Personal Finance: : Grade 4

Standard I.4.1

Earning Income

  • At the completion of Grade 4, students will know that people have many different types of jobs from which to choose. Different jobs require people to have different skills.
Standard I.4.2

Earning Income

  • At the completion of Grade 4, students will know that people earn an income when they are hired by an employer to work at a job.
Standard I.4.3

Earning Income

  • At the completion of Grade 4, students will know that workers are paid for their labor in different ways such as wages, salaries, or commissions.
Standard I.4.4

Earning Income

  • At the completion of Grade 4, students will know that people can earn interest income from letting other people borrow their money.
Standard I.4.5

Earning Income

  • At the completion of Grade 4, students will know that people can earn income by renting their property to other people.
Standard I.4.6

Earning Income

  • At the completion of Grade 4, students will know that people who own a business can earn a profit, which is a source of income.
Standard I.4.7

Earning Income

  • At the completion of Grade 4, students will know that entrepreneurs are people who start new businesses. Starting a business is risky for entrepreneurs because they do not know if their new businesses will be successful and earn a profit.
Standard I.4.8

Earning Income

  • At the completion of Grade 4, students will know that income can be received from family or friends as money gifts or as an allowance for which no specified work may be required.
Standard I.4.9

Earning Income

  • At the completion of Grade 4, students will know that income earned from working and most other sources of income are taxed. The revenue from these taxes is used to pay for government provided goods and services.

Personal Finance: : Grade 8

Standard I.8.1

Earning Income

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that careers are based on working at jobs in the same occupation or profession for many years. Different careers require different education and training.
Standard I.8.2

Earning Income

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that people make many decisions over a lifetime about their education, jobs, and careers that affect their incomes and job opportunities.
Standard I.8.3

Earning Income

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that getting more education and learning new job skills can increase a person劌製 human capital and productivity.
Standard I.8.4

Earning Income

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that people with less education and fewer job skills tend to earn lower incomes than people with more education and greater job skills.
Standard I.8.5

Earning Income

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that investment in education and training generally has a positive rate of return in terms of the income that people earn over a lifetime.
Standard I.8.6

Earning Income

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that education, training, and development of job skills have opportunity costs in the form of time, effort, and money.
Standard I.8.7

Earning Income

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that people often use a portion of their savings to help themselves or their family members build human capital through education or job training.
Standard I.8.8

Earning Income

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that entrepreneurs take the risk of starting a business because they expect to earn profits as their reward, despite the fact that many new businesses can and do fail. Some entrepreneurs gain satisfaction from working for themselves.
Standard I.8.9

Earning Income

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that interest, dividends, and capital appreciation (gains) are forms of income earned from financial investments.
Standard I.8.10

Earning Income

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that some people receive income support from government because they have low incomes or qualify in other ways for government assistance.
Standard I.8.11

Earning Income

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that Social Security is a government program that taxes the income of current workers to provide retirement, disability, and survivor benefits for workers or their dependents.

Personal Finance: : Grade 12

Standard I.12.1

Earning Income

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that people choose jobs or careers for which they are qualified based on the income they expect to earn and the benefits, such as health insurance coverage or a retirement plan, that they expect to receive.
Standard I.12.2

Earning Income

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that people choose jobs or careers for which they are qualified based on non-income factors, such as job satisfaction, independence, risk, family, or location.
Standard I.12.3

Earning Income

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that people vary in their willingness to obtain more education or training because these decisions involve incurring immediate costs to obtain possible future benefits. Discounting the future benefits of education and training may lead some people to pass up potentially high rates of return that more education and training may offer.
Standard I.12.4

Earning Income

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that people can make more informed education, job, or career decisions by evaluating the benefits and costs of different choices.
Standard I.12.5

Earning Income

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that the wage or salary paid to workers in jobs is usually determined by the labor market.Businesses are generally willing to pay more productive workers higher wages or salaries than less productive workers.
Standard I.12.6

Earning Income

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that changes in economic conditions or the labor market can cause changes in a worker劌製 income or may cause unemployment.
Standard I.12.7

Earning Income

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that taxes are paid to federal, state, and local governments to fund government goods and services and transfer payments from government to individuals. The major types of taxes are income taxes, payroll (Social Security) taxes, property taxes, and sales taxes.
Standard I.12.8

Earning Income

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that people劌製 sources of income, amount of income, as well as the amount and type of spending affect the types and amounts of taxes paid.

