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CREDIT & DEBT: Summarize factors that affect a particular credit scoring system.

1. Payment History: 35% - Late payments? - How late? - Bankruptcies, wage garnishments, liens? - Timing? 5 payments 5 years ago vs. 1 big payment recently. 2. Amount Owed: 30% - FICO scoring considers your credit utilization ratio, which measures how much debt you have compared to your available credit limits. A good rule of thumb is not to exceed 30% of the credit limit on a credit card. - How much do you owe in total? 3. Length of Credit History: 15% A short credit history leaves you as an unknown risk to lenders, which they may often not want to take. 4. New Credit: 10% Hard Inquiries (how many new accounts you have). People tend to open new accounts when they are experiencing cash flow problems. 5. Types of Credit in Use: 10% Mix of different types of credit, such as credit cards, store accounts, installment loans, and mortgages. Counterintuitive, but more types is generally better. It tells lenders how well you can juggle multiple credit accounts.

FINANCIAL DECISION MAKING: Outline the steps to resolve an employee issue with an employer.

1. Talk to Your Employer In many cases, your first step should be talking to your employer. An intelligent discussion can resolve most problems or, at least, get your differences out on the table. Most companies want to stay within the law and avoid legal tangles. Unless you work for a truly uncaring and antagonistic employer, your situation is most likely the result of an oversight, a misunderstanding, or a lack of legal knowledge. Here are a few tips on how to present your concerns to your employer: Know your rights. The more you know about your rights going into the conversation, the more confident you will be in presenting your problem. And, if your company is violating the law out of ignorance or by accident, you can point out what's going wrong. Stick to the facts. write a brief summary of the problem and your recommendation for resolving it. Review your records to make sure your recollection of dates, figures, and events is accurate. Don't be overly emotional. Practice your presentation ahead of time to make sure you can remain professional and calm. Be discreet. Discussions of workplace issues should take place in private, otherwise you could be accused of poisoning the work environment. Ask for an appointment to discuss your concerns privately with a supervisor or manager. Decide the next steps. Before finishing your discussion with your employer, come to some agreement about next steps. Follow up. Once you have spoken to your employer, make sure to stay in touch. If your employer promised to investigate the matter or talk to other employees, check back to find out the status of those actions. After a few weeks have passed, schedule another meeting to discuss what progress has been made in resolving your problem -- and what still needs to be done. 2. Document the Problem In addition to talking things through with your employer, protect yourself by documenting the problem. Take notes of key conversations and events, including the time, date, and names of others who were present. Gather documents that might support your side of the story, such as company policies, offer letters, performance reviews, memoranda, emails and other correspondence, and employee handbooks. If your coworkers saw or heard any of the incidents that contributed to the problem (such as a verbal performance review, a harassing comment, or a search of your workspace), ask them to write down what they saw and heard in signed, dated statements. 3. Consider Legal Action If your employer doesn't seem to be taking your complaint seriously, or you are demoted or fired, consider whether to take legal action. In making this decision, you'll need to take a close look at your motives, your evidence, and your willingness to spend the time and money that legal action requires. Consider the results you want, how strong your case is, and whether you can afford to spend on a lawsuit.

EMPLOYMENT & INCOME: Describe the risks, costs, and rewards of starting a business.

Being a business owner, or entrepreneur, comes with both rewards and risks. Starting and sustaining a business has many risks and there is no guarantee those risks will pay off. Business start-ups incur both monetary and non-monetary costs. - considerable amounts of your own money into the businesses, and sacrifice profits during the start-up phase. - considerable amounts of hard work and time. - the product your selling can become obsolete. - they forgo safer career options with guaranteed pay and benefits. - there is a lot of anxiety associated with not knowing where your next paycheck comes from, which can cause family and personal problems. However, the rewards of starting a business can be immense. An entrepreneur can gain financial stability and wealth if their business takes off. They also gain the intrinsic reward of being their own boss and building something from the ground up.

RISK & INSURANCE: Explain the purpose of long-term care insurance.

Long-term care insurance refers to financial assistance to help people with chronic illnesses, disabilities. It provides assistance that can range from assistance with daily activities to skilled care provided by healthcare professionals. Most employer-based health and disability coverage plans will not pay for daily, extended care services, so long-term care insurance is needed to cover these costs. Medicare will cover short nursing home stays and a limited amount of at-home care.

SPENDING & SAVING: Reconcile a checking account.

Reconciliation is an item by item examination of two related sets of figures obtained from different sources. It is important to track and record every transaction when you write a check, use a debit card, or use an ATM. This way, you have a personal record of transactions. To reconcile your checking account, you must compare your bank statement with your hand-recorded entries in your checkbook. Compare the debits (decreases) with the credits (increases) across the account statement and the checkbook. It is important to check that you were not charged twice, your checks went through correctly, and your account balance is accurate.

FINANCIAL DECISION MAKING: Demonstrate how to negotiate a fee for services such as babysitting or lawn care.

Talking about money is awkward and stressful for most people. If you price yourself too high, you might miss out on some jobs. But if you charge too little, you're selling yourself short and could miss out on capital that people would've been willing to pay you. Average Rate Do some research upfront to find the average rate in your area, decide on a minimum amount that you're willing to accept. Is There A Minimum Wage ? Usually not but be aware of the going rate in your neighborhood. It's usually between $10-20/hour depending on your experience and the work involved. Should You Charge By The Hour Or A Flat Fee? In almost all cases, I find that babysitters are better off to charge by the hour instead of a flat fee per babysitting session. The one exception might be if you're babysitting overnight. Your flat fee will also take the time you spend sleeping into account. Lawn Care fees will depend on the size and condition of the yard. Figure out your minimum and also have a range in your mind: This will depend on your situation but could also take into consideration the location of the job - can you walk there ? or if there are any other benefits, for example they will organize a meal for you or its an ongoing fixed job. Practice what you're going to say beforehand. Be sure to mention your qualifications and experience to justify your rate. Don't Sabotage Yourself In interviews, it's easy to sabotage yourself. Especially if you really want the job or you're a natural people-pleasing person. If you say "my rate is $15 per hour" and you're met with silence, the reaction of most people is to try to fill the silence by any means possible. The parent you're talking to might just need a few seconds to think it over, but in the meantime, you might blurt out "but I can probably do $12 per hour if that works better for you!" You just gave yourself a pay cut. Being comfortable with silence is a powerful negotiation tactic. Once you're aware of it, you can use it to work for you instead of against you. If parents give you an unfavorable rate, pause and think about it for a few seconds. See if they'll get awkward and offer you a higher rate just to fill the silence. Sometimes silence can say more in a negotiation than you ever could because it gets people negotiating against themselves! Don't cave into something you don't really want Also, avoid changing your initial requirements. If you go into a babysitting interview and you've told the parents that you can only babysit for 12 hours per week and they say they want you to babysit for 20 hours per week, don't change your position. Just repeat your original information that you can only work with them for up to 12 hours. You can always ask for more time You don't expect parents to hire you on the spot in an interview. They may have other people they want to interview before they make a decision. That courtesy should work both ways. If you need more time to make a decision, don't be afraid to say so. Just let them know that it's a big decision and you want to take a day or two to think about it before you get back to them. You want to be firm, but not rude. It can be a fine balance. Keep things professional and do your best to avoid getting upset.

EMPLOYMENT & INCOME: Give an example of a situation that qualifies for a government transfer payment.

Transfer payments commonly refer to efforts by local, state, and federal governments to redistribute money to those in need. The U.S Social Security and unemployment insurance are the most common types of transfer payments: 1) Social Security provides monthly cheques to retirees and disabled workers and their families and families of deceased workers. 2) Unemployment insurance is a state-provided insurance that pays money to individuals on a weekly basis when they lose their job due to a lack of available work and at no fault of their own. Those who either quit their jobs or were fired for a just cause are not eligible for UI.

RISK & INSURANCE: Categorize the kinds of expenses that health insurance can cover.

- Emergency services - Hospitalization - Pregnancy, maternity, and newborn care - Mental health and substance use disorder services - Prescription drugs - Rehabilitative services

EMPLOYMENT & INCOME: Identify individuals who could provide positive job references.

- Recent Bosses: Current or previous employers can speak best about your work ethic. - Coworker who is familiar with your work - Professors, if they know you and perhaps have some linkage to your career interest - Business contacts, clients, customers or vendors if youre already in a similar job. Only ask people who you think had a good experience with you, watched you work hard so they can talk to your strengths and character. Make sure you give them enough notice and they have the time to write a proper reference. In addition to professional references, personal references or character references can be used for employment purposes. A personal reference is one that speaks not to your employment abilities, but to your character. People like parents and friends can be listed for these.

INVESTING: Discuss the potential benefits of a long-term investing strategy.

1) Power of compounding: compound interest rewards people who invest over long periods of time, not necessarily those who can afford to invest the most. This is because you earn interest not only on your principal but also on your interest income enabling you to grow your money exponentially. It's specifically helpful for young people who start investing early. 2) Lower taxes - tax rates on short term gains from investments are higher than long term gains. 3) Lower investment risk - investing over the long run smoothes out market returns and lowers volatility and risk. 4) Lower overall transaction fees because of less transactions. It is easier to follow and less stressful than day trading.

INVESTING: Devise an evaluation strategy for selecting investments that meet the objectives of a personal financial plan.

A person's investment strategy is based on their: - Age and time horizon - Individual Goals - Risk tolerance - Disposable Income Investing is crucial to build money and save for retirement; consideration of all these factors is necessary to invest wisely.

SPENDING & SAVING: Investigate a private charitable organization and its purpose.

A private foundation, like a public charity or public foundation, is dedicated to carrying out a charitable mission. However, a private foundation is different from a public charity because, instead of receiving public support, it is funded and controlled by an individual, family, or corporation.

EMPLOYMENT & INCOME: Compare the education and training requirements, income potential and primary duties of at least two jobs of interest.

An Emergency Medical Technician ("EMT"), whose educational attainment is typically a 2 year non degree credential, earns an average annual wage of $30,700. On the other hand the average salary of a Doctor in the United States is $288,000 per annum. However it takes 12 years to become a Doctor - 4 yrs bachelors degree, 4 years of medical school and 4 years of residency training and in some cases a further fellowship after that. Doctors and EMTs do similar work, although doctors are qualified to do significantly more. EMT's assess injuries, administer emergency medical care, and extricate trapped individuals. The primary duties of a physician include providing patients with medical care services, referring patients to specialists, analyzing medical tests, and diagnosing conditions of patients and propose treatment options.

FINANCIAL DECISION MAKING: Prioritize personal financial goals.

At one end of the spectrum are immediate financial commitments like paying for groceries and next month's rent or mortgage. At the other are long-term financial goals like retirement, which is years' away. In between are wants and needs like homes, cars, vacations, dining out, medical procedures and education costs. When you have a finite amount of money — as most people do — achieving your financial goals takes planning. Here's some questions to ask to determine how to prioritize your goals. Are you in danger of losing your car or home? If so, making those payments should be your first priority even if it means defaulting on unsecured debts like credit cards. After all, the latter can always be discharged in bankruptcy if necessary while still keeping your car and home. On the other hand, losing your car can make it difficult to get to work while losing your home can leave you...homeless. Do you have adequate insurance coverage? This includes health, property and casualty (auto and home), and disability insurance. If you have dependents, life insurance is essential. It may be tempting to procrastinate getting insurance, but you never know when you'll need it and by the time you do, it will be too late to purchase. Do you have enough emergency savings? Not every emergency is covered by insurance. Ideally, you'll want enough savings to cover the basic necessities for at least 3-6 months. If you're starting from scratch, aim for $1-2k and build from there over time. This money should be kept somewhere safe and accessible like a savings account or money market fund, not invested in something that could lose value when you need it. Are you on track for retirement? Calculate how much you need to save to get on track and make that your next priority. Many people are tempted to focus on saving for college since that typically comes earlier, but keep in mind that there's no financial aid for retirement, while there is for college. Are you getting the full match in your employer's retirement account? Once you have enough emergency savings, this is the first place to invest. Where else are you going to get a guaranteed 50% or 100% return on your money? In fact, the benefit is so compelling that you might want to contribute to oit after saving $1000 in your emergency funds and before building the 3-6 months of loving expenses. Do you have high-interest debt? The general rule of thumb is to pay off any debts with interest rates above 4-6% before investing beyond your employer's match. That's because when you pay down debt, you're essentially getting a guaranteed, tax-free return equal to the interest on that debt. No investment is likely to beat paying a credit card balance at 19% interest. Are you planning to buy a home? If so, you might want to start saving for the down payment and other costs once you've paid off that high-interest debt (which will also improve your ability to buy a home by boosting your credit score and reducing your debt-to-income ratio). Owning a home can also help with retirement. At the very least, you won't have a housing payment once the mortgage is paid off. You can also use the equity to generate retirement income by taking a reverse mortgage or downsizing. Do you have upcoming education expenses? The availability of student loans and other forms of financial aid can help achieve these goals. And there are tax saving tools such as 529 plans that might be very beneficial to start at a young age, if everything else is covered. It can be a great benefit to your children or grandchildren. Of course, this is just a guideline. Your priorities will depend a lot on your particular situation, goals, and values. Goal 1. Set aside $1000 to cover emergencies The gold standard of emergency funds is to save up enough money to cover three to six months' worth of living expenses, so that a layoff or an injury won't land you in a deep debt hole. If that's not easily attainable you must have $1000 as a starting point, which would at least help with an unexpected car repair or vet bill. Where should you keep your emergency fund? Someplace safe (FDIC insured), liquid (as in easily accessible via withdrawal or funds transfer in case of, you know, an emergency), and where it might even earn a little interest. A high-yield savings account at an online bank meets all of these criteria. Goal 2. Contribute to your 401(k) If you have an employer-sponsored retirement plan — such as a 401(k) or 403(b) (the version for nonprofit and public service employees) — and your company matches any portion of your contributions. contribute at least enough money to get all the matching funds your company offers. Goal 3. Pay down high-interest-rate debt If you carry a balance on your credit card and pay an interest rate at or above the high single digits, you'll save more in interest by paying that off than you stand to earn through investing

INVESTING: Compare total fees for buying, owning and selling various types of stocks, bonds, mutual funds and exchange-traded funds.

Expense Ratio (an ongoing expense for the cost of owning an investment): - Mutual Funds (% of total funds) - ETFs (lower than mutual funds) Commision (one-time cost of buying and selling): - Stocks (paid to broker) - Bonds (paid to broker) - Mutual Funds - ETFs

EMPLOYMENT & INCOME: Differentiate between gross, net and taxable income.

Gross Income Your gross income is the total of all earnings and income for the year, such as salary, wages, earnings from investments, commissions, and bonuses. Taxable Income Your taxable income is the portion of your income that the IRS deems subject to taxes. This differs from your gross income by allowable deductions, exemptions, and other subtractions you are eligible for based on IRS tax rules. Contributions to certain investments such as 401K and IRA retirement accounts, 529 College Savings Plans, and Health Savings Accounts will also be subtracted from your taxable income, meaning they will not be taxed when you contribute. Net Income This refers to your total amount of income made after taxes and other deductions have been subtracted from the wages.

FINANCIAL DECISION MAKING: Recommend ways to use social media safely.

Lock Down Privacy Settings Check the settings in your social accounts to make sure your phone number and email addresses are hidden from public view. Consider adjusting privacy settings to make your posts visible only to friends or friends of friends, rather than making them public. Use Text Messaging to Prevent Unauthorized Logins Consider requiring each platform to use text messaging to confirm your identity when you log in on a new device. This process, known as two factor authentication or login verification, can keep your accounts secure even if your username and password are stolen. Be Discreet About Your Whereabouts Take care to avoid sharing your street address, which can help thieves target your home. Also, be careful about broadcasting when you're traveling for extended periods when your vacant home could become a target. Bear in mind that you can disclose this information inadvertently, without typing a thing, if you allow your posts or images to be tagged with your location. To prevent that, you can disable location tagging. Avoid (and Report) Duplicate Friend Requests If you receive a request to connect with someone you know, but who you thought was already a friend or follower, double-check your friends-list before accepting the invitation. If the sender is already on your list, chances are good their account has been hacked. Scammers use bogus accounts cloned from real users to collect "friends," and rely on these "mutual friends" to extend their fake networks. The fake account may use photos from your friend's real account to trick you as well. Don't Use Social Credentials to Sign Into Third-Party Sites Many third-party websites give you the option of registering using Facebook, Google or Twitter credentials instead of setting up new usernames and passwords. These shortcuts are tempting, especially when you're eager to place an order or join a discussion, but think twice. By using this option, you may be giving the new site more information than you need to. Worse, if someone hijacks your social login information, they can gain access to these third-party accounts as well. If you've enabled access to third party sites in Facebook, you can review the sites that are logged in automatically by clicking "Apps" on the left side of the Settings page. Avoid Quizzes and Games That Require Access to Profile Information "Fun" quizzes that promise to spot your perfect mate, assemble a bank-heist team, or test your hometown loyalty are often just information-siphoning schemes. While assuring you they won't post to your feed without permission, they woo you into surrendering your profile info and friends. They can use this info to build lists for spammers. Handle Passwords With Care Don't store passwords in your web browser because if your phone or laptop is stolen, saved passwords can provide access to social accounts, shopping sites, and your email—all of which likely contain loads of information an identity thief could use. Another alternative is to password protect your computer. - Switch up your social media passwords immediately if there's a chance you're the victim of a data breach or if you determine your personal information is on the dark web. Use different passwords for each account site, and make sure they're strong. - Ditch the sticky notes and index cards and upgrade to a better password management system. There are many helpful (and free) password manager that encrypt and store all passwords and lets you enter and submit them with a click. Consider Identity Theft Protection If you're concerned that your personal data may have been compromised, consider using an identity-theft protection product to alert you to instances of abuse.

FINANCIAL DECISION MAKING: Demonstrate how to negotiate the sales price of a major purchase such as a car or a motorcycle.

New cars are at a premium in 2022 due to delays in manufacturing, sending the value of used cars sky-rocketing by some 30 percent in just a year. With that in mind it's important to get the most value possible and the lowest price you can. Here are some important tips to negotiate a major purchase like a car: Research Is Key In order to decide at what price to start negotiating, car buyers need to obtain market price benchmarks for the make and model they are interested in. Typically, Edmunds or the Kelly Blue Book price ranges are acceptable for used cars and can be used to obtain some benchmarks. The other is to obtain the manufacturer's suggested retail price or MSRP to get a benchmark. If the advertised price is higher than these values, print out listings for similar models to show the seller. Call many dealerships and brokerages to check prices on the car you're interested in. This will enable you to make a counteroffer to the dealership you're negotiating with, as you can always buy from another dealership even if it's located far away. Timing Car dealerships selling new cars also have sales targets to hit. These are usually set on a monthly basis, so approaching a showroom toward the end of the month can increase your chances of achieving a good price. This is particularly true of financial year end - March when large discounts on car models can be seen. Remember also to check specialist car news and reviews websites to see if a model is about to be replaced. It can be a good reason to expect a significant discount, because the arrival of a shiny new model will inevitably force down the value of the models prior to it. Extras If the dealership doesn't want to shift the price, they might be more open to throw in some optional extras instead, such as car insurance or even just a tank of fuel. Sometimes the dealership may throw in 0% car financing deals. If so, that might save you significant amounts of interest on an auto loan you would have otherwise taken. Make sure to read all the fine print to ascertain that there are no hidden charges and it is indeed 0%. Be Polite The trick here is to let the seller know you are a serious buyer without revealing your maximum budget, remaining polite, firm at the same time Be Realistic If you make a silly offer just for the sake of starting the bidding low, it is quite possible the seller won't take the negotiation process seriously.It is also good practice to be able to explain why you are asking that money be knocked off the price. For eg. note any scratched alloy wheels, damaged paintwork, or scuffed interior trim." Arrange your financing early - Showing up to negotiations with pre-approved financing gives you the upper hand in negotiations and helps you avoid unnecessary add-ons and extra fees. Be Prepared to Walk Away Finally, it's always worth remembering that another car will always come along. If you can't agree on a price that is right for both buyer and seller, it is absolutely fine to walk away.

SPENDING & SAVINGL Develop a system for organizing personal financial records, both paper and electronic.

Proper record keeping is essential to enable you to file your taxes each year. It's crucial to retain receipts to show how much you paid for property and investments, as well as to prove when the purchases were made. It's nearly impossible to get a loan without disclosing records of your income and spending. The best way to do so is by arranging a set time to organize financial records and keeping them all in one place in your house.

RISK & INSURANCE: Give examples of how people manage the risk of financial loss through avoidance, acceptance, control and reduction and transfer through insurance.

Risk Avoidance is a method for mitigating risk by not participating in activities that may incur injury, sickness, or death. Accepting risk is a conscious strategy of acknowledging the possibility for small or infrequent risks without taking steps to insure or avoid those risks. Self-insurance is a form of risk acceptance. Control and Reduction is a method of risk management that attempts to minimize the loss, rather than completely eliminate it. While accepting the risk, it stays focused on keeping the loss contained and preventing it from spreading. Transferring Risk through insurance refers to insurance companies assuming the financial risk in exchange for a fee known as a premium.

RISK & INSURANCE: Describe the functions of the agency or agencies that regulate insurance in one's state of residence.

