Initial JA High School Experience Release JA Financial Literacy Course Overview and Outline

JA Financial Literacy, is a one-semester teacher-led course that equips high school students with foundational personal finance skills. These concepts include how to earn and save money; how to manage money by being a wise consumer and creating and using a budget; how to manage bank accounts, investments, and credit; how to assess risks and use insurance; and how to address financial problems like identity theft and debt. Students will: • Learn the necessary concepts applicable to state and national educational standards. • Apply these standards-based concepts to the real world. • Synthesize elective concepts through cumulative, tangible deliverables (projects). • Analyze a business situation or principle through the use of a case study. • Demonstrate the skills necessary for future career pathway success. The following pages outline the JA course plan.

Course Theme Theme Topics Project Connection

1: The Basics of Earning My Savings Plan: Students learn 2: Careers and Pay strategies for a savings plan, Employment and Income 3: Education and Careers including identifying a savings 4: Taxes and Benefits goal and putting money aside consistently. 1: Financial Institutions My Budgeting Habit: Students 2: Spending and Saving review critical concepts and 3: Think Before You Spend vocabulary related to budgeting, Money Management 4: What Is a Budget? examine the importance of SMART goals, and create their own SMART goals. 1: What Is Credit? My Credit Score: Students learn Credit, Debt, and Keeping Your 2: Types of Credit the importance of a credit score Finances Safe 3: Protect Your Credit and how to maintain a healthy one. 4: Debt Management 1: Investing Versus Savings My Investment Plan: Students 2: Investing for the Long Term review basic information about 3: Risks and Responsibilities stocks and the stock market and Planning for the Future 4: Types of Insurance then conduct research to select at least 10 stocks in which to invest for a financial portfolio.

JA High School Experience | JA Financial Literacy | Course Overview and Outline 1 For the guiding national standards that are presented below, the legend for reference is as follows: CCTC—Common Career Technical Core; NBEA PF—National Business Education Association Standards for Personal Finance. THEME 1: EMPLOYMENT AND INCOME Student Learning Session Session Summary Guiding Standards Objectives 1: The Basics of Income is money that an individual • CTCC–FN 9.1: Discuss the 1. Describe the functions of Earning earns by working, making fundamental principles of money. investments, and providing goods money. 2. Evaluate personal and services. Money functions • NBEA PF I: Use a rational requirements for income. as a medium of exchange, a unit decision-making process as it 3. Analyze how and where to of account, and a store of value. applies to the roles of citizens, earn money. Any item used as money takes on workers, and consumers. those three essential functions. 4. Design a brochure with • NBEA PF II: Identify various possibilities for earning. forms of income and analyze factors that affect income as a part of the career decision- making process. 2: Careers and Pay Individuals who set realistic • CTCC–BM 3.2: Develop 1. Analyze and prioritize personal financial goals are in more control personal traits and behaviors to financial goals (current, of their money than those who foster career advancement. 10-year, 25-year). do not. Although goals are set for • NBEA PF II: Identify various 2. Explain the relationship between short- and long-term periods, it forms of income and analyze finances, career choices, and is important to regularly track the factors that affect income as personal financial goals. progress of each goal. a part of the career decision- 3. Identify career fields or options making process. of interest that will lead to financial goals. 3: Education and An investment in a career requires • CTCC–BM 3.4: Utilize career- 1. Examine the cost of college. Careers time, money, and resources that advancement activities 2. Evaluate the costs and/or can open doors to opportunities. to enhance professional benefits of post-secondary Studies show that employees development. education (trade school, with more than a high school • NBEA CD I: Apply knowledge apprenticeships, etc.). education earn significantly more gained through individual 3. Compare and contrast the costs money throughout their lifetime assessment to develop a and benefits of various post- than those without. The emphasis comprehensive set of goals and secondary educational options. in this session is that the more an individual career plan. education you have, the higher 4. Evaluate personal decisions • NBEA PF II: Identify various quality of life you will have. relating to career choice and forms of income and analyze education requirements and factors that affect income as plans. a part of the career decision- 5. Assess personal skills, abilities, making process. and aptitudes and personal strengths and weaknesses as they relate to career exploration and development.

2 JA High School Experience | JA Financial Literacy | Course Overview and Outline THEME 1: EMPLOYMENT AND INCOME (continued) Student Learning Session Session Summary Guiding Standards Objectives 4: Taxes and Benefits Taxes are collected by • CTCC–FN-ACT 2.7: Complete 1. Identify the difference between governments to pay for many payroll procedures to calculate, gross pay and net pay. public services such as record, and distribute payroll 2. Define taxes and explain highways, schools, police, and earnings. their purpose and impact on fire protection. The main goal of • NBEA PF II: Identify various income. taxation is to provide revenue forms of income and analyze 3. Demonstrate an understanding for a government to pay its bills. factors that affect income as of various taxes such as FICA The two taxes most people pay a part of the career decision- and Medicare. are federal and state income making process. taxes. Federal income tax goes 4. Calculate net monthly income. to the U.S. government, and 5. Recognize employee benefits state income tax is paid to and apply knowledge to job the state government. Income opportunities. may also be offset by tax-free benefit packages provided by an employer.

