Standard 1: Reading SIXTH GRADE



A Correlation of

Personal Financial Literacy

©2014

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to the

Tennessee

Social Studies Curriculum Standards

Personal Finance

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Table of Contents

Standard 1: Income 3

Standard 2: Money Management 4

Standard 3: Spending & Credit 7

Standard 4: Saving & Investing 10

|Tennessee |Personal Financial Literacy |

|Social Studies Curriculum Standards |©2014 |

|Personal Finance | |

|Course Description |

|Personal Finance is a course designed to inform students how individual choices directly influence occupational goals and future earnings |

|potential. Real world topics covered will include income, money management, spending and credit, as well as saving and investing. |

|Learning Expectations: |

|Students will design personal and household budgets; simulate use of checking and saving accounts; demonstrate knowledge of finance, debt, |

|and credit management; and evaluate and understand insurance and taxes. This course will provide a foundational understanding for making |

|informed personal financial decisions. |

|Standard 1: Income |

|Performance Indicators: |

|The student will: |

|1.1. Interpret factors affecting income |

|a. Career choices and potential income |SE/TE: Determining a Career Path, 72–73; Education and Skill |

| |Requirements, 74; Compensation, 75–76; Sources of Career Information,|

| |77; Job Experience, 78; Training Programs, 79; Education, 80; |

| |Expanding Your Education, 81 |

|b. Educational requirements/training costs |SE/TE: Education and Skill Requirements, 74; Internships, 78; |

| |Training Programs, 79; Education, 80; Expanding Your Education, 81 |

|c. Educational level |SE/TE: Education and Skill Requirements, 74; Education, 80; Expanding|

| |Your Education, 81 |

|1.2 Analyze employer benefits packages |

|a. Savings plan |SE/TE: Defined–contribution plans, employer–sponsored, 255–256, |

| |258 |

|b. Retirement |SE/TE: Employee–Sponsored Retirement Plans (ESOPs), 255–256 |

|c. Insurance |SE/TE: Employer–provided insurance plans, 119, 126–127 |

|d. Leave (vacation, sick, etc.) |SE/TE: For related material see: Sources of Career Information, |

| |77–78; Research careers, 90 |

|e. Stock purchase |SE/TE: For related material see: Investing in Stocks, 269–273 |

|f. Educational reimbursement |SE/TE: For related material see: Education and Skill Requirements, |

| |74; Internships, 78; Training Programs, 79; Education, 80; Expanding |

| |Your Education, 81 |

|g. Incentive plans |SE/TE: For related material see: Sources of Career Information, |

| |77–78; Research careers, 90 |

|h. Cafeteria plan |SE/TE: For related material see: Sources of Career Information, |

| |77–78; Research careers, 90 |

|1.3 Demonstrate an understanding of inflation and its effect on purchasing power |

|a. Cost and availability of goods |SE/TE: Inflation, 144–145, 148 |

|b. Effect of cost on availability of and demand for goods |SE/TE: Inflation, 144–145, 148 |

|c. Inflation’s effect on the value of money |SE/TE: Inflation, 144; Monetary Policy, 234–236, 237 |

|1.4 Examine the components of paying taxes |

|a. Types of taxes (Federal, State, County, City) |SE/TE: Payroll Taxes, 97; The Internal Revenue Service, 98–102; |

| |Personal Income Taxes, 103–104 |

|b. Personal and employer tax responsibilities |SE/TE: Tax Basics, 96–101; Filing Taxes, 104–108 |

|c. Various documents for reporting taxes (W-2, W-4, 1040, 1040-EZ, |SE/TE: Pay Stub, 98; Form 1040EZ, 100–101; W-2 Form, 106 |

|1099, etc.) | |

|1.5 Analyze the costs and benefits of paying taxes |

|1. Cost of government services (Police and fire protection, schools, |SE/TE: For related material see: The Four Rs of Taxes, 97; also see: |

|roads, Social Security, AFDC, parks and recreation, etc.) |Tax Basics, 96-97; Social Security and Medicare, 102–103; Social |

