Standards-Based Education

The Financial Literacy course is carefully mapped to the U.S. National Standards in K–12 Personal Finance Education. The standards, created and maintained by the Jump$tart Coalition for Personal Financial Literacy, delineate the personal finance knowledge and skills that American K–12 students should possess.

The Jump$tart Coalition asserts that all young people graduating from our nation’s high schools should be able to take individual responsibility for their personal economic well-being. Broadly speaking, a financially literate high school graduate should know how to:

• Find, evaluate, and apply financial information;
• Set financial goals and plan to achieve them;
• Develop income-earning potential and the ability to save;
• Use financial services effectively;
• Meet financial obligations;
• Build and protect wealth.

Standards and Benchmarks

Financial Responsibility and Decision-Making

Overall Competency: Apply reliable information and systematic decision-making to personal financial decisions.

Standard 1: Take responsibility for personal financial decisions.
Standard 2: Find and evaluate financial information from a variety of sources.
Standard 3: Summarize major consumer protection laws.
Standard 4: Make financial decisions by systematically considering alternatives and consequences.
Standard 5: Develop communication strategies for discussing financial issues.
Standard 6: Control personal information.

Income and Careers

Overall Competency: Use a career plan to develop personal income potential.

Standard 1: Explore career options.
Standard 2: Identify sources of personal income.
Standard 3: Describe factors affecting take-home pay.

Planning and Money Management

Overall Competency: Organize personal finances and use a budget to manage cash flow.

Standard 1: Develop a plan for spending and saving.
Standard 2: Develop a system for keeping and using financial records.
Standard 3: Describe how to use different payment methods.
Standard 4: Apply consumer skills to purchase decisions.
Standard 5: Consider charitable giving.
Standard 6: Develop a personal financial plan.
Standard 7: Examine the purpose and importance of a will.

Credit and Debt

Overall Competency: Maintain creditworthiness, borrow at favorable terms, and manage debt.

Standard 1: Identify the costs and benefits of various types of credit.
Standard 2: Explain the purpose of a credit record and identify borrowers' credit report rights.
Standard 3: Describe ways to avoid or correct debt problems.
Standard 4: Summarize major consumer credit laws.

Risk Management and Insurance

Overall Competency: Use appropriate and cost-effective risk management strategies.

Standard 1: Identify common types of risks and basic risk management methods.
Standard 2: Explain the purpose and importance of property and liability insurance protection.
Standard 3: Explain the purpose and importance of health, disability, and life insurance protection.

Saving and Investing

Overall Competency: Implement a diversified investment strategy that is compatible with personal goals.

Standard 1: Discuss how saving contributes to financial well-being.
Standard 2: Explain how investing builds wealth and helps meet financial goals.
Standard 3: Evaluate investment alternatives.
Standard 4: Describe how to buy and sell investments.
Standard 5: Explain how taxes affect the rate of return on investments.
Standard 6: Investigate how agencies that regulate financial markets protect investors.