Classroom Resources

Building Wealth lesson alignments with national personal financial education standards

The tables below show how Building Wealth resources for your classroom align with National Standards for Personal Financial Education. These resources also align with Texas Essential Knowledge and Skills standards.

Learning outcomes:Spending Saving Investing Credit Managing risk

Spending
Learning outcome	Corresponding lesson(s)
8-1a. Identify personal goals for spending and saving.	Budget to Save—Developing a Budget Building Wealth Publication
8-1b. Create a budget that includes expenses and savings out of a given amount of income.	Budget to Save—Developing a Budget Building Wealth Publication
8-4a. Explain the difference between a debit card and a credit card.	Building Wealth Publication
8-4b. Explain how various payment methods are used to purchase goods and services.	Take Control of Debt—The Cost of Credit
12-1a. Identify their short-term and long-term financial goals.	Budget to Save—Developing a Budget Building Wealth Publication
12-1c. Explain methods for adjusting a budget for unexpected expenses or emergencies.	Budget to Save—Developing a Budget Save and Invest—The Role of Financial Markets
12-6c. Define key rental contract terminology, including lease term, security deposit, grace period, and eviction.	Save and Invest—Owning Versus Renting

Saving
Learning outcome	Corresponding lesson(s)
8-3a. Compare and contrast different types of financial institutions and their products and services.	Save and Invest—The Role of Financial Markets
8-3c. Explain how financial institutions get the money to pay interest to their customers who deposit money in savings accounts.	Save and Invest—Put It in the Bank
8-4c. Use the Rule of 72 to approximate how many years it will take for savings to double in value at different rates of interest.	Save and Invest—Put It in the Bank
8-5a. Explain the benefit of compound interest as compared with simple interest.	Save and Invest—Put It in the Bank
8-5b. Demonstrate how annual interest earned increases over time when both the original principal and earned interest are left in a savings account.	Save and Invest—Put It in the Bank
8-6a. Explain the importance of federal deposit insurance.	Save and Invest—Put It in the Bank
8-6b. Compare Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA) insurance coverage limits for checking and savings accounts offered at financial institutions.	Save and Invest—Put It in the Bank
12-1a. Compare the features of regular savings accounts, money market accounts and CDs.	Save and Invest—Put It in the Bank Building Wealth Publication
12-2a. Select a preferred location for a savings account based on comparison of interest rates and fees at different types of financial institutions.	Save and Invest—Put It in the Bank
12-4b. Illustrate how inflation can reduce the purchasing power of savings over time if the nominal interest rate is lower than the inflation rate.	Save and Invest—Risk and Return
12-4c. Investigate how federal I bonds provide inflation protection for savers.	Save and Invest—Bonds, Stocks and Mutual Funds Building Wealth Publication
12-6b. Compare the tax advantages of traditional and Roth IRAs.	Building Wealth Publication

Investing
Learning outcome	Corresponding lesson(s)
8-2a. Define common types of financial assets.	Budget to Save—The Balance Sheet Budget to Save—Owning Versus Renting Building Wealth Publication
8-5a. Explain the concept of investment diversification both within and among different asset classes.	Save and Invest—Bonds, Stocks and Mutual Funds Building Wealth Publication
8-5b. Discuss the advantages and disadvantages of investing in a diversified stock or bond mutual fund versus individual stocks and bonds.	Save and Invest—Bonds, Stocks and Mutual Funds Building Wealth Publication
8-6a. Compare rates of return on different types of investments and order them by risk.	Save and Invest—Bonds, Stocks and Mutual Funds Save and Invest—Risk and Return
12-1a. Give examples of factors that can influence a person’s risk tolerance.	Save and Invest—Risk and Return Building Wealth Publication
12-1b. Discuss how a person’s risk tolerance influences their investment decisions.	Save and Invest—Risk and Return Building Wealth Publication
12-1c. Assess their personal risk tolerance using an online tool or worksheet.	Save and Invest—Risk and Return
12-4b. Explain the relationship between nominal and real returns.	Save and Invest—Risk and Return
12-5b. Predict what could happen to the price of a stock if new information is reported about the company or its products.	Save and Invest—Bonds, Stocks and Mutual Funds
12-6c. Suggest an appropriate asset allocation for a very risk averse person versus a very risk tolerant person.	Save and Invest—Risk and Return
12-8b. Describe the advantages of investing through a taxdeferred account such as an IRA or 401(k) versus a taxable account.	Building Wealth Publication

Credit
Learning outcome	Corresponding lesson(s)
8-1a. Identify financial institutions and businesses that offer consumer credit.	Save and Invest—Put It in the Bank Take Control of Debt—The Cost of Credit
8-3a. Describe the effect of higher interest rates and longer loan terms on the total cost of a loan.	Take Control of Debt—The Cost of Credit Building Wealth Publication
8-5a. Identify the types of information contained in a credit report.	Build Credit—Understanding Credit Reports and Scores Building Wealth Publication
8-5b. Discuss how a borrower’s credit history can impact their borrowing costs.	Build Credit—Understanding Credit Reports and Scores Building Wealth Publication
12-7a. Identify the primary organizations that maintain and provide consumer credit reports.	Build Credit—Understanding Credit Reports and Scores Building Wealth Publication
12-7c. Explain how a person can get a free copy of their credit report and why this is advisable.	Build Credit—Understanding Credit Reports and Scores Building Wealth Publication
12-8a. Identify the main factors that are included in credit score calculations.	Build Credit—Understanding Credit Reports and Scores Building Wealth Publication
12-9a. Explain how landlords, potential employers and insurance companies use credit reports and credit scores in decision-making.	Build Credit—Understanding Credit Reports and Scores Building Wealth Publication
12-13b. Discuss the costs and benefits of using alternative financial services relative to traditional banking.	Take Control of Debt—The Cost of Credit Building Wealth Publication

Managing risk
Learning outcome	Corresponding lesson(s)
8-2a. Describe ways in which having insurance can protect a person from financial loss.	Save and Invest—Owning Versus Renting Building Wealth Publication
12-3a. Explain why homeowners’ insurance is required by a lender when a homeowner takes out a mortgage.	Save and Invest—Owning Versus Renting