| |Security, 140–141 |

|Standard 2: Money Management |

|Performance Indicators: |

|The student will: |

|2.1 Apply a decision making process to personal financial choices |SE/TE: Benefits of Good Financial Decision Making, 8; End of Chapter |

| |Activities: Financial Responsibility & Decision Making, 19; Financial|

| |Decision Making, 36; overview of, 37–38; Step–by–Step Decision Making|

| |Process: Step 1: Establish Your Financial Goals, 40–41; Step 2: |

| |Evaluate Your Current Financial Position, 42; Step 3: Identify and |

| |Evaluate Options for; Accomplishing Your Goals, 43; Step 4: Pick the |

| |Best Plan, 44; Step 5: Periodically Evaluate Your Plan, 45; Step 6: |

| |Revise Your Financial Plan as Necessary, 46 |

|2.2 Design a current personal financial plan |SE/TE: Step–by–Step Decision Making Process: Step 1: Establish Your |

| |Financial Goals, 40–41; Step 2: Evaluate Your Current Financial |

| |Position, 42; Step 3: Identify and Evaluate Options for; |

| |Accomplishing Your Goals, 43; Step 4: Pick the Best Plan, 44; Step 5:|

| |Periodically Evaluate Your Plan, 45; Step 6: Revise Your Financial |

| |Plan as Necessary, 46 |

|2.3 Create a realistic household budget that includes the following items: |

|1. Short-term components—saving and spending (housing, utilities, |SE/TE: Short–term goals, 9–11, 41; Creating a Budget: Step 1: Create |

|food, entertainment, clothing, transportation, personal items, |a Personal Cash Flow Statement, 54; Step 2: Turn Your Cash Flow |

|insurance, etc.) |Statement into a Budget, 55; Working with and Improving Your Budget, |

| |56; Assessing the Accuracy of the Budget, 57; Creating a Personal |

| |Balance Sheet, 58; Investments, 59; Liabilities, 60; Analysis of Your|

| |Personal Balance Sheet, 61; Budgeting and Your Financial Plan, 62 |

|2. Long-term components—saving and |SE/TE: Planning for long-term goals: Education, 9; Buying a Car, |

|spending (estate planning, wills, |Buying a Home, Having a Family, Retirement, 10 |

|insurance, long-term care) |A Plan for Your Retirement, 29 |

| |Retirement Savings Options, 252 |

| |Individual Retirement Accounts (IRAs) 253 |

| |Employer–Sponsored Retirement Plans, 255 |

| |Annuities, 256 |

|2.4 Understand banking procedures and services |

|1. Checking and savings accounts |SE/TE: Banking Basics: Checking Accounts, 227; How Checking Accounts |

|(maintaining and reconciling) |Work, 227; Using Your Checking Account, 228; Balancing Your Account, |

| |229–230; Interest and Your Savings, 248; Interest Rates on Deposits, |

| |248; Types of Bank Accounts, 249; Checking and NOW Accounts, 249; |

| |Interest Bearing Savings Accounts, 250; Certificates of Deposit (CDs)|

| |250; Money Market Deposit Account (MMDA) 251; About Credit Unions, |

| |252; APY and Comparing Savings Options, 252; Retirement Savings |

| |Options, 252 |

|2. Bank service fees |SE/TE: Fees: credit card company, 202–203, 206, choosing bank based |

| |on, 227 |

|3. Payment methods |SE/TE: Banking procedures and services: Arrangements for credit |

| |payments, 231–232; Other online services, 232 |

|4. Debit, bank, and automatic teller |SE/TE: Automatic teller machines (ATMs), 227–228; Debit cards, |