The National Association of Insurance Commissioners (NAIC) is the U.S. regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices and coordinate their regulatory oversight. As I mentioned, each state also has its own Insurance Regulator. State insurance regulators are part of the NAIC and aim to protect policyholders through regulation of the insurance marketplace. Through the marketplace, individuals can find insurance information, regulations, and forms, and agents can apply for a license.

FINANCIAL DECISION MAKING: Determine the cost of achieving a financial goal.

The first step in researching the cost of achieving a goal is to research the major costs associated with the goal. Beyond the major costs, ancillary costs are all the additional expenses which get added on along the way. Many people overlook these ancillary costs when goal setting or dismiss them as insignificant. For example, buying a house may cost a certain amount - the market value of the home. But there are also costs associated with buying furniture, and refurbishments, repairs, and upgrades to the house. In order to avoid these surprises, start by talking with friends and family who have recently achieved the goal you want to achieve. If you are close enough with them, ask to see copies of the paperwork associated with the goal. These documents can provide you with valuable insights into the costs associated with your goal. Whether you know people who have recently achieved the goal or not, you can find help from experts. This is where a competent financial adviser can also be valuable.

CREDIT & DEBT: Calculate the total cost of repaying a loan under various rates of interest and over different periods.

The total cost of repaying a loan is dependent on the rate of interest charged, the compounding frequency as well as the loan term and is calculated as P = ((1+r/n)^(nt)) P = principal r = interest rate n = compounding frequency t = years The higher the interest rate and loan term, the higher is the cost of repaying the loan, everything else remaining the same.

INVESTING: Interpret the financial market price quotations of a stock, a mutual fund and an exchange-traded fund.

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SPENDING & SAVING: Compare saving strategies, including "Pay Yourself First" and comparison shopping.

"Pay yourself first" is a savings strategy that means automatically routing a specified savings contribution from each paycheck at the time it is received. Paying yourself before you begin paying your monthly living expenses and making discretionary purchases removes the temptation to skip a contribution and spend the funds on expenses other than savings. This strategy is also called Reverse Budgeting. Comparison shopping is a savings strategy where consumers cast a wide net and find the store or retailer with the lowest possible price for the thing they want It's especially beneficial when buying expensive items, items you purchase often, or items where the product quality or price varies greatly. There are many comparison tools that offer email alerts and price history features to help pick the right time to make the purchase decision. There are tons of websites and apps dedicated to price tracking and comparison. Google Shopping is a good starting point, especially if you want to gauge what's available online.

INVESTING: List steps that can be taken if a consumer is a victim of investment fraud.

A Recovery Checklist for Victims of Investment Fraud 1. Create an investment fraud file. Start by collecting all relevant documentation concerning the fraud in one file that's kept in a secure location. 2. Protect your identity and accounts If you provided payment information to the fraudsters, take the steps necessary to block access to your accounts and protect against identity theft. (Credit card info, social security no, logins and passwords) 3. Report Fraud to Regulators There are regulators who specialize in dealing with investment fraud cases: - FINRA - Securities and Exchange Commission 4. Report the fraud to law enforcement. - important to begin the recovery process, ensure the responsible parties are investigated, and prevent further damage to other individuals. 5. Check your insurance coverage - fraud theft insurance in homeowners policy 6. Follow Up After you take all of the necessary steps to report the fraud, don't forget to follow up. It might take the law enforcement agencies some time to process your claim. but you should always follow up after 30 days. 7. Consider changing behaviors and building your resistance to fraud.

FINANCIAL DECISION MAKING: Investigate sources of assistance in resolving consumer disputes.

CONTACT THE SELLER The first step in resolving a consumer problem is contacting the seller and talking to a local salesperson or representative. If this fails, try going higher up to the national headquarters of the seller. With each person you contact, calmly and accurately explain the problem and what action you would like to be taken. A written letter is a good strategy because you will have a record of your communication with the company. Use Social Media : writing on twitter or facebook or instagram sometimes garners attention and quick resolution as businesses are scared about attracting adverse publicity. CONTACT THIRD PARTIES Don't give up if you are not satisfied with the seller's response to your complaint. Once you have given the seller a reasonable amount of time to respond, consider filing a complaint with one or more of these outside organizations: - State or local consumer protection offices - State regulatory agencies that have jurisdiction over the business - State Attorney General - Better Business Bureau - Trade associations - National consumer organizations - File a complaint with the Federal Trade Commission SMALL CLAIMS COURT Small claims courts resolve disputes over small amounts of money. Court procedures are generally simple, inexpensive, quick, and informal. Additionally court fees are minimal. You probably will not need a lawyer. Even though the court is informal, the judge's decision must be followed.

INVESTING: Compare the advantages of taxable, tax-deferred and tax-advantaged investments for new savers, including Roth IRAs and employer-sponsored retirement vehicles.

Contributions to 401K and IRA are deducted from your taxable income and earnings are tax free until withdrawal. The hope is that your tax rate is lower after retirement than current rates. While contributions to a Roth IRA are made from after tax income, but earnings are tax free.

FINANCIAL DECISION MAKING: Develop a contingency plan to deal with events, such as a car breakdown or a phone loss, that might affect personal finances on short notice.

Emergency Funds Generally, a savings account or emergency fund is made for unexpected events such as these. It is especially important to have an emergency fund for small, financial burdens that occur from time to time, such as a phone loss. An emergency fund should be at least $1,000 accumulating to 3-6 months of living expenses. Insurance Having a comprehensive car insurance plan will help lessen the cost of a car breakdown. Some car insurance companies also offer inexpensive towing services, emergency help, and suggest preferred car maintenance shops. Insurance is key to protecting your personal items and your finances and transferring the risk to a 3rd party by paying a premium. A AAA membership can also help alleviate car related issues by providing roadside assistance for towing, car repairs etc day or night, regardless of weather and across the country.

CREDIT & DEBT: Summarize online information about the Equal Credit Opportunity Act.

Equal Credit Opportunity Act (ECOA) prohibits credit discrimination on the basis of race, religion, natural origin, sex, marital status, age, or because a person receives public assistance. This does not mean that everyone applies for credit will get the same terms, as factors like credit history are used by lenders fairly to determine your creditworthiness. The ECOA is enforced by the Federal Trade Commission (FTC).

SPENDING & SAVING: Compare the features and costs of personal checking accounts offered by different financial institutions.

FIX THIS ONE!!!!

CREDIT & DEBT: Research online information about consumer credit rights available from the Federal Trade Commission.

Fair Debt Collection Practices Act Debt collection agencies are banned from threatening, harassing and inappropriately contacting someone that owes money. Consumer Credit Protection Act Lenders are regulated to ensure they adhere to standardized practices that are fair and honest. For example, the act deals with credit reports and other aspects of debt and credit. Equal Credit Opportunity Act Banks and credit card companies are required to make credit equally available to all credit-worthy applicants regardless of race, color, religion, national origin, sex, marital status, age or because that person receives public assistance. Truth in Lending Act Lenders are required to give information on the true cost of credit and explain the terms in a way that is easy to understand. The Fair Credit Billing Act Provides guidelines to resolve disputes over billing statements, unauthorized purchases, errors with the date or amount charged, goods or services that were not fulfilled and other issues. Fair and Accurate Credit Transactions Act Gives consumers the right to one free credit report from each of the three main credit reporting agencies each year. The Electronic Funds Transfer Act This applied the same protections given to traditional means of purchasing to the new forms of transactions that used new technologies. Fair Credit Reporting Act Ensures that the information gathered and distributed by credit reporting agencies is fair and accurate. The Credit Repair Organizations Act Companies that claim they can repair your credit report have to do so in an honest way. They have to be truthful in the services they say they can provide consumers as well as the information they give to credit bureaus. The Credit CARD Act Also referred to as the Credit Card Bill of Rights, this law makes sure credit card companies provide fair interest rates and penalties and transparent notifications. These are just a few of the provisions relating to consumer financial rights. To learn more about your credit and consumer rights, read about the Federal Trade Commission, or visit their website.

INVESTING: Research federal government depository insurance coverage and limits related to consumer bank and credit union accounts.

Federal government depository insurance coverage refers to the insurance you automatically receive when you create an account at a bank or credit union. This insurance protects you if the bank goes bankrupt and loses your money. The insurance will covers the balance of each depositor's account up to the insurance limit, including principal and any accursed interest through the date of the bank's closing. The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. the company that insures people for commercial banks is the FDIC. for credit unions, it's the NCUSIF. FDIC/NCUSIF deposit insurance coverage covers you as long as: (1) your bank is FDIC or NCUSIF insured, and (2) your chosen financial product is a deposit product (one in which you are actually putting money into a bank, meaning checking and savings accounts, money marketing deposit accounts, CDs, and certain retirement accounts would count under the insurance, but stocks, bonds, and life insurance wouldn't).

CREDIT & DEBT: Differentiate between adjustable and fixed-rate mortgages.

Fixed-Rate Mortgage A mortgage with a fixed interest rate for the entire term of the loan. Pros: no surprises. Cons: If interest rates fall in the future, you won't have the option of taking advantage of the lower rate. Adjustable-Rate Mortgage (ARM) A type of mortgage in which the interest rate varies throughout the life of the loan. Pros: Buyers usually pay a lower initial interest rate than a fixed-rate mortgage. Cons: After an initial period, rates fluctuate over the life of a loan. When rates rise, so do your payments.

FINANCIAL DECISION MAKING: Investigate types of consumer fraud, including online scams and phone solicitations.

Here are some of the most common types of frauds and scams. Learn what to watch for and what steps to take to keep yourself, your loved ones, and your money safe. Identity Theft Identity theft occurs when someone steals your personal information—which can include your name, Social Security number, bank account number, and credit card information—often through data mining. The goal of the thieves is to use your personal information to assume your identity to access your bank account and drain funds, open and use credit cards in your name, take out loans, use your health insurance to pay medical bills, and file a tax return to collect your refund Charity scams A charity scam is when a thief poses as a real charity or makes up the name of a charity that sounds real in order to get money from you. These kinds of scams are usually through phone solicitations and often increase during the holiday season as well as around natural disasters and emergencies, such as storms, wildfires, or earthquakes. Debt collection and Debt settlement or debt relief scams There are scammers who pose as debt collectors to get you to pay for debts you don't owe or ones you've already paid. Debt settlement or relief companies often promise to renegotiate, settle, or in some way change the terms of a person's debt to a creditor or debt collector. Foreclosure relief or mortgage loan modification scams are schemes to take your money or your house, often by making a false promise of saving you from foreclosure. Scammers may ask you to pay upfront fees for their service, guarantee a loan modification, or ask you to sign over the title of your property, or sign paperwork you don't understand. Grandparent scams If you get a call from someone who sounds like a grandchild or relative asking you to wire or transfer money or send gift cards to help them out of trouble, it could be a scam. Imposter scams Imposter scammers try to convince you to send money by pretending to be someone you know or trust like a sheriff, local, state, or federal government employee, or charity organization. Mail fraud Mail fraud letters look real but the promises are fake. A common warning sign is a letter asking you to send money or personal information now in order to receive something of value later. Examples of mail fraud might include notices of prizes, sweepstakes winnings, vacations and other offers to claim valuable items. Lottery or prize scams In a lottery or prize scam, the scammers may call or email to tell you that you've won a prize through a lottery or sweepstakes and then ask you to pay an upfront payment for fees and taxes. In some cases, they may claim to be from a federal government agency. Credit and Debit Card Fraud Credit or debit card fraud can occur when someone steals or finds your card or manages to obtain the information from the card to purchase goods, withdraw cash, or otherwise use your card in a fraudulent manner. You should know that the Fair Credit Billing Act limits your liability to $50, and oftentimes, there's no cost at all depending on the bank or credit card issuer. Deceptive Interest Rate Reduction Robocalls comes in the form of robocalls that "guarantee to reduce your credit card interest rate" (for a fee).

SPENDING & SAVING: Explain how to verify printed and online account statements for accuracy.

If you receive a printed account statement, it is important to also look at your online statement to assure accuracy. This is done by comparing statements (both printed and online) with your personal records (checkbook). This is a key step in reconciling your bank or checking account. An account register is used to track credits (deposits) and debits (payments) for a banking or checking account. You may use a checking account register to track all types of transactions (check, debit card, online, etc). This will help you keep an accurate record of your account balance and will help you reconcile your account each month.

EMPLOYMENT & INCOME: Explain the effect of inflation on income and purchasing power.

FINANCIAL DECISION MAKING: Analyze how discussing important financial matters with household members can help reduce conflict.

It is important to discuss financial matters with the family periodically. Since your spending plan reflects your priorities, values and goals, achieving consensus amongst family members will help to minimize conflict as and when small or big decisions come up. For example, if a family vacation in the summer is a priority and part of the household income is being saved to pay for that, it might mean less expenditure on eating out. If this is an agreed upon goal, it will reduce conflict amongst family members to discuss this, as it will reduce any dissonance from the reduced frequency of eating out. Regular discussions on financial matters will also help educate various members including children about financial matters enabling them to be more responsible adults. Long-term benefits of this approach is the family working together like a team toward a common goal leading to fewer money fights, lower stress and children being raised in a financially healthy home.

FINANCIAL DECISION MAKING: Summarize tenant and landlord rights and responsibilities that are covered in the terms of a standard apartment lease agreement.

Lease agreements protect each party's interests and prevent future misunderstandings. Below are some of the major elements of any lease agreement. - Parties: all landlords and tenants should be identified. - Property Description: address and unit number should be listed. - Rent Amount: a dollar amount should be specified. - Rent Collection Terms: the day of the month the rent is due and where payment is to be sent should be included. - Term of the Lease: the lease should include when it begins and ends. - Termination: descriptions of how each party can end the lease should be specified. - Late Rent Fees: this element should state the amount of late fees and what constitutes as a "late" payment. Utilities: the lease should indicate whether the landlord or renter will pay utilities. - Repairs and Damages: the lease should specific who is responsible for damages and who is responsible for repairs.

RISK & INSURANCE: Investigate the use of liability insurance to cover accidental bodily harm or damage to another person's property.

Liability comes into play when an accident is caused by you. Liability coverage is made up of two parts: Bodily Injury and Property Damage. - Bodily Injury coverage is what pays for any injuries to others from the accident. - Property Damage insurance covers damage to someone else's property. Liability will NOT pay for medical expenses you or your passengers experience as a result of an accident, or your car. Everyone driving a car is required to have Liability coverage. Consider it the bare minimum coverage you can have to legally drive your car.

RISK & INSURANCE: Analyze the conditions under which it is appropriate for young adults to have life, health and disability insurance.

Life: - Young adults who have dependents, including the elderly and children. - Buying a policy when you're young often means lower premiums. Health: - Employers in most states are legally-mandated to provide health insurance. - Under the Affordable Care Act (ACA), everyone over 26 is mandated to have some type of health insurance. - It's important to have health insurance even if you are young and in good health, accidents and unexpected illness can have a serious impact on your finances, leading you into a debt trap. Disability: - Disability insurance provided by your employer. - Many young people do not see the need for disability insurance. However, experts say that 1 in 4 of today's 20 year-olds will be disabled from work at some point before they retire. Disability insurance can help prevent losses in those times.

CREDIT & DEBT: Research state agencies with responsibility for consumer protection.

State Attorney General Serves as the chief legal adviser and chief law enforcement officer for the State. Commissioner of Financial Regulation - overseeing banking authorities. State Public Service Commission which oversees utility commissions.

RISK & INSURANCE: Demonstrate how to complete an insurance application.

To help determine the correct amount of coverage and correctly fill out an application, you must first do an inventory (for home insurance) or a background on yourself (life insurance). Choose how much coverage you will likely need, and how large you want the deductible to be. An insurance agent can help you with these things.

RISK & INSURANCE: Investigate the requirements for health insurance coverage.

Under the Affordable Care Act (ACA), everyone is mandated to have some type of health insurance. If you can afford health insurance coverage, but chose not to buy it, you have to pay a fee called the individual shared responsibility payment. To avoid a penalty for not having health insurance, you must be enrolled in the "minimum essential coverage" (MEC). Examples of a MEC included: 1) a marketplace plan (normal health insurance) 2) coverage under a parent (if under 26) 3) job-based plan 4) medicare or medicaid

CREDIT & DEBT: Outline the process of disputing inaccurate credit report data.

Under the Fair Credit Reporting Act, both the credit reporting company and the provider of your credit information are responsible for correcting inaccurate information in your credit report. 1) Write a letter to the credit reporting company about the information you think is inaccurate. Include copies of supporting documents. Credit reporting companies must investigate the items in question and provide results in writing. 2) Write a letter to the entity providing information about your credit that is in dispute. Include supporting documents of your claim about inaccuracies.

FINANCIAL DECISION MAKING: Demonstrate how to negotiate employment conditions or compensation.

When an employer extends a job offer, they'll usually present you with a compensation and benefits package verbally or in writing with a proposed salary. If you don't feel the pay aligns with your education, career level, skill set and experience, you may choose to negotiate for more money. You may also suggest another form of compensation, such as equity or stock options, or additional perks such as extra vacation days or paid parental leave or flexibility to work from home. When to negotiate your salary Typically, it's best to negotiate your salary after you receive an offer rather than during earlier stages of the interview process. You have the most leverage after you've proven that you're the best candidate for the job and you fully understand the employer's expectations. Negotiating early on might also harm your chances of securing a job offer. It's important to only counter the offer once or twice at the most. You should also avoid revisiting a compensation package that you've already agreed upon. Doing so shows you respect the employer's time and have boundaries around what you will and won't accept. Tips to prepare for salary negotiation 1) Start by evaluating what you have to offer There are several factors that can influence your compensation, such as: - Geographic location: Consider the cost of living in your geographic location. For example, you might require a higher salary in San Francisco than in Minneapolis for the same set of responsibilities because it generally costs more to live there. - Years of industry experience: If the job description requires 3-5 years of experience and you meet the higher requirement, it might warrant a higher salary. - Years of leadership experience: if the employer prefers or requires leadership skills and you meet or exceed their expectations, it may be justification for higher pay. - Education level: Relevant bachelor's, master's, PhD or specialized degree programs can impact your compensation depending on the role or industry. - Career level: In general, you might expect a higher pay range as you advance further in your career. - Skills: Niche or technical skills that take time to master may attract higher salaries. - Licenses and certifications: An employer may require or prefer that you have specific licenses or certifications. If you already have them, you might be in a good position to request greater compensation. When you begin your salary negotiation, be sure to reiterate why you'll be a valuable employee and consider using the above factors to justify your desired salary. 2) Research the market average Having this data can help support a more successful negotiation and can be found by using online sources. Knowing the market average can give you a good baseline for your salary request and can even be used as justification. 3) Prepare your talking points 4) Schedule a time to discuss 5) Rehearse with a trusted friend 6) Be confident 7) Lead with gratitude Once you reach the job offer phase of the hiring process, both the employer and you have invested time in the process, so it's crucial you recognize this and thank them for considering you for the opportunity. Be sure to share any specific reasons why you're excited about the job, such as the culture or the product.Even if you end up declining the offer, it's important to do so in a friendly and professional manner. After all, you never know what opportunities they may have available for you in the future. 8) Ask for the top of your range 9) Share job-related expenses you're incurring 10) Be flexible If the employer is unable to provide the salary amount you want, they may be able to offer other forms of compensation. For example, stock options, extra vacation days, a sign-on bonus or additional work-from-home days to combat a lengthy commute. Be ready to ask for alternatives in a situation where the employer immediately lets you know they cannot increase the salary offer. In some cases, they may be just as valuable (or more so) than a paycheck. 11) Ask questions If the person you're negotiating with seems surprised, reacts negatively or immediately rejects your counter, try to remain confident and calm. Meet their reaction with open-ended questions to find out more information and keep the conversation going. 12) Don't be afraid to walk away 13) Dress and act professionally. Remember - dress for the job you want, not the one you have.

CREDIT & DEBT: Differentiate among various types of student loans and alternatives as a means of paying for post-secondary education.

* everything under the employment and income one about this Most college students need some type of assistance to afford their education and student loans are the most common way to help pay for college education. List of types of federal aid: 1) Stafford Loans The most common type of federal education loan, available to both undergraduates and graduates. They have lower interest rates and interest is not due till you graduate. Stafford loans have a fixed interest rate, meaning your rate for the life of the loan will never change. Direct Subsidized loans are available to undergraduate students with financial need. The U.S. Department of Education pays the interest on this loan while the student is enrolled in college and for the 6-month grace period. Direct Unsubsidized loans are available to all undergraduate and graduate students. The borrower (student) is responsible for all interest payments and interest is accrued while the student is attending school and during forbearance or deferment periods. Interest rate range was from 2.75% (for undergraduates) to 4.3% (for graduates). 2) Perkins Loans Perkins loans were federal student loans offered to undergraduate and graduate students with exceptional financial need. They were always subsidized, meaning you wouldn't pay or accrue any interest while you were in school or during the nine-month grace period following graduation. The program has since been discontinued. 3) PLUS Loans Loans that cover expenses not met by other federal loans. PLUS loans are federal loans given to graduate students and parents of students. Once called the Parent Loan for Undergraduate Students, these loans are now known simply as Parent PLUS and Grad PLUS loans. Interest rates were around 5.3%. 4) Consolidation Loan - a type of package that allows combining pre-existing loans into a new loan with a fixed interest rate leading to 1 payment to one servicer, once a month. 5) Institutional Loans - non-federal aid that college institutions loan to their students. 6) Private Loans and State Loans - non-federal aid that helps students ineligible for federal assistance or those who do not receive enough federal aid to cover their cost of attendance. Due to strict conditions and terms, it's important to exhaust every avenue of federal student aid before. Grants: - Pell Grants Federal Pell Grants are awarded to undergraduate students who have not earned a previous bachelor's or professional degree. Federal Pell Grants are a great way for a student, especially with financial need, to receive financing for college, as repayment is not required. - The Federal SEOG is awarded to undergraduate students with exceptional financial need. This grant is administered by the financial aid office at each participating school. A student may receive between $100 and $4,000 a year, depending on need, the amount of aid already received, and your school's available funds. - State Grants Each state also awards grants to students who have financial need. Types of grants and amounts vary by state. To view available state grants, you must visit your State Department of Education website.

