Social Studies Models
(1) Earning and spending. The student understands how to set personal financial goals. The student is expected to (Chapter 4)
(A) differentiate between needs and wants in evaluating spending decisions;
(B) investigate the student’s money personality, including spending and saving propensity;
(C) demonstrate an understanding of the value and benefits of charitable giving; and
(D) develop financial goals for the short, medium, and long term that are specific, measurable, attainable, realistic, and time based.
(E) develop a budget that incorporates short-, medium-, and long-term financial goals;
(F) evaluate the impact of unplanned spending on a budget.
(2) Earning and spending. The student analyzes components of compensation from employment. The student is expected to: (Chapter 6, 11)
(A) 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;
(B) identify taxes that are deducted from paychecks, including Federal Insurance Contributions Act (FICA) and federal income taxes; and
(C) calculate gross and net pay using information on a paycheck.
(3) Earning and spending. The student critically evaluates consumption decisions. The student is expected to: (Various Chapters throughout)
(A) analyze costs and benefits of owning versus renting housing;
(B) analyze costs and benefits of owning versus leasing a vehicle;
(C) compare total costs of alternative methods of payment such as rent-to-own, store credit, installment agreements, cash, bank credit card, and debit card; and
(D) apply strategies for making informed decisions about purchasing consumer goods such as comparing prices per unit, looking for sales or promotions, and negotiating price.
(4) Saving and investing. The student understands the importance of saving and investing in creating wealth and building assets. The student is expected to: (Chapters 2, 3, 4, 7, 10)
(A) develop a short-term saving strategy to achieve a goal such as establishing and maintaining an emergency fund;
(B) develop an intermediate-term saving and investing strategy to achieve a goal such as accumulating a down payment on a home or vehicle;
(C) explain the tax benefits of charitable contributions; and
(D) develop a long-term investing strategy to achieve a goal such as a financially secure retirement.
(5) Saving and investing. The student understands the implementation of a saving and investing plan. The student is expected to: (Chapters 1, 2, 3)
(A) discuss the role of financial institutions and markets in saving and investing;
(B) demonstrate the impact of compound growth over time;
(C) evaluate the costs and benefits of various savings options such as bank savings accounts, certificates of deposit, and money market mutual funds; and
(D) evaluate risk and return of various investment options, including stocks, bonds, and mutual funds.
(6) Saving and investing. The student demonstrates an understanding of the importance of planning for retirement. The student is expected to: (Chapters 1, 2, 3, 11)
(A) identify costs of retirement such as living expenses, health care expenses, and long-term care expenses;
(B) identify and explain sources of income during retirement, including Social Security, individual savings, and employer-sponsored plans; and
(C) demonstrate an understanding of the importance of saving early and at a sufficient level to achieve financial security in retirement.
(7) Credit and borrowing. The student understands the use of credit to make purchases. The student is expected to: (Chapter 5)
(A) compare and contrast sources of credit such as banks, merchants, peer-to-peer, payday loans, and title loans;
(B) compare and contrast types of credit, including revolving and installment credit, and collateralized loans versus unsecured credit; and
(C) evaluate the impact of credit decisions on monthly budget, income statement, and net worth statement.
(8) Credit and borrowing. The student identifies factors that affect credit worthiness. The student is expected to: (Various Chapters throughout)
(A) discuss how character, capacity, and collateral can adversely or positively impact an individual’s credit rating and the ability to obtain credit;
(B) identify factors that could lead to bankruptcy such as medical expenses, job loss, divorce, or a failed business; and
(C) appraise the impact of borrowing decisions on credit score, including consequences of poor credit management and bankruptcy.
(9) Credit and borrowing. The student evaluates a decision to use credit. The student is expected to: (Chapter 5, 10)
(A) examine the components of the cost of borrowing, including annual percentage rate (APR), fixed versus variable interest, length of term, grace period, and additional fees such as late payment, cash advance, and prepayment penalties;
(B) explain strategies to reduce total cost of borrowing such as making a higher down payment and additional principal payments; and
(C) differentiate between the use and cost of debit and credit cards.
(10) Insuring and protecting. The student recognizes financial risks faced by individuals and families and identifies strategies for handling these risks. The student is expected to: (Various Chapters throughout)
(A) identify risk as potential loss of assets or earning potential; and
(B) apply risk management strategies, including avoiding, reducing, retaining, and transferring risk.
(11) Insuring and protecting. The student identifies the costs and benefits of insurance for transferring risk. The student is expected to: (Chapter 9, 10, 11)
(A) define insurance terminology, including premiums, deductibles, co-pays, and policy limits;
(B) explain the costs and benefits of different types and sources of health insurance such as individual health plans, employer-provided health plans, and government-provided health plans;
(C) explain the costs and benefits of disability and long-term care insurance;
(D) explain the costs and benefits of life insurance, including term insurance and whole life insurance;
(E) explain the costs and benefits of property insurance, including homeowner’s and renter’s insurance;
(F) explain the costs and benefits of automobile insurance and factors that impact the price of insurance, including the type of vehicle, age and sex of driver, driving record, deductible, and geographic location; and
(12) Insuring and protecting. The student understands the legal instruments available for estate planning. The student is expected to: (Chapter 11)
(A) explain the importance of guardianship of minor children, wills, and beneficiary designation;
(13) College and postsecondary education and training. The student recognizes the costs and benefits of various types of college, postsecondary education, and training. The student is expected to: (Chapter 8)
(A) analyze the relationship between education and training and earnings;
(B) identify types of costs associated with college, postsecondary education, and training;
(C) compare costs among postsecondary education and training institutions such as public universities, private universities, certification programs, and community colleges; and
(D) analyze the quality of education investment using measures such as academic reputation, selectivity and rigor in a chosen area of study, average starting salary of students graduating in chosen field, and likelihood of student graduation.
(14) College and postsecondary education and training. The student understands various options for paying for college, postsecondary education, and training. The student is expected to: (Chapter 8)
(A) understand how, why, and when to complete grant and scholarship applications and the Free Application for Federal Student Aid (FAFSA) provided by the U.S. Department of Education;
(B) research various sources of funds for postsecondary education and training, including student loans, grants and scholarships, and other sources such as work-study and military programs; and
(C) analyze the advantages and disadvantages of various sources of funds for postsecondary education and training, including student loans, grants and scholarships, and other sources such as work-study and military programs.