Download 1 TCSS ECONOMICS: Unit 5 PERSONAL FINANCE Unit Essential

TCSS ECONOMICS: Unit 5 PERSONAL FINANCE
Unit Essential Question: How do financial decisions impact producers and consumers?
TIME FRAME: 12 Days
Capstone Requirements during this Time Period (THESE DATES FALL AFTER THIS UNIT IS COMPLETED/AFTER SPRING BREAK)
April 10th – 14th
Provide class time for students to finalize Capstone Project
th
th
April 10 – May 12
Final Portfolio Submission (depending on date(s) for presentations)
Unit Resources:
I do –
We do –
You do –
Teacher notes p.93-113
Personal Finance Review Cards
Unit 5 map
Personal Finance Concepts ppt
Personal Finance Review cards ppt
Unit 5 standards questions
Per Fin ppt
Unit 5 practice assessment questions
Personal Finance Computer Games
Personal Finance WebQuest
Concept 1: Financial Institutions (2 days)
SSEPF2A: Compare services offered by different financial institutions.
Lesson Essential Question: How do banks and other financial institutions channel funds between savers and investors?
Enduring Understanding/Theme: Individuals, Groups, and Institutions
KNOW
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Savings
Lending
Loan
Borrower and Saver
Commercial bank
Credit union
Savings and loan
UNDERSTAND
 Different types of financial institutions
 Services offered by each type of financial
institution
 How banks make a profit
 Why credit unions are nonprofit
 Types of checking
 Difference between checking and savings
BE ABLE TO DO (DOK 2+)
 Explain the different types of financial
institutions
 Discern the services offered by each type of
financial institution
 Summarize how banks make a profit
 Describe why credit unions are nonprofit
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 Mortgage
 Checking
 Certificate of Deposit
 Money Market account
 Debit
 FDIC
 Liquidity
Sample Formative Assessments:
Blue Financial is a financial institution owned by its members. It offers lower loan rates and easier application processes for its members. Based SOLELY on this
information, Blue Financial is MOST LIKELY a
A. credit union.
B. commercial bank.
C. savings and loan.
D. credit card agency.
Which type of savings account has the least liquidity, but offers the highest rate of interest?
a. Standard savings
b. Certificate of deposit
c. Money market savings
d. Mutual funds
RESOURCES:
I do –
We do –
Types of financial institutions and interest --https://prezi.com/ozqmbfrvojes/types-of-financialinstitutions/
Why Should I invest posters
You do –
Financial Institutions Ticket Out the Door
Why should I invest teacher commentary
Concept 2: Interest and Credit (3 days)
SSEPF2B: Explain reasons for the spread between interest charged and interest earned.
SSEPF4A: List factors that affect credit worthiness.
SSEPF4B: Compare interest rates on loans and credit cards from different institutions.
SSEPF4C: Explain the difference between simple and compound interest rates.
Lesson Essential Question: How does interest impact decisions made by producers and consumers?
Enduring Understanding/Theme: Individuals, Groups, and Institutions
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KNOW
UNDERSTAND
 Interest
 Difference between interest charged to
consumers and interest earned by
 Simple Interest
consumers
 Compound Interest
 The reason for the spread between interest
 Credit
charged and interest earned
 Credit worthiness
 How simple and compound interest differ
 Loan
 The factors that determine credit
 Interest charged
worthiness
 Interest earned
 Difference between interest on loan and
 Variable interest rate
interest on a credit card
 APR
 Credit limit
 Credit History/Report
 Credit Score
Sample Formative Assessments:
Which factor most directly affects the amount of money borrowers must repay to lenders?
A. Inflation rate
C. Employment rate
B. Annual percentage rate
D. Currency exchange rate
BE ABLE TO DO (DOK 2+)
 Discuss the reasons for a spread between
interest charged and interest earned
 Explain the difference between simple and
compound interest
 Evaluate the determining factors of credit
worthiness
 Assess how credit history impacts credit
worthiness and credit score
 Appraise why a difference exists between
interest on a loan and interest on a credit
card.
To maximize profits, a bank will charge
A. A higher rate of interest on loans and lower interest on deposits
B. The same rate of interest for deposits and loans
C. A higher rate of interest for businesses than individuals
D. A lower rate of interest on loans and higher interest on deposits
Which factor will have the LEAST impact on whether a person gets credit or not?