|machine (ATM) cards |227-228, 238 |

|5. Loans |SE/TE: Personal Loans, 176; The Personal Loan Process, 177; Loan |

| |Contract, 178; Financing a Home, 179; Mortgage Loans, 180; Home |

| |Equity Loans, 181; Financing Your Education, 185; The Reality of |

| |Student Loans, 186; Leasing Versus Buying a Car, 187; The Importance |

| |of Car Insurance, 189 |

|2.5 Analyze personal risk management (insurance) |

|1. Health |SE/TE: Insuring Your Health and Your Life, 116; Opening Case, 117; |

| |The Importance of Health Insurance, Sources of Health Insurance, 118;|

| |Health Care Costs, 119; Health Insurance Features and Terms, |

| |Indemnity Plans Versus Managed Care, Family Coverage, 121-122; Group |

| |Plans, Location Restrictions, Preexisting Conditions, Cancellation |

| |Options, Deductibles, 122-123; Coverage Limits, |

| |Co–insurance, Provider Networks, 123 |

|2. Life |SE/TE: Insuring Your Health and Your Life, 116; Life Insurance, 124; |

| |Types of Life Insurance, 125; Getting Insurance, 126; Chapter Review,|

| |128 |

|3. Homeowners |SE/TE: The Importance of Homeowner's and Renter's Insurance, 183–184 |

|4. Auto |SE/TE: Auto Policies, 124 |

|5. Renters |SE/TE: The Importance of Homeowner's and Renter's Insurance, 183–184 |

|6. Disability |SE/TE: Disability insurance: Medicare, 118, overview, 127 |

|7. Long-term care |SE/TE: Managed Care, 121; The Graying of America, 139–140 |

|Standard 3: Spending & Credit |

|Performance Indicators: |

|The student will: |

|3.1 Demonstrate knowledge of basic principles of consumer finance |

|1. Credit worthiness |SE/TE: Obtaining and Protecting Your Credit, 154; The Basics of |

| |Credit for Consumers, 156; Building Good Credit, 159; Your Credit |

| |History, 160; Credit Reports, 161; Monitor Your Credit Report, 166 |

|2. Comparison shopping |SE/TE: Math for Personal Finance: comparing two vehicles, 10 |

|3. Purchases |SE/TE: Buying a Car, Buying a Home, Having a Family, Retirement, 10; |

| |Personal Loans and Purchasing Decisions, 174; Financing Your Car, |

| |186; Leasing Versus Buying a Car, 187 |

|4. Goods/ Services |SE/TE: Buying a Car, Buying a Home, Having a Family, Retirement, 10; |

| |Personal Loans and Purchasing Decisions, 174; Financing Your Car, |

| |186; Leasing Versus Buying a Car, 187; also see: Careers and |

| |education: in financial services and banking, 227 |

|5. Consumer loans/credit life insurance |SE/TE: The Basics of Credit for Consumers, 156; Advantages, |

| |Disadvantages of Using Credit, 157; Credit Cards and Other Forms of |

| |Credit, 198; Use a Credit Card Only If You Can Cover the Bill, 208; |

| |If You Experience Credit Card Debt Problems, 209; Other Risky Credit |

| |Arrangements, 210 |

|6. Opportunity cost |SE/TE: Opportunity cost: viewing purchases in terms of, 8, |

| |calculating, 9, Expanding Your Education, 81 |

|7. Consequences of purchasing choices |SE/TE: Financing or Interest Charges, 206; Use a Credit Card Only If |

| |You Can Cover the Bill, 208; Pay Credit Card Bills First, 208; If You|

| |Experience Credit Card Debt Problems, 209 |

|3.2 Demonstrate awareness of consumer protection and information |

|1. Personal responsibility |SE/TE: Use a Credit Card Only If You Can Cover the Bill, 208; Use |

| |Savings If Necessary, 209; If You Experience Credit Card Debt |

| |Problems, 209 |

|2. Laws and regulations |SE/TE: Credit Rights and Consumer Credit Laws, 158-159 |

|3. Legal documents, including contracts |SE/TE: The Person Loan Process, 177; Loan Contract, 178; Secured and |

| |Unsecured Loans, 178-179 |

|4. Consumer protections |SE/TE: Credit Rights and Consumer Credit Laws, 158-159 |

|5. Crimes against consumers |SE/TE: Threats to Your Credit: Identity Theft, 164; Protecting |

| |Against and Reacting to Identity Theft, 165 |

|6. Fraud/Scams |SE/TE: Health Care Fraud and Abuse Control Program, 119; Threats to |

| |Your Credit: Identity Theft, 164; Protecting Against and Reacting to |

| |Identity Theft, 165; Other Risky Credit Arrangements, 210 |

|7. Loan Sharking |SE/TE: For related material see: Other Risky Credit Arrangements, |

