Personal Financial Literacy: The New Social Studies Course for Texas

5.

Saving and investing. The student understands the importance of saving and investing in creating wealth and building assets. The student is expected to:

(A) develop a short-term savings strategy to achieve a goal such as establishing and maintaining an emergency fund;

(B) develop an intermediate-term saving and investing strategy to achieve a goal such as accumulating a down payment on a home or vehicle; and

(C) develop a long-term investing strategy to achieve a goal such as a financially secure retirement.

6.

Saving and investing. The student understands the implementation of a saving and investing plan. The student is expected to:

(A) discuss the role of financial institutions and markets in saving and investing;

(B) demonstrate the impact of compound growth over time;

7.

Saving and investing. The student demonstrates an understanding of the importance of planning for retirement. The student is expected to:

(C) demonstrate an understanding of the importance of saving early and at a sufficient level to achieve financial security in retirement.

6.

Saving and investing. The student understands the implementation of a saving and investing plan. The student is expected to:

(C) evaluate the costs and benefits of various savings options such as bank savings accounts, certificates of deposit, and money market mutual funds; and

6.

Saving and investing. The student understands the implementation of a saving and investing plan. The student is expected to:

(D) evaluate risk and return of various investment options, including stocks, bonds, and mutual funds.

6.

Saving and investing. The student understands the implementation of a saving and investing plan. The student is expected to:

(D) evaluate risk and return of various investment options, including stocks, bonds, and mutual funds.

6.

Saving and investing. The student understands the implementation of a saving and investing plan. The student is expected to:

(D) evaluate risk and return of various investment options, including stocks, bonds, and mutual funds.

7.

Saving and investing. The student demonstrates an understanding of the importance of planning for retirement. The student is expected to:

(A) identify costs of retirement such as living expenses, health care expenses, and long-term care expenses;

(B) identify and explain sources of income during retirement including Social Security, individual savings, and employer-sponsored plans;

8.

Credit and borrowing. The student understands the use of credit to make purchases. The student is expected to:

(B) compare and contrast types of credit, including revolving and installment credit, collateralized loans versus unsecured credit; and

10.

Credit and borrowing. The student evaluates a decision to use credit. The student is expected to:

(A) examine the components of the cost of borrowing, including annual percentage rate (APR), fixed versus variable interest, length of term, grace period, and additional fees such as late payment, cash advance, and prepayment penalties;

(C) differentiate between the use and cost of debit and credit cards.

8.

Credit and borrowing. The student understands the use of credit to make purchases. The student is expected to:

(A) compare and contrast sources of credit such as banks, merchants, peer-to-peer, payday loans, and title loans;

8.

Credit and borrowing. The student understands the use of credit to make purchases. The student is expected to:

(C) evaluate the impact of credit decisions on monthly budget, income statement, and net worth statement.

10.

Credit and borrowing. The student evaluates a decision to use credit. The student is expected to:

(B) explain strategies to reduce total cost of borrowing such as higher down payment and making additional principal payments;

9.

Credit and borrowing. The student identifies factors that affect creditworthiness. The student is expected to:

(A) discuss how character, capacity, and collateral can adversely or positively impact an individual's credit rating and the ability to obtain credit;

(B) describe how to access and interpret a sample credit report and score;

(C) describe the importance of monitoring credit reports regularly and addressing mistakes;

9.

Credit and borrowing. The student identifies factors that affect credit worthiness. The student is expected to:

(D) identify factors that could lead to bankruptcy such as medical expenses, job loss, divorce, or a failed business; and

(E) appraise the impact of borrowing decisions on credit score, including consequences of poor credit management and bankruptcy.

11.

Insuring and protecting. The student recognizes financial risks faced by individuals and families and identifies strategies for handling these risks. The student is expected to:

(A) identify risk as potential loss of assets or earning potential; and

(B) apply risk management strategies, including: avoiding, reducing, retaining, and transferring risk.

12.

Insuring and protecting. The student identifies the costs and benefits of insurance for transferring risk. The student is expected to:

(A) define insurance terminology, including premiums, deductibles, co-pays, and policy limits;

(B) explain the costs and benefits of different types and sources of health insurance such as individual health plans, employer-provided health plans, and government-provided health plans;

(C) explain the costs and benefits of disability and long-term care insurance;

(D) explain the costs and benefits of life insurance, including term insurance and whole life insurance;

(E) explain the costs and benefits of property insurance, including homeowner's and renter's insurance;

(F) explain the costs and benefits of automobile insurance and factors that impact the price of insurance, including the type of vehicle, age and sex of driver, driving record, deductible, and geographic location;

12.

Insuring and protecting. The student identifies the costs and benefits of insurance for transferring risk. The student is expected to:

(G) explain the costs and benefits of supplemental types of insurance such as extended warranties, mortgage protection life insurance, Accidental Death & Dismemberment life insurance, car loan payoff coverage, debt cancellation coverage, and credit life coverage.

13.

Insuring and protecting. The student identifies the costs and benefits of insurance for transferring risk. The student is expected to:

(A) identify ways to protect personal information and reduce risk of identity theft;

13.

Insuring and protecting. The student understands how to identify and protect themselves from frauds, schemes, and scams. The student is expected to:

(C) demonstrate an understanding of how to use consumer protection agencies such as the Better Business Bureau, Consumer Financial Protection Board, or the Texas State Securities Board to research and report fraud.

14.

Insuring and protecting. The student understands the legal instruments available for estate planning. The student is expected to:

(A) explain the importance of guardianship of minor children and wills and beneficiary designation; and

(B) explain the importance of a power of attorney, living will, and medical directive.

15.

College and postsecondary education and training. The student recognizes the costs and benefits of various types of college, post-secondary education, and training. The student is expected to:

(A) analyze the relationship between education and training and earnings;

15.

College and postsecondary education and training. The student recognizes the costs and benefits of various types of college, post-secondary education, and training. The student is expected to:

(D) analyze the quality of education investment using measures such as academic reputation, selectivity and rigor in a chosen area of study, average starting salary of students graduating in chosen field, and likelihood of student graduation.

15.

College and postsecondary education and training. The student recognizes the costs and benefits of various types of college, post-secondary education, and training. The student is expected to:

(B) identify types of costs associated with college, postsecondary education, and training;

(C) compare costs among postsecondary education and training institutions such as public universities, private universities, certification programs, and community colleges;

16.

College and postsecondary education and training. The student understands various options for paying for college, postsecondary education, and training. The student is expected to:

(A) understand how, why, and when to complete grant and scholarship applications and the Free Application for Federal Student Aid (FAFSA) provided by the U.S. Department of Education;

16.

College and postsecondary education and training. The student understands various options for paying for college, postsecondary education, and training. The student is expected to:

(B) research various sources of funds for postsecondary education and training, including student loans, grants and scholarships, and other sources such as work-study and military programs; and

(C) analyze the advantages and disadvantages of various sources of funds for postsecondary education and training, including student loans, grants and scholarships, and other sources such as work-study and military programs.