EMPLOYMENT & INCOME: Discuss how non-income factors such as child-care options, cost of living, and work conditions can influence job choice.

- Qualifications and skills required. Often the highest paying jobs require challenging qualifications. - Family & Friends. Expectations from family and friends can push people towards a certain job or away from another. - Non-wage satisfaction from a job. Many individuals prioritise choosing a job which enables them to gain a high utility/satisfaction from doing the job. For example, a job like becoming a nurse or teacher may be relatively low paid, but it affords the chance to pursue a career which gives value to other people. - Flexible working hours & childcare are suitable for parents who need to look after children, this is one of the biggest reasons for women leaving the work force. If a company provides quality child care or flexible work hours they will be able to retain employees, who are parents, much more than those who don't. - Cost of living is the cost of maintaining a certain standard of living in a specific geographic area, often recorded in a cost-of-living index. This means income would need to be higher depending on the geographic area, meaning the location of the job could influence the choice as well. Also ties in to tax rates. State tax rates vary (although federal income tax rate is the same) and so the same salary in different locations may mean more or less income in hand. - Work conditions: the conditions in which you work in will dictate your quality of life, so whether or not the workplace is a clean, enjoyable place to be is a crucial deciding factor. As you can see, there are so many important factors to consider before accepting a job, not just salary.

CREDIT & DEBT: Identify indicators of excessive debt.

- You make minimum payments. - Your minimum monthly payments are large. - You're struggling with debt collectors. - You're using balance transfers and refinancing to stay afloat. - You rely on cash advances. - You're being denied for loans or credit cards. - You're not building your savings. - You're unaware of your debt problems or have a budget. - You're over-limit or getting declined at the point of sale. - Your debts are affecting your personal relationships.

INVESTING: Select appropriate investments for accumulating money for a major financial goal such as a college education.

1) 529 college savings plan - tax-advantaged - designed specifically for education savings. this means your interest and contributions are tax free if you use the money for qualified education expenses such as tuition, fees, and room and board - no annual contribution limits but the aggregate limit is $550,000 - the funds in a 529 account can be invested in many options. 2) Uniform Gifts to Minors Act/Uniform Transfers to Minors Act - let parents (and others) make an irrevocable gift to a minor - investment earnings are generally taxed at the minor's tax rate, which is usually lower than a parent's rate 3) Coverdell Education Savings Account (ESA) - withdraw money for qualified higher education expenses - earnings are federal income tax-deferred - annual contribution limit is only $2,000 per beneficiary obviously you can also use other investment options such as stocks, bonds, mutual funds etc, where there is greater flexibility on investment amounts and use of withdrawals, but no tax advantages.

INVESTING: Suggest types of investments appropriate for people who have a low risk tolerance for investment volatility.

1) High-yield savings accounts: - a savings account that has a higher interest rate, inflation will erode value 2) Series I savings bonds: - adjusts for inflation - very safe because it is issued by the US Govt, - not very liquid, penalty for withdrawing before 5 years 3) Short-term certificates of deposit: - iliquid, penalty for withdrawing early 4) Money market savings accounts: - hybrid between checking and savings account, higher return than regular savings 5) Money market funds: - low-risk mutual fund - pools low-risk investments to diversify risk - liquid, can be redeemed whenever you want 6) Different Types of Government Bonds: - treasury bills, notes, and TIPS - quite liquid as you can easily buy and sell them 7) Fixed annuities: - a contract, often made with an insurance company, that promises to provide a fixed income over retirement in exchange for an upfront payment. - some tax advantages - illiquid with penalty for early withdrawal 8) Corporate bonds: - bonds issued by companies - reasonably liquid

RISK & INSURANCE: Categorize the kinds of expenses that typical auto insurance policies cover.

1) Liability Insurance - Covers you in the event you are in a car accident, and the accident is a result of your actions. Liability insurance will cover the costs of repairing any damaged property and medical bills. 2) Collision Coverage - Pays for damages to your vehicle in case of a vehicle collision accident. 3) Comprehensive Coverage - Covers events such as natural disaster, falling objects, and theft. 4) Uninsured/Under-insured Motorist Protection - If you are in an accident caused by someone without insurance, you normally won't receive payment to fix your vehicle, unless you have this type of insurance. 5) Gap Insurance - This particular type of coverage will cover the difference between the amount of money owed on a vehicle (through a lease or loan) and the amount an insurance provider will pay for a totaled car.

RISK & INSURANCE: Differentiate among the main types of auto insurance coverage.

EMPLOYMENT & INCOME: Outline a career plan that aligns with personal interests, financial goals and desired lifestyle.

1) Self-reflection: - Take time to think about your current situation and the path you want to be on. - Research even shows reflection is key to success, and it increases productivity and performance. 2) Goal Setting: - Self-reflection will lead you to identifying what kind of career you want. Now it's time to figure out how to get there. Setting goals is the key to a successful career plan. - SMART goals: specific, measurable, attainable, relevant and timebound - 76% of study participants who set SMART goals wrote them down and shared them with a friend achieved their goals. 3) Develop a plan: - Make a pros and cons list, include income, employee benefits offered, as work conditions and location. - Think about the future consequences of each path. Choose a path where you're happy with both the compensation at the job, and what is being asked of you.

INVESTING: Demonstrate how to open a basic deposit account at a financial institution or brokerage firm.

1. Choose your bank Either a commerical bank (usually more branches but higher fees, more personalized service, for-profit) or a credit union (fewer branches, lower fees, non-profit). Online banking options available (no branches, minimal service but lower fees and higher rates). Make sure it is FDIC insured bank or NCUSIF insured. 2. Choose the account you want - Checking account - Savings account - Money market savings account - CDss 3. Gather the relevant documentation 4. Fill out the application form 5. Fund your account Most banks require some sort of initial deposit when you open the account. Brokerage When you open a deposit account in a brokerage, the process is similar. For a brokerage account, you will need to specify whether it is a cash account or a margin account: - In a cash account, you must pay the full amount for securities purchased. - In a margin account, you can borrow funds from your brokerage firm to purchase securities (this is called buying securities "on margin").

EMPLOYMENT & INCOME: Analyze how economic and other conditions can affect income and career opportunities and the need for lifelong training and education.

1. Economic - the business cycles in any type of economic system play a role in the potential of income - for example, free-market economies have fared much better than socialist regimes throughout history. - recessionary times in the United States have a negative impact on income and hinder career potential due to much less robust hiring. 2. Social There are many social factors. One example is women. women were not a large part of the workforce for many decades. Today they are vital to many industries and their incomes and career potential are significantly less limited because of the social changes which invited them into the work place. 3. Culture The U.S. culture expects people to work longer and harder hours than many other countries; therefore, lifetime incomes are greater in the U.S. than counterparts. 4. Political Political conditions can promote or restrain the economic well-being of citizens. Corrupt governments that take bribes and waste money will lower GDP per year. Also, political climates that are hostile and uncertain will restrain economic activity, impacting citizens across the country. Implications for Lifelong Education: It is important to take part in lifelong training and education because economic and business conditions, and your personal circumstances are ever-changing, and this can negatively affect your purchasing power.

INVESTING: Illustrate the benefits of tax-advantaged investments for young people.

1. Retirement including 401K or IRA Contributions to 401K and IRA are deducted from your taxable income and earnings are tax free until withdrawal. The hope is that your tax rate is lower after retirement than current rates. While contributions to a Roth IRA are made from after tax income, but earnings are tax free. 2. 529 Saving Accounts Earnings on contributions are tax free provided they are used to pay for qualified higher education expenses such as tuition, fees, and room and board. A Coverdell ESA has tax-defered earnings, meaning earnings are only taxed when you withdraw. 3. Health Savings Account: A HSA is a way that you can pay for qualified medical expenses with tax-free money. You can deduct contributions on your taxes, you can withdraw your money tax-free (when used for medical expenses), and your earnings grow tax-free.

FINANCIAL DECISION MAKING: Give examples of behaviors that make consumers vulnerable to fraud.

1. You use the same simple password for multiple online accounts: Using weak passwords or reusing these across multiple logins is one of the most common bad habits that puts consumers at high risk for identity theft. This means that if a bad actor gets ahold of one password, he or she suddenly has access to all your accounts. 2. You overshare on social media and don't check your privacy settings: Social media is rife with scammers who take advantage of weak privacy settings to lure you in. 3. You avoid checking your banking and credit card statements on a regular basis: Checking your account balances is important and not doing so means you could miss fraudulent transactions that indicate your identity has been stolen. 4. You rarely update your apps and device software: Frequent app updates aren't just there to annoy you. They actually patch critical security holes that would otherwise leave your data vulnerable to hackers and viruses.

EMPLOYMENT & INCOME: Examine the benefits of participating in employer sponsored retirement savings plans and health care savings plans.

401Ks offer the benefit of essentially free money, as your employers contributes a percentage of your contribution, up to a limit of a percentage of your income. There's no good reason to miss out on this. They are also tax advantaged. Contributions to 401K are deducted from your taxable income and earnings are tax free until withdrawal. The hope is that your tax rate is lower after retirement than current rates. A HSA is a way that you can pay for qualified medical expenses with tax-free money. You can deduct contributions on your taxes, you can withdraw your money tax-free (when used for medical expenses), and your earnings grow tax-free. These tax-advantaged investments can allow you to save a lot of money by not paying state and federal income taxes.

CREDIT & DEBT: Decide the most cost effective option for paying for a car.

A car is a depreciating asset which means it loses value with the passage of time. In fact, the moment you purchase a new car and drive it out of the dealer, it will have lost value. 1) Save up and buy a car by paying cash. - Could buy a used car and reduce spend - Use your existing car for longer and pay yourself the monthly installment instead of the lender. Save up the monthly installment and use it to purchase the next car. 2) Taking out a car loan from banking authority or car dealers. - Car loans are secured loans, the car is the collateral and if you don't make payments, the lender has the right to repossess the vehicle. - Look for the lowest APR - Make the largest down payment you can afford and at a minimum 20% of car value. This is because the car will depreciate by 20% in 1 year and if you haven't made a down payment, your loan balance will be greater than the value of your car meaning you will have negative equity in the car.

FINANCIAL DECISION MAKING: Create a cash flow statement to illustrate cash inflows and outflows for a specific period.

A cash flow is a revenue or expense stream that changes a cash account over a given period. Cash inflows are money you received and can arise from investments, capital gains, income, donations, or gifts. Cash outflows result from expenses or paying money to obtain investments. Cash flows are essential to solvency. If a person does not have enough cash to pay bills and other expenses, they are said to be insolvent and a candidate for bankruptcy if insolvency continues. A monthly cash flow plan is also considered a budget plan. ** look at image

EMPLOYMENT & INCOME: Develop a résumé and cover letter for a specific job of interest.

A cover letter should be to catch the attention of the employer. Should include things that allow you to stand out. - Always include your name and contact information, education, relevant professional experience, and skills. - Tailor your resume for each job application by reviewing the job description for keywords and requirements. - Make your resume clean, professional and easy to read—employers only have a few seconds to review each application.

CREDIT & DEBT: Predict the potential consequences of deferred payment of student loans.

A deferment allows federal student loan borrowers to temporarily suspend their loan payments. If you have subsidized federal student loans, the U.S. government pays the interest on these loans on all qualified deferment periods. On unsubsidized student loans, interest continues to accumulate, and any unpaid interest at the end of a deferment can be added to your outstanding principal balance. If you have private or unsubsidized federal student loans, deferment can be costly. That's because, unlike subsidized loans, interest on these loans accrues during the deferment period and is capitalized (added to the outstanding balance) at the end of deferment. That increases the amount you owe when you begin repayment, as well as the total you will pay over the life of the loan.

FINANCIAL DECISION MAKING: Explain the purpose of a durable power of attorney for health care (living will).

A durable power of attorney for health care is a legal document naming a health care proxy, someone to make medical decisions for you at times when you are unable to do so. Your proxy should be familiar with your values and wishes. Having a health care proxy helps you plan for situations that cannot be foreseen, like a serious auto accident. Your health care agent will work with doctors and other health care providers to make sure you get the kind of medical care you wish to receive. When arranging your care, your agent is legally bound to follow your treatment preferences to the extent that he or she knows about them. To make your wishes clear, you can also use a "living will" -- to provide written health care instructions to your agent and health care providers and take the guesswork out. A living will is a written document that helps you tell doctors how you want to be treated if you are dying or permanently unconscious and cannot make your own decisions about emergency treatment. In a living will, you can say which of the procedures you would want, which ones you wouldn't want, and under which conditions each of your choices applies. For example, CPR, ventilator use, end of life care.

SPENDING & SAVING: Investigate account management services that financial institutions provide.

A financial institution (FI) is a company engaged in the business of dealing with monetary transactions such as deposits, loans, investments, and currency exchange. Banks and credit unions are authorized to accept deposits from individuals while other institutions such as Insurance companies, brokerage firms, investment banks, mortgage companies are typically not. Account management services are provided to customers of these institutions to help the consumers manage their account and review their account information. Examples of common account management services provided by banks and credit unions include: 1) Online Banking - manage your account, view your statements, transactions, and account balance online. 2) Mobile Banking - manage your account, view your statements, transactions, and account balance on your phone. 3) Phone Banking - manage your account, view your statements, transactions, and account balance by a phone call. 4) Pay Bills and Transfer Funds Online - some banks offer these services through their website or online banking service. The service allows customers to set up automatic payments for monthly bills. Consumers may also use this service to move money from one account to another. 5) Track Spending - some institutions provide services which allow you to set goals, track your spending, and create a budget. 6) Imaging - allows you to see scanned images of deposit slips, checks, and withdrawal slips through online or mobile banking services.

INVESTING: Compare investing in individual stocks and bonds with investing in mutual funds and exchange traded funds.

A mutual fund is a professionally managed fund that pools lots of investors' money in order to buy a basket of investments including stocks and bonds. Profit earned by the fund are paid back to investors, who can choose to reinvest them in the fund. Investors can cash out of the mutual fund at any time. An exchange traded fund is similar, however ETFs trade on exchanges just like stocks, meaning you can watch the price go up and down throughout the trading day unlike mutual funds where units are valued and traded once a day. Most ETFs are also indexed, meaning they match the performance of a benchmark index by simulting their investments. SIMILARTIES: - You can invest in a stock funds, bond funds, and balanced fund (mix of stocks and bonds). - Investment in mutual funds are also subject to the same market risks as investment in individual stocks or bonds. KEY DIFFERENCES: - Investors buy units in a mutual fund rather than the individual stock or bond. - The mutual fund portfolio is managed by professional experts. This also means you have no control over the investment decisions of the mutual fund. - Funds own a large number of securities so you get the benefit of diversification by owning a few units of the fund. - Mutual funds charge management fees which you pay even if the fund performs poorly.

FINANCIAL DECISION MAKING: Construct a student's net worth statement.

A net worth statement is a financial snapshot that shows your financial wealth at a given point in time and provides a useful summary of your financial affairs. Your net worth is the difference between your assets (what you own) minus your debts (what you owe). If you prepare a net worth statement at about the same time each year, you will see how your total net worth changes from year to year. If your net worth has declined from the past year, this may tell you changes are needed for you to live within your income and provide for the future. In order to prepare your net worth statement, first identify and add up all your assets based on current values (things you own) and then do the same with all your liabilities (what you owe). The difference between those two is your net worth. Student net worth often consists of savings and checkings accounts, car costs, apartment furniture, and student loans. ** look at chart

INVESTING: Compare strategies for investing as part of a comprehensive financial plan.

A person's investment strategy is based on their: - Age: years until retirement - Individual goals - Risk tolerance: the degree of variability an investor is willing to withstand. - Disposable income: income available after all mandatory deductions, taxes, and charges are made. - Time Horizon: how soon you will need liquid capital. Investment strategies range from aggressive (high risk) to conservative (low risk). Generally, those younger in age tend to take more risk and have a longer time horizon, so they may use a more aggressive investment strategy. On the other hand, those who are older tend to take less risk and have a shorter time horizon due to retirement, so their approach will be more conservative.

RISK & INSURANCE: Investigate a specific product safety recall.

A product recall is the process of retrieving defective or potentially unsafe goods from consumers while providing those consumers with compensation. Generally companies make a media campaign to inform the public and deal with the controversy. A product recall may be voluntary or mandated by a regulatory body such as the Consumer Product Safety Commission (CPSC) in the U.S.

EMPLOYMENT & INCOME: Differentiate between a progressive tax and a regressive tax.

A progressive tax is a tax system, in which the tax rate depends on the person's ability to pay - high tax is collected from those who earn more and less from those whose income is low. Regressive tax is one which is applied in a uniform manner - the tax is fairly imposed on all consumers regardless of their level of income, on the basis of what they own or purchase. That means that the low-income group has to pay a higher share of their income as the tax (like sales tax).

INVESTING: Use various sources of information, including prospectuses, online resources and financial publications to gather data about specific investments.

A prospectus is a legal disclosure document that provides information about an investment to the public, and that is required to be filed with the SEC. Laws require that this provides a full, truthful picture to the investors to enable them to make good decisions. The SEC maintains the EDGAR database to provide free public access to corporate information, allowing you to research a public company's financial information and operations by reviewing the filings the company makes with the SEC. Corporate websites contain a wealth of information about a company. You can find financial statements and annual reports.

RISK & INSURANCE: Predict the consequences of accepting risk with insufficient or no insurance.

Accepting risk is a conscious strategy of acknowledging the possibility for small or infrequent risks without taking steps to insure or avoid those risks. The rationale behind risk acceptance is that the costs to mitigate or avoid risks are more difficult than simply dealing with the issue the risk presents. The consequences can affect your financial and mental health. For example, say you are young and healthy and so purchase a health insurance policy with a high deductible and low coverage so you can reduce your insurance premium. The risk that you will fall ill is low so you decide to accept it. If you do fall ill, you will need to pay the large deductible before your policy starts paying. You may also need to pay more if you exceed your coverage limits. This may lead to incurring lots of debt, or having insufficient funds to pay for necessary healthcare.

SPENDING & SAVING: Evaluate specific charities based on purpose, management, outcomes or results and reputation.

All charities are not equal - how they spend their funds can vary widely. Some charities are highly efficient and a high percentage of their funds are spent on their actual causes. Others are bloated with excessive administrative and fundraising expenses. The Internet has increased the accountability of charities through charity-rating programs. Popular programs include Charity Navigator, Charity Watch, and Guide Star. All provide useful insight into how charities perform on a number of metrics, such as: - Financials - how donations are utilized, compensation of CEO and other employees, etc. - Transparency - Accountability

RISK & INSURANCE: Determine the legal minimum amounts of auto insurance coverage required in one's state of residence and the recommended optimal amounts.

Although each state has different legal requirements for how much auto insurance you must carry, these minimum amounts may not always be sufficient. Experts recommend that people carry at least $100,000 of bodily injury protection, $300,000 in protection to cover all injured parties of an accident, and $100,000 for property damage. (This is known as a 100/300/100 policy). Personal circumstances, such as type of vehicle and state of residence, may also be factors to consider when choosing optimal amounts of automobile insurance.

FINANCIAL DECISION MAKING: Categorize the types of rights and responsibilities typically found in employee handbooks.

An employee handbook is a document that contains all of the company policies and company culture information. Some policies are required by law to be included in an employee handbook. It should typically include the following rights and responsibilities: Family and medical leave — if a business has 50 or more employees, it needs to have an FMLA policy Equal employment opportunity, prohibiting discrimination on the grounds of age, sex, race, religion, pregnancy, disability Antiharassment Anti Retaliation At-will nature of employment - companies and employees can separate from each other at any point of time Worker's Compensation Policies - Under some state's laws, worker's compensation policies must be posted, including accommodation for disabilities, military leave, breastfeeding, and crime victims leave. Right to Safety and security in the work environment. Assessment process for promotions and raises. Process for filing a complaint. Code of conduct for employees including acceptable and unacceptable behaviors by employees, Attendance policy, Meal breaks, Co-worker harassment, Substance abuse policy, Dress code, Grooming standards, Internet and email use and Conflict resolution between coworkers. Work authorization - all employees should be legal to work in the US. Pay policies such as information on paydays, timekeeping, overtime eligibility, meal and rest periods, etc. Benefits Disclaimers — the employee manual contains policies and guidelines but isn't a guarantee or contract of continuous employment. The policies in the employee handbook can change at the employer's discretion.

RISK & INSURANCE: Evaluate the costs and benefits of an extended warranty.

An extended warranty is an extended service contract that covers the cost of certain repairs and problems after the factory warranty expires. This type of warranty is usually utilized for automobiles and expensive electronics. Pros - Can cover costly repairs - Ensure you are protected for a long period of time. - Can be customized to fit specific needs. Cons - They are costly. - May not cover all repairs. - It may never be used, so the payments made to the extended warranty would be lost.

