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TCSS ECONOMICS: Unit 5 PERSONAL Unit Essential Question: How do financial decisions impact producers and consumers? TIME FRAME: 12 Days

Capstone Requirements during this Time Period (THESE DATES FALL AFTER THIS UNIT IS COMPLETED/AFTER SPRING BREAK) April 10th – 14th Provide class time for students to finalize Capstone Project April 10th – May 12th Final Portfolio Submission (depending on date(s) for presentations)

Unit Resources: I do – We do – You do –

Teacher notes p.93-113 Personal Finance Review Cards Unit 5 map

Personal Finance Concepts ppt Personal Finance Review cards ppt Unit 5 standards questions

Per Fin ppt Unit 5 practice assessment questions

Personal Finance Computer Games

Personal Finance WebQuest

Concept 1: Financial Institutions (2 days)

SSEPF2A: Compare services offered by different financial institutions.

Lesson Essential Question: How do and other financial institutions channel funds between savers and ?

Enduring Understanding/Theme: Individuals, Groups, and Institutions

KNOW UNDERSTAND BE ABLE TO DO (DOK 2+)   Different types of financial institutions  Explain the different types of financial  Lending  Services offered by each type of financial institutions  institution  Discern the services offered by each type of  Borrower and Saver  How banks make a profit  Commercial  Why unions are nonprofit  Summarize how banks make a profit   Types of checking  Describe why credit unions are nonprofit  Savings and loan  Difference between checking and savings 1  Mortgage  Checking   Money account  Debit  FDIC  Liquidity Sample Formative Assessments:

Blue Financial is a financial institution owned by its members. It offers lower loan rates and easier application processes for its members. Based SOLELY on this information, Blue Financial is MOST LIKELY a A. credit union. B. . C. savings and loan. D. agency.

Which type of has the least liquidity, but offers the highest rate of interest? a. Standard savings b. Certificate of deposit c. savings d. Mutual funds RESOURCES: I do – We do – You do –

Types of financial institutions and interest --- Why Should I invest posters Financial Institutions Ticket Out the Door https://prezi.com/ozqmbfrvojes/types-of-financial- institutions/ Why should I invest teacher commentary

Concept 2: Interest and Credit (3 days)

SSEPF2B: Explain reasons for the spread between interest charged and interest earned. SSEPF4A: List factors that affect credit worthiness. SSEPF4B: Compare interest rates on and credit cards from different institutions. SSEPF4C: Explain the difference between simple and compound interest rates.

Lesson Essential Question: How does interest impact decisions made by producers and consumers?

Enduring Understanding/Theme: Individuals, Groups, and Institutions 2

KNOW UNDERSTAND BE ABLE TO DO (DOK 2+)  Interest  Difference between interest charged to  Discuss the reasons for a spread between  Simple Interest consumers and interest earned by interest charged and interest earned  Compound Interest consumers  Explain the difference between simple and  Credit  The reason for the spread between interest compound interest  Credit worthiness charged and interest earned  Evaluate the determining factors of credit  Loan  How simple and compound interest differ worthiness  Interest charged  The factors that determine credit  Assess how impacts credit  Interest earned worthiness worthiness and credit score  Variable  Difference between interest on loan and  Appraise why a difference exists between  APR interest on a on a loan and interest on a credit  Credit limit card.  Credit History/Report  Credit Score Sample Formative Assessments: Which factor most directly affects the amount of money borrowers must repay to lenders? A. rate C. Employment rate B. D. Currency exchange rate

To maximize profits, a bank will charge A. A higher rate of interest on loans and lower interest on deposits B. The same rate of interest for deposits and loans C. A higher rate of interest for than individuals D. A lower rate of interest on loans and higher interest on deposits

Which factor will have the LEAST impact on whether a person gets credit or not? A. character, how willing the person is to pay back the loan B. compatibility, how much the loan officer likes the person C. capacity, how able the person is to pay back the loan D. collateral, how much the person's are worth

Bill is choosing between two different savings accounts. One has simple interest and the other has compound interest. If Bill is planning on money for a period of time and he wants the most return on his savings he should choose the account with A. compound interest because it will pay interest on the original deposit plus interest earned over time. B. simple interest because it is easier to calculate. C. simple interest because that account will pay interest on the total amount in the account at all times. D. compound interest because it will pay an increasing interest based on the amount of the original deposit. 3 RESOURCES: I do – We do – You do –