THEME 2: MONEY MANAGEMENT Student Learning Session Session Summary Guiding Standards Objectives 1: Financial Consumers use financial • CTCC–FN 9.6: Manage financial 1. Compare financial institutions Institutions institutions to help them save resources to ensure solvency. and the types of accounts and and complete transactions safely, • NBEA PF VI: Evaluate services services they provide. quickly, and conveniently and provided by financial deposit 2. Investigate the use of different to hold and transfer money in institutions to transfer funds. payment methods. different ways—all while being • NBEA PF V: Apply a decision- insured and safe from theft. It making model to maximize is important, therefore, to find a consumer satisfaction when financial institution that meets buying goods and services. your needs. 2: Spending and Many competing claims are made • CTCC–FN 9.6: Manage financial 1. Recognize the importance of Saving on a person’s money that impede resources to ensure solvency. paying yourself first. the ability to save. By prioritizing • NBEA PF III: Develop and 2. Identify the opportunity costs saving, consumers will be able evaluate a spending/savings of savings. to achieve short-and long-term plan. 3. Compare simple and goals and set aside money for • NBEA PF IV: Evaluate savings compound interest and their emergencies and the future. and investment options to meet impact on savings, including short-and long-term goals. the Rule of 72.

JA High School Experience | JA Financial Literacy | Course Overview and Outline 3 THEME 2: MONEY MANAGEMENT (continued) Student Learning Session Session Summary Guiding Standards Objectives 3: Think Before You Every individual is responsible • CTCC–FN 9.6: Manage financial 1. Record purchases in a Spend for keeping track of his or her resources to ensure solvency. transaction register. own money. Using a transaction • NBEA PF VI: Evaluate services 2. Determine which practices register and careful consumer provided by financial deposit demonstrate careful consumer practices and staying informed all institutions to transfer funds. skills. help in maintaining a positive cash • NBEA PF V: Apply a decision- 3. Apply consumer skills to flow and increasing net worth. making model to maximize spending and saving decisions. consumer satisfaction when buying goods and services. 4: What Is a Budget? Examining and monitoring cash • CCTC–FN 12.4: Utilize 1. Explain cash flow. flow is an ongoing and critical financial information 2. Follow a step-by-step guide for step in the budgeting process. technology tools. creating a budget. Having and using a budget, and • NBEA PF III: Develop and 3. Identify a short-term financial knowing the types of categories in evaluate a spending/savings goal. a budget, helps people maintain plan. positive cash flow. 4. Arrange income, fixed expenses, and variable expenses in appropriate columns to be equal.

THEME 3: CREDIT, DEBT, AND KEEPING YOUR FINANCES SAFE Student Learning Session Session Summary Guiding Standards Objectives 1: What Is Credit? Credit is the amount of money a • CTCC–FN 9.1: Discuss the 1. Explain the concept of credit. borrower receives and agrees to fundamental principles of 2. Distinguish the pros and cons pay back with interest to the lender. money. of credit. The lender relies on a report of • NBEA PF VII: Analyze factors 3. Develop techniques for the borrower’s credit history to that affect the choice of credit, building a strong credit history. determine whether to extend a loan. the cost of credit, and the legal 4. Summarize major consumer The report includes a record of the aspects of using credit. borrower’s ability to repay debt. credit laws. 2: Types of Credit Building a strong credit history • CTCC–FN 9.5: Obtain business 1. Explain the types and sources requires using credit wisely. Credit credit and control its use. of credit. cards, loans, and nontraditional • NBEA PF VII: Analyze factors 2. Compute interest amounts on credit options, such as rent-to- that affect the choice of credit, a loan. own plans and payday loans, are the cost of credit, and the legal 3. Develop an action plan for expensive ways to manage money. aspects of using credit. fixing bad credit. Often the results of poor credit • NBEA PF VIII: Analyze choices choices will require debt available to consumers for management plans and credit protection against risk and counseling. financial loss.

