| Earning Income | | | | | | |
| Compensation for a job or career can be in the form of wages, salaries, commissions, tips, or bonuses, and may also include contributions to employee benefits, such as health insurance, retirement savings plans, and education reimbursement programs. | Lesson – Income and CompensationLesson – Career Development | | | | | |
| In addition to wages and paid benefits, employees may also value intangible (noncash) benefits, such as good working conditions, flexible work hours, telecommuting privileges, and career advancement potential. | Lesson – Income and CompensationLesson – Career DevelopmentLesson – Employer and Employee Rights and Responsibilities | | | | | |
| People vary in their opportunity and willingness to incur the present costs of additional training and education in exchange for future benefits, such as earning potential. | Lesson – Work Vs StudyLesson – Career Development | | | | | |
| Employers generally pay higher wages or salaries to more educated, skilled, and productive workers than to less educated, skilled, and productive workers. | Lesson – Career DevelopmentLesson – Labor and Productivity | | | | | |
| Changes in economic conditions, technology, or the labor market can cause
changes in income, career opportunities, or employment status. | Lesson – The Business CycleLesson – Labor and ProductivityInflation | | | | | |
| Federal, state, and local taxes fund government-provided goods, services, and transfer payments to individuals. The major types of taxes are income taxes, payroll taxes, property taxes, and sales taxes. | Lesson – Taxation OverviewLesson – Sales TaxLesson – Common Tax DeductionsLesson – Monetary Policy | | | | | |
| The type and amount of taxes people pay depend on their sources of income, amount of income, and amount and type of spending. | Lesson – Taxation OverviewLesson – Sales TaxLesson – Common Tax DeductionsLesson – Common Tax AdditionsLesson – When to hire a tax professional | | | | | |
| Interest, dividends, and capital appreciation (gains) are examples of unearned income derived from financial investments. Capital gains are subject to different tax rates than earned income. | Lesson – Taxation OverviewLesson – Tax Filing and the Form 1040 | | | | | |
| Tax deductions and credits reduce income tax liability. | Lesson – Common Tax Deductions | | | | | |
| Retirement income typically comes from some combination of continued employment earnings, Social Security,employer sponsored retirement plans, and personal investments. | Lesson – Preparing for RetirementLesson – What is Wealth? | | | | | |
| Owning a small business can be a person’s primary career or can supplement income from other sources | Lesson – Starting a BusinessLesson – What is Entrepreneurship? | | | | | |
| Spending |
Activity |
Long-Term Game |
Comprehensive Chapter |
Short Lesson |
Interactive Calculator |
Graded Assessment |
| A budget helps people achieve their financial goals by allocating income to necessary and desired spending, saving, and philanthropy. | Budget Game – Core ComponentLesson – BudgetingLesson – Pay Yourself FirstLesson – Spending and Savings Plans | | | | | |
| Consumer decisions are influenced by the price of products or services, the
price of alternatives, the consumer’s budget and preferences, and potential impact on the environment, society, and economy. | Budget Game – Core ComponentLesson – BudgetingLesson – Budgeting and Spending StrategiesLesson – Spending and Savings PlansLesson – Researching SpendingLesson – The Benefits of CompetitionLesson – Analyzing Consumer Behavior | | | | | |
| When purchasing a good that is expected to be used for a long time, consumers consider the product’s durability, maintenance costs, and various product features. | Lesson – Planning Long Term Purchases | | | | | |
| Consumers may be influenced by how prices of goods and services are advertised, and whether prices are fixed or negotiable. | Lesson – Analyzing Consumer BehaviorLesson – Foundations of MarketingLesson – Spending and Savings PlansLesson – Classifying Products and Services | | | | | |
| Consumers incur costs and realize benefits when searching for information related to the purchase of goods and services. | Lesson – Researching SpendingLesson – Consumer rights and responsibilities | | | | | |
| Housing decisions depend on individual preferences, circumstances, and costs, and can impact personal satisfaction and financial well-being | Budget Game – Core ComponentLesson – Family PlanningActivity – Use the Buy vs Lease Calculator | | | | | |
| People donate money, items, or time to charitable and non-profit organizations because they value the services provided by the organization and/or gain satisfaction from giving. | Lesson – Charitable Giving | | | | | |
| Federal and state laws, regulations, and consumer protection agencies (e.g., Federal Trade Commission, Consumer Affairs office, and Consumer Financial Protection Bureau) can help individuals avoid unsafe products, unfair practices, and marketplace fraud. | Lesson – Consumer rights and responsibilitiesLesson – Ethics in Marketing | | | | | |
| Having an organized system for keeping track of spending, saving, and investing makes it easier to make financial decisions. | Lesson – What are Financial Records?Lesson – Reconciling AccountsLesson – Budgeting | | | | | |
| Saving |
Activity |
Long-Term Game |
Comprehensive Chapter |
Short Lesson |
Interactive Calculator |
Graded Assessment |
