Financial Literacy Skills

Unit 1: Managing Money

Objective 1: Identify trends in career opportunities.

• What will happen to the labor force in the near future?– Slower growth– More diversity– Older– Highest growth in service-producing industries– Fastest growth in computer technology and health

care services

Objective 2: List sources for career information.

• Career consultants• Counselors• Educational institutions• Employers• Internet networks and

resources• Personal contacts

• Professional societies and journals

• Public libraries, career centers, guidance offices

• Trade associations and magazines

Objective 3: Research careers of interest.

Objective 4: State guidelines for pricing a job offer.

• Set your personal priorities.• Compare the job offer to your current job or

other offers.• Be realistic about negotiating.• Calculate your value in advance.

Objective 5: Identify ways to earn and save money.

• Live below your means.• Create a realistic spending plan and stick to it.• Stop impulsive buying.• Reconsider any purchase over a certain

amount.• Purchase medical and vehicle insurance.• Charge items only if you can afford to pay for

them now.

Objective 5: Identify ways to earn and save money.

• Put away your credit cards.• Never co-sign a loan or assume a joint debt

with someone who has a shaky financial history.

• Do not make high-risk investments.• Let your savings work for you.• Shop for the smartest investments.• Diversify your investments.

Objective 5: Identify ways to earn and save money.

• Find alternatives to spending.• Earn money whenever you can.• Use your own time, ability, and talent.• It is smarter to earn interest than to pay

interest.

Objective 6: Distinguish between fixed and variable expenses.Fixed expenses• Rent or mortgage• Taxes• Loans• Leases• Insurance• Regular payments to

others• Regular contributions• Dues• Regular savings

Variable expenses• Utilities• Charge accounts/credit

cards• Medical bills• Transportation• Food• Non-regular savings• Other items

Objective 7: List the basic steps in a financial plan.

• Establish your financial goals.• Estimate and total your income.• Estimate and total your expenses.• Analyze your current income and spending.• Prepare a trial financial plan.• Put your plan into action.• Evaluate your plan periodically.

Objective 8: Summarize three methods of managing personal finances.• Prevention• Preparation• Coping with financial challenges

Objective 9: State guidelines for using a budget.

• Determine your goals.• Estimate your income.• Estimate your expenses.• Earmark money available for expenses.• Spend money according to your budget.• Regularly compare your estimated expenses

to your actual spending.• Evaluate your budget and revise as needed.

Objective 10Develop a budget.

Objective 11Analyze budgeting case studies.

Objective 12Apply money management principles.

Objective 13Calculate and compare unit prices of consumable items.

Objective 14List items deducted by law from a paycheck

• Social Security (FICA)• Unemployment insurance • Workers’ Compensation • Federal income tax• State and city income tax

Objective 15List items deducted by request from a paycheck

• Labor union dues• Group insurance plans• Savings account• Flexible spending account• Investments• Retirement plans

Objective 16List benefits often reflected in a paycheck.• Health insurance• Life insurance• Tax sheltered

investments• Sick leave• Annual leave, vacation

time, or personal time• Holiday leave or holiday

pay

• Workers’ compensation and unemployment compensation

• Retirement (group pension plans)

• Profit-sharing and stock purchase programs

Objective 17Explain how games of chance work.• Outcome depends on a random event.• Unlike games of skill, you cannot increase your

odds of winning.• Many are used in gambling, including slot

machines and lottery tickets.• In a truly random game of chance, the player has

a fairly consistent chance of winning. • Games of chance used in gambling are not always

truly random. • In the long run, the casino or lottery always wins.

Objective 18Compare the costs and benefits of gambling.

Benefits

• Gambling creates jobs for people who work in the gambling industry.

• Income from gambling may be used to benefit society.

• Gambling provides entertainment for many people.

Costs

• Gambling can be an addiction.

• Gamblers can easily spend more than they can afford to lose.

• Gambling can increase crime.

Objective 19Identify types of charitable giving.

• Monetary donations• Volunteer service • Gifts-in-kind

Objective 20Discuss the impact of charitable giving.

• Tax benefits• Personal satisfaction• Creation of jobs• Reducing waste• Benefit to the community

Objective 21Research a charitable organization.

End of Unit 1