| |210; Payday Lending, 211; Pawn Shops, 212 |

|8. Identity theft/protection |SE/TE: Threats to Your Credit: Identity Theft, 164; Identify Theft |

| |Tactics, 164; Protecting Against and Reacting to Identity Theft, |

| |165-166 |

|9. Credit reporting services (Equifax, |SE/TE: Credit Bureaus and Credit Scoring, 160; Credit Reports, 161 |

|Trans Union, Experian, etc.) | |

|10. Rental/ Lease |SE/TE: Rental insurance, 184; Mileage limits, vehicle leases, 188; |

| |Cell Phone Leases, 213 |

| | |

| | |

| | |

|3.3 Analyze consumer debt management |

|1. Credit card use and abuse |SE/TE: Credit Cards and Other Forms of Credit, 198; Opening Case, |

| |199; How Credit Cards Work, 200; Applying for a Credit Card, 201; |

| |Credit Card Features, 204; Credit Limit, 205; Financing or Interest |

| |Charges, 206; Prepaid Cash Cards, 207; Use a Credit Card Only If You |

| |Can Cover the Bill, 208; Use Savings If Necessary, 209; If You |

| |Experience Credit Card Debt Problems, 209 |

|2. Credit costs (interest [including APR], penalties, fees, credit |SE/TE: Ease of Availability and Use, 200; Interest and Fee |

|score, etc.) |Information for a Sample Credit Card, 202; Annual Fee, 205; Grace |

| |Periods, 206; Cash Advances, 206; Financing or Interest Charges, 206;|

| |Use a Credit Card Only If You Can Cover the Bill, 208; Pay Credit |

| |Card Bills First, 208; Use Savings If Necessary, 209; If You |

| |Experience Credit Card Debt Problems, 209 |

|3. Loan consolidation (benefits and |SE/TE: Debt consolidation, 210, 214 |

|disadvantages) | |

|4. Credit Counseling |SE/TE: If You Experience Credit Card Debt Problems, 209–210 |

|5. Credit problems including bankruptcy, |SE/TE: Bankruptcy, 7, 210, 214; Disadvantages of Using Credit, 157; |

|foreclosure, repossession, surrender of |Credit Bureaus and Credit Scoring, 160; Threats to Your Credit: |

|collateral (turn back), delinquency, |Identity Theft, 164; Monitor Your Credit Report, 166; If You |

|garnishment, effect on employment and |Experience Credit Card Debt Problems, 209; Other Risky Credit |

|purchase of insurance, etc. |Arrangements, 210 |

|3.4. Examine various forms of credit payment |

|1. Installment |SE/TE: Installment loans, 156 |

|2. Bank draft |SE/TE: Bank drafts, 231–232, 237 |

|3. Lay Away |SE/TE: For related material see: Arrangements for Credit Payment, |

| |231–232 |

|4. Electronic (Internet, debit card, |SE/TE: EFTs (Electronic funds transfers), 232, 237 |

|electronic transfer, credit card) | |

| | |

|3.5 Compare/contrast various types of loans |

|1. Mortgage |SE/TE: Financing a Home, 179–181, homeowner's insurance to cover, 183|

|2. Balloon |SE/TE: For related material see: Financing a Home, 179–181; |

| |Adjustable rate mortgages (ARMs), 191 |

|3. Installment |SE/TE: Installment loans, 156 |

|4. Education/Training loans |SE/TE: Education: resources for funding, 11, 185–186 |

|5. Check cashing businesses |SE/TE: For related material see: Payday lending risk, 211, 215 |

|6. Personal |SE/TE: Personal loans: overview of, 175–176, Why Take a Personal |

| |Loan? 176, The Personal Loan Process, 177-178, Secured and Unsecured |

| |Loans, 178-179, Financing a Home, 179–184, financing education, 185, |

| |Financing Your Car, 186–189, review summary, 190–192, review, test |

| |prep questions, 193–197 |

|7. Secured and unsecured |SE/TE: Personal loans: secured and unsecured, 178-179 |

