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									          FINANCIAL PREP 101: Simple Tips for the Next Generation
Grade Level:   8-12                Subject:   Financial Literacy                   Prepared By:   Janis R. Dickey, PhD

Overview & Purpose                                                                 Education Standards Addressed

In 2008 President George Bush signed an Executive Order 13455, creating            Jump$tart Coalition® National Standards
the 16-member President’s Advisory Council on Financial Literacy, here are         in K-12 Personal Finance Education:
the objectives …                                                                   Financial Responsibility and Decision Making
“The Council asserts that any individual completing a comprehensive financial      “Overall Competence: Apply reliable
literacy program should have an understanding of the following skills and          information and systematic decision making to
concepts:                                                                          personal financial decisions.
o the capital market system and financial institutions;                            Standard 1: Take responsibility for personal
o the participant’s household cash flow situation, and how to develop and          financial decisions.
maintain positive cash flow;                                                       Standard 2: Find and evaluate financial
o how to develop a spending plan that is consistent with their resources and
                                                                                   information from a variety of sources.
o the reasons for having an emergency fund and how to establish an                 Standard 3: Summarize major consumer
emergency fund;                                                                    protection laws.
o the fundamentals of credit granting, including how to evaluate, select, and      Standard 4: Make financial decisions by
manage credit, and how to maintain a good credit rating;                           systematically considering alternatives and
o the process of deciding when to rent and when to buy a home, and the             consequences.
process of home ownership;                                                         Standard 5: Develop communication
o the process of identifying various financial risks, including development of a   strategies for discussing financial issues.
risk management strategy to decide which risks they should take on and             Standard 6: Control personal information.”
which should be transferred to an insurance provider;
o how to identify and protect themselves from identity theft and various
financial frauds, and what to know and do if they think they have been
o basic investment products, the relationship between risk and return, and the
what, when and why of choosing the best investments at the right time in their
o how to evaluate and take advantage of employee benefits and tax-
advantaged savings accounts;
o the various components of retirement planning, and how to develop an
appropriate plan for a secure retirement; and
o how to develop a plan to assure financial security in the case of unexpected
loss of income (disability or death) for those who depend on their earning
power, and to assure the smooth transfer of assets to appropriate heirs.”
(Department of the Treasury)

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