New Colorado P-12 Academic Standards

Prepared Graduates: (Click on a Prepared Graduate Competency to View Articulated Expectations) - (Remove PGC Filter)

• Acquire the knowledge and economic reasoning skills to make sound financial decisions (PFL)

Concepts and skills students master:

4. Design, analyze, and apply a financial plan based on short- and long-term financial goals (PFL)

Inquiry Questions:

1. How can you develop short- and long-term financial goals and plans that reflect personal objectives?
2. How does a consumer determine the accuracy, relevancy, and security of financial information?
3. What is the role that various sources of income play in a financial plan?
4. What are the financial and legal consequences of not paying your taxes?
5. What is the role of education in building financial security?

Relevance & Application:

1. Individuals create long- and short-term financial plans that include predictions about education, costs; potential to achieve financial goals; projected income; likely expenditures, savings and interest; credit or loans; and investment decisions including diversification.
2. Individuals are able use the appropriate contracts and identify each party's basic rights and responsibilities to protect financial well-being.
3. Technology allows individuals to research and track information regarding personal finances using such tools as online banking and brokerage accounts.

Nature Of:

1. Financially responsible individuals describe factors that influence financial planning.
2. Financially responsible individuals plan for tax liabilities.
3. Financially responsible individuals consider opportunity costs of saving over spending and vice versa.
4. Financially responsible individuals analyze economic cycles and make predictions regarding economic trends.

Prepared Graduates: (Click on a Prepared Graduate Competency to View Articulated Expectations) - (Remove PGC Filter)

• Acquire the knowledge and economic reasoning skills to make sound financial decisions (PFL)

Concepts and skills students master:

5. Analyze strategic spending, saving, and investment options to achieve the objectives of diversification, liquidity, income, and growth (PFL)

Inquiry Questions:

1. How does a consumer choose between investment options?
2. How might changes in the economic cycle affect future earnings on an individual's investments?
3. What are some ways that you might rate the security, accuracy, and relevancy of financial information?
4. How does compound interest manifest in investment and debt situations?

Relevance & Application:

1. Investigation of different investment strategies helps to identify which strategies are appropriate for different life stages such as early adulthood through to retirement.
2. The creation of a plan to diversify a portfolio of investments balances risks and returns and prepares for a solid financial future.
3. A personal career plan includes educational requirements, costs, and analysis of the potential job demand to achieve financial well-being.

Nature Of:

1. Financially responsible individuals carefully consider the amount of financial risk that they can tolerate based on life stage and plan for changes in the economic cycles.
2. Financially responsible individuals create plans based on sound economic principles to maximize their standard of living over time.

Prepared Graduates: (Click on a Prepared Graduate Competency to View Articulated Expectations) - (Remove PGC Filter)

• Acquire the knowledge and economic reasoning skills to make sound financial decisions (PFL)

Concepts and skills students master:

6. The components of personal credit to manage credit and debt(PFL)

Inquiry Questions:

1. Why is it important to know the similarities and differences of revolving credit, personal loans, and mortgages?
2. How does the law protect both borrowers and lenders?
3. Why is a good credit history essential to the ability to purchase goods and insurance, and gain employment?
4. When should you use revolving credit and/or personal loans?

Relevance & Application:

1. The understanding of the components of personal credit allows for the management of credit and debt. For example, individuals can use an amortization schedule to examine how mortgages differ, check a credit history, know the uses of and meaning of a credit score, and use technology to compare costs of revolving credit and personal loans.
2. Knowledge of the penalties that accompany bad credit, such as the inability to qualify for loans, leads to good financial planning.

Nature Of:

1. Financially responsible consumers know their rights and obligations when using credit.
2. Financially responsible consumers frequently check their own credit history to verify its accuracy and amend it when inaccurate.
3. Financially responsible consumers make decisions that require weighing benefit against cost.

Prepared Graduates: (Click on a Prepared Graduate Competency to View Articulated Expectations) - (Remove PGC Filter)

• Acquire the knowledge and economic reasoning skills to make sound financial decisions (PFL)

Concepts and skills students master:

7. Identify, develop, and evaluate risk-management strategies (PFL)

Inquiry Questions:

1. What are the benefits of car, health, life, mortgage, long-term care, liability, disability, home and apartment insurance?
2. How does a consumer choose between various insurance plans?
3. How does insurance help consumers to prepare for the unexpected?
4. What additional ways can individuals alleviate financial risks?

