Foundations in Personal Finance
Course Overview
Chapter One: This chapter introduces the topic of personal finance, explores the evolution of the American credit industry, and highlights the importance of both knowledge and behavior when it comes to managing money.
Learning Outcomes
Section 1: What Is Personal Finance?
Describe what personal finance is.
Outline the components of effective financial planning.
Identify focuses of study throughout this course.
Section 2: Money, the American Way
Understand the evolution of America’s dependence on credit
Observe and analyze the “normal” American family as it relates to personal finance.
Section 3: You and Money
Develop communication strategies for managing money and discussing financial issues.
Evaluate your own money personality; identify your money strengths and weaknesses.
Chapter Two: This chapter emphasizes the importance of saving and explains the three reasons to save: emergencies, large purchases and wealth building.
Learning Outcomes
Section 1: Saving Is an Exercise of Character
Identify the Five Foundations of personal finance.
Understand the purpose of having an emergency fund.
Section 2: Three Basic Reasons to Save Money
Explain the three basic reasons for saving money.
Understand the importance of saving for both long-term and short-term goals.
Describe what a sinking fund is and identify purchases for which you would use a sinking fund.
Section 3: The Power of Compound Interest
Demonstrate how compound interest works and understand the impact of annual
interest rate.
Describe the difference between simple and compound interest.
Understand the importance of beginning to save now.
Chapter Three: This chapter explores the purpose and process of writing a budget and the basics of
banking, including balancing and reconciling a checking account.
Learning Outcomes
Section 1: Budgeting 101
Understand the purpose of cash flow planning.
Identify reasons some people avoid having or sticking to a budget.
Identify changes in personal spending behavior that contribute to wealth building.
Explain the difference between a cash flow statement and a budget.
Section 2: The Basics of Banking
Develop a filing system for keeping financial records, both paper and electronic.
Describe recordkeeping features that financial institutions provide for online account management.
Describe how to use different payment methods and banking features.
Section 3: The Importance of Having a Zero-Based Budget
Define zero-based budget
. Develop a plan for spending and saving that has both long-term and
short-term components.
Analyze how changes in circumstances can affect a personal budget.
Chapter Four: This chapter identifies the devastating costs of using debt as a financial tool, debunks credit myths, explains the elements of a credit score, identifies organizations that maintain consumer credit records, and summarizes major consumer credit laws.
Learning Outcomes
Section 1: Debt: Product, Not Privilege
Identify the costs of using various types of credit.
Section 2: Debunking the Credit Myths
Evaluate and refute the myths associated with debt.
Apply systematic decision making to identify the most cost-effective option for purchasing a car.
Identify various types of mortgage loans and the most cost-effective option for purchasing a home.
Evaluate ways that debt can negatively affect your financial future and how to overcome personal debt.
Section 3: The Credit Score
Describe the elements of a credit score.
Understand how to obtain a credit report.
Explain how a credit score affects creditworthiness and the cost of credit.
Explain the factors that affect a credit score.
Analyze a credit report, indicate the time that certain negative data can be retained, and describe how to dispute inaccurate entries.
Section 4: Credit Bureaus and Identity Theft
Identify organizations that maintain consumer credit records
Summarize major consumer credit laws.
Develop a plan for protecting personal information.
Chapter Five: This chapter explores 21st-century post-secondary education and career options, highlights the importance of avoiding debt as a young adult, and explains how to cash-flow a college education.
Learning Outcomes
Section 1: Beware and Be Wise
Understand the long-term impact of student loans.
Section 2: Start With the End in Mind
Identify reasons for not taking on debt to fund your education.
Section 3: Cash-Flow Your College Education
Develop a plan to attend college without acquiring debt.
Demonstrate how to apply for financial aid.
Section 4: Education Options for the 21st Century
Identify the educational requirements, training and cost for your career of choice.
Analyze post-high school education and career training options.
Chapter Six: This chapter identifies common marketing tactics and other factors that influence consumer behavior, steps to manage spending behavior, and the role opportunity cost plays in purchasing decisions. Students will also explore the effect of inflation on buying power.
Learning Outcomes
Section 1: Buyer Beware
Identify ways companies compete for your money.
Be familiar with marketing strategies that encourage people to go into debt or finance large purchases.
Evaluate how peer pressure can affect spending decisions.
Summarize factors that influence consumer decisions.
Section 2: Buyer’s Remorse
List five steps you should take before making a major purchase.
Section 3: Opportunity Cost
Evaluate the role opportunity cost plays in purchasing decisions.
