1.9.3.G1

© Family Economics & Financial Education – Revised April 2005 – Housing Unit – Renting vs. Owning a HomeFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. How can one achieve financial security?

2. Why is it important to have a financial plan?

3. What are important factors to consider when choosing your career?

Financial planning, opportunity cost, liquidity, interest, inflation, career, wants needs and values, supply & demand, goods/services, SMART goals, Career Planning, Networking, Career benefits, interest inventory, aptitudes

FINANCIAL & CAREER PLANNINGESSENTIAL QUESTIONS

Budgeting Principles

1. To what extent is a balanced budget important?

2. What role does evaluation play in the budgeting process?

Money Management, Assets & Liabilities, PYF Pay yourself First, Fixed Expense, Variable Expense, Income, Gross Pay, Net Pay

Essential Questions

1. Why is it important to balance a checking account?2. Why should the Federal Reserve oversee financial

institutions and the money circulation in the economy?3. What are the benefits to comparing financial institutions

and the services they provide?

BANKINGEssential Questions

Commercial Bank, Credit Union, FDIC, Federal Reserve, PYF, Cash Management Tools (CD’s , Methods of Payments, Checking Account, Identity Theft, Investment Pyramid

1. How does the time value of money affect the future value of an investment?

2. Why is it important to diversify your investments?

3. How are liquidity and diversification related?

4. How do you know which type of investment is best for you?

5. In what ways does the stock market impact the personal wealth of an individual and a business?

6. Why diversify within a portfolio?Investment Pyramid, Types of investments (stocks, bonds, mutual funds, real estate, 401 K, IRA), Time Value of Money, Simple Interest, Compounding, Rule of 72, Return vs. Risk, Diversification, Stock Ticker, Stock Exchange, Dividend, Stock Classifications,

Essential Questions

1. What factors influence your credit score?2. What are the advantages and disadvantages of credit?3. As a borrower how are you legally protected?4. How do the C’s of credit effect your ability to get a loan?

Types of Credit (Open/Revolving), Debt, Co-signer, Types of Loans, C’s of Credit, APR, Interest Rates, Finance Charges, Credit Limit, Grace Period, Minimum Payment, New Balance, FICO score, Credit Report, Bankruptcy ( Ch. 7 & Ch. 13)

INSURANCE AND TAXES

• Types of Insurance (Renters, Homeowners, Car, Life, Health, Disability), Policy, Premium, Deductible, beneficiary, claim, liability, Income Tax, Personal Property Tax, Sales Tax, W2, W4, 1040EZ, IRS, Deductions, dependent

• How do you protect yourself from loss?• What factors impact the cost of insurance?• Are taxes necessary in society?• How does the government collect taxes

from its citizens?• How do taxes impact our lives?