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.
|8-1a. Identify personal goals for spending and saving.
|8-1b. Create a budget that includes expenses and savings out of a given amount of income.
|8-4a. Explain the difference between a debit card and a credit card.
|8-4b. Explain how various payment methods are used to purchase goods and services.
|12-1a. Identify their short-term and long-term financial goals.
|12-1c. Explain methods for adjusting a budget for unexpected expenses or emergencies.
|12-6c. Define key rental contract terminology, including lease term, security deposit, grace period, and eviction.
|8-3a. Compare and contrast different types of financial institutions and their products and services.
|8-3c. Explain how financial institutions get the money to pay interest to their customers who deposit money in savings accounts.
|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.
|8-5a. Explain the benefit of compound interest as compared with simple interest.
|8-5b. Demonstrate how annual interest earned increases over time when both the original principal and earned interest are left in a savings account.
|8-6a. Explain the importance of federal deposit insurance.
|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.
|12-1a. Compare the features of regular savings accounts, money market accounts and CDs.
|12-2a. Select a preferred location for a savings account based on comparison of interest rates and fees at different types of financial institutions.
|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.
|12-4c. Investigate how federal I bonds provide inflation protection for savers.
|12-6b. Compare the tax advantages of traditional and Roth IRAs.
|8-2a. Define common types of financial assets.
|8-5a. Explain the concept of investment diversification both within and among different asset classes.
|8-5b. Discuss the advantages and disadvantages of investing in a diversified stock or bond mutual fund versus individual stocks and bonds.
|8-6a. Compare rates of return on different types of investments and order them by risk.
|12-1a. Give examples of factors that can influence a person’s risk tolerance.
|12-1b. Discuss how a person’s risk tolerance influences their investment decisions.
|12-1c. Assess their personal risk tolerance using an online tool or worksheet.
|12-4b. Explain the relationship between nominal and real returns.
|12-5b. Predict what could happen to the price of a stock if new information is reported about the company or its products.
|12-6c. Suggest an appropriate asset allocation for a very risk averse person versus a very risk tolerant person.
|12-8b. Describe the advantages of investing through a taxdeferred account such as an IRA or 401(k) versus a taxable account.
|8-1a. Identify financial institutions and businesses that offer consumer credit.
|8-3a. Describe the effect of higher interest rates and longer loan terms on the total cost of a loan.
|8-5a. Identify the types of information contained in a credit report.
|8-5b. Discuss how a borrower’s credit history can impact their borrowing costs.
|12-7a. Identify the primary organizations that maintain and provide consumer credit reports.
|12-7c. Explain how a person can get a free copy of their credit report and why this is advisable.
|12-8a. Identify the main factors that are included in credit score calculations.
|12-9a. Explain how landlords, potential employers and insurance companies use credit reports and credit scores in decision-making.
|12-13b. Discuss the costs and benefits of using alternative financial services relative to traditional banking.
|8-2a. Describe ways in which having insurance can protect a person from financial loss.
|12-3a. Explain why homeowners’ insurance is required by a lender when a homeowner takes out a mortgage.