Relevance & Application:

1. The knowledge of how to evaluate, develop, revise, and implement risk-management strategies allow individuals to be prepared for the future. For example, a plan for insurance may change over the course of life depending on changing circumstances.
2. Individuals seek advice and counsel from insurance companies, financial planners, and other businesses on risk management.

Nature Of:

1. Financially responsible individuals mitigate the risks associated with everyday life through planning, saving, and insurance.
2. Financially responsible individuals consider insurance as a part of their financial plan.

Prepared Graduates: (Click on a Prepared Graduate Competency to View Articulated Expectations) - (Remove PGC Filter)

• Acquire the knowledge and economic reasoning skills to make sound financial decisions (PFL)

Concepts and skills students master:

2. Manage personal credit and debt(PFL)

Inquiry Questions:

1. Why is understanding credit and debt important?
2. How do you manage debt?
3. Why is it important to know about different types of credit?
4. How do you view debt and credit?
5. When is debt useful?

Relevance & Application:

1. Technology aids in the research of purchases to find the lowest available cost, compare sources of credit, and track debt.
2. Analysis of the cost of borrowing helps to determine how to manage debt for such items as higher education and automobile purchases.
3. Technology is used to research credit history, credit scores, and the variables that impact a credit history to protect personal financial security.

Nature Of:

1. Financially responsible individuals manage debt.
2. Financially responsible individuals understand the responsibilities associated with the use of credit.

Prepared Graduates: (Click on a Prepared Graduate Competency to View Articulated Expectations) - (Remove PGC Filter)

• Acquire the knowledge and economic reasoning skills to make sound financial decisions (PFL)

Concepts and skills students master:

2. The distribution of resources influences economic production and individual choices (Economics and PFL)

Inquiry Questions:

1. How is it advantageous and disadvantageous when a country has valuable resources located within its borders?
2. How does a country acquire resources it does not have?
3. How does the availability or the lack of resources influence production and distribution?
4. What would countries look like without taxes?

Relevance & Application:

1. Various factors that influence production, including resources, supply and demand, and price (PFL), affect individual consumer choices over time.
2. Technology is used to explore relationships of economic factors and issues related to individual consumers.
3. Analysis of the distribution and location of resources helps businesses to determine business practices such as large companies locating near transportation.

Nature Of:

1. Economic thinkers analyze factors impacting production, distribution, and consumption.
2. Economic thinkers gather data regarding trends in production, use of resources, and consumer choices.
3. Financially responsible individuals understand the purposes of and responsibility to pay various taxes such as property, income and sales.

Prepared Graduates: (Click on a Prepared Graduate Competency to View Articulated Expectations) - (Remove PGC Filter)

• Acquire the knowledge and economic reasoning skills to make sound financial decisions (PFL)

Concepts and skills students master:

2. Use of financial institutions to manage personal finances (PFL)

Inquiry Questions:

1. What factors are important when establishing savings or investments goals?
2. What risks and benefits are associated with spending versus saving and investing?
3. How can a checking account help to decide how to spend and save?
4. Why do people use financial institutions and not self-banking?
5. How do people choose a financial institution?
6. Why do people need income?

Relevance & Application:

1. Analysis of the benefits and risks of investing and saving with "virtual" and "brick and mortar" financial institutions helps to make informed financial decisions.
2. Evaluation of the opportunity costs help to make financial decisions.
3. Technology is used to track and graph the interest accrued on a "virtual" investments, checking and savings accounts, investments, and loans.

Nature Of:

1. Financially responsible individuals make informed decisions about saving and investing for short- and long-term goals.
2. Financially responsible individuals research, analyze, and make choices regarding their needs when using financial institutions.

Prepared Graduates: (Click on a Prepared Graduate Competency to View Articulated Expectations) - (Remove PGC Filter)

• Acquire the knowledge and economic reasoning skills to make sound financial decisions (PFL)

Concepts and skills students master:

2. The relationship between choice and opportunity cost (PFL)

Inquiry Questions:

1. What different ways does an individual have to get information when making a decision?
2. How do you know when you've made a good decision?
3. How do you know when you've made a bad decision?

Relevance & Application:

1. Knowledge of the relationship between choice and opportunity cost leads to good decision-making. For example, a business may have an opportunity to purchase inexpensive land, but the cost may be in the travel time.
2. Decisions are made daily regarding risks such as riding a bicycle, skiing, riding in a car, and spending all of an allowance immediately rather than saving.
3. Businesses make choices about risk. For example, a company locates in a country that has an unstable government or extends credit to individuals.

