personal Finance Planned Course Draft 2002

Transcription

1 Personal Finance Planned Course Draft 2002 Written by: Tracy S. Cappellini

2 Background Personal finance is a course written with all students in mind. Designed to teach each student the importance of planning to ensure a strong financial future, it addresses all ability levels and educational paths. One of our greatest assets is the ability to earn money. Students will learn how to make the most of this asset through goal setting, career choices, proper credit management, insurance and investing. Real-life examples, student, as well as teacher, experiences, and research will be used to enhance the understanding of these concepts. Students will be asked to delve into their own belief systems with regard to these topics. Whole class discussion, small group discussion, journal entries, written reflections and an informative paper will be required of all students. s Addressed 2.2 Computation and Estimation 2.3 Measurement and Estimation 2.4 Mathematical Reasoning and Connections 2.5 Mathematical Problem Solving and Communication Course Content Unit 1: Financial Planning Process 1: Establish personal goals and objectives. 1. Develop goals that are SMART (specific, measurable, attainable, realistic and have a time-frame). 2. Distinguish between short-term, medium-term and long-term goals. 3. Develop financial and non-financial goals for the three time frames. 4. Describe the relationship between goal setting, the success cycle and the failure cycle. 5. Examine how values influence our goals. s 2: Distinguish between needs and wants. 1. Define need. 2. Define want. 3. Categorize given items as either needs or wants. 3: Define the 5-step financial planning process. 1. Set goals, analyze information, create a plan, implement the plan, and monitor and modify the plan.

3 2. Reflect on a time where the 5-step plan was used successfully either in Academics, Arts/Music, Sports or Relationships. 3. Write a reflection paper as to why having goals and a plan lead to success in one or more areas. 4: Apply the financial planning process 1. Create a character and a personal situation for the character. 2. Apply the 5-step financial planning process to the character s situation. 3. Create a visual and verbal presentation. Unit 2: Careers and Earnings 1: Recognize the relationship between career factors and earning potential. 1. Define career. 2. Define the greatest asset. 3. List and define career factors. 4. Reflect on the difference between a job and a career. 2: Identify career options 1. List college costs and benefits 2. Demonstrate the opportunity cost of a college degree on lifetime earnings. 3. List trade or vocational school costs and benefits. 4. Demonstrate the opportunity cost of a vocational degree on lifetime earnings. 5. Define entrepreneur and identify within society. 3: Distinguish between gross income and net income. 1. Define salary, hourly and overtime pay. 2. Calculate salary, hourly and overtime pay for various pay periods 3. Trace the important events of the history of the Social Security Administration. 4. Distinguish between the different taxes paid, their rates and who must pay them. 5. Complete a w-4 form. 6. Calculate net wages 7. Complete a 1040-ez tax return. 4: Demonstrate awareness of the impact career factors can have on financial decisions. 1. Relate goals to income to education to career.

4 3: Budget 1: Create a monthly budget. 1. Define budget. 2. Define savings and the P.Y.F. (Pay Yourself First) philosophy. 3. Distinguish between fixed and flexible expenses. 4. Create a monthly budget using given financial scenarios. 5. Create a monthly budget using daily spending habits records or given financial scenario. 2: Demonstrate proper financial record keeping. 1. Define the parts of a check. 2. Complete a checkbook register for 2 consecutive months. 3. Reconcile a checkbook register with a monthly bank statement for the given two months. 3: Evaluate financial institutions. 1. Gather information from various sources on local or regional financial institutions. 2. Compare charges fees and other cost associated with maintaining a checking and savings account. 3. Create a report with comparisons and recommendations for the best financial institution. Unit 4: Credit and Debt 1: List and define sources of credit and how they work. 1. Define installment loan and name various types. 2. Define and name various store cards. 3. Define and name various credit cards. 4. Define debit card and how they work. 5. Define the Truth in Lending Act. 2: List the advantages of credit 1. Cite times where good credit is useful or needed. 2. Describe how credit can help you make major purchases. 3. Explain the safety and convenience a credit card gives. 3: List the dangers of credit 1. Calculate monthly interest rates from given APR. 2. Calculate monthly finance charge on various credit card balances at various APR. 3. List the consequences of falling into debt. 4: Choose the best credit card. 1. Analyze credit card offers.

