Standard 1 – Discuss how saving contributes to financial well-being.

4th Grade
student can:

Describe the advantages and disadvantages of saving for a short-term goal.

Describe ways that people can cut expenses to save more of their incomes.

8th Grade
student can:

Give examples of how saving money can improve financial well-being.

Describe the advantages and disadvantages of saving for short- and medium-term goals.

Explain the value of an emergency fund.

Explain why saving is a prerequisite to investing.

12th Grade
High school graduate can:

Describe the advantages and disadvantages of saving for short-, medium-, and long-term goals.

Identify and compare saving strategies, including “paying yourself first,” using payroll deduction, and comparison shopping to spend less.

Develop a definition of wealth based on personal values, priorities, and goals.

Standard 2 - Explain how investing builds wealth and helps meet financial goals.

4th Grade
student can:

Give an example of an investment and explain how it can grow in value.

8th Grade
student can:

Apply systematic decision making to determine when to invest cash not needed for short-term spending or emergencies.

Define the time value of money and explain how small amounts of money invested regularly over time grow exponentially.

Use the Rule of 72 to estimate the time or interest rate needed to double an amount of money.

Calculate and compare simple interest and compound interest earnings and explain the benefits of a compound rate of return.

Determine the average, median, or estimated costs of a four-year college education, a wedding, a new business start-up, and the down payments on a new car and a house.

Devise a periodic investment plan for accumulating the money for a four-year college education, a wedding, a new business startup, and the down payments on a new car and a house.

12th Grade
High school graduate can:

Identify and compare strategies for investing, including participating in a company retirement plan.

Describe the effect of inflation on investment growth.

Given rate of return, and years, use a financial or online calculator to figure (a) the end value of an invested lump sum and (b) the lump sum needed to reach a specific investment goal.

Given rate of return, years, and frequency, use a financial or online calculator to figure (a) the end value of an invested periodic amount and (b) the periodic amount needed to reach a specific investment goal.

Explain the relative importance of the following sources of income in retirement: Social Security, employer retirement plans, and personal investments.

Explain why games of chance are not good investments for building wealth.

Standard 3 - Evaluate investment alternatives.

4th Grade
student can:

List the advantages of investing money with a financial institution.

Give an example of an investment that allows relatively quick and easy access to funds.

Compare the main features of interest-earning accounts at local financial institutions.

8th Grade
student can:

Explain how stocks and bonds differ as investments.

Compare investing in individual stocks and bonds with investing in stock or bond mutual funds.

Compare the investment potential of stocks, bonds, and real estate to collectibles and precious metals.

Explain how inflation affects investment returns.

Explain how to match investments to financial goals.

12th Grade
High school graduate can:

Discuss common types of investment risk.

Compare the risks and returns of various investments.

Calculate investment growth given different amounts, times, rates of return, and frequency of compounding.

Describe the benefits of a diversified investment portfolio.

Identify the appropriate types of investments to achieve the objectives of liquidity, income, and growth.

Identify the appropriate types of investments for accumulating the money for a four-year college education, a wedding, a new business startup, the down payments on a new car and a house, and retirement.

Use systematic decision making to select an investment.

Standard 4 – Describe how to buy and sell investments.

4th Grade
student can:

Compare the rates of return on basic savings accounts at different financial institutions.

8th Grade
student can:

Identify and describe various sources of investment information, including prospectuses, online resources, and financial publications.

Interpret the financial market quotations of a stock and a mutual fund.

Research and track a publicly traded stock and record daily market values between two specified dates.

12th Grade
High school graduate can:

Analyze how economic and business factors affect the market value of a stock.

Compare the investment objectives and historical rates of returns in two mutual fund prospectuses.

Compare the advantages and disadvantages of buying and selling investments through various channels, including financial advisors, investment clubs, and online brokers.

Describe the benefits of dollar-cost averaging and calculate the average cost per share of investments using this strategy.

Standard 5 - Explain how taxes affect the rate of return on investments.

4th Grade
student can:

Not Applicable

8th Grade
student can:

Identify the income tax–free earnings limit for an investor under the age of 18.

Identify the tax rate for dividends.

12th Grade
High school graduate can:

Compare the returns of taxable investments with those that are tax-exempt or tax-deferred.

Contrast the benefits of a traditional IRA versus a Roth IRA.

Describe the advantages provided by employer-sponsored retirement savings plans, including 401(k) and related plans.

Standard 6 - Investigate how agencies that regulate financial markets protect investors.

4th Grade
student can:

Not Applicable

8th Grade
student can:

Explain how deposit insurance protects investors.

12th Grade
High school graduate can:

Explain how federal and state regulators protect investors.