| Financial institutions offer several types of savings accounts, including regular savings, money market accounts, and certificates of deposit (CDs), that differ in minimum deposits, rates, and deposit insurance coverage. | Lesson – Banks, Credit Unions, and Savings and LoansLesson – Investing Strategies | | | | | |
| Deposit account interest rates and fees vary between financial institutions and depend on market conditions and competition. | Lesson – Banks, Credit Unions, and Savings and Loans | | | | | |
| Unless offered by insured financial institutions, mobile payment accounts and cryptocurrency accounts are not federally insured and usually do not pay interest to depositors. | Lesson – Banks, Credit Unions, and Savings and LoansInvesting101 Course – Chapter 8: Current Hot Topics In Trading | | | | | |
| Inflation can erode the value of savings if the interest rate earned on a savings account is less than the inflation rate. | Lesson – Inflation | | | | | |
| Government agencies such as the Federal Reserve, the FDIC, and the NCUA, along
with their counterparts in state government, supervise and regulate financial institutions to improve financial solvency, legal compliance, and consumer protection. | Lesson – What is the Federal Reserve?Lesson – Banks, Credit Unions, and Savings and Loans | | | | | |
| Tax policies that allow people to save pretax earnings or to reduce or defer taxes on interest earned provide incentives for people to save. | Lesson – Monetary Policy | | | | | |
| Employer defined contribution retirement plans and health savings accounts can provide incentives for employees to save. | Lesson – Preparing for RetirementLesson – Income and Compensation | | | | | |
| People can reduce the potential for future financial strife with a partner or spouse by sharing personal financial information, goals, and values prior to combining finances. | Lesson – Family Planning | | | | | |
| There are many strategies that can help people manage psychological, emotional, and external obstacles to saving, including automated savings plans, employer matches, and avoiding personal triggers. | Lesson – Spending and Savings PlansLesson – Pay Yourself First | | | | | |
| Investing |
Activity |
Long-Term Game |
Comprehensive Chapter |
Short Lesson |
Interactive Calculator |
Graded Assessment |
| A person’s investment risk tolerance depends on factors such as personality, financial resources, investment experiences, and life circumstances. | Lesson – RiskLesson – Investing StrategiesInvesting101 Course – Chapter 1: Introduction to Investing | | | | | |
| Investors earn investment returns from price changes and annual cash flows (such as interest, dividends or rent).The nominal annual rate of return is the annual total dollar benefit as a percentage of the beginning price. | Activity – Use the Investment Return CalculatorInvesting101 Course – Chapter 1: Introduction to Investing | | | | | |
| Investors expect to earn higher rates of return when they invest in riskier assets. | Stock Game – Core ComponentActivity – Use the Investment Return CalculatorLesson – Investing StrategiesLesson – Risk | | | | | |
| Because inflation reduces purchasing power over time, the real return on a financial asset is lower than its nominal return. | Lesson – InflationActivity – Use the Investment Return Calculator | | | | | |
| The prices of financial assets change in response to market conditions, interest rates, company performance, new information, and investor demand. | Lesson – Understanding Price MovementsInvesting101 – Chapter 6: Fundamental Analysis: Understanding Earnings and Cash FlowChapter 7: Technical Analysis: Common Charts and Terms | | | | | |
| When making diversification and asset allocation decisions, investors consider their risk tolerance, goals, and investing time horizon. | Lesson – Investing StrategiesLesson – Building a diversified portfolio | | | | | |
| Expenses of buying, selling, and holding financial assets decrease the rate of return from an investment. | Stock Game – Core ComponentActivity – Use the Investment Return CalculatorInvesting101 – Chapter 5: Now That I Own It, What Should I Do? | | | | | |
| Tax rules affect the rate of return on different investments, and can vary by holding period, type of income, and type of account | Lesson – Taxation Overview | | | | | |
| Common behavioral biases can result in investors making decisions that adversely affect their investment outcomes | Lesson – Getting Trading IdeasLesson – How to Choose and Compare StocksLesson – Understanding Price MovementsInvesting101 – Chapter 1: Introduction to Investing | | | | | |
| Financial technology can counterbalance negative behavioral factors when making investment decisions | Lesson – Investing StrategiesLesson – How to Choose and Compare Stocks | | | | | |
| Many investors buy and sell financial assets through discount brokerage firms that provide inexpensive investment services and advice using financial technology. | Lesson – What is a Brokerage? | | | | | |
| Federal regulation of financial markets is designed to ensure that investors have access to accurate information about potential investments and are protected from fraud. | Lesson – RiskLesson – Protecting Against FraudLesson – Stock Market Crash of 1929 | | | | | |
| Investors often compare the performance of their investments against a benchmark, such as a diversified stock or bond index. | Stock Game – Core ComponentInvesting101 – Chapter 3: Making Your First Trade | | | | | |
| Criteria for selecting financial professionals for investment advice include licensing, certifications, education, experience, and cost. | Lesson – Certifications in the Finance IndustryLesson – When to hire a tax professional | | | | | |