Personal Finance: : Grade 4

Standard II.4.1

Buying Goods and Services

  • At the completion of Grade 4, students will know that economic wants are desires that can be satisfied by consuming a good, a service, or a leisure activity.
Standard II.4.2

Buying Goods and Services

  • At the completion of Grade 4, students will know that people make choices about what goods and services they buy because they can劌裨 have everything they want. This requires individuals to prioritize their wants.
Standard II.4.3

Buying Goods and Services

  • At the completion of Grade 4, students will know that people spend a portion of their income on goods and services in order to increase their personal satisfaction or happiness.
Standard II.4.4

Buying Goods and Services

  • At the completion of Grade 4, students will know that whenever people buy something, they incur an opportunity cost. opportunity cost is the value of the next best alternative that is given up when a person makes a choice.
Standard II.4.5

Buying Goods and Services

  • At the completion of Grade 4, students will know that informed decision making requires comparing the costs and benefits of spending alternatives.Costs are things that a decision maker gives up; benefits are things that a decision maker gains.
Standard II.4.6

Buying Goods and Services

  • At the completion of Grade 4, students will know that people劌製 spending choices are influenced by prices as well as many other factors, including advertising, the spending choices of others, and peer pressure.
Standard II.4.7

Buying Goods and Services

  • At the completion of Grade 4, students will know that planning for spending can help people make informed choices. A budget is a plan for spending, saving, and managing income.

Personal Finance: : Grade 8

Standard II.8.1

Buying Goods and Services

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that when making choices about what to buy, consumers may choose to gather information from a variety of sources. The quality and usefulness of information provided by sources can vary greatly from source to source. While many sources provide valuable information, some sources provide information that is deliberately misleading.
Standard II.8.2

Buying Goods and Services

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that by understanding a source劌製 incentives in providing information about a good or service, a consumer can better assess the quality and usefulness of the information.
Standard II.8.3

Buying Goods and Services

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that people choose from a variety of payment methods in order to buy goods and services.
Standard II.8.4

Buying Goods and Services

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that choosing a payment method entails weighing the costs and benefits of the different payment options.
Standard II.8.5

Buying Goods and Services

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that a budget includes fixed and variable expenses, as well as income, savings, and taxes.
Standard II.8.6

Buying Goods and Services

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that people may revise their budget based on unplanned expenses and changes in income.

Personal Finance: : Grade 12

Standard II.12.1

Buying Goods and Services

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that consumer decisions are influenced by the price of a good or service, the price of alternatives, and the consumer劌製 income as well as his or her preferences.
Standard II.12.2

Buying Goods and Services

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that when people consume goods and services, their consumption can have positive and negative effects on others.
Standard II.12.3

Buying Goods and Services

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that when buying a good, consumers may consider various aspects of the product including the product劌製 features. For goods that last for a longer period of time, the consumer should consider the product劌製 durability and maintenance costs.
Standard II.12.4

Buying Goods and Services

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that consumers may be influenced by how the price of a good is expressed.
Standard II.12.5

Buying Goods and Services

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that people incur costs and realize benefits when searching for information related to their purchases of goods and services. The amount of information people should gather depends on the benefits and costs of the information.
Standard II.12.6

Buying Goods and Services

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that people may choose to donate money to charitable organizations and other not-for-profits because they gain satisfaction from donating.
Standard II.12.7

Buying Goods and Services

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that governments establish laws and institutions to provide consumers with information about goods or services being purchased and to protect consumers from fraud.