Describe the effect of inflation on buying power.
Chapter Seven: This chapter highlights the importance of bargain shopping as part of a healthy
financial plan and identifies important negotiation strategies.
Learning Outcomes
Section 1: Bargain Shopping: Part of a Healthy Financial Plan
Understand how shopping for bargains is part of a healthy financial plan.
Analyze and use the three keys to getting bargains: Negotiate, have patience, and know where to find deals.
Section 2: The Seven Basic Rules of Negotiating
Develop skills for negotiating deals on products or services.
Understand that integrity and honesty are important when it comes to negotiating with others.
Section 3: Places to Find Great Deals
Know the best places to shop for deals.
Evaluate the benefits of not buying brand-name products, taking advantage of seasonal shopping, buying slightly outdated products, etc.
Chapter Eight: This chapter establishes basic investing guidelines, describes and compares various types of investments, and identifies elements of employer benefits and retirement plans.
Learning Outcomes
Section 1: Investing 101
Explain how investing builds wealth and helps meet financial goals.
Examine the relationship between diversification and risk.
Identify regulatory agencies and their functions..
Section 2: Types of Investments
Evaluate investment alternatives: money markets, bonds, single stocks, mutual fund, annuities, and real estate.
Explain the Rule of 72.
Identify different types of retirement plans
Explain how taxes affect the rate of return on investments.
Understand how pre-tax and after-tax investments work.
Understand how the stock market works.
Be familiar with the various retirement account tax treatments.
Develop a plan for investing, and describe how to buy and sell investments.
Section 3: Employer Benefits and Retirement Plans
Analyze the components of employer benefits package.
Chapter Nine: This chapter identifies the purpose of financial risk management as well as the
appropriate and most cost-effective risk management strategies.
Learning Outcomes
Section 1: Protecting Your Wealth
Explain why insurance is an essential part of a healthy financial plan.
Understand how people manage risk through transfer.
Identify ways to lower the cost of insurance premiums.
Identify insurance for the types of risks that young adults might face.
Section 2: Basic Types of Coverage
Identify common types of risks and basic risk management methods.
Distinguish between necessary and unnecessary types of coverage.
Understand the importance of identity theft insurance in the 21st Century.
Define common insurance terms like “premium” and “deductible.”
Understand the importance of property and liability protection.
Section 3: The Importance of Life Insurance
Be familiar with policies that offer duplicate coverage.
Know the types of insurance to avoid.
Chapter Ten: This chapter identifies the differences among people’s values and attitudes as they relate to money and highlights communication strategies for discussing financial issues.
Learning Outcomes
Section 1: Understanding Your Money Personality
Identify differences among people’s values and attitudes as they relate to money.
Evaluate your own money personality.
Section 2: Marriage and Money
Evaluate how discussing important financial matters with household members can reduce conflict.
Understand how having a budget or a money plan can reduce conflict.
Section 3: Communication Is Key
Understand the value of discussing individual and shared financial responsibilities.
Develop communication strategies for discussing financial issues.
Integrate healthy communication about money with parents, friends and others.
Chapter Eleven: This chapter examines the importance of pursuing a career in line with your strengths, the elements of effective goal setting, the best practices of successful people, and types of income and taxes.
Learning Outcomes
Section 1: Self-Assessment
Identify your personal strengths and weaknesses.
Section 2: Goal Setting
Clarify your educational and career goals.
Understand the components of goal setting.
Section 3: You Won’t Love the Entry Level
Understand the value of entry-level jobs.
Identify valuable work attributes outside of one’s general skill set.
Section 4: The Best Practices of Successful People
Identify the best practices of successful people.
Develop a résumé.
Analyze the interview process and develop personal interview skills.
Section 5: Income and Taxes
Describe factors affecting take-home pay.
Identify sources of personal income.
Identify different types of taxes.
Be familiar with various documents for reporting taxes.
Be familiar with various documents for reporting taxes.
Chapter Twelve: This chapter highlights the importance of identifying your values and giving of your time, talents and money in order to serve others and leave a lasting legacy.
Learning Outcomes
Section 1: False Perceptions
Identify your core values.
Identify your own specific talents and evaluate ways you could use those talents to help others.
Section 2: Make an Impact
Identify ways in which giving benefits both the giver and the receiver.
Section 3: Give Your Time and Talents
Identify various types of charitable giving (time, money, talents).
Examine various areas of need in your own community.
Identify a variety of charitable organizations.
Section 4: Define Your Legacy
Explain the concept of leaving a legacy.
Illustrate the importance of giving to others throughout your life, starting now.