4 JA High School Experience | JA Financial Literacy | Course Overview and Outline THEME 3: CREDIT, DEBT, AND KEEPING YOUR FINANCES SAFE (continued) Student Learning Session Session Summary Guiding Standards Objectives 3: Protect Your Credit Lenders evaluate a person’s credit • CCTC–FN 9.5: Obtain business 1. Explain the impact credit worthiness based on the Five credit and control its use. scores and credit reports have C’s—capacity, capital, conditions, • NBEA PF VII: Analyze factors on obtaining credit. collateral, and character—as that affect the choice of credit, 2. Evaluate the process of the well as the person’s credit report the cost of credit, and the legal Five C’s of credit. and credit score. Maintaining aspects of using credit. 3. Explain what a credit score good credit is pivotal in acquiring • NBEA PF VIII: Analyze choices indicates and how it affects a future credit. Consumers need to available to consumers for person’s financial history. monitor their credit accounts and protection against risk and reports and keep their personal 4. Identify strategies for financial loss. and financial information safe to protecting personal financial maintain their good credit. information and resources. 4: Debt Management Repaying debt is a legal and • CTCC–FN-BNK 1.2: Describe 1. Compare and contrast debt ethical matter. People who regulations governing banking management plans. run into financial trouble can services. 2. Examine two types of often improve their financial • NBEA PF VII: Analyze factors bankruptcy: Chapter 7 and situation with some effort. When that affect the choice of credit, Chapter 13. consumers are not able to the cost of credit, and the legal 3. Explain why bankruptcy might manage debt on their own, they aspects of using credit. not be the best choice in a can work with a credit counselor • NBEA PF VIII: Analyze choices given situation. to develop a debt management available to consumers for plan. Bankruptcy is a legal action 4. Interpret complex data and protection against risk and used to remove the debts of analyze the services of DMP financial loss. businesses and individuals who agencies and whether to file are unable to pay their bills, but it bankruptcy in a given situation. has severe credit consequences.

JA High School Experience | JA Financial Literacy | Course Overview and Outline 5 THEME 4: PLANNING FOR THE FUTURE Student Learning Session Session Summary Guiding Standards Objectives 1: Investing Versus People save to have money to • CTCC–FN-SEC 2.1: Describe 1. Differentiate between saving Savings use in the future. People invest to investment analysis and and investing. increase the value of their money. selection processes. 2. Describe types of investment Because a savings account is • NBEA PF IV: Saving and vehicles. generally insured by the financial Investing: Evaluate savings and 3. Compare the relationship of institution, it carries less risk investment options to meet risks and rewards. but has a lower rate of return. short- and long-term goals. Stocks, bonds, and mutual funds 4. Create a pyramid of • NBEA PF I. Personal Decision are common investments which investments, placing them in a Making: Use a rational involve some risk, but investors are range from low risk to high risk. decision-making process as it generally willing to accept more 5. Identify the risk-return trade- applies to the roles of citizens, risk in exchange for higher returns. offs for saving and investing. workers, and consumers. 2: Investing for the Various types of risk should • CTCC–FN-SEC 5.1: Explain 1. Identify the key elements of Long Term be considered when making securities and investment financial planning. retirement plans and investment products and their benefits. 2. Explain the risks associated decisions. Many types of • NBEA PF IV: Saving and with long-term financial investment plans, such as 401(k)s Investing: Evaluate savings and planning. and IRAs, should be considered as investment options to meet 3. Examine investment needs in well. It is never too early to think short- and long-term goals. different financial situations about financial planning. Planning • NBEA PF II: Evaluate savings and explore long-term financial should begin as soon as a person and investment options to meet investments. enters the workforce. short- and long-term goals. 4. Apply risk criteria when choosing and developing a financial plan. 3: Risks and Risk is exposure to something • CTCC–FN-INS 1.2: Explain 1. Identify risks in life and Responsibilities potentially dangerous or harmful. It legal concepts pertinent to the how to protect against the is important to recognize risks and insurance industry. consequences of risk. learn how to manage or mitigate • NBEA PF VIII: Analyze choices 2. Investigate categories of them. People purchase insurance available to consumers for specific risks they may face. to reduce the risk of loss and protection against risk and 3. Examine ways to mitigate receive compensation for losses or financial loss. those risks. damage caused by events beyond • NBEA PF I: Use a rational their control. 4. Calculate the probability of decision-making process as it those risks occurring. applies to the roles of citizens, workers, and consumers.

6 JA High School Experience | JA Financial Literacy | Course Overview and Outline THEME 4: PLANNING FOR THE FUTURE (continued) Student Learning Session Session Summary Guiding Standards Objectives 4: Types of Insurance Insurance coverage is provided • CCTC–FN-INS 4.1: Describe 1. Define basic insurance terms. in exchange for the payment of insurance products and their 2. Examine five types of insurance a premium. Five common types benefits. and the purpose of each. of insurance are homeowner’s • NBEA PF VIII: Analyze choices 3. Evaluate the coverage for each (and renter’s) insurance, disability available to consumers for of the five types. insurance, health insurance, protection against risk and 4. Create a portfolio with the life insurance, and automobile financial loss. insurance. Some coverage, such types of insurance they imagine as auto insurance, is required themselves purchasing within by law, while other coverage is the next 10 years. optional. Consumers need to choose the right kind and amount of insurance during different stages in their lives.

Case Study: Solving Problems and Managing Risk Students examine a process for making decisions and managing risk. They consider a scenario in which a business owner must make a difficult decision. Students use a decision tree to analyze options and consequences and recommend a course of action.

JA High School Experience | JA Financial Literacy | Course Overview and Outline 7