Personal Finance: : Grade 4

Standard III.4.1

Saving

  • At the completion of Grade 4, students will know that income is saved, spent on goods and services, or used to pay taxes.
Standard III.4.2

Saving

  • At the completion of Grade 4, students will know that when people save money, they give up the opportunity to spend that money to buy things now in order to buy things later.
Standard III.4.3

Saving

  • At the completion of Grade 4, students will know that people can choose to save money in many places劌螷or example, at home in a piggy bank or at a commercial bank, credit union, or savings and loan.
Standard III.4.4

Saving

  • At the completion of Grade 4, students will know that people set savings goals as incentives to save.One savings goal might be to buy goods and services in the future.
Standard III.4.5

Saving

  • At the completion of Grade 4, students will know that a savings plan helps people reach their savings goals.
Standard III.4.6

Saving

  • At the completion of Grade 4, students will know that when people deposit money into a bank (or other financial institution), the bank may pay them interest. Banks attract savings by paying interest. People also deposit money into banks because banks are safe places to keep their savings.

Personal Finance: : Grade 8

Standard III.8.1

Saving

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that banks and other financial institutions loan funds received from depositors to borrowers. Part of the interest received from these loans is used to pay interest to depositors for the use of their money.
Standard III.8.2

Saving

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that for the saver, an interest rate is the price a financial institution pays for using a saver劌製 money and is normally expressed as an annual percentage of the amount saved.
Standard III.8.3

Saving

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that interest rates paid on savings and charged on loans, like all prices, are determined in a market.
Standard III.8.4

Saving

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that when interest rates increase, people earn more on their savings and their savings grow more quickly.
Standard III.8.5

Saving

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that principal is the initial amount of money upon which interest is paid.
Standard III.8.6

Saving

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that compound interest is the interest that is earned not only on the principal but also on the interest already earned.
Standard III.8.7

Saving

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that the value of a person劌製 savings in the future is determined by the amount saved and the interest rate. The earlier people begin to save, the more savings they will be able to accumulate,all other things equal, as a result of the power of compound interest.
Standard III.8.8

Saving

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that different people save money for different reasons, including large purchases (such as higher education, autos, and homes), retirement, and unexpected events. People劌製 choices about how much to save and for what to save are based on their tastes and preferences.
Standard III.8.9

Saving

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that to assure savers that their deposits are safe from bank failures, federal agencies guarantee depositors劌 savings in most commercial banks, savings banks, and savings associations up to a set limit.

Personal Finance: : Grade 12

Standard III.12.1

Saving

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that people choose between immediate spending and saving for future consumption. Some people have a tendency to be impatient, choosing immediate spending over saving for the future.
Standard III.12.2

Saving

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that inflation reduces the value of money, including savings. The real interest rate expresses the rate of return on savings, taking into account the effect of inflation. The real interest rate is calculated as the nominal interest rate minus the rate of inflation.
Standard III.12.3

Saving

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that real interest rates typically are positive because people expect to be compensated for deferring the use of savings from the present into the future. Higher interest rates increase the rewards for saving.
Standard III.12.4

Saving

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that the nominal interest rate tells savers how the dollar value of their savings or investments will grow; the real interest rate tells savers how the purchasing power of their savings or investments will grow.
Standard III.12.5

Saving

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that money received (or paid) in the future can be compared to money held today by discounting the future value based on the rate of interest.
Standard III.12.6

Saving

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that government agencies supervise and regulate financial institutions to help protect the safety, soundness, and legal compliance of the nation劌製 banking and financial system.
Standard III.12.7

Saving

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that government policies create incentives and disincentives for people to save.
Standard III.12.8

Saving

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that employer benefit programs create incentives and disincentives to save. Whether or how much an employee decides to save can depend on how the alternatives are presented by the employer.

Personal Finance: : Grade 4

Standard IV.4.1

Using Credit

  • At the completion of Grade 4, students will know that interest is the price the borrower pays for using someone else劌製 money.
Standard IV.4.2

Using Credit

  • At the completion of Grade 4, students will know that when people use credit, they receive something of value now and agree to repay the lender over time, or at some date in the future, with interest.
Standard IV.4.3

Using Credit

  • At the completion of Grade 4, students will know that by using credit to buy durable goods劌褼uch as cars, houses, and appliances劌螲eople are able to use the goods while paying for them.
Standard IV.4.4

Using Credit

  • At the completion of Grade 4, students will know that borrowers who repay loans as promised show that they are worthy of getting credit in the future. A reputation for not repaying a loan as promised can result in higher interest charges on future loans, if loans are available at all.

