Unit Objectives
Managing a Paycheck
In this unit, students will learn about gross and net pay, as well as the importance of budgeting and managing a checking account. Students will be introduced to the course-long personal finance budgeting project by selecting an occupation and location for their 30 year-old selves and setting up a budget spreadsheet that will serve as the centerpiece for their project.
Main Objectives:
- Understand wage and salary income models in order to calculate gross pay values
- Identify the common paycheck deductions for a full-time American worker
- Calculate net pay as both a dollar value and a percentage of gross pay
- Manage a checking account, including writing checks and maintaining a ledger
Paying for College
In this unit, students will explore the paying-for-college process, beginning with the FAFSA and progressing through need and merit-based aid, private and government loans, and the financial aid award letter. For the budgeting project, students will investigate the education requirements for their chosen occupation, as well as explore a likely funding solution for their post-secondary education.
Main Objectives:
- Understand the purpose and chronology of the FAFSA process
- Identify common sources for both need and merit-based aid
- Understand the Financial Aid Award Letter and its implications
- Identify common loan sources and understand the implications of loan debt
Credit and Credit Cards
In this unit, students will learn how to calculate finance charges for a revolving credit account, how to calculate debt-to-credit ratios and how to determine fees for balance transfers, etc. Students will also learn about the credit card segment of the banking industry, how to handle fine print, credit scores and reports, and habits that lead to good (and bad) credit.
Main Objectives:
- Calculate finance charges and the next statement starting balance
- Become familiar with the FICO score and its five components
- Calculate credit utilization ratios and understand the impact on one's credit score
- Learn how to establish and maintain good credit, and how to avoid habits that often lead to bad credit
Buying a Car
In this unit, students will learn about financing an automobile purchase, investigate the various costs of vehicle ownership and the basic costs and coverages for a standard auto insurance policy. For the budgeting project, students will finance a vehicle purchase that suits their needs and fits into their monthly budget.
Main Objectives:
- Calculate the monthly payment for an automobile loan
- Determine the maximum vehicle price that an individual can afford to shop for
- Identify the pros and cons of buying used vs. new vs. leasing a vehicle
- Identify the costs and coverages of a typical auto insurance policy
Buying a House
In this unit, students will learn about amortization and how to calculate a monthly mortgage payment. Students will also learn how to calculate home equity and property taxes, as well as become familiar with the real estate purchasing process. The costs and coverages of a typical homeowner's insurance policy will also be explored. For the budgeting project, students will become pre-approved, then “purchase” a home to suit their needs and budget.
Main Objectives:
- Calculate a monthly mortgage payment, including taxes and other escrowed items
- Calculate home equity as both a dollar amount and as a percent of market value
- Understand the sequence of a typical real estate purchasing process
- Identify the costs and coverages of a typical homeowner's insurance policy
Income Taxes
In this unit, students will learn about the graduated Federal income tax system and learn about the tax return process, including tax credits and deductions. State income taxes and payroll (FICA) taxes will also be given attention in this unit. For the budgeting project, students will verify the paycheck deduction amounts found using an online calculator for their income taxes, and complete a tax return with standard OR itemized deductions as appropriate.
NOTE: Tax rates and tax-related values for the PREVIOUS year will be used for activities in this unit, since 1040 forms for the current year will not be made available until next year!
Main Objectives:
- Calculate federal income taxes withheld per pay period
- Calculate Social Security and Medicare withholdings per pay period
- Understand the tax return process for federal income taxes
- Become familiar with standard vs. itemized deductions, as well as tax credits
Retirement Planning
In this unit, students will once again deal with the power of compounding interest. Various investment options and retirement income sources will be investigated, calculations will be made to determine how much should be invested each month in order to reach a nestegg goal, and students will learn why inflation is such an important factor to consider when planning for retirement. For the budgeting project, students will do their own retirement planning for the 30 year-old version of themselves they have chosen!
Main Objectives:
- Account for inflation when calculating projected income and expense amounts
- Calculate future value and necessary payment amounts for installment investments
- Understand the various retirement income sources and investment opportunities
- Create a personalized retirement plan taking into account multiple income sources