Course Overview
Chapter One: This chapter introduces the topic of personal finance, explores the evolution of the American credit industry, and highlights the importance of both knowledge and behavior when it comes to managing money.
Learning Outcomes
Section 1: What Is Personal Finance?
Describe what personal finance is.
Outline the components of effective financial planning.
Identify focuses of study throughout this course.
Section 2: Money, the American Way
Understand the evolution of America’s dependence on credit
Observe and analyze the “normal” American family as it relates to personal finance.
Section 3: You and Money
Develop communication strategies for managing money and discussing financial issues.
Evaluate your own money personality; identify your money strengths and weaknesses.
Chapter Two: This chapter emphasizes the importance of saving and explains the three reasons to save: emergencies, large purchases and wealth building.
Learning Outcomes
Section 1: Saving Is an Exercise of Character
Identify the Five Foundations of personal finance.
Understand the purpose of having an emergency fund.
Section 2: Three Basic Reasons to Save Money
Explain the three basic reasons for saving money.
Understand the importance of saving for both long-term and short-term goals.
Describe what a sinking fund is and identify purchases for which you would use a sinking fund.
Section 3: The Power of Compound Interest
Demonstrate how compound interest works and understand the impact of annual
interest rate.
Describe the difference between simple and compound interest.
Understand the importance of beginning to save now.
Chapter Three: This chapter explores the purpose and process of writing a budget and the basics of
banking, including balancing and reconciling a checking account.
Learning Outcomes
Section 1: Budgeting 101
Understand the purpose of cash flow planning.
Identify reasons some people avoid having or sticking to a budget.
Identify changes in personal spending behavior that contribute to wealth building.
Explain the difference between a cash flow statement and a budget.
Section 2: The Basics of Banking
Develop a filing system for keeping financial records, both paper and electronic.
Describe recordkeeping features that financial institutions provide for online account management.
Describe how to use different payment methods and banking features.
Section 3: The Importance of Having a Zero-Based Budget
Define zero-based budget
. Develop a plan for spending and saving that has both long-term and
short-term components.
Analyze how changes in circumstances can affect a personal budget.
Chapter Four: This chapter identifies the devastating costs of using debt as a financial tool, debunks credit myths, explains the elements of a credit score, identifies organizations that maintain consumer credit records, and summarizes major consumer credit laws.
Learning Outcomes
Section 1: Debt: Product, Not Privilege
Identify the costs of using various types of credit.
Section 2: Debunking the Credit Myths
Evaluate and refute the myths associated with debt.
Apply systematic decision making to identify the most cost-effective option for purchasing a car.
Identify various types of mortgage loans and the most cost-effective option for purchasing a home.
Evaluate ways that debt can negatively affect your financial future and how to overcome personal debt.
Section 3: The Credit Score
Describe the elements of a credit score.
Understand how to obtain a credit report.
Explain how a credit score affects creditworthiness and the cost of credit.
Explain the factors that affect a credit score.
Analyze a credit report, indicate the time that certain negative data can be retained, and describe how to dispute inaccurate entries.
Section 4: Credit Bureaus and Identity Theft
Identify organizations that maintain consumer credit records
Summarize major consumer credit laws.
Develop a plan for protecting personal information.
Chapter Five: This chapter explores 21st-century post-secondary education and career options, highlights the importance of avoiding debt as a young adult, and explains how to cash-flow a college education.
Learning Outcomes
Section 1: Beware and Be Wise
Understand the long-term impact of student loans.
Section 2: Start With the End in Mind
Identify reasons for not taking on debt to fund your education.
Section 3: Cash-Flow Your College Education
Develop a plan to attend college without acquiring debt.
Demonstrate how to apply for financial aid.
Section 4: Education Options for the 21st Century
Identify the educational requirements, training and cost for your career of choice.
Analyze post-high school education and career training options.
Chapter Six: This chapter identifies common marketing tactics and other factors that influence consumer behavior, steps to manage spending behavior, and the role opportunity cost plays in purchasing decisions. Students will also explore the effect of inflation on buying power.
Learning Outcomes
Section 1: Buyer Beware
Identify ways companies compete for your money.
Be familiar with marketing strategies that encourage people to go into debt or finance large purchases.
Evaluate how peer pressure can affect spending decisions.
Summarize factors that influence consumer decisions.
Section 2: Buyer’s Remorse
List five steps you should take before making a major purchase.
Section 3: Opportunity Cost
Evaluate the role opportunity cost plays in purchasing decisions.
Describe the effect of inflation on buying power.
