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Texas Essential Knowledge and Skills for Personal Financial Literacy & Economics

K–12 Standards

Personal Financial Literacy & Economics (2022): Grades 11, 12
Other Texas Social Studies sets
Economics with Emphasis on the Free Enterprise System and it's Benefits (2024)
Grade K (2022)
World Geography (2024)
Grade 1 (2022)
Grade 2 (2022)
Grade 3 (2022)
Grade 4 (2022)
Grade 5 (2022)
Grade 6 (2022)
Grade 7 (2022)
Grade 8
Grade 8 (2022)
§113.45. Psychology (2020)
§113.60. Social Studies Advanced Studies (2020)
§113.61. Economics Advanced Studies (2020)
United States Government (2022)
United States History Studies Since 1877 (2022)
World Geography Studies (2022)
World History Studies (2022)
Ethnic Studies (2020): African-American Studies
Ethnic Studies (2020): Mexican American Studies
§113.31. Economics with Emphasis on the Free Enterprise System and Its Benefits (2022)

Economics

1.
The student understands the fundamental concepts of economicsPFE.1
1. A.
  analyze how the concepts of scarcity, choice, and opportunity costs apply to decision makingPFE.1.A
2. B.
  interpret a production-possibilities curve and apply the concepts of scarcity, choice, and opportunity costsPFE.1.B
3. C.
  explain how the production-possibilities curve represents cost-benefit decision makingPFE.1.C
4. D.
  use the circular flow model to identify how households, firms, and governments interact in both resource markets and product marketsPFE.1.D
5. E.
  evaluate how prices and quantities are determined through supply and demandPFE.1.E
6. F.
  interpret a supply-and-demand graph, including equilibrium point, surpluses, and shortagesPFE.1.F
7. G.
  analyze how non-price determinants of supply and demand affect equilibrium price and equilibrium quantityPFE.1.G
8. H.
  explain how supply and demand exist in both resource and product marketsPFE.1.H
2.
The student understands that macroeconomic issues and policies have an impact on personal financePFE.2
1. A.
  identify types of progressive and regressive taxes at the local, state, and national levels and explain the economic importance of eachPFE.2.A
2. B.
  examine and evaluate the reasons for federal income taxation, Social Security taxation, Medicaid taxation, and Medicare taxation, including earnings limitations as applicablePFE.2.B
3. C.
  explain how all economic systems are mixed and exist on a spectrum between pure market and pure command systemsPFE.2.C
4. D.
  explain the benefits of the U.S. free enterprise system, including private property and incentivesPFE.2.D
5. E.
  discuss the importance of full employment, price stability, and economic growth in achieving the macroeconomic goals of the United StatesPFE.2.E
6. F.
  explain the impact of fiscal policies enacted by government decisions on interest rates, inflation, and unemploymentPFE.2.F
7. G.
  explain the impact of monetary policies enacted by the Federal Reserve System on interest rates, inflation, and unemploymentPFE.2.G

