Personal Financial Literacy
Building Financial Confidence & Empowerment
This Curriculum is designed to be FUN, “Interactive”, “Engaging” and Very Hands ON!
Collectively, Our 8 member Team represents well over 350 years of Institutional & Educational experiences!
The curriculum is well over 350 pages of Financial Learning exercises, activities and experiences. The design is for elementary through high school/Adult learners. A curriculum that is flexible and adaptable where ALL can comprehend, learn, and enjoy the art and the skills of Building Financial Confidence and Empowerment!
Introduction
Imagine driving a car without a basic understanding of the rules of the road, or even how to operate it. Frightening thought.
Yet many Americans are operating their personal finances with only the barest minimum of knowledge. One study found that, when asked five basic questions about finances and the markets, 61% of Americans were unable to answer more than 3 correctly. (Source: FINRA Investor Education, Foundation, 2016)
The study also found that 18% of Americans routinely spend more than their household income and one-in-five have overdue medical bills.
The Woven Traditions Personal Finance Literacy Curriculum was designed for individuals, with the understanding that the more informed they are, the better the decisions they can make.
The need to educate our children about money is simply greater than ever. Here’s 10 reasons why:
The Curriculum has an introduction to Economic Reasoning, which provides an overview to the economic way of thinking, which is the underlying theme in the Personal Financial Literacy standards. The National Standards for Financial Literacy provide a framework for teaching personal finance. In addition to focusing on sound background knowledge of Economic Reasoning, the manual highlights 14 standards of Personal Finance Literacy:
- Earning an Income
- Taxes: Voluntary Compliance
- Locating Financial Service
- Managing a Bank Account
- Savings and Investing
- Retirement Planning
- Borrowing Money
- Online Shopping and Credit Cards
- Fraud and Identity Theft
- Renting vs Buying
- Risk Management and Insurance
- Gambling
- Bankruptcy
- and Charitable Contributions
The Curriculum features: An Instructor’s Manual, Learner’s Guide, Pacing Guide, Glossary [Personal Finance Vocabulary – The Language of Business] and Enrichment Activities to support the learning within the standards.
A learner who masters the knowledge embodied in the standards should be able to avoid making poor financial decisions, understand the economic reasons behind the trade-offs between financial choices, and know the basis for their own decisions.
| Standard Area | Desired Outcome |
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Introduction: Economic Reasoning |
Provides an overview to the economic way of thinking, which is the underlying theme in the Personal Financial Literacy standards. |
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1. Earning an Income |
The learner will describe the importance of earning an income and explain how to manage personal income using a budget. |
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2. Taxes: Voluntary Compliance |
The learner will identify and describe the impact of local, state and federal taxes upon income and standard of living. |
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3. Locating Financial Services |
The learner will describe the functions and uses of banks and other financial service providers. |
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4. Managing a Bank Account |
The learner will demonstrate the ability to balance a checkbook and reconcile financial statements. |
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5. Savings and Investing |
The learner will analyze the costs and benefits of saving and investing. |
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6. Retirement Planning |
The learner will explain and evaluate the importance of planning for retirement. |
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7. Borrowing Money |
The learner will identify the procedures and analyze the responsibilities of borrowing money. |
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8. Online Shopping & Credit |
The learners will describe and explain interest, credit cards and online commerce. |
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9. Fraud & Identity Theft |
The learner will explain consumer fraud and identity theft. |
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10.Renting vs. Buying |
The learner will explain and compare the responsibilities of renting vs buying a home. |
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11. Risk Mgmt. & Insurance |
The learner will describe and explain how various types of insurance can be used to manage risk. |
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12. Gambling |
The learner will explain and evaluate the financial impact and consequences of gambling. |
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13. Bankruptcy |
The learner will evaluate the consequences of bankruptcy. |
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14. Charitable Contributions |
The learner will explain the cost benefits of charitable giving. |
Economic Reasoning Introduction
Economic Reasoning Provides an overview to the economic way of thinking, which is the underlying theme in the Personal Financial Literacy standards.
The National Standards for Financial Literacy provide a framework for teaching personal finance in kindergarten through 12th grade. Benchmarks are set at grades 4th, 8th, and 12th. A student who masters the knowledge embodied in the standards should be able to avoid making poor financial decisions, understand the economic reasons behind the trade-offs between financial choices, and know the basis for their own decisions.
Learning Targets
- Identify the steps in economic reasoning
- Define the terms associated with economic reasoning
- Demonstrate the ability to apply economic reasoning
- Demonstrate the ability to use the PACED Decision-Making Model
| Today I decided (or will decide) to: | My opportunity cost (what I gave up) for this choice is: |
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PACED Decision Making Model
Making good decisions about simple matters will help us make good decisions about more complex, important situations. Decision making is a process. That means it involves action to achieve the desired results. The PACED Decision-Making Model can help us to make better choices with better outcomes.
5 Steps to good decision-making include:
P – State the Problem
A – List all the Alternatives
C – Identify the Criteria
E – Evaluate the options, based on the criteria
D – Decide what is the best choice for you
| Problem: | Alternatives: |
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Glossary
(10 pages of terms and over 140 definitions) / Personal Finance Vocabulary – The Language of Business
Do You Speak the Language of Personal Finance and Business? Some say it’s English. Or Mandarin. Others contend it’s the subtle, culture-spanning clues picked up by reading facial expressions and other physical movements. But most agree that the true language of business is personal finance. The story of one’s personal finances, no matter the personal wealth, is told through one’s financial records and reports. Income, debt, revenue vs expenses, and compensation can all be found on one’s personal financial statements. Understanding the language is important. You have to make decisions based on numbers. If you don’t know what you are looking at, and you don’t know the right questions to ask, your effectiveness is diminished.