Nature Of:

1. Economic thinkers analyze opportunity costs associated with making decisions.
2. Economic thinkers analyze data to forecast possible outcomes.
3. Financially responsible individuals understand and categorize the components of risk.
4. Financially responsible individuals mitigate and analyze potential risk.

Prepared Graduates: (Click on a Prepared Graduate Competency to View Articulated Expectations) - (Remove PGC Filter)

• Acquire the knowledge and economic reasoning skills to make sound financial decisions (PFL)

Concepts and skills students master:

2. Describe how to meet short term financial goals (PFL)

Inquiry Questions:

1. What would happen if an individual spent all earning on entertainment?
2. Why do individuals give away money?
3. How would an individual decide between purchasing a want or a need?

Relevance & Application:

1. Personal financial goal setting is a lifelong activity and short-term goal setting is essential to that process. For example, students save for a fish aquarium or skateboard.
2. Analysis of various options and creating short- and long-term goals for borrowing is a lifelong skill. For example, adults borrow to buy a car or a vacation.

Nature Of:

1. Financially responsible individuals create goals and work toward meeting them.
2. Financially responsible individuals understand the cost and the accountability associated with borrowing.

Prepared Graduates: (Click on a Prepared Graduate Competency to View Articulated Expectations) - (Remove PGC Filter)

• Acquire the knowledge and economic reasoning skills to make sound financial decisions (PFL)

Concepts and skills students master:

2. Apply decision-making processes to financial decisions (PFL)

Inquiry Questions:

1. How do individuals make and analyze the consequences of financial decisions?
2. How do individuals meet their short- and long-term goals?

Relevance & Application:

1. Personal financial decisions are based on responsible evaluation of the consequences.
2. Purchase decisions are based on such things as quality, price, and personal goals. For example, you decide whether to spend money on candy or the movies.

Nature Of:

1. Financially responsible individuals use good decision-making tools in planning their spending and saving.

Prepared Graduates: (Click on a Prepared Graduate Competency to View Articulated Expectations) - (Remove PGC Filter)

• Acquire the knowledge and economic reasoning skills to make sound financial decisions (PFL)

Concepts and skills students master:

2. Identify short-term financial goals (PFL)

Inquiry Questions:

1. How does an individual earn money to meet a goal?
2. Why do people donate to charity?
3. How does an individual know a good short-term goal?
4. Why is personal financial goal setting important?

Relevance & Application:

1. Short-term financial goals can be met through planning. For example, an individual divides income between current expenses, saving for the future, and philanthropic donations.
2. Individuals and organizations track their progress toward meeting short-term financial goals. For example, the food bank creates a chart tracking how much food has been donated toward reaching its goal.

Nature Of:

1. Financially responsible individuals create goals and work toward meeting them.
2. Financially responsible individuals understand the cost and the accountability associated with borrowing.

Prepared Graduates: (Click on a Prepared Graduate Competency to View Articulated Expectations) - (Remove PGC Filter)

• Acquire the knowledge and economic reasoning skills to make sound financial decisions (PFL)

Concepts and skills students master:

2. Discuss how purchases can be made to meet wants and needs (PFL)

Inquiry Questions:

1. What are wants and needs?
2. How do people balance between wants and needs?
3. What is the difference between a want and a need?
4. How can money help people to meet their wants and needs?

Relevance & Application:

1. Individuals make choices about purchasing to serve wants and needs. For example, parents pay bills prior to purchasing movie tickets or toys.

Nature Of:

1. Financially responsible individuals differentiate between needs and wants.

Prepared Graduates: (Click on a Prepared Graduate Competency to View Articulated Expectations) - (Remove PGC Filter)

• Acquire the knowledge and economic reasoning skills to make sound financial decisions (PFL)

Concepts and skills students master:

2. Recognize money and identify its purpose (PFL)

Inquiry Questions:

1. Why do people use money?
2. What are the different forms of money?

Relevance & Application:

1. Recognition of units of money aids in making purchases. For example, a parent pays for an item using correct change.
2. Knowledge of coins and currency ensures accurate transactions. For example, you can check that a cashier gave you the right amount of change.
3. Money is a medium of exchange.

Nature Of:

1. Financially responsible individuals use money wisely.