RISK & INSURANCE: Calculate payment expected on an auto insurance claim after applying exclusions and deductibles.

An insurance claim is a formal request to an insurance company asking for payment based on the terms of the insurance policy. A deductible is the amount of money that must be paid out of pocket before an insurer will pay any expenses. An exclusion is a provision written into a car insurance policy that excludes coverage for a particular driver or situation. Simply, an exclusion is anything not covered by your auto insurance policy. Examples include: - Named Driver Exclusions - you can choose to not cover certain individuals on your auto insurance policy.

RISK & INSURANCE: Demonstrate how to file an insurance claim.

An insurance claim is a formal request to an insurance company asking for payment for a loss. Before your company will make a claim payment, you may have to pay a deductible. 1) To file a claim, you must be able to prove your losses. It is important to keep records of the event or loss. Record what you saw or believe happened and take photos and videos of the damage if possible. 2) File a police report and give it to your insurance company to support your claim. 3) Call your insurer as soon as possible after the incident occurs to file your claim. It is important to note that filing a claim can make your insurance premiums skyrocket. So, for small damages, filing a claim may not be necessary and this may save you money.

INVESTING: Differentiate between diversification and asset allocation.

Asset allocation is the way in which your investments are distributed across different asset classes. This essentially means what percent of your investments are held in stocks, bonds, money market, real estate etc. Usually this mix is based on your age, risk tolerance, income needs, and years to retirement. Diversification in investing reflects the number of holdings in the same asset class. For example, of your stock asset class holdings, do you own stocks from 5 different companies or stocks from 500 different companies? The larger the number of holdings, the more diversified your position, potentially reducing your risk. This is because if one company goes bankrupt, you still have many that could be going strong. Diversification strategies are implemented hand-in-hand with asset allocation strategies.

FINANCIAL DECISION MAKING: Differentiate between assets and liabilities.

Assets are your possessions that have value—for example, money in bank accounts, stocks and bonds, personal property, your home or other real estate. They have a positive effect on your net worth. Liabilities are financial obligations, or debts that you owe. Examples include credit card balances, personal or auto loans and mortgages. Liabilities have a negative effect on your net worth.

FINANCIAL DECISION MAKING: Assess differences among peer values and attitudes about money.

Attitude towards money differs amongst peers depending on their personal financial situation, family circumstances, level of education and future outlook amongst other factors. Some people are very careful with their money sticking to a strict budget, only spending on bare essentials, and minimizing their spend on luxuries or discretionary items. Others are more prone to external influences, their spending pattern reflecting not their own priorities but the latest 'it' item on social media. A lot of these people are given to impulse buying using credit cards to carry debt month to month, paying larger and larger amounts of interest. Others need to meet their friends in restaurants to socialize or pursue hobbies such as travel or self development such as learning a new art form or creative dance. Due to differences among peoples' personalities, there can be differences in attitudes about money along with it.

CREDIT & DEBT: Investigate the purpose of bankruptcy and its possible negative effects on assets, employability and credit cost and availability.

Bankruptcy is a legal proceeding involving a person or business that is unable to repay their outstanding debts and is commonly initiated by the debtor when they are overwhelmed and find no other feasible option to settle their debts. All of the debtor's assets are measured and evaluated, and the assets may be used to repay a portion of the outstanding debt. Bankruptcy can allow you a fresh start, but it will stay on your credit reports for a number of years and make it difficult to borrow in the future. 2 main kinds of bankruptcy with different effects on assets and cash flows: Chapter 7 bankruptcy is for individuals who have a restricted income and cannot pay off their debts. Debtors are forced to sell their assets to satisfy their debt and get a "fresh start" by eliminating eligible debt without any payments required to creditors except through sale of assets. Individuals who make too much money to qualify for Chapter 7 bankruptcy may file under Chapter 13, also known as a wage earner's plan. It allows individuals—as well as businesses, with consistent income—to create workable debt repayment plans over the course of a three- to five-year period. In exchange, the courts allow these debtors to keep their property. EFFECTS: 1) Bankruptcy Leaves a Lasting Mark on Your Credit Score - Your credit score can immediately drop by 100 points or more and it will stay on your credit report for upto 10 years. Credit costs will correspondingly rise 2) Bankruptcy Is Public Record and may make it difficult to find a job. In most states, employers can request your credit report especially if you apply for a federal government job that requires a security clearance, your credit report will be viewed and considered as part of your application. While federal law prohibits companies from not hiring people solely because of bankruptcy, it may be taken into consideration. 3) Filing for Bankruptcy Doesn't Erase All Debt - Federal Student Loans, back taxes, alimony or child support will still exist. 4) Difficulty in obtaining a mortgage or credit card after bankruptcy - Individuals have to wait for a minimum period before they can even apply for a home loan. If you are able to get a loan or a new credit card after bankruptcy, you're almost certain to face a high interest rate.

FINANCIAL DECISION MAKING: Investigate consumer safeguards for mobile and online banking.

Banks go to great lengths to protect consumer personal and financial information. Banks are required to comply with federal law to keep your financial information safe. Financial institutions may utilize computer safeguards, encryption, and secure data warehouses to store and protect your personal information. These measures also help protect your information and ensure mobile and online-banking transactions are safe and secure. The Safeguards Rule As part of the Gramm-Leach Bliley Act (GLBA), the Safeguards Rule states that a financial institution must protect the consumer information they collect. The Safeguards Rule requires companies to develop a written information security plan that describes their program to protect customer information. There are also steps you, as a consumer, can take to help protect your personal and financial information. - Know who you are giving your information to. - Safely dispose of personal information - old computers or phones. - Keep passwords private. - Ensure your passwords are "strong" - use multiple, different letters, symbols, and numbers. - Don't overshare on social networking. - Utilize antivirus software. If you are concerned about the safety of your financial information, you may call your bank and ask them about their safeguards. Additionally, you may "opt-out" of your financial institution giving your information to certain third parties. Lastly, you must also work hard to keep your online financial information safe. Using online and mobile banking has its risks, but can be safe if handled correctly.

SPENDING & SAVING: Compare the advantages and disadvantages of saving for financial goals.

Being smart with savings is not a complicated process, but it does take discipline and commitment. Advantages: - Being able to achieve your financial goals in a systematic manner without stress - You're able to earn a return on your money and benefit from higher returns through investing (compound interest) in the long term - Having a safety net or emergency fund - money in case of an unforeseen emergency so that you don't have to borrow expensive debt on credit cards or sell assets during difficult times - Being able to save up for and afford big financial goals, like a house, cars, and vacations - Financial security to pursue your dreams - Knowing that you have options because of the money you've socked away can give you even more peace of mind. - It enables you to retire and have a good quality of life even post retirement Disadvantages: - Not being able to indulge yourself in the present - Sometimes people carry it to the extreme by not doing things like doctor checkups to save money, which could be detrimental to your health in the long run - Saving should not overrule spending on things that really matter to you, like going to see family or spending on your favorite hobby - these things are important to your mental health. - Your money will be worth less in the future due to inflation

SPENDING & SAVING: Explain why saving is a prerequisite to investing.

Being smart with savings is not a complicated process, but it does take discipline and commitment. Saving money typically means it is available when we need it and there is a low-risk of losing value. Investing typically carries a long-term horizon, such as our children's college fund or retirement. The biggest and most influential difference between saving and investing is risk. However, without savings or actively working to carve out money from your budget to save, it is not possible to invest. Investing assumes a certain time horizon that the money is unavailable to you and cannot be spent. Therefore saving is a prerequisite to investing.

FINANCIAL DECISION MAKING: Match state and federal consumer protection laws to descriptions of the issues that they address and the safeguards that they provide.

Below are a few of the major United States laws, rules, and regulations that are designed to protect consumers when it comes to personal finance. These laws are enforced by the Federal Trade Commission (FTC), the federal entity committed to ensuring consumer protection. Ability-to-Repay Rule: Before you get a mortgage loan, the lender must determine you will have the ability to repay the loan. Electronic Fund Transfer Act (EFTA) : Aims to protect consumer rights in electronic fund transfer systems such as ATM withdrawals, credit and debit card transactions, electronic checks etc and clarify rules governing electronic fund transfers. Equal Credit Opportunity Act (ECOA): Prohibits credit discrimination on the basis of race, color, religion, sex, marital status, and age. Fair Debt Collection Practices Act: Prohibits debt collectors from using abusive, unfair, or deceptive practices to collect debt. Fair Credit Billing Act: Provides remedies for disputes on "billing errors", such as unauthorized charges, math errors, failure to send bills to current address, charges that list the wrong date and amount. Fair Credit Reporting Act (FCRA): Protects information collected by consumer reporting agencies. Information in a consumer report cannot be provided to anyone who does not have a purpose specified in the Act. Companies that provide information to consumer reporting agencies also have specific legal obligations. Gramm-Leach-Bliley Act - Requires financial institutions to protect the privacy of consumers' financial information. Additionally, each state in the U.S. employs Unfair and Deceptive Practices (UDAP) statutes; these statutes act as the main lines of defense protecting consumers from predatory and deceptive business practices.

SPENDING & SAVING: Write a check.

Below is a step-by-step on how to fill out a check: - Enter the date in the top right hand corner. - Enter the name of the recipient on the "Pay to the Order Of" line. - Enter the dollar amount: 1) Using numbers, in the box with the "$". 2) In words on the line below "Pay to the Order Of". Be sure to write it out completely, using cents as well. When finished, if you did not take up the whole line, use a line to fill the whole space; this is to protect you from forgery, as someone could write in more numbers and overcharge your account. - Optional: fill out the memo line. This is so you or the recipient knows exactly what the check was for. - Sign the check: the check is invalid if you do not sign the bottom right hand corner of the check. - DO NOT sign the back of the check, this is for the recipient of the check to sign. Terminology: - The account number - The routing number - also known as the American Bank Association (ABA) Routing/Transit Number. This is a 9-digit number found on the bottom of all checks. This number signifies which financial institution to associate an account with. - The check number Tips: - Write a check in black or blue ink pen. - Write clearly. - Checks must be cashed or deposited within 6 months of the date on the check. After 6 months the check is invalid. - If you make a small mistake, such as write the incorrect date, you may fix it and initial (sign) next to the mistake. - If it is a large mistake and you need to start over, write the word "VOID" across the check to ensure someone cannot forge the rest of the check. - Treat your checks (and checkbook) like cash. Keep them in a safe place. If you lose checks, anyone can use it and make it seem like you wrote it. If you lose a check, notify your bank immediately.

INVESTING: Describe how to buy and sell individual stocks, mutual fund shares and exchange-traded fund shares.

Brokerage Houses - must open an account with them and deposit funds as a show of good faith - brokerages do much of the work, such as completing the necessary paperwork and ensuring timely dividend payments - often do research and provide recommendations to their clients to buy or sell securities - charges a fee Mutual Fund Houses Mutual fund shares are also bought directly from the mutual fund and sold back to the fund. Most funds make investing easy, with a minimal paperwork and multiple options for payment. Brokerage commission is not paid when mutual funds are purchased directly. ETF Similar, but an ETF is bought and sold like a company stock during the day when the stock exchanges are open.

SPENDING & SAVING: Determine how charitable giving fits into a spending plan.

Budgeting for charity will depend on your personal preferences and financial circumstances and can be difficult if you're on a tight budget. Before working charitable giving into a plan, make sure you have at least 3 months of expenses in a savings account and no high-interest debt, like a credit card balance. Also budget for emergency funds, dependents, retirement and then work in an amount you are comfortable with for charitable giving. A good goal is to donate 3%-10% of your taxable income. However, if you're on a tight budget, some considerations to reduce this amount include: - Make sure you take a Tax Deduction on your charitable giving - Donate small amounts over time - Buy goods that give a portion of profits to charity - Combine efforts with friends and family! - Donate your time, rather than your money - go volunteer! This is a rewarding action.

FINANCIAL DECISION MAKING: Discuss how individual responsibility for financial well-being will change over a lifetime with changing life circumstances.

CHART: security - present: control over day-to-day finances. security - future: capacity to absorb a financial shock. freedom of choice - present: financial freedom to make choices to enjoy life. freedom of choice - future: on track to meet financial goals. Financial well being may be defined in the context of your present as having control over your day to day finances enabling you to enjoy financial freedom to make choices for enjoying your life. For the future it means having the capacity to absorb financial shock and remaining on track to meet your financial goals. Changes in life circumstances will affect your financial responsibility. As a young adult, a person only has to worry about how their financial decisions affect himself/herself. Your goals are simpler eg. you might want to buy a car and you probably have less income to manage. Once you have a family, your financial decisions affect both you and your family. You focus on asset acquisition and saving money to meet those goals such as buying a house, or college education. You should also be thinking of long term goals such as retirement and estate planning. You must consider planning for emergencies, life insurance, asset insurance as well for meeting health related expenditure. As your income grows, managing your investments as well as debts and taxes becomes more important. As you near retirement you need to ensure you plan for a fixed source of income and manage your health related expenditure. Estate Planning also comes into focus.

EMPLOYMENT & INCOME: Calculate how payroll deductions affect take home pay.

Calculating payroll deductions is the process of converting gross pay to net pay. To do this, deduct: - Voluntary benefits, including different types of insurance premiums, and contributions to certain retirement accounts. - Federal taxes - Refer to the employee's Form W-4 and the IRS tax tables for that year to calculate and deduct the appropriate rate of federal income tax - State taxes - withhold it according to the instructions found in each state's employer's tax guide or tax code. - FICA Taxes (7.65% of adjusted gross pay) - for Social Security and Medicare. - Wage garnishments - a legal procedure in which a person's earnings are required by court order to be withheld by an employer for the payment of a debt

SPENDING & SAVING: Analyze how changes in life circumstances can affect a personal spending plan.

Changes in circumstances can affect both the income and expense portions of your personal budget, or personal spending plan. For instance, a pay raise potentially has a positive impact on both sides of the budget: income and expenses. With more income, you can more easily afford your expenses and divert more money to savings and investments. Conversely, a drop in income will lead to a contraction in both sides of the budget. The cost of variable expenses will also impact the budget, even as income remains the same. If expenses drop, you have essentially received an increase in income. However, if expenses rise, you will need to make adjustments to the budget to maintain your lifestyle. (For example, if the price of air conditioning rises, you may decide to cool your house with fans as a lower-cost alternative. You substitute away from air conditioning to a less expensive good to allow yourself to spend the same amount of money on other goods). Big events that will need you to amend your budget: - Starting a family: you go from only having to cover your own expenses to being responsible for others. You'll need to consider life insurance to replace your income if anything happens to you, and saving for your child's post-secondary education, as well as estate and will planning. - Losing a job: dipping into your emergency and rainy day funds, reducing discretionary expenses. - Buying a house: homeowners insurance, budget for mortgage payments.

SPENDING & SAVING: Summarize the advantages and disadvantages of checks, stored value cards, debit cards, gift cards and online and mobile payment systems.

Checks In order to use a check to pay for a good or service, the person's signature is required on the check and a business will typically require another form of ID to verify the person's signature. The risks of using checks is they may be changed from the original amount, and if checks are stolen, there is no safeguard to the amount of money that a check or multiple checks may be written in the amount of. Stored value cards These prepaid cards for items such as subway fares, highway tolls, or school lunches are limited to the value of credit on the card, however, if lost or stolen, there is little a person can do to recover the value. However, since the card is not associated with a person's identity nor a personal checking or savings account, the risk is limited to the amount on the stored card. Debit cards These cards are linked directly to a person's bank account; in this way, they are similar to a check. A debit card requires the use of the account number on the card as well as a PIN (personal identification number) which is an added security feature. The use of a debit card limits spending to the amount in a person's account. The risk is in the case of stolen data. Should this occur, fraudsters can siphon all the cash from a person's checking account. An option for protection is to tie a debit card to a separate account that's only used for debit transactions so only that money is at risk. Money for your mortgage, your car payment, your student loans, etc. wouldn't be compromised with this protective option. Gift cards These are safe payment methods as they do not store personal information nor are they attached to any personal monetary account. If the card is stolen, or you lose the card, you will lose the amount of the card's value, however, you won't have to worry about any additional funds being compromised. Online and mobile payment When using your checking or debit/credit card number online, it is always important to consider the site's cyber security. Be sure you are on a safe, trusted webpage that is using a secure payment system. Using a credit card may be the best option because of the protection offered by many credit card companies.

SPENDING & SAVING: Summarize the risks and protections of checks, stored value cards, debit cards, gift cards and online and mobile payment systems.

EMPLOYMENT & INCOME: Devise a strategy to minimize the costs of postsecondary education.

College can be expensive but there are ways you can reduce the cost of your post-secondary education. Strategies include: - Research and choose a college wisely. - Live at home and commute to college - Living expenses are a large part of college costs. - Work a part-time job - Use a 529 Savings Plan - Reducing the number of classes you take at a four-year college: take general education classes at a community college during HS, or take and pass Advanced Placement exams in high school to bypass certain classes because they proved they have already mastered the content. - Consider Low-Interest Federal Loans: The Federal Government offers a number of financial assistance programs to college students through low-interest loans. - Apply for Scholarships and Grants - Being in the army often allows you to get free education.

SPENDING & SAVING: Demonstrate how to use comparison shopping skills to buy and finance a car.

Comparison shopping is a savings strategy where consumers cast a wide net and find the store or retailer with the lowest possible price for the thing they want It's especially beneficial when buying expensive items, items you purchase often, or items where the product quality or price varies greatly. The rapid growth of online shopping has created something which has been titled "showrooming." This is the practice of looking at cars or merchandise in the store and then buying it online at a lower price. When comparison shopping for a car, it is important to understand the following terms: - Annual Percentage Rate (APR) - also called a finance rate, this is the interest rate on a loan. - MSRP - Manufacturers Suggested Retail Price, this is what's listed for the base price. - Rebate - a partial refund on a new-car purchase offered by the manufacturer or dealership to increase sales. - Sticker/Asking Price - the price on the window sticker. Do not pay sticker price. With the exception of brand new models or those in high demand, cars can typically be bought for a price well below that quoted by the dealership. - Term - the length of the lease or loan. - Trade-In Value - the price a dealer will pay for your current car when selling you a new one. You will need to decide if you would like to keep your old car or gain a few thousand dollars (i.e., usually much less than what you paid for the car) for trading in. - Up-Front Costs - the total of all costs that must be paid at the signing of the contract, such as down payment and fees. Knowing these terms will allow you to effectively compare car prices and loan/lease rates, as well as possibly work with the dealer to lower the price.

INVESTING: Explain how rate of return, frequency of compounding, taxes and inflation can affect changes in investment returns.

Compound Interest Formula: A = P (1+r/n)^nt where: A = Accrued Amount (P+I) P = Principal r = nominal annual interest rate n = number of times interest compounded yearly t = the number of years since the principal amount has been deposited - The higher the rate of return and the frequency of compounding, the higher the return on investment. - Remember these returns are pre-tax returns and taxes will have to be deducted to calculate your net, post-tax return. The higher the applicable tax rate, the lower your post tax return will be. - Also remember that this return is the 'nominal' rate of return that is before inflation adjustment. So while rate of return and frequency of compounding are directly related to your investment return, tax rate and inflation are inversely related.

FINANCIAL DECISION MAKING: Research where to find credible sources of up-to-date information about consumer rights and responsibilities.

Consumer rights and consumer protection law provides a way for individuals to fight back against abusive business practices. These laws are designed to hold sellers of goods and services accountable when they seek to profit by taking advantage of a consumer's lack of information or bargaining power. Consumer rights laws exist at the federal and state level. They are enforced by government agencies at the federal level and offices of attorneys general at the state level. There are multiple credible online sources for information that you, as a consumer, can use to understand your consumer rights and responsibilities. These are official websites of the United States Government and the states'. https://www.fdic.gov/ https://www.ftc.gov/ In Georgia, the consumer protection division's website is georgiaattorneygeneral.gov.

CREDIT & DEBT: Explain how interest rate, compounding frequency and loan length affect the cost of using credit.

Cost of credit is a function of the interest rate (R), compounding frequency (N) as well as the loan length (T) in addition to the amount you borrow or the Principal (P). The Amount ("A") you owe on a loan is calculated as - A = P *((1+R/N)^(T*N)) Higher the interest rate, greater the compounding frequency and longer the loan term, the larger is the amount you owe leading to a higher cost of credit. For example, credit cards have the highest interest rates and they calculate interest on a daily compounding basis leading to higher cost of credit. That is why these should usually be paid off first.

RISK & INSURANCE: Discuss factors that affect insurance premiums.

RISK & INSURANCE: Identify the factors that influence the cost of homeowners' insurance.

Coverage - the amount of money you are requesting if something were to occur. The more coverage you request, the higher the premium. Deductible - A deductible is the amount of money that must be paid out-of-pocket before an insurer will pay any expenses. Deductibles are the way in which a risk is shared between you, the policyholder, and your insurer. Generally speaking, the larger the deductible, the less you pay in premiums for an insurance policy. Credit Score - Insurance companies want to see that you will pay your premiums on time, and they will look to your payment history through your credit score or report for this. A poor credit score will mean higher premiums. Cost of house - the more expensive your house, the higher your premiums will be, because repairs may cost the insurance company more for more expensive houses. Location of house - if the neighborhood the house is in is a dangerous one, there's a higher likelihood of the house needing repairs, same with natural disasters, if you live in a place that is prone to natural disasters, your house may be at a higher risk of needing repairs. The type of house (what it's built of, equipment in the house - heating and cooling, burglar alarms) can all contribute to the risk of the insurance company needing to pay, leading to higher premiums.