|8. Line of credit |SE/TE: Line of credit, home equity, 181 |

|9. Equity |SE/TE: Home equity, 181–182 |

|10. Title loans |SE/TE: Financing Your Car, 186–189 |

|11. Pawn shops |SE/TE: Pawn Shops, 212 |

|Standard 4: Saving & Investing |

|Performance Indicators: |

|The student will: |

|4.1 Identify reasons for saving & investing |

|1. Education |SE/TE: Education: earnings potential and, 7, as personal financial |

| |goal, 9, Expanding your Education, 81, Resources for funding, 11, |

| |185–186 |

|2. Emergencies/rainy day |SE/TE: Emergencies/Rainy Day Fund, 9 |

|3. Short term goals |SE/TE: Short–term goals, 9–11, 41 |

|4. Long term goals |SE/TE: Planning for long-term goals: education, buying a car, buying |

| |a home, having a family, retirement, 10 |

| |A Plan for Your Retirement, 29 |

| |Retirement Savings Options, 252 |

| |Individual Retirement Accounts (IRAs) 253 |

| |Employer–Sponsored Retirement Plans, 255 |

| |Annuities, 256 |

|5. Retirement |SE/TE: Retirement, 10; Retirement Savings Options, 252; Individual |

| |Retirement Accounts (IRAs) 253; Employer–Sponsored Retirement Plans, |

| |255 |

| |Annuities, 256 |

|6. Down payment |SE/TE: Down payments defined, 176; |

| |Leasing cars and, 187–188 |

|4.2 Evaluate methods of saving |

|1. Certificates of Deposit |SE/TE: Certificates of deposit (CDs): FDIC insuring, 233, Saving |

| |money with, 250, Annual percentage rate and, 257, Saving cash reserve|

| |in, 268 |

|Interest bearing savings account |SE/TE: Interest–bearing savings accounts, 250 |

|(Passbook savings) | |

|Individual Retirement Account (IRA)— |SE/TE: Individual retirement accounts (IRAs): overview of, 253–255, |

|Roth and traditional |defined, 258, Growing investments in, 277 |

|Pension plans (401K, 403B, annuities, |SE/TE: Pension plans: as defined–benefit plans, 255, |

|etc.) |Employer–sponsored retirement plan vs., 257, Institutional investors |

| |of stocks for, 270 |

|5. Education savings plans |SE/TE: Education, resources for funding, 11, 185–186 |

|4.3. Evaluate methods of investing |

|1. Stocks and bonds |SE/TE: Investing in Stocks, 269–273; Investing in Bonds, 274–275; |

| |Other Ways of Investing, 277–278 |

|2. Mutual funds |SE/TE: Mutual Funds, 276-277 |

|3. Real estate |SE/TE: Real estate, investing in, 278, 280 |

|4. Annuities |SE/TE: Annuities, 254, 290–291 |

|5. Business |SE/TE: Methods of Investing: Owning a Business, 278 |

|4.4 Appraise other aspects of saving and investing |

|1. Diversification |SE/TE: Diversification, 294-295 |

|2. Time value of money |SE/TE: Time value of money: future value vs. present value, 291–292, |

| |Retirement planning and, 290–291, 296 |

|3. Compound growth/ Accrued interest |SE/TE: Compound Interest: overview of, 252, defined, 257, Future |

| |value of money and, 291, versus simple interest, 292, Summary and |

| |review, 299 |

| 4. Rule of 72 (divide interest rate into 72 to determine number of |SE/TE: Rule of 72, 293–294, 299 |

|years in which | |

|money will double) | |

|5. Risk and return |SE/TE: Return and risk trade–off, investments, 268, 295 |

|4.5 Identify regulatory agencies and their functions |

| 1. Federal Deposit Insurance Corporation (FDIC) |SE/TE: Federal Deposit Insurance Corporation (FDIC), 232–333, 238, |

| |248 |

|2. Securities Exchange Commission (SEC) |SE/TE: Securities and Exchange Commission (SEC), 272–273 |

|3. Federal Reserve |SE/TE: Federal Reserve System (the Fed), 208, 234–236, 248 |

|4. Internal Revenue Service (IRS) |SE/TE: The Internal Revenue Service (IRS), and Taxes, 98–102 |

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