Describe the 3 steps in the financial planning process. Identify the four key players in the economy.

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1 Subject Area: Course: Math Personal Finance Unit: 1 Financial Planning What is Financial Planning? How does it fit into your life and career plans? When should you start planning for your future? personal finance resources values attitudes prioritize liquidity risk aversion opportunity cost inflation tangible asset Describe the 3 steps in the financial planning process Identify your financial goals Identify the four key players in the economy. Describe the economic cycle and how it affects personal finance. Understand the time value of money Recognize the importance of career planning. oral presentation Personal Finance, Elizabeth B. Goldsmith Wadsworth, Thomson Learning Copyright 2001 DVD Your Life, Your Money 8 Identify financial goals determine needs vs. wants consumption LEI CPI depression recovery Workbook Internet Resources: consumer price index Federal Reserve goal setting time value of money general info on financial planning

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3 Subject Area: Course: Math Personal Finance Unit: 2 Careers How does work and money affect your life? What is the difference between a career and a job? resume Social Security commission payroll deduction occupation compound interest net worth Entrepreneur Describe the cost vs. benefits of a college education Understand the difference between hourly, salary, commission, and piecework pay. Read a time clock card Explain the benefits and perks from an employer Explain each entry on a paycheck stub. fill out an application workbook DVD textbook 7 Practice writing a resume practice writing a cover letter fill out an application determine the benefits and perks from an employer fill out a W-4 pay check stub

4 Subject Area: Course: Math Personal Finance Unit: 3 Taxes Why are taxes necessary? Where does the money go? What happens if you get audited? FICA Medicaid Medicare audit withholding Describe the difference between progressive, regressive and flat taxes. Explain federal income tax fundamentals. Understand tax audits, how often they happen, and what to do if you are audited. File a basic Federal & State income tax form. given a W-2, fill out tax forms 12 File income tax (Federal & State) forms Calculate sales tax. tax-exempt tax-deferred vertical equity flat tax regressive tax progressive tax tax evasion Discuss financial decisions and expenses that affect taxes. Understand the benefits of tax-deferred investments. Explain the different types of taxes. Explain the difference between standard deduction and itemized deductions ez form A form 1040 form NYS forms tax software wealth tax sales tax property tax inheritance tax capital gains

5 Why do we need to save receipts? How important is record keeping? inventory balance sheet net worth Understand the importance of keeping a budget. Explain how to create an important number list. Create a budget Unit: 4 Budgets/Financial Records oral report 7 create a budget Project given a set income, determine if you can live on your own. Why do I need a budget? How long should you keep your records? fixed expenses variable expenses liabilities Evaluate financial status by using 3 ratios. Explain how the internet can be used to obtain financial information. Understand the importance of comparison shopping Realize the advantages of coupons. assets workbook solvency ratio DVD debt to income ratio textbook budget software

6 Do I really need a savings account? How much should I save? interest supply demand Certificate of Deposit (CD) tiered rate compound interest APY deregulation PIN Unit: 5 Managing Cash & Savings Explain the 3 steps in the cash management process. Understand how U.S. Savings bonds can be used as part of a savings plan. Describe various types of financial institutions and what they offer. Understand the world of electronic banking, including ATM, debit and smartcards. Calculate a basic liquidity ratio. Calculate compound interest. Write checks and balance a checkbook. Understand what it means to be federally insured. reconcile a bank statement 10 Write checks Keep and balance a checkbook register Fill out an application for checking/savings account. smartcard overdraft

7 Unit: 6 Credit/Loans Is credit good or evil? credit profile Discuss the pros and cons of credit. 10 collect credit offers How much credit is too much? debt safety ratio usury laws Explain how to establish credit, and manage credit. Understand the differences in types of credit: *Open-ended (bank credit cards, cash advance). *Installment vs. non-installment credit. calculate interest Prime rate Identify the types, sources and costs of loans. APR grace period Distinguish between the 2 main types of bankruptcy. Right of rescission liens collateral bankruptcy Chapter 13

8 Subject Area: Course: Math Personal Finance Is it better to rent or own? What kind of home do I want? What types of mortgage should I get? lease sub-lease security deposit appreciation Analyze the costs and benefits of renting vs. owning a home. Unit: 7 Housing & Transportation Discuss the steps and finances involved in buying a home. Discuss the financing involved in owning and selling homes. Compare the costs of buying vs. leasing a car. 8 calculate interest on a loan (amortization schedule) Buy a car mortgage PITI broker escrow title Determine the cost of operating a vehicle. Understand the different types of loans deed amortization closing points depreciation

9 Unit: 8 Insurance What should be insured? Who should be insured? What kind of insurance is needed? From whom? How much and for how long? How does life insurance work? agent pooling premium actuarial risk liability deductible collision no fault Understand the fundamentals of insurance and risk management. Describe 4 steps in the insurance management process. Different types of insurance: Property insurance liability insurance Homeowners insurance Renters insurance Disability insurance Health insurance Car insurance Life insurance (term vs. whole life) long term care insurance guest speaker worksheets project umbrella policy Determine need. Chapters 8, 9, & 10 cash value underwriter beneficiary claim

10 Unit: 9 Investments Why do we invest? When should I start investing? How do I begin? investment capital gains yield return diversify portfolio asset allocation Define investment and why people invest. Know when to start investing. Describe 4 steps to investing. Explain the different types of investing: Stocks, bonds, mutual funds, money market Savings Real Estate Company Pensions Precious metals, collectibles Your own business 10 Pick and follow stocks/mutual funds Read Dow Jones dividends pension Know how to buy & sell stock Describe the role of bonds in an investment. Chapters 11, 12, 13, 14 tax shelter tax exempt proxy growth stock speculative stock DJIA NASDAQ

11 Unit: 10 Retirement Planning Why plan for retirement now? What will be my retirement needs? net worth nest egg 401 K plan Explain why retirement planning is important. Discuss common pitfalls to sound retirement planning. Estimate retirement needs. 4 estimate net worth 403 b plan 457 plan social security pension Understand the benefit of starting early. Know reduced expenses and increased expenses during retirement. Explain retirement income gap. IRA vesting Roth IRA Simple IRA Keogh plan