RISK & INSURANCE: Analyze the factors that influence the cost of renters' insurance.

Coverage - the amount of money you are requesting if something were to occur. The more coverage you request, the higher the premium. Deductible - A deductible is the amount of money that must be paid out-of-pocket before an insurer will pay any expenses. Deductibles are the way in which a risk is shared between you, the policyholder, and your insurer. Generally speaking, the larger the deductible, the less you pay in premiums for an insurance policy. Credit Score - Insurance companies want to see that you will pay your premiums on time, and they will look to your payment history through your credit score or report for this. A poor credit score will mean higher premiums. Property's Value The higher the value of your property, which is the price of the sum of your entire possessions, the more it will cost to insure your home. Location A suburban community without much crime will yield lower premiums than an urban, high-crime area. Those in high-risk areas, such as low-lying states that are prone to flooding or a state where tornadoes or hurricanes are common also have higher premiums.

RISK & INSURANCE: List factors that determine auto insurance premiums and the factors that cause them to change.

Coverage - the amount of money you are requesting if something were to occur. The more coverage you request, the higher the premium. Deductible - A deductible is the amount of money that must be paid out-of-pocket before an insurer will pay any expenses. The larger the deductible, the less you pay in premiums for an insurance policy. Credit Score - Insurance companies want to see that you will pay your premiums on time, and they will look to your payment history through your credit score or report for this. A poor credit score will mean higher premiums. What Automobile You Drive - Some insurers increase premiums for cars that are more susceptible to damage, occupant injury, or theft. Driving Habits - People who drive more pay more than people who drive less. The more miles you drive in a year, the higher the chances you have of getting in an accident. Driving Record - Drivers who have a history of causing accidents must pay more for insurance than people who have been accident-free for several years. Where You Drive - In general, because of higher rates of vandalism, theft, and accidents, urban drivers pay more for insurance than people who live in more rural places.

CREDIT & DEBT: Explain how debit cards differ from credit cards.

Credit cards are a loan, they give you access to a line of credit issued by a bank, while debit cards are similar to cash, you are spending directly from your account. Credit cards allow you to spend more than you have, which could lead to debt. Credit cards offer better consumer protections against fraud. Credit card users can reap cash discounts, travel points, and many other perks unavailable to debit cardholders by using rewards cards. Build a credit history. Annual fees.

CREDIT & DEBT: Examine the types of services that consumer credit counseling agencies offer.

Credit counseling agencies provide a range of services aimed at helping people take control of their finances. - Debt management plans, that allow you to streamline and consolidate debt payments. - Budgeting or expense tracking. - Student loan counseling services. - Credit report reviews. - Bankruptcy counseling.

FINANCIAL DECISION MAKING: Predict how influences such as current fashion trends, peer pressure and procrastination can affect financial decisions.

Current fashion trends and peer pressure affect aspects of everyone's life, from childhood to old age. The important thing is to consider how these purchases impact you and your financial situation. For example, buying a luxury car is probably not a smart idea for most people in their 20s who are just starting out. Constantly giving in to peer pressure could lead to excessive debt. Consider each purchase before you make it, and the reasons behind the expenditure. If you're only doing it to fit in or to look cool in front of your friends, perhaps you need to step back and rethink whether you need it at all. Procrastination means you don't do things on time, but scramble in the end to finish things. This can negatively impact your financial life: - When you procrastinate you don't plan well enough. Lack of long term planning and budgeting can cause great difficulties in your financial life - You don't end up saving for long term financial goals such as retirement or college education of your children - Procrastinating and not paying your bills on time can lead to a poor credit history which can have long term implications for your credit score and hence for cost of credit, ability to borrow and finance purchase of home, car etc. - Investing very often is a time sensitive activity, if you dont act promptly to changes in the economic environment you could lose large amounts of money These are just some examples, but procrastination can have adverse implications for your financial stability. It is a habit that you can work to change.

INVESTING: Calculate the average cost per share of an investment using a dollar cost averaging strategy.

Dollar-cost averaging is a practice wherein an investor allocates a set amount of money at regular intervals to an investment. This means you will end up buying more shares if the stock price is low and less shares if the stock price is high. It's a lower risk strategy since putting a lump sum of money into the market all at once can run the risk of buying at a peak, which can be unsettling if prices fall. The formula to calculate the average cost of all the shares you have purchased is: Amount invested/Number of shares purchased = Average cost per share

CREDIT & DEBT: Discuss potential consequences of using "easy access" credit.

Easy access credit usually refers to loans that are: - very short-term - charging very high interest rates - do not depend upon the credit history of a person - are unsecured, without any collateral While easily available, the catch is that these loans charge very high fees and interest rates. They may be considered predatory lending, as they don't consider a borrower's ability to repay, and have hidden provisions that charge borrowers added fees. As a result, they can create a debt trap for consumers, which may be difficult to get out of. As an example, 20% of those who take out a short-term, single-payment car title loan will have their cars repossessed. One-third of the borrowers renewed their loans seven or more times. For a $1,000 loan, that would mean at least $1,750 in fees alone. Though these loans may be a tempting option when going through financial difficulties, they often put a person in a worse financial situation than they were in before, due to the high interest rates and fees. The financial world is broad and there are many better alternatives to these loans.

INVESTING: Discuss reasons why some investors sell stocks when the stock market is falling (panic selling) and buy when prices are rising (exuberant buying).

Emotional investing is what drives investors to make irrational decisions. Generally investor optimism increases as the stock market rises. Optimism turns to euphoria and investors make large purchases as 'everyone else is profiting' from the market. Emotions like greed, envy, and fear of missing out cause exuberant buying. Then, the market peaks and starts declining, and investors go through a series of emotions — fear, panic, and anxiety. At this point they begin to panic sell. Once the market starts to recover, investors start feeling hope again and the cycle starts continues. Emotional investing can drive you to buy and sell at exactly the wrong time. That's why it's important to remember that investments do rise and fall, and they will likely smooth out over time. ** cycle of emotional investor visual

EMPLOYMENT & INCOME: Give examples of employee benefits and explain why they are forms of compensation.

Employee benefits are offered to employees over and above what they are receiving as a salary. They differ in every state, but a general list includes: - Health insurance, Life insurance, Short term and long term disability insurance or workers compensation - Dental and vision coverage - Stock options - Retirement benefits such as 401 K or other retirement plan - Vacation days or paid time off - Educational incentives such as programs to help cover employees' college debt and tuition for postsecondary education in fields of study related to their current jobs - Free Lunches - Free Parking - Flexible work arrangements They are generally forms of compensation because they either have a monetary or intrinsic value (which improves quality of life).

EMPLOYMENT & INCOME: Differentiate between required employer contributions and additional benefits that an employer might offer.

Employee benefits fall into two categories: those required by law and those an employer chooses to offer voluntarily. While there are some differences by state, employers are required to provide the following - - Retirement plans: 1) Social Security - Social Security is part of the retirement plan for almost every American worker. It provides replacement income for qualified retirees and their families. You can start receiving your Social Security retirement benefits as early as age 62. 2) 401 K - not required, but recommended. - Medicare - Insurance: 1) Workers Compensation 2) Disability Insurance 3) Health Insurance - Family and Medical Leave However Employers can go above and beyond and offer you more than the minimum required in each category above. Ask the employer to find out exactly how much, as well as if they offer any other benefits they offer that are not required - such as education benefits, wellness benefits, free lunch, free parking, training opportunities and flexible work arrangements.

INVESTING: Give examples of how employer matching contributions to employer sponsored retirement savings plans and vesting schedules affect participating employees.

Employer matching contributions are usually in reference to a 401(k) plan. With this benefit, an employer contributes a certain amount to the employee's retirement savings plan, based on the amount of his/her annual contribution. * example 401K plans are tax-advantaged, meaning your contribution will be from your taxable income, but when you withdraw it, it will be taxed. This is known as tax-defered. However, the IRS has an annual limit on the amount of contributions that are tax-defered, which is around $20,000. Vesting Schedules determine degree of ownership over the employer contributions in your 401K depending on how long you have worked at the job. Employers are able to retain employees for longer through this incentive.

FINANCIAL DECISION MAKING: Give examples of unfair or deceptive business practices that consumer protection laws prohibit.

Federal and state law prohibits businesses from engaging in activities that are "unfair" or "deceptive." These laws are enforced by the Federal Trade Commission ("FTC"). Similar state laws are often called "mini-FTC Acts" and are enforced by the states' Attorneys General or other consumer protection offices. While there is no definition of "unfair" or "deceptive" in the FTC Act, generally the FTC's test of "unfairness" requires that there be a consumer injury, and the injury be substantial, not offset by benefits, and not be one that consumers could have reasonably avoided. Many state laws, in addition to a broad prohibition of unfair or deceptive practices, list specific practices that are deemed unfair or deceptive, such as: - False statement about a product's effectiveness, quality or ingredients - Advertising sale items that are not actually available for sale - Deceptive guarantees or failing to fully disclose the material terms of a guarantee - "Bait and switch" advertising - Fictitious testimonials - Enrolling a consumer in a "negative option" program without fully disclosing the material terms, such as how to terminate - Greenwashing - disinformation disseminated by an organization so as to present an environmentally responsible public image - Pyramid Schemes Remedies The FTC may fine a business $11,000 per violation, obtain other civil damages, force the business to refund customers etc. Civil fines and remedies can easily reach into the millions of dollars. Consumers may also file a complaint with the FTC or the state consumer protection agencies or to the Better Business Bureau and/or small claims court.

FINANCIAL DECISION MAKING: Justify reasons to consult with a tax advisor or financial planner.

Financial Planners: can offer a variety of services for which you might consult them. Financial advisors offer a variety of services, you want to pick the one who is an expert in the area you need help in, for example retirement planning specialists or investment advisors or registered brokers (buy and sell securities) or tax planning experts or insurance agents or lawyers (for estate planning) or accountants or financial planners or comprehensive advisors that engage with everything. An insurance agent will tell you about insurance products (such as life insurance and annuities) but likely won't discuss other investment choices (such as stocks, bonds or mutual funds). You'll want to make certain you fully understand which areas of your financial life a particular planner can—and cannot—help with before you hire that person. Tax Advisors : A tax advisor, could be an enrolled tax agent (pass a rigorous test) or a certified public accountant, is a professional who specializes in the complex U.S. tax code, and who uses that knowledge to help taxpayers minimize their tax burden. They can help you navigate taxes related to retirement, rental property income, capital gains taxes or sorting through the tax implications of life events, like marriages, divorces, deaths and births. Choosing a tax advisor who is also a certified financial planner can give you a more balanced approach to how taxes fit into your overall personal financial situation. Your investments, retirement savings, home mortgage costs, college savings (among other key financial household issues) come into play, tax-wise, and a good, well-rounded CPA/CFP could prove invaluable to you over the years.

CREDIT & DEBT: Investigate ways that a negative credit report can affect a consumer's financial options.

Financial consequences of a poor borrowing reputation: - Difficulty getting a loan: whether car loan, mortgage or a credit card account. - Higher interest rates on credit cards and loans, if you do get approved. - Security deposits on utilities - electricity, phone, and cable companies—check your credit as part of the application process. If you have a poor borrowing reputation you may have to pay a security deposit to establish service in your name, even if you've always paid your utility bills on time. The security deposit will be charged upfront before you can establish service in your name. - Higher insurance premiums: insurance companies also look at your credit history to determine your insurance premiums.

FINANCIAL DECISION MAKING: Apply systematic decision making to setting and achieving financial goals.

Financial goals are savings, investment or spending targets you hope to achieve over a set period of time. The stage of life you're in will usually determine what type of goals you wish to achieve. Identify your objectives The first step is setting your financial goals. You'd like to follow a SMART goal setting strategy, this means your goals should be- Specific - concrete and clear goal definition Measurable - system to measure progress Achievable - your goal needs to be achievable given your context and in the desired time frame Relevant - your goals should be consistent with your values and priorities Time Bound - Your goals should have a specific time frame and can be categorized as short term (within 1 year), medium term (1-5 years) and long term (5-10 years) as how you plan to save for them will be different Gather Information or Budgeting Prepare a realistic budget identifying all your inflows and outflows. This will give you an idea of your surpluses. Determine how much money you need to reach your SMART goals, separating that amount by month and year. You will need to think about saving for short, medium and long term goals differently. Develop and Analyze Alternatives If your savings rate seems insufficient in the context of your goals, you might need to think about reducing your expenses (using Needs Vs Wants framework) as well as identifying fixed and variable spends (strategies to reduce fixed expenses may involve reducing rent by moving to inexpensive accommodation while less frequent eating out will reduce variable expenses). You could also consider earning extra money with a side hustle or developing other alternatives. For short term goals, you could plan to save money in your savings account or money market mutual funds while for medium and short term goals you could invest in the stock market or mutual funds, giving you the benefit of compounding. Decide which is the best combination of ways to achieve your goals and write them down. Implement your plans Its usually easier to set incremental goals, prioritize and achieve and that gives you the motivation and discipline to achieve the longer term and harder goals. Monitor progress and change course as needed You might come into a windfall and you could decide to accelerate some long term goals or decide to save them for a rainy day. Getting married and having children might also lead you to reevaluate your goals. This is financial goal setting in the context of the decision making process. There are three different types of decision-making styles: Inactive (procrastinator who fails to make choices, which are then made simply by the passage of time), Reactive (allows others to make decision for them), and Proactive (someone who follows a systematic decision making process and assumes responsibility for the consequences). Make sure to make proactive choices.

FINANCIAL DECISION MAKING: Evaluate whether financial information is objective, accurate, and current.

Financial information should be a compass for financial decisions. However, not all information can be trusted. The most useful information is objective, accurate, and current. Objective To be objective means "not influenced by personal feelings, interpretations, or prejudice". Objective information is based on facts and and is unbiased. The source of the information will often tell you much about objectivity. On the web, only look at reputable websites. If receiving information from a financial advisor, only accept information from an advisor you trust does not have an ulterior motive. Objective financial information should never be pushy, request unnecessary personal information, or seem "too good to be true". Accurate Accurate information is "consistent with a standard, rule, or model; precise and exact". Publicly-traded companies are required to use Generally Accepted Accounting Principles when preparing financial statements. The Sarbanes-Oxley Act (SOX) also requires a publicly-traded company's financial statements be certified by the CEO and CFO. When viewing information directly from publicly-traded companies, this provides assurance of accuracy. If looking at information from private companies, who aren't required to follow such guidelines, accuracy issues can often be found by looking for inconsistencies. Inconsistency in information can be a clue that information has been falsified. Current Current financial information is prevalent and up-to-date. Reliable financial data should always include a date. If a date cannot be found, be wary of the information. It is critical to make sure the information you are looking at is current so you do not make misinformed financial decisions.

FINANCIAL DECISION MAKING: Compare how financial responsibility is different for individuals with and without dependents.

Financial responsibility is the process of managing money and other assets in a manner that is considered productive and in the best interests of the individual or family. Being proficient at the task of finance and money management involves cultivating a mindset that makes it possible to look beyond the wants of today in order to provide for the needs of tomorrow. Dependents Defined According to the IRS, dependents are children or relatives whom you financially support. (Other qualifications exist for different circumstances). Claiming dependents can reduce taxable income and, therefore, has tax benefits. Having dependents brings on additional considerations. For one, you are supporting more than yourself. Raising a child for 18 years costs an average of $241,000! Having children means financing health care, education, higher grocery bills, and a myriad of other expenses. A person with dependents must take the following steps- 1) Prepare a financial plan with SMART goals, 2) A comprehensive Budget that includes all inflows and outflows and distinguishes between 'Needs' and Wants. 3) Follow the 50/30/20 rule 4) Be disciplined with debt 5) Purchase a life insurance 6) Create a college savings plan 7) Create a substantial emergency fund 8) Planning for health expenditure through insurance and savings 9) Organize your investments 10) Prepare for retirement 11) Insure your assets 12) Estate planning is very important 13) Continuously monitor and update your plan People without dependents have fewer people's financial needs to consider, but they cannot claim the tax benefits of claiming dependents. A person without dependents, but who plans to have a family, should plan, invest, and save for the future.

INVESTING: Identify types of investments appropriate for different objectives such as liquidity, income and growth.

For most investors, the answer does not lie in a single choice among liquidity, income and growth but a mix of all three that meets your needs Investments for Liquidity: - The most liquid asset is cash. How liquid an asset is is measured by how easily it is converted to cash. - CDs, Bonds, or bond funds - Stocks are less liquid since they can be sold easily but selling at the wrong time can cause a serious loss. - Commodities such as Gold are also easy to liquidate with transparent quoted prices. Investments for Income: - Guarantee of a steady income is usually the priority of retirees who want a stable source of monthly income while beating inflation. - Examples include dividend stock, equity mutual funds, real estate, or government and corporate bonds. Investments for Growth: Investing for growth means aiming for capital appreciation through investments in stocks - growth stocks (younger companies that are higher risk but could be successful) - blue chip companies (large, well established companies that will give appreciation over the long term). - high risk, high return

SPENDING & SAVING: Research the average costs of all expenses associated with a four-year college education, a wedding and a new versus used car.

Four-Year College Includes tuition, fees, books, room and board, and estimated personal and transportation expenses. Most college and university websites have a calculator to assist with the estimate of the cost of an education. Start saving early! There are several strategies to minimize these costs. Wedding Honeymoon, venue, catering, and a dress are all examples of expenditures for a wedding. If parents, grandparents, or others plan on paying for a large chunk of your wedding, your actual cost of payment may be lower. You can lower these costs by inviting less people, going homemade (on food, decorations, etc.), and holding your wedding in a less popular month (such as December through March). New vs. Used Car The value of a car drops immediately after the owner drives it off the lot. This is known as price depreciation. So buying a used car can greatly decrease how much you spend on a car. When doing this, be sure you find a reliable dealer who is not selling you a faulty vehicle.

CREDIT & DEBT: Compare the cost of borrowing $1,000 by means of different consumer credit options.

Friends and Family If you borrow money from friends or family you might get an interest rate of 0%. However, if repayment goes awry, relationships could be damaged. Credit Card A credit card can be used to make a purchase when the need exceeds the money on hand, and then you are able repay it along with interest later. If you need to purchase something for $1,000 and can repay it in a short period of time, credit cards may not be a bad option. If you pay your balance at the end of every month, you can keep interest minimal. If your repayment plan isn't in the foreseeable future, a credit card is likely not a good option due to the very high interest rates charged for credit card debt. Personal Loan Banks/credit unions and other financial institutions offer personal loans with interest rates lower than credit cards. This is an option for someone with a good relationship with their bank and a good credit rating (usually above 660). Payday Loan A payday loan is a short-term cash loan based on your income, with an average term of 2 weeks. This type of loan can provide money in a pinch, even if you have poor credit, but at an exorbitant annual percentage rate (APR) ranging from 100% - 800%. Home Equity Loans If you have equity in your home - the house is worth more than you owe on it - you can borrow against that equity to help pay for big projects. Home equity loans and home equity lines of credit (HELOCs) use the borrower's home as collateral, so interest rates are considerably lower than what you pay on credit cards.

CREDIT & DEBT: Explain how credit card grace periods, methods of interest calculation and fees affect borrowing costs.

Grace Period The grace period on a credit card is the time between the end of a billing cycle and the date your payment is due, usually 21-25 days. Although credit card issuers are not required to offer a grace period, those that do must provide a minimum of 21 days under federal law. You won't be charged any interest on the purchases you've made within a billing cycle as long as you pay your bill in full before the due date. Methods of Interest Calculation Interest rates are also known as annual percentage rates (APRs). Usually between 13% and 30% depending on their credit-worthiness. The majority of credit card companies use the daily balance method; that is, interest is calculated each day you carry a balance. Your real interest rate will be higher because of daily compounding. Fees Credit card companies can also charge fees, additional to interest, for using the company's credit card.

FINANCIAL DECISION MAKING: Outline steps to resolve identity theft problems as recommended by the Federal Trade Commission and relevant financial institutions.

Having your identity, wallet, Social Security card, or other personal financial information stolen can be scary and difficult to resolve. If handled quickly and correctly, the problems should resolve themselves within a short time period. But there are some tips the Federal Trade Commission (FTC) provides to those whose identity or financial information has been stolen: Place a Fraud Alert on your Credit File - Contact one of the three credit reporting agencies (Equifax, Experian, TransUnion) to place a Fraud Alert on your credit file. An initial fraud alert lasts for 90 days. Order/Check Your Credit Reports - Contact the credit reporting agencies to request your free copy of your credit report. This will help you detect fraudulent activity on your account. If checking online, it may take a while for the information to update. To get an accurate and up-to-date credit report, contact the credit reporting agencies. Create an Identity Theft Report - Submit a complaint to the FTC about the theft; this is your Identity Theft Affidavit. - File a police report about the identity theft. - These two documents together equal an Identity Theft Report After these steps are taken you will need to review your credit reports and dispute any errors with the credit reporting companies. Additionally, you may need to dispute fraudulent accounts opened in your name and fraudulent charges. Who to Contact In addition to filing with the FTC and contacting credit agencies, you will need to contact your the following places to change your information and/or inform them of the fraud. - Bank - Credit Card company - Investment Accounts - Department of Motor Vehicles - for your Driver's - License - U.S. Department of State - for your Passport - Social Security Administration - about your Social - Security # or card.