A. character, how willing the person is to pay back the loan
B. compatibility, how much the loan officer likes the person
C. capacity, how able the person is to pay back the loan
D. collateral, how much the person's assets are worth
Bill is choosing between two different savings accounts. One has simple interest and the other has compound interest. If Bill is planning on saving money for a
long period of time and he wants the most return on his savings he should choose the account with
A. compound interest because it will pay interest on the original deposit plus interest earned over time.
B. simple interest because it is easier to calculate.
C. simple interest because that account will pay interest on the total amount in the account at all times.
D. compound interest because it will pay an increasing interest based on the amount of the original deposit.
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RESOURCES:
I do –
Types of financial institutions and interest --https://prezi.com/ozqmbfrvojes/types-of-financialinstitutions/
We do –
You do –
Importance of Credit (1, 2)
Interest and Credit
Calculate Interest
Credit --- https://prezi.com/sjxqurxhscdy/credit/
Credit v. Debit
Concept 3: Investments (3 days)
SSEPF1C: Create a savings or financial investment plan for a future goal.
SSEPF2C: Give examples of the direct relationship between risk and return.
SSEPF2D: Evaluate a variety of savings and investment options; include stocks, bonds, and mutual funds.
Lesson Essential Question: How can individuals use financial institutions to plan for the future?
Enduring Understanding/Theme: Individuals, Groups, and Institutions
KNOW
 Investment
 Risk and Return
 Stocks
 Bonds
 Mutual Funds
 401K
 Roth IRA
 Dividends
 Differentiation
Sample Formative Assessments:
UNDERSTAND
 The importance of investment
 The difference between investment options
 Relationship between risk and return
 How risk and return correlates to
investment choice
BE ABLE TO DO (DOK 2+)
 Investigate the risk and return for different
investment options
 Develop a plan for a future goal
 Discuss the importance of planning for
retirement
 Explain how risk and return correlate to the
various investment options
 Describe why an individual would choose
certain investments over others
When dealing with investments, as risk of losing money increases
A. more people take that risk.
C. more insurance is needed to protect the investment.
B. it is more likely the investment is short term.
D. the rate of return is usually higher.
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Loans extended for longer periods of time often involve higher interest rates because
A it compensates the lender for greater risk
B it compensates buyer for using savings to make a purchase
C it encourages consumers to buy durable goods for long periods of time
D it encourages savings
Shondelle has a large sum of money to invest. She is not concerned with a large return, but is very sensitive to risk. Which would be the best investment for her?
A. real estate
B. stock market
C. a savings account
D. checking account
RESOURCES:
I do –
Risk, Return, Investments --https://prezi.com/ogdlgkksi_c1/risk-return-andtypes-of-investments/
We do –
You do –
Samantha’s Decision
Risk and Return
Investment Match-up
Why investing is important
Start Early video
Concept 4: Insurance (2 days)
SSEPF5A: List various types of insurance such as automobile, health, life, disability, and property.
SSEPF5B: Explain the costs and benefits associated with different types of insurance; include deductibles, premiums, shared liability, and asset protection.
Lesson Essential Question: How do insurance and other risk-management strategies protect against financial loss?
Enduring Understanding/Theme: Individuals, Groups, and Institutions
KNOW
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Insurance
Automobile insurance
Comprehensive auto insurance
Collision auto insurance
Liability auto insurance
Heath Insurance
Medicare
PPO
HMO
Disability insurance
UNDERSTAND
 The different types of insurance
 The benefits and costs of insurance
 Difference between deductibles and
premiums
 Importance of shared liability and asset
protection
 Characteristics of each type of insurance
 Different insurance plans
BE ABLE TO DO (DOK 2+)
 Explain the different types of insurance
 Infer the costs and benefits associated with
insurance
 Investigate the relationship between
deductibles and premiums
 Summarize the importance of shared
liability and asset protection for the
consumer
 Decipher the specific characteristics of each
type of insurance
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 Workers Compensation
 Life Insurance
 Term life insurance
 Whole life insurance
 Property/Home insurance
 Renter’s insurance
 Deductible
 Premium
 Shared liability
 Asset protection
Sample Formative Assessments:
A woman recently took time off work while recovering from a car accident. Which insurances provided her with coverage during this process?
A. Life and health
C. Property and Life
B. Health and Disability
D. Disability and Automobile
Which is a primary benefit of all types of insurance?
A. People can be more careless.
C. Lawsuits are easier to settle.
B. It helps people share risk.
D. Insurance keeps prices low in a market
The cost you pay for your insurance coverage is called
a. Policy
B. Premium
C. Deductible
D. Coverage limit
Tommy wants to make sure that his deductible is as low as possible for his car insurance, what does this mean for his monthly premium?
a. It will be higher
b. It will be lower
c. It will be the same
d. There is no way to know
RESOURCES:
I do –
Insurance --https://prezi.com/o2li1dtlpci1/insurance/
We do –
You do –
Why insurance is important
What type of insurance do I need?
In case of emergency
What’s my coverage
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