Personal financial literacy

3.
Investing in education and skills. The student recognizes the costs and benefits of various types of postsecondary education and training throughout the student's lifetimePFE.3
1. A.
  analyze the relationship between education and training and earnings throughout the student's lifetimePFE.3.A
2. B.
  investigate and evaluate the costs and benefits of various postsecondary education and training institutionsPFE.3.B
3. C.
  describe the process for completing grant and scholarship applications, including the Free Application for Federal Student Aid (FAFSA®) provided by the U.S. Department of Education or the Texas Application for State Financial Aid (TASFA)PFE.3.C
4. D.
  analyze and compare various student grant and loan options, including private and federal loansPFE.3.D
5. E.
  interpret data from a student aid reportPFE.3.E
6. F.
  research and align interests and skills with potential careers and postsecondary education to assure a life strategy that will produce employment the student enjoys with a desired standard of livingPFE.3.F
4.
Earning. The student recognizes that a variety of factors influence incomePFE.4
1. A.
  identify sources of income, including wages and salaries, profits, interest, rent, dividends, and capital gainsPFE.4.A
2. B.
  compare common employee benefits such as health insurance, sick leave, retirement plans, and other tax-favored health and dependent care plansPFE.4.B
3. C.
  differentiate among and calculate gross, net, and taxable incomePFE.4.C
4. D.
  identify factors such as educational attainment and market demand for careers that can influence the labor market and affect incomePFE.4.D
5.
Entrepreneurship. The student discusses the opportunities available for entrepreneurshipPFE.5
1. A.
  describe the role of the entrepreneur in creating businessesPFE.5.A
2. B.
  explain how an entrepreneur earns income, including through profits from the creation or ownership of businessesPFE.5.B
3. C.
  compare total compensation and additional benefits and obligations as a self-employed or independent contractor with total compensation as an employeePFE.5.C
4. D.
  discuss the resources available for entrepreneurship and the federal, state, and local agencies available to assist with or provide grants for the creation of a small businessPFE.5.D
5. E.
  analyze the risks and rewards of entrepreneurship, including those associated with starting a new business, owning a small business, and purchasing a franchisePFE.5.E
6. F.
  explain the characteristics of business organization such as sole proprietorships, partnerships, and corporationsPFE.5.F
6.
Spending. The student understands how to set personal spending goalsPFE.6
1. A.
  develop financial goals for the short, medium, and long term that are specific, measurable, attainable, realistic, and time basedPFE.6.A
2. B.
  analyze the opportunity costs of spending and saving in recognizing short-, medium-, and long-term goalsPFE.6.B
3. C.
  identify and prioritize types of purchases and charitable givingPFE.6.C
4. D.
  evaluate various forms of financial exchange such as cash, checks, credit cards, debit cards, mobile payment applications, and electronic transfersPFE.6.D
5. E.
  discuss the importance of tracking income and expenses to reconcile financial recordsPFE.6.E
6. F.
  evaluate the impact of unplanned spendingPFE.6.F
7. G.
  analyze costs and benefits of owning versus renting housingPFE.6.G
8. H.
  analyze costs and benefits of owning versus leasing a vehiclePFE.6.H
7.
Credit and debt. The student understands the costs and benefits of borrowingPFE.7
1. A.
  compare and contrast sources of credit such as banks, merchants, peer-to-peer, payday loans, and title loansPFE.7.A
2. B.
  identify the characteristics and dangers of predatory lending practicesPFE.7.B
3. C.
  compare and contrast types of credit, including revolving and installment credit, and collateralized loans versus unsecured creditPFE.7.C
4. D.
  discuss how character, capacity, and collateral can adversely or positively impact an individual's credit rating and the ability to obtain creditPFE.7.D
5. E.
  explain how to access and interpret a sample credit report and scorePFE.7.E
6. F.
  describe the importance of monitoring credit reports regularly and addressing errorsPFE.7.F
7. G.
  discuss how factors such as medical expenses, job loss, divorce, or a failed business could lead to bankruptcyPFE.7.G
8. H.
  determine and discuss if and when to use credit by considering the truth in lending disclosuresPFE.7.H
8.
Saving and investing. The student understands the importance of saving and investing in creating wealth and building assetsPFE.8
1. A.
  determine the exponential growth benefits of starting early to invest with continuous contributionsPFE.8.A
2. B.
  determine the number of years it will take for savings to double in value by using the rule of 72PFE.8.B
3. C.
  evaluate the costs and benefits of various savings options such as bank savings accounts, certificates of deposit, and money market mutual fundsPFE.8.C
4. D.
  evaluate risk and return of various investment options, including stocks, bonds, mutual funds, and exchange-traded funds (ETFs)PFE.8.D
5. E.
  evaluate the relative benefits of pre-tax and post-tax investingPFE.8.E
6. F.
  develop a short-term saving strategy to achieve a goal such as establishing and maintaining an emergency fundPFE.8.F
7. G.
  develop an intermediate-term saving and investing strategy to achieve a goal such as accumulating a down payment on a home or vehiclePFE.8.G
8. H.
  develop a long-term investing strategy to achieve a goal such as a financially secure retirementPFE.8.H
9.
Protecting and insuring. The student recognizes financial risks faced by individuals and families and identifies strategies for handling these risks to avoid potential loss of assets and earning potentialPFE.9
1. A.
  apply risk management strategies, including avoiding, reducing, retaining, and transferring riskPFE.9.A
2. B.
  define insurance terminology, including premiums, deductibles, co-pays, and policy limitsPFE.9.B
3. C.
  explain the costs and benefits of different types and sources of health insurancePFE.9.C
4. D.
  explain the costs and benefits of disability and long-term care insurancePFE.9.D
5. E.
  explain the costs and benefits of life insurance, including term insurance and whole life insurancePFE.9.E
6. F.
  explain the costs and benefits of property insurance, including homeowner's and renter's insurancePFE.9.F
7. G.
  explain the costs and benefits of automobile insurance and factors that impact the price of insurance, including the type of vehicle, age and sex of driver, driving record, deductible, and geographic locationPFE.9.G
8. H.
  identify ways to reduce risk of identity theft and protect personal informationPFE.9.H
9. I.
  describe and identify examples of common schemes and scams such as Ponzi schemes and pyramid, phishing, check cashing, and home renovation scamsPFE.9.I
10. J.
  explain how consumer protection agencies protect consumers against fraudPFE.9.J
11. K.
  explain the importance of estate planning, including guardianship of minor children, wills, beneficiary designation, power of attorney, living will, and medical directivesPFE.9.K

Personal financial literacy skills

10.
The student understands how to set personal financial goalsPFE.10
A.
use problem-solving and decision-making processes to identify a problem, gather information, list and consider options, consider advantages and disadvantages, choose and implement a solution, and evaluate the effectiveness of the solutionPFE.10.A
B.
develop a budget that addresses short-, medium-, and long-term financial goalsPFE.10.B
C.
explain why earning income, spending, credit, debt, saving and investing, and protecting and insuring are important parts of a comprehensive financial plan and develop a plan that incorporates these componentsPFE.10.C

Frequently asked questions

What grade levels do these standards cover?: Grade 11 and Grade 12
When were these standards adopted?: 2022
Where can I read the official document?: Texas Essential Knowledge and Skills for Personal Financial Literacy & Economics

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