EMPLOYMENT & INCOME: Explore how local government services assist people, such as those who are unemployed, elderly, disabled or low-income.

Health - Medicaid (largest) providing comprehensive health coverage with no or low premiums, co-payments and cost sharing. Food and Nutrition - Food stamps: debit cards to purchase grocery - free or reduced price meals at schools - free food is also provided at food banks - Meals on Wheels: the elderly or disabled can also get free nutritious food delivered to their home. Income Support - Social Security provides monthly cheques to retirees and disabled workers and their families and families of deceased workers. - For low income elderly and disabled, there's also a Supplemental Security Income (SSI). There are also Unemployment Insurance ("UI") programs which provides money to those qualified.

RISK & INSURANCE: Compare sources of health and disability insurance coverage, including employee benefit plans.

Health and disability insurance can be obtained primarily in three ways: - From an employer - Through a direct purchase - From the government. Most large employers provide health and disability insurance to their employees. If employer-sponsored healthcare is not available, consumers will need to purchase policies directly from a provider. - Lower-income individuals are eligible to receive Medicaid, a government insurance program. - The elderly are eligible to receive Medicare, also a government insurance program. - Social Security also provides disability insurance to those who qualify.

SPENDING & SAVING: Investigate ways to secure vital personal financial data and records.

Here are some action steps to take: - Secure Your Confidential Documents. Keep all your financial documents in a secure place (vault or safety deposit box), and be careful how you dispose of any documents with financial or other confidential information. Shred documents that have confidential financial or identification information before throwing them away. - Invest in a multifunction scanner. When you get a new important document (passport, life insurance policy, etc.) immediately scan it and organize it on your computer as well as cloud. - Back up digital documents. Back up digital docs on a thumb drive or a secured digital card that you can easily remove from your device. Periodically, you should make a copy of that storage and put it somewhere offsite, like a safety deposit box. - Make copies. If you travel a lot, you could also make a soft copy of important documents like your passport, credit card, etc. and take it with you. Make sure it's encrypted, in case you lose it. - Create a cloud storage account. Another option is to make a cloud storage account that you can access from anywhere with Google, Apple, Dropbox, Box, etc. - Create strong passwords - Don't respond to unsolicited phone calls or emails with personal information. Be wary of possible "phishing" emails or phone calls asking for sensitive information like Social Security and account numbers and passwords. - Safeguard Your Social Security Number. Do not use your Social Security number as a username, password or PIN, and make sure that it does not appear on your printed checks.

FINANCIAL DECISION MAKING: Summarize the terms of a homeowners' or renters' insurance policy.

Homeowners insurance is designed to protect homeowners from the risks that come with home ownership, including coverage for the structure of your home, all of the contents inside of it, and protection against expensive lawsuits or medical bills if someone is injured on your property. Renters insurance is designed to protect tenants from theft or damage to their property when they rent a home or apartment, as well as liability coverage for legal and medical bills if someone is injured while at your home. In this case, protection of the dwelling and other structures is the responsibility of the landlord. Both Homeowners and Renters insurance includes the following main types of coverages: - Personal property: Pays to repair or replace your personal belongings after a covered loss. - Liability: Pays for medical and legal bills if someone is injured or their property is damaged while at your home or apartment and you're found legally responsible. - Loss of use: Pays for hotel stays, dining out, transportation costs, and more if you need to live elsewhere after a covered loss to your home or apartment. - Medical payments: Pays for smaller medical payments for your guests if they're injured at your home — regardless of who is at fault. Both home and renters insurance protect your property if it's stolen, either from your home or off your property In addition to the above, Homeowners insurance also includes the following - - Dwelling: Pays to rebuild your entire house from the ground up after a covered loss. - Other structures: Pays to rebuild other structures on your property like fences, sheds, or detached garages after a covered loss. Homeowners and renters insurance policies include the same covered and excluded perils, meaning specific types of damage both policies will or will not cover. Eg. Fire, theft, windstorm, Explosions, volcanos are covered while flooding, earthquake, pest infestation are not covered. Homeowners insurance is more expensive (roughly $160/month) than renters insurance (roughly $15 per month) because it includes coverage for both the structure of the house, as well as the contents inside. Insurance companies offer discounts for both homeowners and renters insurance. A few of the most popular discounts available include Safety discounts for installing a burglar alarm or deadbolt locks, Bundling discounts for bundling your renters or home policy with your auto policy, and loyalty discounts for being insured with the company for many years.

INVESTING: Identify warning signs of investment fraud.

If it sounds too good to be true, it probably is. 1. "Risk-Free" Opportunities Nothing is without risk. All investments carry some degree of risk. 2. Promises of Guaranteed Returns Besides savings accounts, no investments have a guaranteed return. 3. High-Pressure Sales Tactics - beware of 'hot tip' or 'insider information' 4. Unlicensed Professional Registered representatives are required to be licensed through the Securities and Exchange Commission (SEC). The SEC always provides professionals a way to show their license to investors. 5. Unregistered Securities Unregistered securities should also raise concerns. This may include stocks without a stock symbol. 6. Lack of Communication/Detail You should not feel confused about your investment, must have all the pros and cons and risks associated with the investment Do not solely rely on what a promoter is telling you. Do independent research on the investment.

FINANCIAL DECISION MAKING: Outline the information needed to resolve a specific consumer complaint.

If you have problems with an item or service you purchased, you have the right to complain. Start your complaint with the seller or manufacturer. If they don't help, seek help from your local government or a consumer organization. You will typically need the following information to get started: Collect your documents - Gather your records: sales receipts, warranties, contracts, or work orders. - Print email messages or records of any contact you've had with the seller about the purchase. Draft a complaint letter including information on item purchased with the model #, invoice details, date of purchase as well as where it was purchased. Cover the issue with the product, like if it stopped working or you were charged the wrong amount or misrepresentation. Explain the problem in detail. Also have information ready on how you would like the issue resolved. Also provide your contact information and a date by which you will escalate the issue if you don't hear back. Locate the Company's contact information - sales representative or customer service contact information is usually on their website. Collect details of the management team if the salespeople are not helpful. Post on social media about the problem, as detailing the issue in public usually draws quick response from the company. Identify contact details of your State's consumer protection agencies or Attorney General or if the product/company is associated with a Trade Association or a specialized industry and regulator, like banking or Insurance in order to escalate the issue. Better Business Bureau is also an option.

FINANCIAL DECISION MAKING: Explain why an individual or household may want to consult with an attorney for financial advice or representation.

If you're putting together a team of people to help you with your financial needs, an attorney might be helpful. An attorney can: - help investors resolve problems with their brokers, - help with drafting wills, formulating trusts to help in estate planning - Help vet or draft documentation for loans and mortgages - A financial services lawyer that specializes in tax law can help you file your taxes and offer advice if you are audited. - Bankruptcy issues are generally very complicated, a specialized financial services lawyer will explain your rights and offer advice during the process - advise you about debt and collection laws and ensure any debt collectors are following the rules for collecting debt. A financial services lawyer can speak to collection companies on your behalf and help with a settlement plan for any debts owed. Depending on the situation at hand, you may need an attorney at several points in your life.

FINANCIAL DECISION MAKING: List entities that have a right to request certain personal financial data.

In general, you will need to provide your sensitive information like your SSN to: Employers for wage and tax reporting purposes. Financial institutions, such as banks or brokerage firms, for tax reporting purposes. Banks, credit card issuers or other lenders if you apply for a loan or new credit card. Landlords or utility providers (such as a power company) for a credit check. Government agencies to obtain services and to file your taxes. Credit reporting agencies—Equifax, Experian or TransUnion—or AnnualCreditReport.com to obtain your credit report or credit score. Insurance companies might pull your credit scores to determine your insurance rates Government agencies - A government agency with a legitimate reason to pull your credit may do so. It may be looking for contact information; determining if you potentially have unclaimed income or assets when you apply for public assistance; or determining how much you can afford in child support and more. Any entity with a court order - There is an exception to the "needing a legitimate business reason to pull your credit" rule. If an entity gets a court order to access your credit, it may do so. However, court orders aren't easy to obtain, so it's unlikely that your report will be given to someone who doesn't have a good reason to see it. LAW TO PROTECT YOUR PRIVACY The Gramm-Leach-Bliley Act (GLBA) states that financial companies must tell you about their policies regarding the privacy of your personal financial information. With some exceptions, the law limits the ability of financial companies to share your personal financial information with certain non-affiliates without first notifying you about the sharing and providing you with an opportunity to opt-out. A non-affiliate is a company that is unrelated to your financial company.

EMPLOYMENT & INCOME: Complete an age appropriate, part-time job application.

Include: - personal information (email address, name) - education - employment Information (reasons for leaving past job) - references - resume There are some questions that shouldn't be on a job application. You are not required to answer questions about race, ethnicity, religion, public assistance, gender, marital status, sexual orientation, age, or disability.

FINANCIAL DECISION MAKING: Describe how inflation affects financial decisions, including the price of goods and services.

Inflation refers to a general progressive increase in prices of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money. This is why inflation is important. It affects the prices of everything: from the things you need day-to-day to luxury goods and services. When inflation rates are high, and wages are stagnant, it means you're losing purchasing power year over year. It may be harder to buy the same things that you purchased easily just months prior. Inflation tends to encourage spending as it is better to buy now, rather than later. Cash will only lose value, so it is better to get your shopping out of the way and stock up on things that probably won't lose value. So what do you need to do to counteract the impact of inflation? 1) If your salary increases don't match the rate of inflation, you may need to supplement your salary with side income. This might be through a second job or you may also want to look for a job that does increase its salary in pace with (or, even better, faster than) the rate of inflation. 2) Investing is crucial to counteract the power of inflation and protect your purchasing power. All investments are affected differently by inflation. Money sitting in a savings account with an interest rate lower than the rate of inflation will actually lose value. That's why it's often important to invest a portion of your savings in an account or asset whose value will increase at a faster pace than the rate of inflation. There are also investments that have returns linked to inflation, such as TIPS, a type of government bond. 3) Retirement planning is also affected by inflation and the best way to prepare for retirement is to start saving early. Most retirement accounts, like IRAs and 401ks, use mutual funds or ETFs that are indexed to the stock market to grow your savings. With the power of compound interest, this can result in a higher value that outpaces the rate of inflation.

EMPLOYMENT & INCOME: Calculate the future income needed to maintain a current standard of living.

SPENDING & SAVING: Illustrate how inflation can affect spending power over time.

Inflation refers to the general progressive increase in the cost of goods and services over time. As a result, you'll need more money in order to purchase the same things. Why is inflation important? Inflation affects the prices of everything: from the things you need day-to-day to luxury goods and services. When inflation rates are high, and wages are stagnant, it can become a serious problem for people trying to get by. Example: if your car costs $40,000 today, 5 years later at an average inflation of 3%, it will cost $46000. How Can I Budget with Inflation in Mind? Rising inflation can make everything more expensive. If your income isn't increasing at the same rate as inflation, it may be difficult to maintain purchasing power. It's time to add inflation to your budget considerations. As you plan your future spending, be sure to think about how much more money you're likely to need to purchase the same thing a few months or years from now. The best way to plan for inflation is by investing in assets that take inflation into account, like TIPS, a type of government bond. It's also important to make sure that your salary growth or income growth is greater than or equal to the inflation rate.

SPENDING & SAVING: Illustrate the effect of inflation on buying power.

RISK & INSURANCE: Investigate consequences of insurance fraud.

Insurance fraud is any act committed with the intent to obtain a falsified outcome from an insurance process. Insurance fraud can generally be divided into two categories, known as "soft fraud" and "hard fraud." Soft fraud occurs when a person exaggerates an existing claim, such as overstating the damages caused by a car accident. This is punishable by fines and jail time of up to one year. Hard Fraud occurs when a person either causes or fabricates a loss for the deliberate purpose of obtaining insurance payments. Almost always considered a felony, punishable by strict penalties, including jail time for a number of years.

INVESTING: Use reputable government and industry sources to locate background information about a local person who sells investments or provides investment advice.

Investment advisors and brokers are typically required to be registered with the SEC or state securities authorities. SEC (Securities and Exchange Commission): Review the Investment Adviser Public Disclosure (IAPD) website of the SEC to obtain employment history, licensing information, and more. FINRA (Financial Industry Regulatory Authority, works under the SEC): FINRA has a free online BrokerCheck tool that provides work history and other important information. State Securities Authorities: If you dont find information in the above two sources (since it may be a smaller, local broker) then check with your state securities regulator. Most importantly seek references from trusted friends or advisors or work colleagues.

CREDIT & DEBT: Explain how individuals use debt as an investment.

Investment in debt instruments represent a loan from which you expect to receive a return of your principal with interest, such as a bank certificate of deposit or a municipal bond. In some cases debt instruments can also produce a capital gain or loss. The primary way you earn money from debt investments is through collecting interest payments, but some debt instruments trade in the secondary market and can produce either capital gains or losses, like bonds. EXAMPLES Treasury Securities The federal government provides the safest place for your debt investments through the sale of Treasury bonds, bills, notes and other government-backed securities, because the interest and principal are backed by the full faith and credit of the United States government. Treasury notes might mature in a few days, while Treasury bills have varying maturity dates ranging from two to 10 years. Treasury bonds extend for 30 years. They typically carry low interest rates. Bank Deposits When you put money into your bank account, you are loaning money to the bank in exchange for a stated rate of interest. Since you can take money out of your demand deposit accounts any time you want, the interest rate is typically quite low. You can usually get a higher interest rate by agreeing to keep your money on deposit for a longer period, such as in a certificate of deposit. Bank deposits have the added protection of being insured up to maximum limits by the Federal Deposit Insurance Corporation. Bonds The most common type of debt investment is a bond. Organizations - governments included - have sold bonds as a way to get individual investment investors can buy bonds with a guaranteed repayment at a determined interest rate. Corporations with higher credit ratings (which is ideal from a risk perspective, as a higher credit rating can better ensure you'll get your investment back) will pay less interest to bondholders. Growth companies or those considered more risky to bondholders pay higher interest yields on bonds, presenting a higher risk, higher reward scenario for debt investors. Others During strong periods in real estate, private investment groups fund more risky loans for real estate developers and home buyers in exchange for liens against the property. Similarly other complicated structures such as car loan notes and owner-financed mortgages, also exist providing higher risk higher return options

INVESTING: Give examples of investments for current income and investments for future growth.

Investments for current income generally tend to follow a conservative investment strategy. Examples are high yield savings accounts, CDs, money market mutual funds, government bonds, corporate bonds. This is a lower risk strategy, lower return strategy, so that you do not lose your money right before you need it. Investments for future growth follows an agressive investment strategy. This emphasizes capital appreciation and the growth of money invested. Examples are stocks and shares of high growth companies, where you make a return in the future through capital apreciation, rather than in a short time frame from dividends. Investing in land is another option. This investment strategy is higher risk with potential for higher return.

FINANCIAL DECISION MAKING: Develop a backup plan for a specific financial goal when circumstances change, such as from job loss, illness, major gift or inheritance.

It is very important to have a backup plan for adverse events, such as job loss, illness, or disability. These should include - Insurance Disability - Disability insurance will help cover expenses and generate income for you in the case of a disability. Health - Health insurance will help pay for unexpected medical expenses or hospital stays if you suddenly become ill. Workers Compensation - If you become hurt while on the job, workers compensation helps cover your income that is lost while recovering. Savings Account / Emergency Fund - Savings accounts and emergency funds are made for unexpected events. These funds are especially useful if you are laid off or happen to suddenly lose your job. It's important to set aside some money—about the equivalent of 3 to 6 months' of living expenses—in an emergency fund. There are times when people become ill or are injured in accidents. Employers lay off workers. If something unexpected happens to you, having the money you need to see you through the weeks or even months of being out of work will help to keep you out of debt. Similarly it's useful to also have a backup plan for events that benefit your finances, such as a large monetary gift or inheritance. Rather than let these things sit, you should actively use them to meet your financial goals. For example, add to your retirement or education funds, or invest it into an appropriate investment.

INVESTING: Compare the consequences of delaying investment for retirement and benefits of investing early.

It is very important to start investing early for retirement for 2 reasons- 1) The first is due to inflation. Over time, the average cost of goods and services tends to increase. As a result, you'll need more money in the future in order to purchase the same goods—that's called inflation. Investing is crucial to counteract the power of inflation and protect your purchasing power. 2) Secondly, money is worth more now than in the future because money can grow through investing. An investment delayed is an opportunity lost. For example, if someone asks you if you want $20 now or in 10 years, you should take it now so you are able to invest it and earn interest on it. In 10 years, you will have more than $20. Not only that, there's also the concept of compound interest. Not only are you earning interest on the $20 every single year, but you're also earning interest on the interest you earned on the $20. This means your money grows exponentially if you start investing early. Compound interest rewards people who invest over long periods of time, not necessarily those who can afford to invest the most. It's specifically helpful for young people who start investing early. A 25-year-old who invests $200 a month with 7% interest will have $226,705.89 in 30 years. If they wait 10 years to start investing, they'll have to more than double their savings rate to reach the same total. Thus the consequences of delaying investments are not having enough money when it comes time to retire.

SPENDING & SAVING: Justify the value of an emergency fund.

It's important to set aside some money—about the equivalent of 3 to 6 months' of living expenses—in an emergency fund. This is to prevent you from having to add to your debt in times of need or to scramble to gather money at the last minute. If something unexpected happens to you, having the money you need to pay the medical bills or see you through the weeks of being out of work will help to keep you out of debt. If you already have investments, an emergency fund also will help you meet your expenses without disrupting your investment plan. There are times when people become ill or are injured in accidents, or employers lay off workers. You may think it's not going to happen to me, but it very well could. The best place for your emergency fund is in a liquid (easily accessible) account. A liquid account might be a regular savings account at a bank or credit union that provides some return on your deposit, and from which your funds can still be withdrawn at any time without penalty. To earn a slightly higher interest rate, some people choose a certificate of deposit or a money market account for their emergency fund. You might also consider buying U.S. Treasury bills with some of your emergency fund money. They are backed by the federal government, meaning there is not a huge risk of losing principal.

CREDIT & DEBT: Develop a personal financial plan to manage debt, including working directly with lenders.

Know How Much You Owe Make a list of your debts, including the creditor, total amount of the debt, monthly payment, interest rate, and due date. Pay Your Bills on Time Each Month Late payments make it harder to pay off your debt since you'll have to pay a late fee for every payment you miss. If you miss two payments in a row, your interest rate and finance charges will increase.Use a bill payment calendar to help you figure out which bills to pay with which paycheck. Budgeting A budget can help you stay on track. Create a budget covering all your inflows and outflows and use the balance to pay off your debt as soon as possible. Manage your expenses - reduce discretionary expenses, keep variable expenses in check. Sell unnecessary items Freelance / second job to increase your income Use windfalls to your advantage Make at Least the Minimum Payment If you can't afford to pay anything more, at least make the minimum payment. It will keep your account in good standing, which avoids late fees. Decide Which Debts to Pay Off First Paying off credit card debt especially, the one with the highest interest rate usually gets priority on repayment because it's costing the most money (Debt Avalanche method). Use your debt list to prioritize and rank your debts in the order you want to pay them off. You can also choose to pay off the debt with the lowest balance first (Debt Snowball method). This might cost a little more in the long run, but knocking off small debts first can build confidence. Build an Emergency Fund to Fall Back On Without access to savings, you'd have to go into debt to cover an emergency expense. Even a small emergency fund will cover little expenses that come up every once in a while. Seek help, if needed If you find it hard to pay your debt and other bills each month, you may need to seek outside help, like a credit counseling agency. Options for debt relief include: - Debt consolidation - Debt settlement - Bankruptcy These each have advantages and disadvantages, so weigh your options carefully.

FINANCIAL DECISION MAKING: Summarize factors to consider when selecting a professional financial advisor.

Know what services you need Financial advisors offer a variety of services, you want to pick the one who is an expert in the area you need help in, for example retirement planning specialists or investment advisors or registered brokers (buy and sell securities) or tax planning experts or insurance agents or lawyers (for estate planning) or accountants or financial planners or comprehensive advisors that engage with everything. Kind of financial advisor - depending on level of personal relationship you need you could pick a traditional financial advisor (who will understand your needs and build a relationship with you offering an array of services depending on your life stage) or robotic advisors (automated service that provides investment advice and keeps you on track). Fiduciary Standard Vs Suitability Standard - Fiduciary standard is when your FA is legally bound to act in your best interest. Fiduciary advisors must put their clients' interests before their own. They're also referred to as fee-only advisors because they don't accept commissions on the investments they recommend. Suitability standard are only legally required to make sure the investments are suitable for you - they aren't required to be your best option. They work on commission, so they may be incentivized to put you into products that line their pocket more than yours. Credentials - If a planner you're considering uses a particular professional credential, be sure to check out that credential using the FINRA Professional Designations lookup tool. Some financial planners have rigorous credentials that can be verified such as the Certified Financial Planner® designation, or CFP®, other use designations that require little experience, study or continuing education Registration Status - Verify if your advisor is registered on BrokerCheck.finra.org. This provides the background and experience of individual advisors and firms, as well as any disciplinary action the advisor has received. Ask friends and family for recommendations - A good course of action is to start with recommendations from friends, family or colleagues. Ask people with a similar financial situation or goals to yours. Take down a few names, then head back to Google to check out the advisor. Cost - Financial advisors can charge flat hourly or annual fees, commission on investments they sell you or a percentage of assets under their management or a combination. You will have to determine what you can afford for the service you need help with and ensure your interests are aligned through their compensation Interview multiple advisors - Ask questions about how frequently and how will they communicate, how they measure 'success' in a client relationship, can they customize an approach to your individual preferences and needs, do they have access to specialized expertise if you need it.

