Criteria For:

Personal Finance - Level 3

Personal Finance - Level 3

Badge holder demonstrated understanding of financial concepts and skills that include: the fundamental principles of money; financial needs and goals; methods of generating income; personal financial management; financial-services providers; investment strategies; insurance; and estate planning.

Instructional Area: Business Law (BL)

Standard: Understands business's responsibility to know, abide by, and enforce laws and regulations that affect business operations and transactions

Performance Element: Explore the regulatory environment of United States’ businesses to understand the diversity of regulations.

Performance Indicators:
Discuss consumer rights (BL:139) (CS)

Instructional Area: Financial Analysis (FI)

Standard: Understands tools, strategies, and systems used to maintain, monitor, control, and plan the use of financial resources

Performance Element: Understand the fundamental principles of money needed to make financial exchanges.

Performance Indicators:
Explain forms of financial exchange (e.g., cash, credit, debit, electronic funds transfer, etc.) (FI:058) (PQ)
Identify types of currency (e.g., coins, paper money, banknotes, etc.) (FI:059) (PQ)
Describe functions of money (e.g., medium of exchange, unit of measure, store of value) (FI:060) (PQ)
Explain the time value of money (FI:062) (CS)
Explain the purposes and importance of credit (FI:002, FI LAP 2) (CS)
Explain legal responsibilities associated with financial exchanges (FI:063) (CS)

Performance Element: Analyze financial needs and goals to determine financial requirements.

Performance Indicators:
Explain the need to save and invest (FI:270, QS LAP 30) (CS)
Determine personal net worth (FI:562) (CS)
Set financial goals (FI:065, QS LAP 31) (CS)
Develop personal budget (FI:066) (CS)

Performance Element: Explore methods of generating income to achieve financial goals.

Performance Indicators:
Describe sources of income (e.g., wages/salaries, interest, rent, dividends, transfer payments, gift funds, inheritances, etc.) (FI:061) (PQ)
Discuss types of loans (e.g., mortgages, auto loans, college loans, etc.) (FI:563) (CS)
Complete loan applications (FI:625) (SP)

Performance Element: Manage personal finances to achieve financial goals.

Performance Indicators:
Explain the nature of tax liabilities (FI:067) (PQ)
Interpret a pay stub (FI:068) (PQ)
Prepare bank account documents (e.g., checks, deposit/withdrawal slips, endorsements, etc.) (FI:560) (PQ)
Maintain financial records (FI:069) (PQ)
Read and reconcile bank statements (FI:070) (PQ)
Pay bills (FI:565) (PQ)
Contest incorrect bills (FI:566) (CS)
Demonstrate the wise use of credit (FI:071) (CS)
Validate credit history (FI:072) (CS)
Protect against identity theft (FI:073) (CS)
Control debt (FI:568) (CS)
Prepare personal income tax forms (i.e., 1040 EZ form) (FI:074) (CS)

Performance Element: Understand the use of financial-services providers to aid in financial-goal achievement.

Performance Indicators:
Describe types of financial services providers (FI:075) (CS)
Discuss considerations in selecting a financial-services provider (FI:076) (CS)

Performance Element: Use investment strategies to ensure financial well-being.

Performance Indicators:
Explain types of investments (FI:077, QS LAP 32) (CS)
Discuss the nature of retirement planning (FI:569) (CS)

Performance Element: Utilize sources of securities information to make informed financial decisions.

Performance Indicators:
Describe sources of securities information (FI:274, QS LAP 36) (CS)
Interpret securities tables (FI:275, QS LAP 37) (SP)

Performance Element: Identify potential threats and opportunities to protect financial well-being.

Performance Indicators:
Describe the concept of insurance (FI:081) (CS)
Explain the nature of estate planning (FI:572) (CS)

Instructional Area: Professional Development (PD)

Standard: Understands concepts, tools, and strategies used to explore, obtain, and develop in a business career

Performance Element: Acquire self-development skills to enhance relationships and improve efficiency in the work environment.

Performance Indicators:
Maintain appropriate personal appearance (PD:002, PD LAP 5)
(PQ) Demonstrate systematic behavior (PD:009) (PQ)

Performance Element: Utilize critical-thinking skills to determine best options/outcomes.

Performance Indicators:
Make responsible financial decisions (PD:271) (CS)

Instructional Area: Selling (SE)

Standard: Understands the concepts and actions needed to determine client needs and wants and respond through planned, personalized communication that influences purchase decisions and enhances future business opportunities.

Performance Element: Acquire product knowledge to communicate product benefits and to ensure appropriateness of product for the client.

Performance Indicators:
Explain the nature of bonds (SE:428, QS LAP 33) (SP)
Explain the nature of stocks (SE:421, QS LAP 34) (SP)
Describe the nature of mutual funds (SE:429, QS LAP 35) (SP)