Personal Finance: : Grade 8

Standard IV.8.1

Using Credit

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that people who apply for loans are told what the interest rate on the loan will be. An interest rate is the price of using someone else劌製 money expressed as an annual percentage of the loan principal.
Standard IV.8.2

Using Credit

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that the longer the repayment period on a loan and the higher the interest rate on the loan, the larger is the total amount of interest charged on a loan.
Standard IV.8.3

Using Credit

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that a credit card purchase is a loan from the financial institution that issued the card. Credit card interest rates tend to be higher than rates for other loans. In addition, financial institutions may charge significant fees related to a credit card and its use.
Standard IV.8.4

Using Credit

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that borrowers who use credit cards for purchases and who do not pay the full balance when it is due pay much higher costs for their purchases because interest is charged monthly. A credit card user can avoid interest charges by paying the entire balance within the grace period specified by the financial institution.
Standard IV.8.5

Using Credit

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that various financial institutions and businesses make consumer loans and may charge different rates of interest.
Standard IV.8.6

Using Credit

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that interest rates on loans fluctuate based on changes in the market for loans.
Standard IV.8.7

Using Credit

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that lenders charge different interest rates based on the risk of nonpayment by borrowers. The higher the risk of nonpayment, the higher the interest rate charged. The lower the risk of nonpayment, the lower the interest rate charged.
Standard IV.8.8

Using Credit

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that people can use credit to finance investments in education and housing. The benefits of using credit in this way are spread out over a period of time and may be large. The large costs of acquiring the education or housing are spread out over time as well. The benefits of using credit to make daily purchases of food or clothing are short-lived and do not accumulate over time.

Personal Finance: : Grade 12

Standard IV.12.1

Using Credit

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that consumers can compare the cost of credit using the annual percentage rate (APR), initial fees charged, and fees charged for late payment or missed payments.
Standard IV.12.2

Using Credit

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that banks and financial institutions sometimes compete by offering credit at low introductory rates, which increase after a set period of time or when the borrower misses a payment or makes a late payment.
Standard IV.12.3

Using Credit

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that loans can be unsecured or secured with collateral. Collateral is a piece of property that can be sold by the lender to recover all or part of a loan if the borrower fails to repay. Because secured loans are viewed as having less risk, lenders charge a lower interest rate than they charge for unsecured loans.
Standard IV.12.4

Using Credit

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that people often make a cash payment to the seller of a good劌蟃alled a down payment劌蟊n order to reduce the amount they need to borrow. Lenders may consider loans made with a down payment to have less risk because the down payment gives the borrower some equity or ownership right away. As a result, these loans may carry a lower interest rate.
Standard IV.12.5

Using Credit

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that lenders make credit decisions based in part on consumer payment history. Credit bureaus record borrowers劌 credit and payment histories and provide that information to lenders in credit reports.
Standard IV.12.6

Using Credit

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that lenders can pay to receive a borrower劌製 credit score from a credit bureau. A credit score is a number based on information in a credit report and assesses a person劌製 credit risk.
Standard IV.12.7

Using Credit

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that in addition to assessing a person劌製 credit risk, credit reports and scores may be requested and used by employers in hiring decisions, landlords in deciding whether to rent apartments, and insurance companies in charging premiums.
Standard IV.12.8

Using Credit

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that failure to repay a loan has significant consequences for borrowers such as negative entries on their credit report, repossession of property (collateral), garnishment of wages, and the inability to obtain loans in the future.
Standard IV.12.9

Using Credit

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that consumers who have difficulty repaying debt can seek assistance through credit counseling services and by negotiating directly with creditors.
Standard IV.12.10

Using Credit

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that in extreme cases, bankruptcy may be an option for consumers who are unable to repay debt. Although bankruptcy provides some benefits, filing for bankruptcy also entails considerable costs, including having notice of the bankruptcy appear on a consumer劌製 credit report for up to 10 years.
Standard IV.12.11

Using Credit

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that people often apply for a mortgage to purchase a home. A mortgage is a type of loan that is secured by real estate property as collateral.
Standard IV.12.12

Using Credit

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that consumers who use credit should be aware of laws that are in place to protect them. These include requirements to provide full disclosure of credit terms such as APR and fees, as well as protection against discrimination and abusive marketing or collection practices.
Standard IV.12.13

Using Credit

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that consumers are entitled to a free copy of their credit report annually so that they can verify that no errors were made that might increase their cost of credit.