FINANCIAL DECISION MAKING: Evaluate the results of a financial decision.

Let's say you decide to save your allowance as well as money earned from babysitting jobs and Christmas presents amounting to $5000 and invest it in shares of Apple Inc in the year 2000 when you were in high school. 20 years later, this $5000 investment will have grown to $1 million. Now, you have the opportunity to pay for postgraduate studies without needing to borrow money as well enjoy the benefits of financial stability.

CREDIT & DEBT: Explain how business owners use debt as leverage.

Leverage is the use of borrowed capital for investing in your business, expecting the profits made to be greater than the interest payable, leading to an increase in the value of your equity. A business can tap into leverage by way of taking out loans or issuing bonds. This can be beneficial for a company that needs financing to invest in its business and wants to avoid having to sell the company's equity to raise money. If they use it profitably to expand operations, buy inventory, materials, or equipment, and generate a return on this expansion that is greater than the fixed cost of debt, then they will have increased the return to equity holders. For example, if the business borrows with an interest rate of 10% and reinvests that money at an interest rate of 15%, they can pay back their lenders and make a net gain in capital.

EMPLOYMENT & INCOME: Give an example of how education and training can affect lifetime income.

Lifetime earnings are total accumulated earnings over 50 years from age 20 to age 69. Research indicates that getting an advanced degree means a person will likely earn a higher lifetime income because they are more likely to climb up the ranks at their job or start off at a better-paying job, since they have the necessary qualifications. People with graduate degrees earn $1.5 million more in median lifetime earnings than high school graduates. For example, is that of an Emergency Medical Technician ("EMT"), whose educational attainment is typically a 2 year non degree credential, earns an average annual wage of $30,700. On the other hand the average salary of a Doctor in the United States is $288,000 per annum. However it takes 12 years to become a Doctor: 4 yrs bachelors degree, 4 years of medical school and 4 years of residency training and in some cases a further fellowship after that. The opportunity costs need to be weighed.

CREDIT & DEBT: Research a financial institution's debt reduction services.

Many lenders will work with you if you are struggling with paying loans, especially if you have a close relationship with your lender, or you can prove the struggle is temporary. Your financial institution may allow you to consolidate your debt through a second mortgage or a home equity line of credit. Home Equity Line of Credit (HELOC) - a revolving line of credit, similar to a credit card. An individual can borrow as much as they need, but may not exceed the credit limit. A person's home is required as collateral to open a HELOC. If you cannot make the payments, or they are late, you could lose your home. You still have to pay interest on these consolidated loans.

SPENDING & SAVING: Demonstrate how to schedule and manage bill payments.

Most bill payments, such as phone, utilities, rent, and loans, are incurred monthly on or around the same date. This predictability makes it simple for an individual to incorporate bill payments into a schedule and fit payments into their personal spending plan, or budget. To schedule and manage bill payments, you will first need to gather information about the amount of your payments and what date they are due or incurred. This will help you keep track of when funds are leaving your account. Other information you will need to set up online payments is your bank's routing number and your account number. Automatic Bill Payment Many institutions now offer automatic bill payment, which automatically withdraws funds from your account on the same day each month. This can be a useful tool if you do not want to forget making a payment. If you use this feature, it is important that you know there will be sufficient funds in your account each month at this time, to avoid missing a bill payment or incurring overdraft fees on your bank account.

FINANCIAL DECISION MAKING: Assess the value of discussing individual and shared financial responsibilities with a roommate before moving in.

Most people have multiple roommates in their lifetime. Setting financial boundaries and ground rules is a very important step to take in order to avoid confrontation and effectively handle your finances. Here are some tips to consider: Divide Responsibility for Bills Equally - An effective practice is to have each roommate take responsibility for a few bills with the goal of each roommate taking responsibility for the same amount per month. Set a schedule for totaling each roommate's set of bills and reimbursing who spent more. Avoid Joint Purchases - In the event of one person moving out, life will be much easier without needing to determine who gets to keep which piece of jointly-owned furniture. Buy Your Own Food - Normally, it is best for each roommate to maintain their own supply of food and respect the food of others. Separate Needs from Wants - If one roommate wants have an extended package of cable channels, the other roommate should not be responsible for this extra expense. In cases where one roommate wants "extra", then it is acceptable and desirable to not have bills split completely evenly. To make this work smoothly, though, a discussion on the separation of needs and wants must take place.

CREDIT & DEBT: Explain the effect of debt on a person's net worth.

Net worth is calculated as Assets - Liabilities Debt increases a person's liabilities. As a person's liabilities rise, their net worth will lower, unless their assets are rising at the same or higher rate. Excessive debt and a low net worth can have negative long-term effects. Debt can often limit purchasing power, and the choices you have in life, as many financial decisions you make must revolve around paying down your debt.

SPENDING & SAVING: Specify how monetary and non-monetary assets can contribute to net worth.

Net worth is the amount by which assets exceed liabilities. A consistent rise in net worth indicates good financial health. Liabilities may take the form of student debt, an outstanding mortgage balance, car loans, or other significant payments. Assets may include many different items, such as: savings accounts, retirement investments, real estate, automobiles, and even expensive paintings. Monetary and Non-monetary are both types of assets. Monetary assets are also referred to as liquid assets and are cash or investment holdings or any tangible property that can be instantly converted to cash without losing their value. - They have a fixed value . - They have high liquidity and have acceptance as cash - They include cash and "cash equivalents" such as debt mutual funds, savings accounts, bonds, stocks (equity shares are liquid though their value fluctuates) and CDs. (Retirement Accounts are not considered monetary assets as there is a penalty for liquidating them before retirement). Non-monetary assets are less liquid and require time to be converted to cash. - It's difficult to exactly determine a dollar value; these items have a dollar value which fluctuates or changes substantially over time depending on economic events. - Non-monetary assets include items such as real estate, patents, intellectual property, land, copyrights, and equipment. The more assets a person or company owns, the more positive the net worth will be. If a person has more liabilities than assets, the net worth will be a negative value. Positive net worth can be accumulated over time through investments and savings, profitable business ventures, solid debt management, and other asset building ventures!

FINANCIAL DECISION MAKING: Illustrate the causes and effects of factors that affect net worth.

Net worth is the difference between assets and liabilities. Assets - Are the positive side of the net worth statement, an increase in assets increases your net worth. Assets represent some form of income, money, or value eg. your home, car, jewelry, savings and checking account balances as well as your investments including stocks, bonds, mutual funds, cash value of annuities, retiral account balances etc. The cause of these assets can be income from a job, ownership of assets such as a rental home or car, investment options such as stocks, bonds, and CD's, and so on. Assets have a positive effect on your net worth statement. Liabilities - Are the negative side of the net worth statements. Liabilities include debts such as loans such as student debt or home loans and credit card balances as well as any money you owe a 3rd person. The cause of these can be from the purchase of your home, car, student loans, credit cards, and so on. Liabilities have a negative effect on your net worth statement. When your liabilities are greater than your assets, you have a net loss.

FINANCIAL DECISION MAKING: Apply strategies for creating and maintaining strong online passwords.

Never use the same password for multiple accounts. Don't use personally identifiable terms. Avoid using common words or phrases, like words that can be found in the dictionary. Use different types of characters - The more types of weird symbols—like !@$%—that your password has, the greater number of tries a computer has to take to guess your credentials. And some sites have features that block multiple password attempts, meaning the more complex your password is, the more likely a hacker will get locked out before their software guesses the right code. Make it long. Consider spelling things wrong. Utilize multi-factor authentication.- Two-factor authentication requires you to know something (your password), and to have something (a phone with a code, for instance). Gmail's two-factor authentication is a good example of how this works: after entering your password, Gmail sends a code to your phone, which you then enter for access to your email. Unless hackers have both your password and have stolen your phone, this is a major roadblock. Change your passwords regularly. Never save or share passwords. Use a password manager. A password manager creates a random, different password for every site you visit, and then saves them for you. Dashlane is an example.

EMPLOYMENT & INCOME: Analyze the monetary and non-monetary value of employee benefits in addition to wages and salaries.

Non-Monetary Value For employees, some benefits add non-monetary value that improve their quality of life, even if they don't directly increase their income. Examples include: - a feeling of security from a secure job. - Insurance benefits provide peace of mind and a general feeling of comfort. - Work flexibility and the option for paid holidays or vacation make an employee feel valued and allows them to spend time with their family. Monetary Value Benefits such as an employer sponsored 401(k), IRA, and pension plan are monetary benefits. Stock options and bonuses also have a monetary value.

SPENDING & SAVING: Compare the advantages and disadvantages of owning a house versus renting.

Owning a home versus renting a home or apartment is an important consideration. Both options have costs and benefits, and the best decision is often based on an individual's specific circumstance as well as the state of the housing market. Renting: Pros: - flexibility in changing locations the opportunity to build credit (by making timely payments) - not dealing with most maintenance expenses; not paying for certain utilities. Cons: - less opportunity to personalize your living space - the risk that rent could rise - always having to answer to a landlord - signing a lease or extended contract - the stress of finding a new home at the end of the lease if its not renewed by the landlord Buying: Pros: - building equity with each housing mortgage payment (because each payment pays down the principal amount of the debt as well as interest) - being able to claim tax deductions on mortgage interest and property taxes - having the ability to personalize the house how you want, and determining how to handle maintenance. Cons: - being responsible for all maintenance and problems - being tied into a big investment - ownership may make changing living locations a challenge - if the housing market declines, you can lose all the equity in your home - interest rates could rise increasing your mortgage outgo The cost of buying vs. renting is a huge consideration. Renting is not always less expensive than buying. It depends on the housing market in your area. Sometimes, buying a home is a more cost-efficient choice! However, current housing market is in a bull phase and prices have increased substantially, finding a reasonably priced home in particular neighborhoods is very hard.

EMPLOYMENT & INCOME: Identify common types of payroll deductions.

Payroll deductions are wages withheld from an employee's total earnings, mandated by the IRS. Standard payroll deductions to expect to be taken from your gross income include: - Voluntary Benefits, including different types of insurance premiums, and contributions to certain retirement accounts. - Federal taxes - State taxes - FICA Taxes - FICA, which stands for Federal Insurance Contributions Act, represents a pairing of taxes taken out of each paycheck for Social Security and Medicare. - Wage garnishments - a legal procedure in which a person's earnings are required by court order to be withheld by an employer for the payment of a debt

CREDIT & DEBT: Categorize the types of information needed when applying for credit.

Personal Information A Social Security number is necessary in order to run a check of credit reports and scores. Employment Information Contact information for a supervisor in order to verify employment and salary information. The ability to pay back a loan is closely tied to employment. Credit Information List of current credit obligations, the principal balance. This helps the lender to calculate the debt to income ratio of the potential borrower. References In the case of mortgages, the lender will also require all home ownership documents. In the case of Auto Loans, vehicle information will also be needed.

FINANCIAL DECISION MAKING: Investigate ways that thieves fraudulently obtain personal information.

Phishing Phishing is one of the most common ways that identity thieves can get your information. With phishing, what identity thieves do is send you an email that seems to be from a trusted source, but with malicious links and attachments that are meant to steal your information. The moment you click on the links or attachments, thieves get access and steal your information. There are generally three different types of phishing attacks. There is the "spray and pray" type of phishing that has no specific target, the spear-phishing attack, which is more targeted, and whaling, which targets high-value corporate targets. Pharming Pharming is when thieves target website servers or domain name systems instead of you directly. Hackers exploit a vulnerability to hijack a website's DNS. The attack corrupts a server, and all your internet traffic is redirected to fraudulent sites. Without knowing, you end up sharing your information on bogus sites that look legitimate. Malicious software Tech-savvy identity thieves can easily use malicious software, like Spyware and Keyloggers, to steal your personal information. The thieves can use keyloggers, which are software programs designed to secretly monitor and log keystrokes, to determine your password, PIN, or other sensitive information. They can use spyware to monitor all your internet activities covertly, gathering all your personal data without even knowing. The malicious software can find its way on your computer or phone when you simply click on those suspicious links and attachments you are not supposed to. Skimming Skimming involves the use of a device called a skimmer to steal your credit card or bank details. The device is small enough to fit in a pocket and fast enough to copy your information in seconds. Skimming devices are all over. Some are used at ATMs and gas stations, while others are used in restaurants or retail stores. By handing over your credit card to a waiter, you may just be handing over your personal information to a thief. Social media imposters It is no secret that identity thieves are using social media platforms to steal people's identities. Many masquerade as legitimate businesses and send links to unsuspecting victims, who end up losing more than just their personal information. Other ways identity thieves can steal your information include dumpster diving, mail theft, shoulder surfing, pretext calling, and stealing your wallet or purse. There are many ways you can protect yourself from identity theft. One includes never opening suspicious emails. Two, never click on links and attachments that look suspicious or are from suspicious sources. Learning to stay safe on the web can save you a lot of trouble.

CREDIT & DEBT: Explain the value of credit reports to borrowers and to lenders.

Potential creditors and lenders use credit reports as part of their decision-making process to decide whether to extend you credit — and at what terms. It helps to determine your trustworthiness and reliability as a borrower. You'll also increase your chances of getting a lower borrowing rate, which will save you plenty of money in the long run. Others, such as potential employers or landlords, may also access your credit reports to help them decide whether to offer you a job or a lease. Your credit reports may also be reviewed for insurance purposes or if you're applying for services such as phone, utilities or a mobile phone contract. For these reasons, it's important to check your credit reports regularly to ensure the information in them is accurate and complete. Your credit report may be important to you as the borrower because a good credit report means you may have access to a lot of opportunities, including jobs and better deals on loans.

FINANCIAL DECISION MAKING: Summarize the terms of a health insurance plan.

Premium: Monthly payment to have health insurance whether or not you end up seeing a doctor Deductible: is the amount you'll pay for care before your insurance starts to chip in and cover some of the cost. You'll have to pay 100% of the deductible until you reach this amount - unless it's preventative care which is typically covered fully. Copay: Your copay is a flat fee you'll pay up front for services from your doctor. For example, a co-pay for medical services may be $20 per office visit Co-insurance: After you've paid your deductible, your co-insurance will kick in. This is the cost you'll split with your insurer. You'll pay a percentage of the total cost of medical services, and your insurance covers the rest. A common co-insurance split goes by the rule of 80/20, where the insurance company pays 80% of the total cost while the patient pays 20%. Out-of-pocket maximum: There is a worst-case scenario, maximum amount you'll have to pay out-of-pocket that year for any medical care provided. The out-of-pocket maximum excludes your premium or services your insurance plan doesn't cover. Once you've hit your out-of-pocket max, your insurance will finally fully cover the cost of your care until your plan resets. The Affordable Care Act requires the following 10 items and services, to be covered by all insurance policies. Coverage limits can vary by plan: - Outpatient care—the kind you get without being admitted to a hospital - Emergency services and trips to the emergency room - Treatment in the hospital for inpatient care - Mental health and substance use disorder services including behavioral health treatment, counseling, and psychotherapy - Services and devices to help you recover if you are injured, or have a disability or chronic condition. This includes physical and occupational therapy, speech-language pathology, psychiatric rehabilitation, and more. - Lab tests and services - Preventive and wellness services including counseling, screenings, and vaccines to keep you healthy and care for managing a chronic disease. - Pediatric services: This includes dental care and vision care for kids - Maternity and newborn care (care before and after your baby is born) - Prescription drugs

CREDIT & DEBT: Recommend actions that a borrower could take to reduce or better manage excessive debt.

Prioritize Your Debt Pay Off - Prioritize paying off your loans that have the highest interest rate first. If you tackle these loans upfront, you'll pay less in interest, which may save you money over time. - Due date - On the other hand, if paying off your highest-interest loans first means that you'll miss a due date for another loan, you may want to re-prioritize your game plan. - Late payments result in late fees and can negatively impact your credit score and standing, which could be more detrimental to your financial standings in the end. Then, make at least the minimum payment on all of your loans, even if it means you can't put all of your repayment towards the highest interest loans rate first. Pay More Than the Minimum If you pay more than the minimum balance on your loans, it will not only help pay off the overall balance quicker, but it may help improve your credit utilization ratio improving your risk profile - End your credit card spending, reduce discretionary spend - Sell unnecessary items - Freelance / second job to increase your income - Use windfalls to your advantage - Build security by contributing to an emergency fund in addition to debt repayments Debt Consolidation/Management Plan is rolling your debts into a product that offers a single monthly payment and a lower interest rate with a longer repayment period enabling you to pay down your debts faster and more affordably. It generally covers unsecured debt such as credit card debt or medical bills and is arranged by a credit counselor. It doesn't reduce the amount of your debt but restructures it. Popular debt consolidation tools include personal loans and 0% interest balance-transfer credit cards.

RISK & INSURANCE: Categorize the kinds of expenses that typical renters' policies and typical homeowners' policies cover.

Renters insurance is financial protection for a tenant and their personal belongings while homeowners insurance protects a homeowner, their dwelling as well as their personal property. There are three categories of coverage provided by a Homeowners and renters insurance policy: 1) personal property coverage covers your personal property if it is stolen or damaged by a covered peril, like fire. People buy additional coverage for earthquakes and floods as these are not automatically covered. 2) personal liability coverage and medical expenses which protects you if you cause someone injury or someone sues you for their injuries, your liability coverage will pay for some of the legal expenses. 3) Loss-of-use coverage which covers the cost of living elsewhere if your home becomes temporarily uninhabitable.

EMPLOYMENT & INCOME: Compare the costs of post-secondary education with the potential increase in income from a career of choice.

Research indicates that getting an advanced degree means a person will likely earn a higher lifetime income because they are more likely to climb up the ranks at their job or start off at a better-paying job, since they have the necessary qualifications. People with graduate degrees earn $1.5 million more in median lifetime earnings than high school graduates. For example, an Emergency Medical Technician ("EMT"), whose educational attainment is typically a 2 year non degree credential, earns an average annual wage of $30,700. On the other hand the average salary of a Doctor in the United States is $288,000 per annum. However it takes 12 years to become a Doctor - 4 yrs bachelors degree, 4 years of medical school and 4 years of residency training and in some cases a further fellowship after that. The opportunity costs need to be weighed. The costs of post-secondary education include hundreds of thousands of dollars of student loan debt, and several years, so you need to decide if that is worth the likely increase in lifetime income that comes with it.

EMPLOYMENT & INCOME: Identify typical sources of income in retirement.

Retirement income doesn't just come from one source. A good retirement plan relies on a diversified portfolio of strategies that will generate income from multiple sources. This includes: - Social Security - Social Security is part of the retirement plan for almost every American worker. It provides replacement income for qualified retirees and their families. You can start receiving your Social Security retirement benefits as early as age 62. - Retirement savings accounts such as 401 K or IRA or Roth IRA accounts - Defined benefit pensions - a defined amount your employer pays you when you decide to retire. - Anunnities - an investment option that allows you receive an annuity or a fixed income after retirement by making a lump sum or periodic investment. - Investments in stocks, bonds, savings accounts, real estate etc - Working part-time (such as consulting)

INVESTING: Describe the importance of various sources of income in retirement, including Social Security, employer-sponsored retirement savings plans and personal investments.

INVESTING: Explain how federal and state regulators help protect investors.

Securities and Exchange Commission (SEC): The mission of the SEC is to protect investors. - maintain fair, orderly, and efficient markets. - ensure that companies that issue securities tell the truth about their businesses, the securities they offer for sale and the risks in those securities. - regulators of investment fraud Financial Industry Regulatory Authority (FINRA): FINRA works under the supervision of the SEC and protects investors by - writing and enforcing rules - educating investors State Securities Administrators: - within each state, there are various agencies responsible for consumer protection - like the State Office of the Attorney General and Regional Offices of the Attorney General throughout the state. - each state has their own State Securities Regulators

RISK & INSURANCE: Give examples of circumstances in which self-insurance is appropriate.

Self-insurance is a method of managing risk by setting aside a pool of money that can be used to cover some loss. Most people choose to purchase insurance to cover potentially large, infrequent losses. For example, most people buy health and auto insurance. Self-insuring against certain losses may be more economical than buying insurance from a third party. The more predictable and smaller the loss is, the more likely the risk is to be retained by a self-insured person. For losses such as cell phone replacement or auto maintenance, a person may draw from their self-insurance funds. Just set aside money you would have used for premium.

INVESTING: Give examples of how economic conditions and business factors affect the market value of a stock.

