Common Planner
K–12 Standards

Financial Literacy: Grades 9-12

CAREERS, EDUCATION & INCOME

  • 1

    Identify the financial impacts of a career choice.FL.H.1

    1. a

      Examine the relationship between personal financial goals and career choiceFL.H.1.a

    2. b

      Evaluate the correlation between education, training and potential lifetime income.FL.H.1.b

    3. c

      Compare the advantages and disadvantages of being an employee versus being selfemployed.FL.H.1.c

  • 2

    Analyze how economic conditions can affect income and career opportunities (e.g. job outlook and cost of living).FL.H.2

  • 3

    Evaluate the costs of funding sources for post-secondary education and training.FL.H.3

    1. a

      Identify funding sources (e.g. loans, scholarships, grants, work-study, military) to assist in post-secondary education opportunities and applicable costsFL.H.3.a

    2. b

      Examine the process for and benefits of Free Application for Federal Student Aid (FAFSA) completion.FL.H.3.b

  • 4

    Analyze components of employment compensationFL.H.4

    1. a

      Compare compensation methods including hourly, salary and commission-based packages.FL.H.4.a

    2. b

      Evaluate benefits packages and retirement plan options and how they add value to your overall compensation.FL.H.4.b

    3. c

      Recognize that salaries and benefits may be negotiable.FL.H.4.c

  • 5

    Analyze the factors that determine net income.FL.H.5

    1. a

      Interpret a paycheck stub.FL.H.5.a

    2. b

      Differentiate between gross, net, and taxable income.FL.H.5.b

    3. c

      Define the purpose of IRS forms (e.g., W-4, I-9, W-2, and 1099).FL.H.5.c

CREDIT & DEBT

  • 6

    Develop strategies to control and manage credit and debtFL.H.6

    1. a

      Interpret the components of a credit report.FL.H.6.a

    2. b

      Investigate ways that credit scores can affect a consumer’s financial options.FL.H.6.b

    3. c

      Compare the organizations providing credit counseling servicesFL.H.6.c

    4. d

      Understand the causes of and implications of bankruptcy.FL.H.6.d

  • 7

    Analyze the costs and benefits of using credit.FL.H.7

    1. a

      Discuss the purpose and role of credit and explain the value of building and maintaining a healthy credit rating, including elements of creditworthiness: character, capacity, capital, collateral and conditionsFL.H.7.a

    2. b

      Identify the advantages and disadvantages of basic types of credit (e.g. unsecured versus. secured credit, credit cards, installment loans, revolving credit, student loans and predatory lenders).FL.H.7.b

    3. c

      Describe the risks, responsibilities and rights associated with using credit (e.g. annual percentage rate (APR), grace period, late fees, finance charges, default rates, interest and closing costs).FL.H.7.c

DECISION MAKING & MONEY MANAGEMENT

  • 8

    Identify why people make financial choicesFL.H.8

    1. a

      Evaluate the role of emotions, attitudes and behavior in making financial decisions.FL.H.8.a

    2. b

      Recognize that individuals are responsible for their own financial decisions and for subsequent positive and negative consequences.FL.H.8.b

    3. c

      Analyze the opportunity costs of short and long-term financial decisions.FL.H.8.c

  • 9

    Apply a formal decision-making model to make financial decisions, e.g., PACED: Identify the Problem, List Alternatives, Explain Criteria, Evaluate, Decide FL.H.9

  • 10

    Identify the components of a personal budgeting process:FL.H.10

    1. a

      Align goals with desired lifestyle expectations.FL.H.10.a

    2. b

      Develop a budget based on calculated income.FL.H.10.b

    3. c

      Identify and prioritize fixed, variable, and periodic expensesFL.H.10.c

    4. d

      Emphasize the importance of proactive budget priorities (e.g., pay yourself first, emergency fund, insurance and charitable contributions)FL.H.10.d

    5. e

      Compare tools for tracking of a budget, income and expenditures (e.g., the envelope system, paper tracking and online or software options)FL.H.10.e

    6. f

      Emphasize the importance of comparison shopping, buying strategies, negotiation, and sales/marketing strategies in purchasing.FL.H.10.f

