Core Course Topics
Introduction to Personal Finance and Financial Planning
Time Value of Money
Current Financial Situation Assessment
Personal Goals
Financial Information and Financial Professionals
Financial Services Commonly Available to Households
Consumer Credit and Household Debt
Household Spending and Savings
Purchase of a Car and a House
Risk Management and Insurance Options
Savings and Investment
Career Planning
Consumer Protection
Upon successful completion of this course, students will be able to:
Discuss the need for financial literacy.
Identify the household activities related to personal finance.
Identify life events that have a significant impact on personal finances.
Identify the steps in the financial planning process.
Calculate the future value of a single deposit or an annuity.
Calculate the present value of a future sum of money.
Determine the opportunity cost of a financial decision by calculating the time value of money.
Discuss record-keeping methods.
Create a balance sheet, and compute net worth.
Create cash flow statements.
Create a household budget.
Discuss the three time frames for financial goals: short term, intermediate term, and long term.
Explain the characteristics of effective financial goals.
Decide upon a set of personal financial goals.
Decide upon a set of personal non-financial goals.
Identify sources of financial information.
Identify types of financial professionals.
Explain how financial professionals and financial information providers may have a conflict of interest.
Discuss how to interview prospective financial professionals.
Assess financial information sources and financial professionals.
Compare and contrast financial institutions based on financial services, ownership structure, fees, and consumer protection.
Discuss reasons to avoid high-cost financial service providers such as check-cashing outlets, payday lenders, and pawnshops.
Compare and contrast savings instruments.
Compare and contrast payment methods.
Discuss how to manage a checking account.
Develop a plan to meet household financial service needs while minimizing institutional fees.
Discuss the advantages and disadvantages of using consumer credit.
Distinguish between the proper and improper uses of consumer credit.
Assess the sources of consumer credit.
Discuss the process for getting a loan or applying for a credit card.
Discuss common mistakes people make with credit cards.
Demonstrate how to check one's credit report.
Develop a plan to improve a credit report.
Analyze the causes of overspending.
Propose strategies for reducing monthly expenses.
Identify strategies for increasing savings.
Discuss the steps in the research-based buying process and the common mistakes made in each step.
Compare options of leasing or buying a car.
Calculate a vehicle price that is affordable based on income, debt obligations, interest rates, and other information.
Compare options of renting or buying housing.
Calculate a home price that is affordable based on income, debt obligations, mortgage rates, and other information.
Discuss how major purchases impact the ability to meet other financial goals.
Identify the risk management strategies available to households.
Discuss personal events that carry risk and strategies for reducing the financial impact of those events.
Identify insurance options available to households.
Explain the tradeoff between risk acceptance and insurance cost.
Design a total insurance plan to meet one's needs.
Identify the link between saving and investing.
Explain the tradeoff between risk and reward.
Explain the importance of diversification, and give examples of ways to diversify.
Distinguish between equity investments and debt investments.
Compare investment options based on the level of risk and the expected return.
Explain how to buy a stock and a bond.
Build an investment portfolio based on a set of financial goals.
Explain the relationship between career selection and the ability to meet financial and non-financial goals.
Research careers with respect to earning potential and job stability.
Evaluate industries and employers based on employee benefits offered.
Discuss the importance of continuous education and training.
Identify the major laws that provide consumer protection.
Explain the process of making a complaint to consumer protection agencies.