Strand E4 Personal Finance
Standard 4.1 Personal Finance Grade Level HS220.127.116.11.18.104.22.168.22.214.171.124.6GLCE/HSCE
Scarcity and Opportunity Costs – Apply concepts of scarcity and opportunity costs to personal financial decision making.
Marginal Benefit and Cost – Use examples and case studies to explain and evaluate the impact of marginal benefit and marginal cost of an activity on choices and decisions.Personal Finance Strategy – Develop a personal finance strategy for earning, spending, saving and investing resources.Key Components of Personal Finance – Evaluate key components of personal finance including, money management, saving and investment, spending and credit, income, mortgages, retirement, investing(e.g., 401K, IRAs), and insurance.
Personal Decisions – Use a decision-making model (e.g., stating a problem, listing alternatives, establishing criteria, weighing options, making the decision, and evaluating the result) to evaluate the different aspects of personal finance including careers, savings and investing tools, and different forms of income generation.
Risk Management Plan – Develop a risk management plan that uses a combination of avoidance, reduction, retention, and transfer (insurance).Key conceptsEssential understandings(Procedural or Conceptual)Vocabulary-scarcity, opportunity cost, marginal benefit, marginal cost, personal finance strategy, earning,spending, saving, investing resources, money management, saving, investment, spending, credit, income, mortgages, retirement, investing, insurance, careers, savings and investing tools, income generation, risk management plan, avoidance, reducation, retention, transfer Aligned AssessmentsStudents will know1. How scarity and opportunity cost impact financial decisions2. How marginal benefit and marginal cost impact financial decisions3. How to use a personal finance strategy4. The key components of personal finance5. How to use a decision making model in regards to their personal finances6. How to use a risk management plan Students will be able to1. Apply concepts of scarcity and opportunity costs to personal financial decision making.2. Recognize and cite evidence to demonstrate how marginal benefit and marginal cost impact financial decisions3. Construct a personal finance strategy4. Identify and asses the key components of personal finance5. Apply the decision making model to various aspects of their personal finances6. Construct a risk management plan Student Friendly Language Target Assesment1. I can apply concepts of scarcty and opportunity cost to personal financial decision making (knowledge and reasoning: Multiple Choice/Essay)* In economics when someone talks about cost they are refering to:a. The price of somethingb. Opportunity costc. Opportunity priced. The value of a good* What is the opportunity cost of you buying a new ipod?* What is the opportunity cost of buying an SUV instead of a hybrid sedan?2. I can recognize and cite evidence to demonstrate how marginal benefit and marginal cost impact financial decisions
* Marginal Cost is:
a. The cost of making one more unit
b. The cost of paying for a substitute product
c. The cost of paying for labor and maintenanced. The complete cost of operating the business* Why might an enrepeneur decide to hire 5 more workers to work in their factory* Draw the graph(curve) showing the diminishing marginal returns for the following information(insert information)3. I can consruct a personal finance strategy*Imagine you have $100,000 to invest for your retirement. You don"t want to put all of your money in one kind of investing. How would you invest your money and why would you do it that way? Think about the kinds of investing and come up with a kind of plan in how you can use your money to balance risk and reward. (Stocks, Bonds, Savings Accounts, Mutual Funds, Liquidity, CDs)4. I can identify and asses the key components of personal finance5. I can apply the decision making model to various aspects of y personal finances6. I can construct a risk management plan***Project for topic 4,5,6Make a yearly budget plan making sure to incorporate the following:-income and income management and decision making-saving and investing-bills and necessities-emergency funds-future plans-recreation and lifestyle management