5 2. Choose the best offer based on APR, annual fees, benefits, etc. 5: Name the parts and purpose of a Credit Report. 1. List the information contained on a credit report. 2. Define the 5 C s of credit and how they appear on a credit report. 3. Name the major credit reporting agencies and ways in which a credit report can be obtained. 4. Define the Fair Credit Reporting Act. 6: Experience credit and debt in a real-life setting. 1. Create a plan to eliminate debt using a given financial scenario and the web-site 2. Answer questions that will show the impact of debt, interest and time. 7: Experience the effect of loan terms in a real life setting. 1. Create the best mortgage for a given home purchasing scenario and the web site 2. Demonstrate and explain the impact of increasing or decreasing down payments, interest rates, loan terms as well as principal v. interest. Unit 5: Insurance 1: Recognize potential risks and their potential loss. 1. Define the three areas of potential risk in life. 2. Determine the amount of potential loss in each area. 2: Discuss Risk Management. 1. Name the 4 ways to manage risk 2. Give examples of each of the 4 areas of risk management. 3: Describe how insurance works. 1. Define insurance and the concept of pooling. 2. Define premium as it relates to insurance. 3. Define deductible as it relates to insurance. 4. Define coinsurance as it relates to insurance. 4: Name various types of insurance that are needed. 1. Define the various types of life insurance and beneficiaries. 2. Define property insurance and the various types and perils covered under a policy. 3. Define the areas of coverage of an auto policy. 4. Define the coverage of a liability policy and where liability coverage is needed.

6 5. Define the various types of health insurance, cost associated with each type and the best plan for each individual. Unit 6: Investing 1: Calculate interest on investments. 1. Define the time value of money concept. 2. Calculate time it takes an investment to double using the Rule of Calculate simple interest. 4. Calculate compound interest. 5. Compare the outcomes of investing when earning simple and compound interest. 2: Define the Financial Planning Pyramid. 1. Define each level of the pyramid according to level of risk. 2. Identify the various investment alternatives at each level of risk. 3. Define the risk-to-reward relationship at each level of the pyramid. 4. Determine personal level of risk taking. 5. Write a detailed personal investment plan. Resources Wilson, Mike and Elizabeth Schiever. NEFE High School Financial Planning Program. Greenwood Village, CO: National Endowment for Financial Education, Websites

7 a 2.4.a, b a, b Note taking Oral participation Note taking Oral participation Curriculum Matrix Evaluative questions and class discussion revolving around goals..5 Evaluative questions and class discussion revolving around the three time-frames of goals c a a,b a,b 2.4.a,b 2.5.a,d 2.4.a, b, c Brainstorming Oral participation Individual goal setting 3 SMART goals, 1 for each time frame Brainstorming to the prompt of the relationship between goals, success and failure. Oral participation Note taking Evaluative questions Class discussion 3 SMART goals - 1 for each time frame. Evaluative questions and class discussion revolving around goals, success and failure a, b Brainstorming various individual values and how they affect decisions. Oral participation Personal Values Audit (worksheet S1-2) Evaluative questions Class discussion revolving around personal values audit..25

8 a,b 2.4.a,b 2.4.a,b 2.5.d Note taking Oral participation Note taking Oral participation Need v Wants class activity students are given an item and go to the want or need side of the room and justify their decision. Evaluative questions Class discussion.25 Evaluative questions Class discussion.25 Evaluative questions and class discussion for each prompt..5

9 Brainstorming Note taking Oral participation Class activity - 4 Corners. Students rate art/music, academics, relationships and sports from most to least successful in small groups using teacher created rubric. Small group discussion about why they were or were not successful. Evaluative questions Class discussion.75 Observation of interaction Small group discussion Reflect on activity using various writing prompts. Reflection paper- assess students understanding of goal setting and the relationship between setting goals and the success and failure cycle. Rubric of key points to be addressed will be used to assess reflection paper..25

