Personal Finance Course Syllabus

 

This is a 1 semester class

Required Text:Managing Your Personal Finances, Joan S. Ryan, Thompson/Southwestern, 5th edition 2006, ISBN 0-538-44175-5

 

Goal 1: Income

1.1. Interpret factors affecting income
Compare career choices and potential income
Education requirements/training
Financing post high school academics/training

1.2Critique employer benefits packages
Savings plan
Retirement
Insurance
Leave (vacation, sick, etc.)
Stock purchase
Educational reimbursement
Incentive plans
Cafeteria plan

1.3Demonstrate an understanding of inflation and the effect on purchasing power Cost and availability of goods Effect of cost on availability of and demand for goods Inflationís affect on the value of money

1.4 Examine the components of paying taxesDifferent types of taxes (Federal, State, County, City)†† Personal and employer tax responsibilitiesVarious documents for reporting taxes (W-2, W-4, 1040, 1040-EZ, etc.)

1.5†† Analyze the costs and benefits of paying taxes

Cost of government services (Police and fire protection, schools, roads, Social Security, AFDC, etc.)

Goal 2: Money Management

2.1†† Apply a decision making process to personal financial choices

2.2†† Design a personal financial plan Budget income for spending and saving Short-term components Budget for food, entertainment, clothing, personal transportation, etc. Long-term components Estate planning, wills, disability insurance, education, long-term care

2.3†† Create a realistic household budget

Items to consider: housing, utilities, transportation, food, clothing, education, applicable expenses of work, entertainment, insurance, long-term expenses, savings, investments, taxes, etc.

2.4Understand banking procedures and services
Opening a checking and a savings account
Maintaining checking accounts
Reconciling a bank statement
Balancing checking and savings accounts
Bank service fees
Payment methods
Debit and ATM cards
Loans

2.5 Analyze personal risk management
Insurance
Health
Life
Homeowners
Auto
Renters
Disability
Salary indemnity

Goal 3: Spending & Credit

3.1 Demonstrate knowledge of basic principles of consumer finance
Comparison shopping
Purchasing
Goods/ Services
Consumer loans/credit
Opportunity cost
Consequences of purchasing choices

3.2Demonstrate awareness of consumer protection and information
Laws and regulations
Crimes against consumers
Fraud
Loan Sharking
Identify theft
Scams
Consumer Protections Identify protection Credit reporting services (Equifax, Trans Union, Experian, etc.)

Legal Documents
Contracts
Service
Employment
Personal
Insurance policies
Rental/ Lease

3.3 Analyze consumer debt management
Credit card use and abuse
Credit costs (interest [including APR], penalties, fees, etc.)
Loan consolidation (benefits and disadvantages)
Credit Counseling
Credit problems including bankruptcy, foreclosure, repossession, surrender of collateral (turn back), delinquency, garnishment, effect on employment and purchase of insurance, etc.

3.4. Examine various forms of credit payment
Installment
Bank draft
Lay Away
Electronic (Internet, debit card, wire transfer)

3.5†† Compare/contrast various types of loans
Mortgage
Balloon
Installment
Education/Training
Check cashing businesses
Personal
Secured and unsecured
Line of credit
Equity
Credit union

Goal 4: Saving & Investing

4.1†† Identify reasons for saving & investing
Education
Emergencies/ rainy day
Personal goals
Short term

Long term
Retirement
Down payment

4.2 Evaluate methods of saving
Certificates of Deposit
Interest bearing savings account (Passbook savings)
Individual Retirement Account (IRA)
Pension plans (401K, annuities, etc.)
Credit Unions
Piggy bank

4.3. Evaluate methods of investing
Stocks and bonds
Mutual funds
Real estate
Annuities
Business

4.4 Appraise other aspects of saving and investing Diversification Time value of money Compound growth/ Accrued interest Rule of 72 (divide interest rate into 72 to determine number of years in which money will double)
Risk and return

4.5Identify regulatory agencies and their functions
Federal Deposit Insurance Corporation (FDIC)
Federal Savings and Loan Insurance Corporation (FSLIC)
Securities Exchange Commission (SEC)
Federal Reserve
Internal Revenue Service (IRS)

 

Course Supplies:WebCT; Microsoft PowerPoint; Microsoft Word; Computer Headphones or Speakers