20
Financial Literacy Skills Unit 4: Understanding Taxes and Insurance

Financial Literacy Skills Unit 4: Understanding Taxes and Insurance

Embed Size (px)

Citation preview

Page 1: Financial Literacy Skills Unit 4: Understanding Taxes and Insurance

Financial Literacy Skills

Unit 4: Understanding Taxes and Insurance

Page 2: Financial Literacy Skills Unit 4: Understanding Taxes and Insurance

Objective 1: State the purposes of taxes.

• Taxes raise revenue to pay for government operations, facilities, and services.

• Taxes distribute benefits and obligations among different income groups.

• Taxes influence people’s behavior. • Income from taxes promotes the economic

stability of federal, state, and local governments

Page 3: Financial Literacy Skills Unit 4: Understanding Taxes and Insurance

Objective 2: Discuss the consequences of failing to pay taxes.

• Income tax• Property tax• Sales tax

Page 4: Financial Literacy Skills Unit 4: Understanding Taxes and Insurance

Objective 3: Complete W-4 forms.

Page 5: Financial Literacy Skills Unit 4: Understanding Taxes and Insurance

Objective 4: Locate information on a pay stub.

Page 6: Financial Literacy Skills Unit 4: Understanding Taxes and Insurance

Objective 5: List records that should be kept for taxes.• Annual W-2 Forms• Financial statements showing interest and dividends• Canceled checks that serve as receipts for tax deductions or

credits• Itemized bills and receipts for deductions or credits• Bills and receipts for major purchases and permanent home

improvements• Documents showing interest paid on home mortgages• Real estate closing statements• Documents showing investment transactions• Past tax returns

Page 7: Financial Literacy Skills Unit 4: Understanding Taxes and Insurance

Objective 6: Locate information on a W-2 form.

Page 8: Financial Literacy Skills Unit 4: Understanding Taxes and Insurance

Objective 7: Complete a 1040EZ form.

Page 9: Financial Literacy Skills Unit 4: Understanding Taxes and Insurance

Objective 8: Identify types of insurance.

• Auto• Disability • Health• Liability

• Life • Long-term care• Home

Page 10: Financial Literacy Skills Unit 4: Understanding Taxes and Insurance

Objective 9: Describe types of auto insurance.

• Bodily injury liability• Property damage

liability• Medical payments• Collision

• Comprehensive• Uninsured motorist• Underinsured

motorist• No-fault protection

Page 11: Financial Literacy Skills Unit 4: Understanding Taxes and Insurance

Objective 10: Analyze insurance situations.

Page 12: Financial Literacy Skills Unit 4: Understanding Taxes and Insurance

Objective 11: Identify factors that affect the cause of insurance.

Insurance Provider• The capabilities of the insurance company (such as

the size and efficiency of the insurance company)• Amount the insurance company has had to pay in

claims in the past• Type of coverage provided by the insurance

company• Amount of coverage provided by the insurance

company

Page 13: Financial Literacy Skills Unit 4: Understanding Taxes and Insurance

Objective 11: Identify factors that affect the cause of insurance.

Auto Insurance• Risks involved in insuring a particular person – Age of insured– Gender of insured– Insured’s driving record– Marital status of insured– Insured’s student record

• Risks involving the particular vehicle– Age of vehicle– Cost of repairs to vehicle– Safety devices in vehicle

Page 14: Financial Literacy Skills Unit 4: Understanding Taxes and Insurance

Objective 11: Identify factors that affect the cause of insurance.

Auto insurance (continued)• Vehicle use– Where the vehicle is parked (a garage or other safe place

may allow a discount of 5 to 15 percent)– Other drivers using insured’s vehicle– Frequency of vehicle use– Purpose for vehicle use

• Type of policy selected• Amount of coverage and deductible• Frequency of accidents in local area

Page 15: Financial Literacy Skills Unit 4: Understanding Taxes and Insurance

Objective 11: Identify factors that affect the cause of insurance.

Life Insurance• Insured person’s risk of dying (due to age,

health, lifestyle, etc.)• Administrative and sales fees charged by the

insurance company• Type of policy selected (policies that provide for

savings generally cost more)• Amount of coverage• Size of benefit to be paid if insured dies

Page 16: Financial Literacy Skills Unit 4: Understanding Taxes and Insurance

Objective 11: Identify factors that affect the cause of insurance.

Property Insurance• Risk factor where insured lives• Value of property• Amount of coverage and deductible• Type of coverage selected

Page 17: Financial Literacy Skills Unit 4: Understanding Taxes and Insurance

Objective 11: Identify factors that affect the cause of insurance.

Health Insurance• Risks involved in insuring a particular person

– Age of insured– Occupation of insured– Physical condition of insured– Sex of insured– Medical history of insured

• Amount of coverage and deductible• Medical-care cost in local area• Type of health insurance selected• Type of policy selected — group or individual

Page 18: Financial Literacy Skills Unit 4: Understanding Taxes and Insurance

Objective 12: Determine types of automobile insurance coverage.

Page 19: Financial Literacy Skills Unit 4: Understanding Taxes and Insurance

Objective 13: Describe the common types of coverage in a standard homeowner’s insurance policy.

• Home• Personal property• Extra living expenses• Liability

Page 20: Financial Literacy Skills Unit 4: Understanding Taxes and Insurance

End of Unit 4