Personal Financial Literacy-Earning and spending

The student understands how to set personal financial goals. The student is expected to:

Differentiate between needs and wants in evaluating spending decisions.

Investigate the student's money personality, including spending and saving propensity.

Demonstrate an understanding of the value and benefits of charitable giving.

Develop financial goals for the short, medium, and long term that are specific, measurable, attainable, realistic, and time based.

The student understands how financial statements are used to assess and monitor financial well-being. The student is expected to:

Reconcile a bank statement with personal records to ensure the accuracy of deposits, withdrawals, and transfer activities.

Track income and expenses and develop an income statement.

Develop a budget that incorporates short-, medium-, and long-term financial goals.

Identify assets and liabilities.

Construct a balance sheet or net worth statement.

Evaluate the impact of unplanned spending on a budget.

The student analyzes components of compensation from employment. The student is expected to:

Identify benefits such as health insurance contributions, retirement benefits, sick leave, vacation pay, flexible spending account, health savings account, workers compensation, life insurance, and disability insurance.

Identify taxes that are deducted from paychecks, including Federal Insurance Contributions Act (FICA) and federal income taxes.

Calculate gross and net pay using information on a paycheck.

The student critically evaluates consumption decisions. The student is expected to:

Analyze costs and benefits of owning versus renting housing.

Analyze costs and benefits of owning versus leasing a vehicle.

Compare total costs of alternative methods of payment such as rent-to-own, store credit, installment agreements, cash, bank credit card, and debit card.

Apply strategies for making informed decisions about purchasing consumer goods such as comparing prices per unit, looking for sales or promotions, and negotiating price.