High School Personal Finance Economics

SSEPF1: The student will apply rational decision making to personal spending/saving choices.
a. Explain that people respond to positive and negative incentives in predictable ways.
b. Use a rational decision making model to select one option over another.
c. Create a savings or financial investment plan for a future goal.

SSEPF2: The student will explain that banks and other financial institutions are businesses that channel funds from savers to investors.
a. Compare services offered by different financial institutions.
b. Explain reasons for the spread between interest charged and interest earned.
c. Give examples of the direct relationship between risk and return.
d. Evaluate a variety of savings and investment options; include stocks, bonds, and mutual funds.

SSEPF3: The student will explain how changes in monetary and fiscal policy can have an impact on an individual’s spending and saving choices.
a. Give examples of who benefits and who loses from inflation.
b. Define progressive, regressive, and proportional taxes.
c. Explain how an increase in sales tax affects different income groups.

SSEPF4: The student will evaluate the costs and benefits of using credit.
a. List factors that affect credit worthiness.
b. Compare interest rates on loans and credit cards from different institutions.
c. Explain the difference between simple and compound interest rates.

SSEPF5: The student will describe how insurance and other risk-management strategies protect against financial loss.
a. List various types of insurance such as automobile, health, life, disability, and property.
b. Explain the costs and benefits associated with different types of insurance.

SSEPF6: The student will describe how the earnings of workers are determined in the marketplace.
a. Identify skills that are required to be successful in the workplace.
b. Explain the significance of investment in education, training, and skill development.

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