Personal Finance: : Grade 4

Standard V.4.1

Financial Investing

  • At the completion of Grade 4, students will know that after people have saved some of their income, they must decide how to invest their savings so that it can grow over time.
Standard V.4.2

Financial Investing

  • At the completion of Grade 4, students will know that a financial investment is the purchase of a financial asset such as a stock with the expectation of an increase in the value of the asset and/or increase in future income.

Personal Finance: : Grade 8

Standard V.8.1

Financial Investing

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that financial assets include a wide variety of financial instruments including bank deposits, stocks, bonds, and mutual funds. Real estate and commodities are also often viewed as financial assets.
Standard V.8.2

Financial Investing

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that interest is received from money deposited in bank accounts. It is also received by owning a corporate or government bond or making a loan.
Standard V.8.3

Financial Investing

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that when people buy corporate stock, they are purchasing ownership shares in a business. If the business is profitable, they will expect to receive income in the form of dividends and/or from the increase in the stock劌製 value. The increase in the value of an asset (like a stock) is called a capital gain. If the business is not profitable, investors could lose the money they have invested.
Standard V.8.4

Financial Investing

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that the price of a financial asset is determined by the interaction of buyers and sellers in a financial market.
Standard V.8.5

Financial Investing

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that the rate of return on financial investments consists of interest payments, dividends, and capital appreciation expressed as a percentage of the amount invested.
Standard V.8.6

Financial Investing

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that financial risk means that a financial investment has a range of possible returns, including possibilities of actual losses. Higher-risk investments have a wider range of possible returns.
Standard V.8.7

Financial Investing

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that the rate of return earned from investments will vary according to the amount of risk. In general, a trade-off exists between the security of an investment and its expected rate of return.

Personal Finance: : Grade 12

Standard V.12.1

Financial Investing

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that the real return on a financial investment is the nominal return minus the rate of inflation.
Standard V.12.2

Financial Investing

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that federal, state, and local tax rates vary on different types of investments and affect the after-tax rate of return of an investment.
Standard V.12.3

Financial Investing

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that expenses of buying, selling, and holding financial assets decrease the rate of return from an investment.
Standard V.12.4

Financial Investing

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that buyers and sellers in financial markets determine prices of financial assets and therefore influence the rates of return on those assets.
Standard V.12.5

Financial Investing

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that an investment with greater risk than another investment will commonly have a lower market price, and therefore a higher rate of return, than the other investment.
Standard V.12.6

Financial Investing

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that shorter-term investments will likely have lower rates of return than longer-term investments.
Standard V.12.7

Financial Investing

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that diversification by investing in different types of financial assets can lower investment risk.
Standard V.12.8

Financial Investing

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that financial markets adjust to new financial news. Prices in those markets reflect what is known about those financial assets.
Standard V.12.9

Financial Investing

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that the prices of financial assets are affected by interest rates. The prices of financial assets are also affected by changes in domestic and international economic conditions, monetary policy, and fiscal policy.
Standard V.12.10

Financial Investing

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that investors should be aware of tendencies that people have that may result in poor choices. These include avoiding selling assets at a loss because they weigh losses more than they weigh gains and investing in financial assets with which they are familiar, such as their own employer劌製 stock or domestic rather than international stocks.
Standard V.12.11

Financial Investing

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that people vary in their willingness to take risks. The willingness to take risks depends on factors such as personality, income, and family situation.
Standard V.12.12

Financial Investing

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that an economic role for governments exists if individuals do not have complete information about the nature of alternative investments or access to competitive financial markets.
Standard V.12.13

Financial Investing

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that the Securities and Exchange Commission (SEC), the Federal Reserve, and other government agencies regulate financial markets.

Personal Finance: : Grade 4

Standard VI.4.1

Protecting and Insuring

  • At the completion of Grade 4, students will know that risk is the chance of loss or harm.
Standard VI.4.2

Protecting and Insuring

  • At the completion of Grade 4, students will know that risk from accidents and unexpected events is an unavoidable part of daily life.
Standard VI.4.3

Protecting and Insuring

  • At the completion of Grade 4, students will know that individuals can either choose to accept risk or take steps to protect themselves by avoiding or reducing risk.
Standard VI.4.4

Protecting and Insuring

  • At the completion of Grade 4, students will know that one method to cope with unexpected losses is to save for emergencies.