Types of financial institutions and interest --- Importance of Credit (1, 2) Interest and Credit https://prezi.com/ozqmbfrvojes/types-of-financial- institutions/ Calculate Interest

Credit --- https://prezi.com/sjxqurxhscdy/credit/

Credit v. Debit

Concept 3: (3 days)

SSEPF1C: Create a savings or financial plan for a future goal. SSEPF2C: Give examples of the direct relationship between risk and return. SSEPF2D: Evaluate a variety of savings and investment options; include , bonds, and mutual funds.

Lesson Essential Question: How can individuals use financial institutions to plan for the future?

Enduring Understanding/Theme: Individuals, Groups, and Institutions

KNOW UNDERSTAND BE ABLE TO DO (DOK 2+)  Investment  The importance of investment  Investigate the risk and return for different  Risk and Return  The difference between investment options investment options  Stocks  Relationship between risk and return  Develop a plan for a future goal  Bonds  How risk and return correlates to  Discuss the importance of planning for  Mutual Funds investment choice  401K  Explain how risk and return correlate to the  Roth IRA various investment options  Dividends  Describe why an individual would choose  Differentiation certain investments over others Sample Formative Assessments:

When dealing with investments, as risk of losing money increases A. more people take that risk. C. more is needed to protect the investment. B. it is more likely the investment is term. D. the rate of return is usually higher.

4 Loans extended for longer periods of time often involve higher interest rates because A it compensates the lender for greater risk B it compensates buyer for using savings to make a purchase C it encourages consumers to buy durable goods for long periods of time D it encourages savings

Shondelle has a large sum of money to invest. She is not concerned with a large return, but is very sensitive to risk. Which would be the best investment for her? A. real estate B. market C. a savings account D. checking account

RESOURCES: I do – We do – You do –

Risk, Return, Investments --- Samantha’s Decision Risk and Return https://prezi.com/ogdlgkksi_c1/risk-return-and- types-of-investments/ Investment Match-up Why investing is important

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Concept 4: Insurance (2 days)

SSEPF5A: List various types of insurance such as automobile, health, life, disability, and property. SSEPF5B: Explain the costs and benefits associated with different types of insurance; include deductibles, premiums, shared liability, and protection.

Lesson Essential Question: How do insurance and other risk-management strategies protect against financial loss?

Enduring Understanding/Theme: Individuals, Groups, and Institutions

KNOW UNDERSTAND BE ABLE TO DO (DOK 2+)  Insurance  The different types of insurance  Explain the different types of insurance  Automobile insurance  The benefits and costs of insurance  Infer the costs and benefits associated with  Comprehensive auto insurance  Difference between deductibles and insurance  Collision auto insurance premiums  Investigate the relationship between  Liability auto insurance  Importance of shared liability and asset deductibles and premiums  Heath Insurance protection  Summarize the importance of shared   Characteristics of each type of insurance liability and asset protection for the  PPO  Different insurance plans consumer  HMO  Decipher the specific characteristics of each  Disability insurance type of insurance 5  Workers Compensation   Whole life insurance  Property/Home insurance  Renter’s insurance  Deductible  Premium  Shared liability  Asset protection Sample Formative Assessments:

A woman recently took time off work while recovering from a car accident. Which provided her with coverage during this process? A. Life and health C. Property and Life B. Health and Disability D. Disability and Automobile

Which is a primary benefit of all types of insurance? A. People can be more careless. C. Lawsuits are easier to settle. B. It helps people share risk. D. Insurance keeps prices low in a market

The cost you pay for your insurance coverage is called a. Policy B. Premium C. Deductible D. Coverage limit

Tommy wants to make sure that his deductible is as low as possible for his car insurance, what does this mean for his monthly premium? a. It will be higher b. It will be lower c. It will be the same d. There is no way to know

RESOURCES: I do – We do – You do –

Insurance --- Why insurance is important What type of insurance do I need? https://prezi.com/o2li1dtlpci1/insurance/ In case of emergency

What’s my coverage

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