Missouri
9th-12th Grades
State Standards
Personal Finance Course Level Expectations
IFinancial Decision Making: Choice is the central principle of individuals, businesses and government. People make many choices every day in markets where buyers and sellers interact. Every decision incurs an opportunity cost.
Concept 1Unlimited Wants and Limited Resources
AEvaluate the role of choice in decision making.
BApply a rational decision-making process to satisfy wants.
Concept 2Choice and Decision Making
AExplain how today's choices have future consequences.
BExplain the causal relationship between choice and opportunity cost.
CAnalyze how choices can result in unintended consequences.
IIEarning Income: For most people, income is determined by the market value of their labor paid as wages and salaries. People can increase their income and job opportunities through education, skill building and work experience.
Concept 1Career Choices and Consequences
AEvaluate how career choices impact income and quality of life.
BAnalyze the relationship between education, skill development and earning potential.
CDescribe how wages and salaries are determined in labor markets.
DAnalyze how changes in economic conditions and labor markets can cause changes in a person's income or employment status.
EDescribe how entrepreneurs see problems as opportunities for creating new or innovative goods or services.
Concept 2Forms of Compensation
AExamine how workers are paid through wages, salaries and commissions.
BAnalyze why benefits such as health insurance, retirement plans and flexible scheduling are considered forms of compensation.
CIdentify sources for earning income in addition to wages—e.g., rent, interest, dividends, profits and capital gains.
Concept 3Taxes and Other Deductions
ACompare gross and net income.
BExplain the purpose of standard deductions such as income taxes, Social Security (FICA), Medicare, and deductions for health care and retirement savings plans.
CExplain how taxes provide public goods and services.
IIIBuying Goods and Services: People choose which goods and services to buy. Informed decisions involve collecting information, planning and budgeting.
Concept 1Creating a Budget
ADifferentiate between income and expenses.
BAnalyze spending habits to recognize current spending and saving trends.
CCreate a budget that includes savings goals, emergency funds, fixed expenses and variable expenses.
DExplain how budgeting for charitable giving may have tax benefits.
EPrioritize expenses and payment due dates.
Concept 2Purchasing Items of High Value
AConduct research on product options to plan future purchases such as a phone, car, home or vacation.
BEvaluate product information for price, quality, service and features.
CDescribe effective responses to deceptive or fraudulent sales practices.
DIdentify payment methods.
EAnalyze the costs and benefits of different payment options.
Concept 3Considering Alternative Goods and Services
AEvaluate substitutes when the price of goods or services exceeds your budget.
BCompare the features, durability and maintenance costs of goods.
Concept 4Selecting Financial Institutions
ACompare the services, service fees and requirements of various institutions such as banks, savings and loans, credit unions and virtual banks.
BCalculate an account balance by recording deposits, withdrawals and debit transactions.
CAnalyze the costs and benefits of using or not using financial institutions and virtual exchanges.
DExplain the importance of FDIC, NCUA and other security regulations to protect one's wealth in financial institutions.
IVSaving: Saving is the part of income that people choose to set aside for future consumption or investment. Time, interest rates and inflation affect the value of savings.
Concept 1Reasons for Saving
AIdentify short, medium and long-term savings goals including large-value purchases, postsecondary education/training and retirement.
BDevelop a savings plan.
CExplain the importance of a rainy-day fund for unexpected expenses.
DCompare retirement savings options.
Concept 2Interest on Savings
ACompare simple and compound interest.
BUse the Rule of 72 to estimate how long it takes money to double.
CExplain how the time value of money influences financial decision-making.
Concept 3Saving Instruments
AIdentify saving instruments such as certificates of deposit and savings accounts.
BCompare the liquidity, interest payment or penalty of various savings instruments.
VUsing Credit: Credit allows people to purchase goods and services now and repay those costs in the future. Lenders approve or deny credit based on the borrower's creditworthiness.
Concept 1Facets of Credit
AAnalyze the difference between a credit and a debit account.
BCompare sources of consumer credit such as credit cards, consumer loans, rent-to-own contracts, title loans and payday loans.
CEvaluate the options for financing higher education.
DAnalyze various terms and conditions of credit cards and consumer loans.
EExplain the purpose, functions and costs of a mortgage.
Concept 2Interest on Credit
ACompare the cost of credit between financial institutions based on Annual Percentage Rate (APR), fees and penalties.
BCalculate the total purchase price of a good or service including interest paid.
CExplain the relationship between risk and interest, including creditworthiness and down payment.
DDifferentiate between secured and unsecured loans.
Concept 3Credit Worthiness
AEvaluate factors that affect creditworthiness including paying on time and payment history.
BExplain the purpose and components of credit records and credit history as provided by credit bureaus.
CIdentify ways to avoid and/or correct credit problems.
DAnalyze why credit scores may be used by entities such as employers, landlords and insurance companies.
EEvaluate a credit report to verify accuracy.
FExplain the importance of annually verifying one's credit report.
GExplain the value of consumer credit protection laws.
HExplain responsibilities associated with the use of credit.
VIProtecting and Insuring: People make choices to protect themselves against financial loss. They can accept risk, reduce risk or transfer risk through insurance.
Concept 1Protecting Against Financial Risk by Insuring
AAnalyze the personal financial risks that can occur when unexpected events damage health, home, property, wealth or future opportunities.
BExplain how and why insurance companies create policies and determine premiums.
CAnalyze factors people use to choose insurance coverage.
DExplain how personal behavior and risk impact insurance premiums.
EAnalyze health-insurance options to fund medical costs and preventive care.
Concept 2Protecting Personal Identity
AAnalyze federal and state regulations that provide remedies and assistance for identity theft.
BAnalyze how individuals can protect themselves from misuse of personal information and from identity theft online.
CDiscuss current ways to counter cyber-attacks and protect personal information.
VIIFinancial Investing: Financial investment is the purchase of financial assets to build wealth. Investments with higher potential returns tend to carry greater risk.
Concept 1Investment Instruments
ACompare various financial assets for their risk and rewards, such as stocks, bonds, mutual funds, real estate and commodities.
BExplain the impact of capital gains, dividends, risk and stock value on corporate stock ownership.
CExplain how the price of a financial asset is determined by the interaction of buyers and sellers in a financial market.
Concept 2Relationship Between Risk and Reward
AExplain how the rate of return earned from investments will vary according to the amount of risk.
BExplain how the rates of return on financial assets are influenced by buyers and sellers in financial markets.
CExplain why an investment with greater risk, such as a penny stock, may have a lower market price but an uncertain rate of return.
DExplain the risks and rewards of short-term and long-term investments.
EDescribe how diversification can lower investment risk.