10 1.4.1 Brainstorming in small groups to create character and financial goal. Observation of Group Work Apply the 5-step financial decision making process using a situation they have created for the character the students have chosen or created. Observation of Group Work Create a visual aid and present character using the 5-step decision making process to the class. Visual and oral presentation of the financial planning process group project. Teacher created rubric will be used to assess students understanding of the decision making process as applied to this real-life situation Unit 1 Exam 1

11 Note taking and oral participation. Students discuss their current and future jobs/careers and earning power. Students predict the hot careers and the careers that are dwindling. Students develop a list of what factors have and will affect their career choices. Analyze want ads for the career factors and list those that are given. Read career choices in music scenario and answer the question based on the reading. Evaluative questions and class discussion. Oral participation revolving around career factors, want ads, and individual reading and writing activity Written response to the prompt Do you think it makes any difference if you think of your work as just a job to earn money v viewing it as a career.? Reflection paper. Assess students views on job versus career and relate how goal setting can help them with career achievements. Grade based on the 6-trait scoring guide (Spandel).25

12 b Discuss thoughts on higher education and its impact on earning potential. Discuss the trend of continued education to advance career and change jobs. Class discussion centering on career, education, lifetime earning potential and lifelong learning b Define entrepreneur. Brainstorm what it takes to be an entrepreneur and the characteristic traits one would posses. Discuss personal experiences with an entrepreneur and assimilate back to the brainstorming activity. Class discussion centering on the entrepreneur..25

13 d, g a d, g a a, e b a, e a Define key terms. Evaluate pay stub and list the various taxes and deductions. Takes notes on Federal, and local tax rates. Calculate gross pay and net pay for various time periods using worksheets and teacher created materials. Students will read the handout A Brief History of Social Security. Student will answer questions about the article on a teacher created worksheet. Fill out a w-4 form for their new job. Compute the exemptions allowed. Examine current year tax forms and booklets. Complete a 1040-EZ form based on given W-2 and 1099 forms Small group interaction Determine understanding of pay periods and the number of paychecks per year and gross and net pay through correct computation at the board and on given worksheets. Class discussion of The Social Security System. Discuss the answer to the worksheet questions. Extend class discussion to the students views and knowledge of Social Security. Correct form completion

14 a b Small group discussion on the relationship between goals, income, education, and career. Freewrite. Grade based on the 6-trait scoring guide (Spandel) Cumulative Exam 1

15 b Define new terms. Cite examples of fixed and flexible expenses. Class discussion d, g a, e Complete a monthly budget, using a given scenario, as a class. Class input in completing sample budget d, g a, e Complete a monthly budget using personal spending log or teacher given scenario if needed. Completed monthly budget using correct format and balancing techniques. 1

16 g e Study the face of a blank check. Define each part of the check. Complete a check made out to cash. Teacher observation and class participation d, g a-d a, e a-d Complete a model month of a checkbook register. Reconcile the monthly register with the bank statement. Summarize the process in writing. Homework assignment: complete two months of a checkbook register and reconcile each month with the bank statement. Written summary of the reconciliation process. 1.5

17 a-d a-d Small group activity: gather data either on line or from local financial institutions. Determine the best bank by applying interest rates, fees, etc. to a given financial scenario. Construct a table of these figures as well as a written summary. Small group bank activity. Grade based on teacher created rubric and the 6-trait scoring guide (Spandel) Cumulative Exam 1

18 b Brainstorm types of credit. Define terms. Extend class discussion to their own credit and credit awareness b Examine a copy of a Truth in Lending law. Answer question about this law. Summarize why it might be needed. The completed worksheet. Summary of the law and why the law is important to consumers. Grade based on teacher created rubric and the 6-trait scoring guide (Spandel)

19 b Read real life examples of credit situations. Note taking and oral participation. Cut print ads of credit types and offers. Discuss the how, when, why, where of credit. Class discussion.