    7. g

      Develop a system for maintaining personal financial documents including proper storage and disposalFL.H.10.g

  • 11

    Identify the major types of financial institutions and their products (e.g., certificate of deposit (CD), money market, checking/savings accounts) and services.FL.H.11

  • 12

    Demonstrate how to use different payment methods including checks, debit cards and digital servicesFL.H.12

  • 13

    Compare various types of financial professionals (e.g., financial planners, counselors, certified public accountants (CPA), investment consultants and insurance agents), their credentials, their compensation methods, selection criteria and possible conflicts of interest.FL.H.13

SAVING & INVESTING

  • 14

    Examine implications of the time value of moneyFL.H.14

    1. a

      Examine the opportunity costs of saving versus spendingFL.H.14.a

    2. b

      Analyze inflation and its effect on purchasing power.FL.H.14.b

    3. c

      Calculate compound interest and explain the benefits of investing early.FL.H.14.c

  • 15

    Evaluate investment alternativesFL.H.15

    1. a

      Differentiate between insured deposits and uninsured investments.FL.H.15.a

    2. b

      Compare traditional and Roth Individual Retirement Accounts (IRA)FL.H.15.b

    3. c

      Examine various types of employer-sponsored retirement opportunities.FL.H.15.c

    4. d

      Describe mutual funds, Exchange Traded Funds, stocks and bondsFL.H.15.d

  • 16

    Explain the components of a prudent investment strategy compatible with personal financial goals: Risk versus reward, Risk tolerance, Diversification, RebalancingFL.H.16

MONEY & THE ECONOMY

  • 17

    Interpret the role and function of money in societyFL.H.17

    1. a

      Explain the functions of money: medium of exchange, unit of measure, and store of valueFL.H.17.a

    2. b

      Explain how money facilitates trade, borrowing, saving, investing, and comparing the value of goods and services.FL.H.17.b

    3. c

      Explain that inflation is an increase in the overall price level that reduces the value of money.FL.H.17.c

  • 18

    Identify the role of financial intermediaries in the economy (i.e., facilitates exchange between savers and lenders).FL.H.18

  • 19

    Explain how government uses taxation to generate revenue, manage the economy and discourage/encourage certain behaviors.FL.H.19

  • 20

    Explain that markets determine prices and allocate scarce goods and services through the forces of supply and demandFL.H.20

  • 21

    Explain the role of the government in administering social insurance programs such as unemployment, workers’ compensation, Medicare, Medicaid and Old-Age, Survivors and Disability Insurance (OASDI), otherwise known as Social Security.FL.H.21

  • 22

    Identify the role of regulatory agencies (e.g.: Federal Reserve, Federal Deposit Insurance Corporation (FDIC), National Credit Union Administration (NCUA), Federal Trade Commission (FTC), Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), Internal Revenue Service (IRS), State regulatory agenciesFL.H.22

INSURANCE & RISK MANAGEMENT

  • 23

    Identify common types of risk management strategies, including insurance, legal contracts, emergency funds and estate planning.FL.H.23

  • 24

    Analyze the costs and benefits of using various insurance management strategiesFL.H.24

    1. a

      Identify the major types of insurance: liability, property and casualty (auto, motorcycle, boat, jewelry, etc.), health/dental/vision, life, homeowners/renters, disabilityFL.H.24.a

    2. b

      Explain the tax implications of insurance.FL.H.24.b

  • 25

    Identify strategies for protecting personal financial information and resourcesFL.H.25

    1. a

      Identify ways to avoid identity theft and fraud, such as securing sensitive financial data, using care in online activities and properly disposing of sensitive documents.FL.H.25.a

    2. b

      Describe steps to recover from fraud and identity theft.FL.H.25.b

    3. c

      Discuss ways to avoid financial scams such as Ponzi schemes and other illegal practices.FL.H.25.c

Frequently asked questions

What grade levels do these standards cover?
Grade 9, Grade 10, Grade 11, and Grade 12
Where can I read the official document?
Kentucky Academic Standards for Career Studies

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