Personal Finance: : Grade 8

Standard VI.8.1

Protecting and Insuring

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that personal financial risk exists when unexpected events can damage health, income, property, wealth, or future opportunities.
Standard VI.8.2

Protecting and Insuring

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that insurance is a product that allows people to pay a fee (called a premium) now to transfer the costs of a potential loss to a third party.
Standard VI.8.3

Protecting and Insuring

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that insurance companies analyze the outcomes of individuals who face similar types of risks to create insurance contracts (policies). By collecting a relatively small amount of money, called a premium, from each policyholder on a regular basis, the company creates a pool of funds to compensate those individuals who experience a large loss.
Standard VI.8.4

Protecting and Insuring

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that self-insurance is when an individual accepts a risk and saves money on a regular basis to cover a potential loss.
Standard VI.8.5

Protecting and Insuring

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that insurance policies that guarantee higher levels of payment in the event of a loss (coverage) have higher prices.
Standard VI.8.6

Protecting and Insuring

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that insurance companies charge higher premiums to cover higher-risk individuals and events because the risk of monetary loss is greater for these individuals and events.
Standard VI.8.7

Protecting and Insuring

  • At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and also that individuals can choose to accept some risk, to take steps to avoid or reduce risk, or to transfer risk to others through the purchase of insurance. Each option has different costs and benefits.

Personal Finance: : Grade 12

Standard VI.12.1

Protecting and Insuring

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that probability quantifies the likelihood that a specific event will occur, usually expressed as the ratio of the number of actual occurrences to the number of possible occurrences.
Standard VI.12.2

Protecting and Insuring

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that individuals vary with respect to their willingness to accept risk. Most people are willing to pay a small cost now if it means they can avoid a possible larger loss later.
Standard VI.12.3

Protecting and Insuring

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that judgment regarding risky events is subject to errors because people tend to overestimate the probability of infrequent events, often because they劌裯e heard of or seen a recent example.
Standard VI.12.4

Protecting and Insuring

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that people choose different amounts of insurance coverage based on their willingness to accept risk, as well as their occupation, lifestyle, age, financial profile, and the price of insurance.
Standard VI.12.5

Protecting and Insuring

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that People may be required by governments or by certain types of contracts (e.g., home mortgages) to purchase some types of insurance.
Standard VI.12.6

Protecting and Insuring

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that an insurance contract can increase the probability or size of a potential loss because having the insurance results in the person taking more risks. Policy features such as deductibles and copayments are cost-sharing features that encourage the policyholder to take steps to reduce the potential size of a loss (claim).
Standard VI.12.7

Protecting and Insuring

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that people can lower insurance premiums by behaving in ways that show they pose a lower risk.
Standard VI.12.8

Protecting and Insuring

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that health insurance provides funds to pay for health care in the event of illness and may also pay for the cost of preventive care. Large health insurance companies can often negotiate with doctors, hospitals, and other health care providers to obtain lower health care prices for their policyholders.
Standard VI.12.9

Protecting and Insuring

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that disability insurance is income insurance that provides funds to replace income lost while an individual is ill or injured and unable to work.
Standard VI.12.10

Protecting and Insuring

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that property and casualty insurance (including renters insurance) pays for damage or loss to the insured劌製 property and often includes liability coverage for actions of the insured that cause harm to other people or their property.
Standard VI.12.11

Protecting and Insuring

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that life insurance benefits are paid to the insured劌製 beneficiaries in the event of the policyholder劌製 death. These payments can be used to replace wages lost when the insured person dies.
Standard VI.12.12

Protecting and Insuring

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that in addition to privately purchased insurance, some government benefit programs provide a social safety net to protect individuals from economic hardship created by unexpected events.
Standard VI.12.14

Protecting and Insuring

  • At the completion of Grade 12, students will know the Grade 4 and Grade 8 benchmarks for this standard and also that federal and state regulations provide some remedies and assistance for victims of identity theft.