20 d, g a a a, e Define new terms associated with debt and interest. Calculate monthly interest rates and payments using worksheets. Class discussion Worksheets b Discuss the consequences of debt and the real cost of purchases on credit. Freewrite on the advantages and disadvantages of credit use. Grade based on teacher created rubric and the 6-trait scoring guide (Spandel).25

21 d, g a-d a, e a-d Analyze three credit cards offers. Select the best offer and support the choice based on fees and interest. Small group work on teacher made worksheet. Class discussion to determine the best overall offer among the groups. 1

22 Define new terms. Take notes. Discuss the credit reporting agencies and how to obtain a credit report. Investigate obtaining a credit report online. Read about the Fair Credit Reporting Act Class discussion on credit reports and the impact of a good credit history. Online credit report search. Discussion of the rights of a consumer under the Fair Credit Reporting Act. 1

23 d, g, h a a-d a, e, f a a-d Complete a worksheet of various financial situations involving credit using the website Draw conclusions based on a variety of changes and option within each scenario. Discover the impact of debt, interest and time. Teacher created worksheet. Summary of conclusions drawn. Grade based on teacher created rubric and the 6-trait scoring guide (Spandel) d, g, h a a-d a, e, f a a-d Complete a worksheet of a homepurchasing scenario using the website Evaluate the impact of mortgage payments, down payment and interest rates. Teacher created worksheet. Summary of conclusions drawn. Grade based on teacher created rubric and the 6-trait scoring guide (Spandel) Cumulative Exam 1

24 Discuss overhead of the areas of loss and their risk. Take notes on and discuss the 4 areas of risk management (avoid, reduce, accept, transfer). Give example of each of these areas as they relate to property or health. Complete worksheet on risk management. Class discussion Worksheet involving a real-life scenario of the four areas of risk management..5.5

25 Take notes during lecture on how insurance works. Define new terms. Read real-life example in workbook of pooling. Class discussion of insurance and how it works.

26 5.4.1 Take notes and define new terms. Discuss of the importance of life insurance, what affects the rates and eligible beneficiaries. Worksheets on life insurance costs. Class discussion. Worksheets, board work Take notes and define new terms. Discuss renter and homeowners insurance. Class discussion Take notes from overhead. Look at state minimums for auto coverage. Define the factors that affect the cost of an auto policy. Class discussion Take notes. Define liability insurance and what type of coverage is needed and where the coverage can be found. Class discussion Takes notes defining the various types of health insurance. Discuss why costs vary per plan. Class discussion. 1

27 b, d b, d Gather newspaper articles where one or more types of insurance would or could have been utilized (no obituaries) Small group discussion about articles, insurance needs and their personal views. Written summary of small group discussion with regard to their personal views on insurance. Grade based on the 6-trait scoring guide (Spandel) Cumulative Exam 1

28 b, d b, d Take notes. Class discussion on the impact of interest, principal and time. Discuss overheads that illustrate this dynamic. Complete worksheets-impact of a Delay in Savings, Value of Money (S6-1 through S6-5). Class discussion. Worksheets d a-c a, e a-c Complete worksheets using the ruleof-72 Worksheets d, g a a-d a, e a a-d Define the components of the formulas for simple and compound interest. Compute interest earned on various investment alternatives using both simple and compound interest. Conclude which method is best. Worksheets Class discussion on the power of compound interest.

29 a-d d a-d a a-d Study the illustration of the Financial Planning Pyramid. Discuss the levels, their risk and potential reward. Complete FPP worksheet. (S6-8) Determine the risk-to-reward relationship Complete a personal risk evaluation (S6-10, S6-11) Small group discussion centering on the investing and related concepts and terms. Write a detailed personal investment plan from a given scenario. Use material from course to support the plan. Class discussion. Financial Planning worksheet. Discuss the results of the evaluation. Written investment plan. Grade based on teacher created rubric and the 6-trait scoring guide (Spandel) b, c, d b, c, d Choose a topic from the course and write an informative paper using the 6-traits of analytical writing rubric. Informative paper based on teacher created rubric and the 6-trait writing assessment Final Exam 1

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