Chapter Seven: This chapter highlights the importance of bargain shopping as part of a healthy
financial plan and identifies important negotiation strategies.
Learning Outcomes
Section 1: Bargain Shopping: Part of a Healthy Financial Plan
Understand how shopping for bargains is part of a healthy financial plan.
Analyze and use the three keys to getting bargains: Negotiate, have patience, and know where to find deals.
Section 2: The Seven Basic Rules of Negotiating
Develop skills for negotiating deals on products or services.
Understand that integrity and honesty are important when it comes to negotiating with others.
Section 3: Places to Find Great Deals
Know the best places to shop for deals.
Evaluate the benefits of not buying brand-name products, taking advantage of seasonal shopping, buying slightly outdated products, etc.
Chapter Eight: This chapter establishes basic investing guidelines, describes and compares various types of investments, and identifies elements of employer benefits and retirement plans.
Learning Outcomes
Section 1: Investing 101
Explain how investing builds wealth and helps meet financial goals.
Examine the relationship between diversification and risk.
Identify regulatory agencies and their functions..
Section 2: Types of Investments
Evaluate investment alternatives: money markets, bonds, single stocks, mutual fund, annuities, and real estate.
Explain the Rule of 72.
Identify different types of retirement plans
Explain how taxes affect the rate of return on investments.
Understand how pre-tax and after-tax investments work.
Understand how the stock market works.
Be familiar with the various retirement account tax treatments.
Develop a plan for investing, and describe how to buy and sell investments.
Section 3: Employer Benefits and Retirement Plans
Analyze the components of employer benefits package.
Chapter Nine: This chapter identifies the purpose of financial risk management as well as the
appropriate and most cost-effective risk management strategies.
Learning Outcomes
Section 1: Protecting Your Wealth
Explain why insurance is an essential part of a healthy financial plan.
Understand how people manage risk through transfer.
Identify ways to lower the cost of insurance premiums.
Identify insurance for the types of risks that young adults might face.
Section 2: Basic Types of Coverage
Identify common types of risks and basic risk management methods.
Distinguish between necessary and unnecessary types of coverage.
Understand the importance of identity theft insurance in the 21st Century.
Define common insurance terms like “premium” and “deductible.”
Understand the importance of property and liability protection.
Section 3: The Importance of Life Insurance
Be familiar with policies that offer duplicate coverage.
Know the types of insurance to avoid.
Chapter Ten: This chapter identifies the differences among people’s values and attitudes as they relate to money and highlights communication strategies for discussing financial issues.
Learning Outcomes
Section 1: Understanding Your Money Personality
Identify differences among people’s values and attitudes as they relate to money.
Evaluate your own money personality.
Section 2: Marriage and Money
Evaluate how discussing important financial matters with household members can reduce conflict.
Understand how having a budget or a money plan can reduce conflict.
Section 3: Communication Is Key
Understand the value of discussing individual and shared financial responsibilities.
Develop communication strategies for discussing financial issues.
Integrate healthy communication about money with parents, friends and others.
Chapter Eleven: This chapter examines the importance of pursuing a career in line with your strengths, the elements of effective goal setting, the best practices of successful people, and types of income and taxes.
Learning Outcomes
Section 1: Self-Assessment
Identify your personal strengths and weaknesses.
Section 2: Goal Setting
Clarify your educational and career goals.
Understand the components of goal setting.
Section 3: You Won’t Love the Entry Level
Understand the value of entry-level jobs.
Identify valuable work attributes outside of one’s general skill set.
Section 4: The Best Practices of Successful People
Identify the best practices of successful people.
Develop a résumé.
Analyze the interview process and develop personal interview skills.
Section 5: Income and Taxes
Describe factors affecting take-home pay.
Identify sources of personal income.
Identify different types of taxes.
Be familiar with various documents for reporting taxes.
Be familiar with various documents for reporting taxes.
Chapter Twelve: This chapter highlights the importance of identifying your values and giving of your time, talents and money in order to serve others and leave a lasting legacy.
Learning Outcomes
Section 1: False Perceptions
Identify your core values.
Identify your own specific talents and evaluate ways you could use those talents to help others.
Section 2: Make an Impact
Identify ways in which giving benefits both the giver and the receiver.
Section 3: Give Your Time and Talents
Identify various types of charitable giving (time, money, talents).
Examine various areas of need in your own community.
Identify a variety of charitable organizations.
Section 4: Define Your Legacy
Explain the concept of leaving a legacy.
Illustrate the importance of giving to others throughout your life, starting now.