| Managing Credit |
Activity |
Long-Term Game |
Comprehensive Chapter |
Short Lesson |
Interactive Calculator |
Graded Assessment |
| Borrowers can compare the cost of credit using the Annual Percentage Rate (APR) and other terms in the loan or credit card contract. | Lesson – Using CreditLesson – Credit Cards | | | | | |
| Loans that are secured by collateral have lower interest rates than unsecured loans because they are less risky to lenders. | Lesson – Using CreditLesson – MortgagesLesson – Good Debt, Bad Debt | | | | | |
| Monthly mortgage payments vary depending on the amount borrowed, the repayment period, and the interest rate, which can be fixed or adjustable. | Lesson – MortgagesActivity – Use the Home Budgeting Calculator | | | | | |
| Post-secondary education is often financed by students and families/caregivers through a combination of scholarships, grants, student loans, work-study, and savings. | Lesson – Student LoansLesson – Work Vs Study | | | | | |
| Federal student loans have lower rates and more favorable repayment terms than private student loans, and may be subsidized. | Lesson – Student LoansLesson – Good Debt, Bad Debt | | | | | |
| Down payments reduce the amount needed to borrow. | Lesson -Buying a carActivity – Use the Car Loans CalculatorActivity – Use the Home Budgeting Calculator | | | | | |
| Lenders assess credit-worthiness of potential borrowers by consulting credit reports compiled by credit bureaus. | Lesson – Credit Reports | | | | | |
| A credit score is a numeric rating that assesses a person’s credit risk based on information in their credit report. | Budget Game – Core ComponentLesson – Credit Reports | | | | | |
| Credit reports and credit scores may be requested and used by entities other than lenders. | Lesson – Credit Reports | | | | | |
| Borrowers who face negative consequences because they are unable to repay their debts may be able to seek debt management assistance. | Lesson – Debt Management ServicesLesson – Debt Negotiation | | | | | |
| In extreme cases, bankruptcy may be an option for people who are unable to repay their debts. | Lesson – Bankruptcy | | | | | |
| Consumer credit protection laws govern disclosure of credit terms, discrimination in borrowing, and debt collection practices. | Lesson – Credit CardsLesson – Consumer rights and responsibilities | | | | | |
| Alternative financial services, such as payday loans, checkcashing services, pawnshops, and instant tax refunds, provide easy access to credit, often at relatively high cost. | Lesson – Short-Term FinancingLesson – Good Debt, Bad Debt | | | | | |
| Managing Risk |
Activity |
Long-Term Game |
Comprehensive Chapter |
Short Lesson |
Interactive Calculator |
Graded Assessment |
| People vary with respect to their willingness to accept risk and in how much they are willing to pay for insurance that will allow them to minimze future financial loss. | Lesson – RiskLesson – Life Insurance | | | | | |
| The decision to buy insurance depends on perceived risk exposure, the price of insurance coverage, and individual characteristics such as risk attitudes, age, occupation, lifestyle, and financial profile. | Lesson – Renter’s InsuranceLesson – Car InsuranceLesson – Health Insurance | | | | | |
| Some types of insurance coverage are mandatory. | Lesson – Car InsuranceLesson – Health Insurance | | | | | |
| Insurance premiums are lower for people who take actions to reduce the likelihood and/or financial cost of losses and for those who buy policies with larger deductibles or copayments. | Lesson – Car InsuranceLesson – Health InsuranceLesson – Home Owner’s Insurance | | | | | |
| Health insurance provides coverage for medically necessary health care and may also cover some preventive care. It is sometimes offered as an employee benefit with the employer paying some or all of the premium cost. | Lesson – Health InsuranceLesson – Employer and Employee Rights and ResponsibilitiesLesson – Income and Compensation | | | | | |
| Disability insurance replaces income lost when a person is unable to earn their regular income due to injury or illness. In addition to privately purchased policies, some government programs provide disability protection. | Lesson – Health Insurance | | | | | |
| Auto, homeowner’s and renter’s insurance reimburse policyholders for financial losses to their covered property and the costs of legal liability for their damages to other people or property. | Lesson – Renter’s InsuranceLesson – Car InsuranceLesson – Home Owner’s Insurance | | | | | |
| Life insurance provides funds forbeneficiaries in the event of an insured person’s death. Policy proceeds are intended to replace the insured’s lost wages and/or to fund their dependents’ future financial needs. | Lesson – Life Insurance | | | | | |
| Unemployment insurance, Medicaid, and Medicare are public insurance programs that protect individuals from economic hardship caused by certain risks. | Lesson – Unemployment and other programs | | | | | |
| Insurance fraud is a crime that encompasses illegal actions by the buyer (e.g., falsified claims) or seller (e.g., representing non-existent companies) of an insurance contract. | Lesson – Life Insurance | | | | | |
| Online transactions and failure to safeguard personal documents can make consumers vulnerable to privacy infringement, identity theft, and fraud. | Lesson – Protecting Against Fraud | | | | | |
| Extended warranties and service contracts are like an insurance policy. | Lesson – Consumer rights and responsibilities | | | | | |