Several economic conditions that affect the market value of a stock: 1) Economic Growth - higher economic growth helps firms be more profitable because there will be higher demand for goods and services. This boosts company profits and, therefore, dividends and share prices. 2) Inflation - Historically, low inflation drives high prices, while high inflation drives low prices. 3) Stability - Stock markets do not react well to shocks that could threaten economic stability and future growth, like war. The stock markets also dislike political instability, which makes it difficult to pursue strong economic policies. 4) Confidence and Expectations - the mood of investors is a key factor in the market value of a stock. The more optimistic the mood, the more likely people are to purchase shares. Bad news causes some investors to sell shares. 5) Related Markets - For example, if investors feel government bonds are overpriced at the moment, they will put their money in stock shares instead. Business specific factors such as company financial performance, product releases, and scandals can affect the market value of a stock. For example, if a company's CEO suddenly resigns, it is likely to give rise to speculation and the company's stock price might decline in the short term.

FINANCIAL DECISION MAKING: Assess the value of sharing financial goals and personal finance information with a partner before combining households.

Sharing financial goals and personal finance information with your soon-to-be partner has many benefits. Finances are often the source of much discord and financial secrets can often make the situation worse. Below are some items to discuss before union and the benefits of each. Current Financial Position - The combined net worth of both individuals will determine the net worth of the couple. Credit - Exchanging credit report scores can eliminate potential surprises down the road. Free credit reports can be obtained from multiple websites or the three credit reporting agencies: Equifax, Experian, or TransUnion. Financial Plans - Working towards the same financial future can bring you together, but working towards separate financial futures will often have the opposite effect. Compare each other's Personal Financial Plans to see if your goals align and create a new, joint Financial Plan. Responsibilities - Who will be in charge of what aspects of the finances in the relationship? Regardless of how you divvy up the duties, you both need to be aware of what's happening. Sharing financial position before combining households may cause arguments and disagreements, especially if the two people are far apart on a handful of issues. If the relationship ends up not working out, someone else then knows sensitive financial information. However, the pros of financial planning before a marriage or union tend to outweigh any cons. Before you combine households with a partner it is also a good idea to set joint financial goals to work towards. This will make sure your personal and financial goals align and you are both working toward the same common goals. Not all your personal goals will align, but it is a good idea to find a handful of goals that you each want to strive toward. Below are tips on setting joint financial goals: Compare - Compare your pictures of the future, similar goals or want similar lifestyles? Are there common themes in your futures or are there major differences? Once you find commonalities, you can start forming joint goals. Focus - Focus on the larger goals you each share. This short list of common financial goals is not comprehensive. The list should focus on the larger goals you both share - not be full lists of all your individual goals. This list should help you work toward the future together. Work Together - Keep these goals in the front of your mind when making financial decisions together. Also be sure to revisit them frequently - this allows you to talk about them together, check to see if you are on track, and possibly make changes.

FINANCIAL DECISION MAKING: Research the use of small claims court for the redress of a consumer dispute.

Small claims court is a local court which claims for small sums of money; disputes can be heard and decided quickly and cheaply, without legal representation. Only civil, not criminal, cases can be heard in small claims court; examples are: - Property damage - Breach of contract - Defective product or unsatisfactory service - Landlord-tenant disputes - Accidents and personal injury - Unpaid debts To start a small claims court case, you must do the following: 1) Be sure the Statute of Limitation has not passed. Each state has a statute of limitation, as to when a small claims case can be filed. For example, you cannot dispute an argument from 15 years ago. 2) Check the Dollar Amount to be sure it is within state limits. Each state has guidelines for the maximum dollar amount allowable in disputes. They range from $2,500 to $25,000. 3) Request Payment: you must formally request payment from the other party before you can sue. This can be by phone or in writing. 4) File Your Case: prepare the proper legal documents ("pleadings" or "statements of claim") and file them in the appropriate courthouse. 5) Serve the Papers: After your case has been filed, you must present a copy of the filing to all the parties involved (defendants). You must file a Proof of Service form before your court hearing takes place.

EMPLOYMENT & INCOME: Summarize Social Security, Medicare and Affordable Care Act benefits.

Social Security - It provides replacement income for qualified retirees and their families, as well as disabled workers and their families, and families of deceased workers. The system is progressive with greater benefit to low wage workers. You can start receiving your Social Security retirement benefits at age 62. Medicare is the federal government health insurance program for people 65 and older and younger people living with certain illnesses or disabilities. It's free or subsidized by the Government. - hospital care. - doctor appointments. - prescription drugs. Benefits from ACA or Obamacare include: - affordable health insurance - provides subsidies that lower costs for qualifying low income households. - expands the Medicaid program to cover all qualifying low income adults - dependents can stay under parents' plan longer - your children can be insured under your health plan until they are 26 years old.

RISK & INSURANCE: Identify government programs that provide financial assistance for income loss due to illness, disability or premature death.

Social Security Disability Insurance (SSDI) and the Supplemental Security Income (SSI) are the two largest federal government programs that provide assistance to people with disabilities. SSDI: - pays benefits to you and certain members of your family monthly if you have worked long enough before the disability, and paid Social Security taxes. SSI: - The program provides cash monthly to meet basic needs for food, clothing, and shelter for those who qualify. If you have a disability, you have three options for health coverage through the government. 1) Medicaid provides free or low-cost medical benefits to people with disabilities. 2) Medicare provides medical health insurance to people over 65 with certain disabilities. 3) Affordable Care Act provides everyone below a certain income level low rices for health coverage.

CREDIT & DEBT: Recommend ways that a person can regain a lender's trust after losing or damaging borrowed personal property.

Some actions recommended to rebuild trust after damaging property: 1) Promptly acknowledge that you have lost or damaged the item and take responsibility for your actions. 2) Replace the item by buying an identical one or a close replacement, or repair the item if it damaged. 3) If you do not have the funds for repair or replacement, then offer a small payment upfront with a promise to pay the balance in installments as per your budget. Follow through on your promise. 4) Express remorse and explain any extenuating circumstances for why and how you lost the property. How you behave will influence the lender's impression of you, which will build your reputation and have an impact on whether they lend you something in the future. Remember the 5 Cs of credit - Capacity, Capital, Character, Collateral and Conditions. This is included under 'Character'. Character refers to a borrower's overall behavioural profile towards repayment of debt.

INVESTING: Devise an investment plan for accumulating money for a major expense such as a college education or the down payment on a car.

Step #1: Assess Your Current Financial Situation Step #2: Define Financial Goals - Investments for a fixed income or for growth? Step #3: Determine Risk Tolerance and Time Horizon Step #4: Build your investment plan - Your budget, goals and risk tolerance will help guide you towards the right types of investment for you. - Remember to diversify your portfolio. Step# 5: Monitor and rebalance your investments

INVESTING: Explain the difference between stocks and bonds.

Stocks and bonds represent 2 different ways companies fund and expand operations, through which you can invest capital and earn different types of return. But there are key differences: Meaning: Stock - an equity instrument wherein investors can own a share of a company. Bond - a debt instrument where investors lend money to businesses. Who are the issuers?: Stock - corporates. Bond - government institutions, financial institutions, and companies. Form of Returns: Stock - profits earned by the company are paid in the form of dividends. Bond - interest payments, called coupon payments. Risk Level: Stock - High - depends upon the performance of the company, so there is no guaranteed return. Bond - Low, especially if it's a government bond - bondholders are prioritized for repayments. Additional Benefits: Stock - Shareholders can vote and have a say in the company. Bond - Bondholders get the preference in terms of repayment and also on liquidation.

CREDIT & DEBT: Investigate how student loan obligations differ from other kinds of debt.

Student loans are an unsecured obligation, however they are not treated the same way as other unsecured loans. This is because 92% of all student loan outstanding today is owed to the Federal Government. Federal student loans are backed by the federal government and processed and disbursed by the U.S. Department of Education. - Consumers struggling with student loan debt may not find relief through bankruptcy. - Federal student loans do not have a statute of limitations. Other types of consumer debt, such as credit cards, generally have a three to 10 year range for their statute of limitations. - Federal student loans do offer protections. While the standard repayment term for a federal student loan is 10 years, these loans also offer graduated, extended and income-driven repayment terms. There are several options for pausing payments, like in-school period, 6 months grace period, subsequent education, such as graduate school or unemployment or undue hardship. - Eligibility for federal student loans does not typically involve a credit check. - The same interest rates are offered to all borrowers, regardless of the borrower's credit scores. - The student loan interest deduction, exists, which allows borrowers to deduct up to $2,500 in interest paid on federal and private student loans as an above-the-line exclusion from income on their federal income tax returns. They do not need to itemize to claim the student loan interest deduction - The federal government has very strong powers to compel repayment of a defaulted federal student loan. These include administrative wage garnishment, intercepting income tax refunds and lottery winnings, offset of Social Security retirement and disability benefit payments, preventing the renewal of a professional license, and blocking eligibility for FHA and VA mortgages. Student loans are generally considered to be a worthy debt, because a college education is an investment in the student's future. The idea is that taking out student loans to attend post-secondary education will allow a student to make a much higher lifetime income than the value of the loan.

FINANCIAL DECISION MAKING: Analyze how sales and property taxes affect financial decisions, such as when buying a car or a house.

Taxes are collected from businesses and individuals to fund government programs and activities. Taxes make the final price of a purchase higher than the list price and therefore have to be factored into your cost consideration when purchasing a good such as a car or even a house. The list price and final price can be markedly different in states or cities with high taxes. Sales Taxes Typically, there are state, county, and city sales taxes. Sales taxes are generally imposed on the purchase of a tangible, personal property or a service sold at retail level. It is collected by the retailer from the consumer and then remitted to the Government. - 45 states and the District of Columbia collect statewide sales tax. - Local sales tax (county and/or city) are collected in 38 states. - Sales tax rates vary by state, ranging from 2.9% in Colorado to 7.5% in California Real Property Taxes These are charged on real estate, based on the value of the property (including land) and are often assessed by local or municipal governments. Property tax is mainly used by municipalities for repairing roads, building schools, snow removal, or similar services. When you purchase a house, you have to consider the annual cost of paying property taxes over and above the mortgage, insurance etc. The rates range from 1.89% in NJ to 0.18% in Louisiana. Use Tax High taxes may entice people to purchase certain goods out of city, county, or state borders to find a lower rate. This is why Use Taxes are levied. Use taxes are enforced on tax exempt purchases made out of state/city that would have otherwise been taxable within the state/city; the same rate of tax would be paid on these purchases at the end of a reporting period to the proper government. A resident who does not pay use tax may be subject to interest and penalties.

CREDIT & DEBT: Give examples of how the Consumer Financial Protection Bureau (CFPB) protects borrowers and provides information about credit issues.

The CFPB works to - - educate consumers about information and tools to make smart financial decisions - enforce laws to protect consumers from unfair and deceptive practices stuff they do: - If you have been charged hidden fees that are illegitimate, you can complain to the CPFB. - you can get information on any prevalent credit frauds or schemes and how to protect yourself.

CREDIT & DEBT: Summarize online information about the Fair Credit Reporting Act.

The Fair Credit Reporting Act (FCRA) is a federal law that ensures that the information credit reporting agencies distribute is a fair and accurate summary of a consumer's credit history. It is primarily aimed at the three major credit reporting agencies — Experian, Equifax and TransUnion but also applies to banks and credit unions. Under the law, you have the right to: - access your credit report - protected access - your file is confidential to only those who need it - accurate reporting

CREDIT & DEBT: Give examples of permissible uses of a credit report other than granting credit.

The Fair Credit Reporting Act contains a list of the permissible uses of a credit report under the law. Under the law, consumer reporting companies can release your information only to third parties that have a permissible purpose to obtain it, like creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home. In most instances, your permission must be granted for these entities to obtain your credit report.

EMPLOYMENT & INCOME: Complete IRS form W-4 (Employee's Withholding Allowance Certificate) to determine the optimal amount to withhold for personal income tax.

The IRS Form W-4 (Employee's Withholding Allowance Certificate) is a form completed by employees so an employer can withhold the correct amount of federal income taxes from pay. This essentially means employees with certain circumstances are able to obtain tax benefits. Withholding allowances, as they are termed, vary from person to person based on a number of circumstances. A few specific scenarios in which federal income tax can be withheld for you include: - If you're single and have only one job. - If you're married, have only one job, and your spouse doesn't work. - If your wages from a second job or your spouse's wages are $1,500 or less. - If you have at least $2,000 of child- or dependent-care expenses and will claim a credit for these costs. - If you'll file your return as a head of household. The more withholding allowances you claim, the less tax is withheld from your wages. It's important to fill out this form, because it means you will have to pay less in federal income taxes if you fit the cirumstances.

INVESTING: Identify the protections provided to investors by the Securities Investor Protection Corporation (SIPC).

The SIPC is a nonprofit corporation that protects investors if your brokerage firm goes out of business. When a brokerage firm fails, the SIPC arranges the transfer of the failed brokerage's accounts to a different securities brokerage firm. If the SIPC is unable to arrange the accounts' transfer, the failed firm is liquidated. In that case, the SIPC sends investors either certificates for the stock that was lost or a check for the market value of the shares. Your brokerage firm must be a member of the SIPC for you to claim any benefit. If so, your cash and securities held by the brokerage firm may be protected up to $500,000.

FINANCIAL DECISION MAKING: Summarize the terms of a credit card or other loan agreement.

The Truth in Lending Act, passed in 1968, mandates credit card issuers to properly disclose key information in credit card applications. The law was enacted to guard consumers against inaccurate or unfair practices by a lender. Below are some required items in a credit card disclosure: APRs An annual percentage rate, APR, is the interest rate charged on the borrowed amount. All APRs must be listed. (The APR you qualify for is based on credit history, amount of debt, and income). The APR advertised for credit cards is the nominal rate, which is the rate before daily compounding is taken into account. Your real, or effective, interest rate will be higher because of daily compounding. Promotional APRs must be listed along with their time limit. Each APR must be listed as fixed or variable. The penalty APR, also called default APR, is the APR that goes into effect when you default on your credit card terms. The disclosure must state the penalty APR, what you do to trigger the APR, and how long it will last. Minimum Finance Charge Credit card companies often specify a minimum finance charge that you'll pay whenever you're charged interest on the account. This amount must be listed. Finance Charge Calculation Method - Credit card disclosure must state how your finance charges are calculated. Fees Disclosures must contain a list of fees, such as annual fees, cash advance fees, late payment fees, or over-the-limit fees.

EMPLOYMENT & INCOME: Illustrate the relationship between income level and income tax liability.

The US follows a progressive income tax system meaning that higher income tax rates are levied on those with a higher income. There are 7 federal income tax rate brackets in 2022. Tax brackets are the range of incomes taxed at given rates. When a taxpayer earns enough income to move into a higher income tax bracket, they typically pay the corresponding income tax rate only on the income earned above the bracket threshold.

FINANCIAL DECISION MAKING: Give examples of how decisions made today can affect future opportunities.

The choices we make and the decisions we take have a long lasting impact on our life. In fact, our lives are a series of choices we've made so far and we live with the consequences of these choices for the rest of our lives. Here are some examples: 1. As a student, let's say you decide that you have a lot more fun just hanging out with your friends than in studying for your school work. This probably is a lot more fun in the short term but then your exams roll around and you end up with poor grades. This might cause you to attend a college that is not academically highly rated or be able to study your choice of subjects. Higher levels of education are associated with better-paying jobs, so this one choice as a high-schooler can affect your lifetime income. 2. Let's say you decide to save your allowance as well as money earned from babysitting jobs and Christmas presents amounting to $5000 and invest it in shares of Apple Inc in the year 2000 when you were in high school. 20 years later, this $5000 investment will have grown to $1 million. Now, you have the opportunity to pay for postgraduate studies without needing to borrow money as well enjoy the benefits of financial stability.

FINANCIAL DECISION MAKING: Predict problems that might occur to a victim of identity theft.

The consequences of identity theft are serious and affect people's lives and health in various ways. In addition to lost time and money, identity theft causes anxiety and sleep problems because of financial and emotional stress. Depending on the type of crime, the damage can last days or years, and even after the issue is resolved, victims live with the fear of it happening again. Lost Money and Time It can take up to 600 hours of work to recover from a case of identity theft. It requires a lot of time spent making phone calls, writing emails, and filing reports. If thieves steal your credit card and you don't report it in time (more than 60 days from statement date) the amount you pay for unauthorized charges could be unlimited. Through account takeover, identity thieves can also take over your investment and other financial accounts, the impacts of which could affect your retirement, your mortgage, and your child's education. If thieves steal your SSN they may not use your information for months or even years—waiting for a time when you may not be as attentive to the risk. Thieves can also sell personal information on the dark web. You may have to stay alert and watch for red flags indefinitely. Medical identity theft can disrupt your medical care, and wastes taxpayer dollars. Criminals are using stolen identities to fraudulently collect unemployment benefits (unemployment ID Theft) across multiple states. This can land you in a difficult situation with the IRS and your employer. Credit Damage Criminals who steal people's Social Security Numbers can open fraudulent bank accounts or credit cards. When the accounts default because of unpaid debt, it damages your credit score. As a victim of identity theft, you can file a report with the Federal Trade Commission and work with credit bureaus to reduce the damage. It can take a long time and work to recover from credit score damage because of fraudulent activity. Criminal Record If someone steals your identity, they could use it to commit crimes or give your information to the police when they get arrested. In this scenario, you could experience serious legal consequences, including arrest or a criminal record. Tax Debt Many people are working online these days, all over the world. If someone steals your SSN, they could use your SSN on job applications. Eventually, the IRS will send you a bill for unpaid income taxes on income you never received. Emotional Distress and Mental Health Crisis In addition to financial problems, victims of identity theft often experience emotional and mental health struggles such as anxiety and depression. Victims usually experience frustration from not knowing who committed the crime and many people worry they could be targeted again.

SPENDING & SAVING: Compare the costs of cashing a check with various third parties, such as a bank or credit union, check-cashing services and retail outlets.

The cost of cashing a check will vary by what type of institution a person uses to cash the check. There are three typical options available to those who want to cash a check: 1) Bank or Credit Union A bank or credit union will cash a check written by one of its account holders if there is money in the account to cover it, the check is no more than 6 months old, and you show proper ID. For example, if you bank at US Bank, but someone who wrote you a check holds an account at Bank of America, you would be able to go to Bank of America to cash the check, free of charge. On the other hand, if you try to cash a check from another bank at your bank, your bank may decline or make you deposit the check into your account, then withdraw the cash. Check-Cashing Services Some cashing services may impose a fee equivalent to a percentage of the check value. Others may charge a flat fee in addition to a percentage fee. For large checks, these check-cashing facilities can be rather expensive. For instance, to cash a $1,000 check, a $5 flat fee plus 1 percent fee on the value of the check adds up to $15 in fees. Retailers Major retailers such as 7-Eleven, Walmart, and supermarket chains will cash checks, and it usually costs less than utilizing a check-cashing service. Fees vary by retailer, but are usually a flat rate (that may increase as the value of the check increases).

EMPLOYMENT & INCOME: List circumstances that make it prudent to adjust the income tax withholding allowance.

The easiest way consumers can influence their federal income taxes is by making changes to their W-4 form, meaning changing your federal tax withholding allowance, or what you allow the federal government to withhold from each of your paychecks. 1. You bought a house Home Buyers typically get to deduct what they pay in mortgage interest. which is particularly helpful for new homebuyers since they'll be paying a lot toward interest and not so much toward their loan's principal in the early years. 2. You got married or divorced Being married and filing your taxes jointly with your spouse usually leads to a number of added tax breaks and deductions, such as the ability to claim two personal exemptions. On the other hand, getting a divorce thrusts married filers back into single filer status, removing some of the deductions. 3. You (or your spouse) got a second job In general, adding income from any secondary job that you or your spouse take up means your tax liability is going to go up. 4. You've had a new addition to the family Having a child could lead to some tax breaks, including the allowance of a dependent, as well as certain types of credits (the Child Tax Credit and Child Care Tax Credit).

CREDIT & DEBT: Give examples of legal and illegal debt collection practices covered by the Fair Debt Collection Practices Act.

The federal Fair Debt Collection Practices Act (FDCPA) makes certain collection tactics that debt collectors use illegal, like: - contacting third parties about your debt - harrasing you about debt. - lying to you or misleading you A debt collector's first communication with you must tell you that they're attempting to collect a debt and that any information obtained from you will be used for that purpose. These disclosures are often called a "mini-Miranda." Collectors are allowed to contact: - Your attorney. - A credit reporting agency. - Your spouse, your parents (only if you're a minor), and your codebtors.

FINANCIAL DECISION MAKING: Demonstrate formal consumer complaint procedures.

The first step in resolving a consumer problem is contacting the seller. You can solve most consumer problems by talking to a local salesperson and if this fails, try going higher up to the national headquarters. Many companies have a special customer relations division whose primary function is solving consumer problems. You can often contact this division through a toll free number, postal mail, online form or contact information listed on the product label or warranty. Keep copies of all of your letters, emails, warranties, work orders, order confirmation numbers, receipts, owner's manuals and related documents. - Be brief and to the point. Note all important facts about your purchase, including what you bought, serial or model numbers, the name and location of the seller, and when you made the purchase. - State exactly what you want done about the problem and how long you are willing to wait for a response. Be reasonable. - Send your letter by certified mail or request delivery confirmation. - Include copies of all documents regarding your problem. Keep the originals. - Provide your name, address, and phone numbers. If an account is involved, be sure to include the account number. - Keep a record of your efforts to contact the seller; include the name of the person with whom you spoke and what was done, if anything. You should also keep a record of the dates and times of your contact. - If you use a company's online complaint form, print the screen or take a screenshot before you click "submit" so that you have a record of your complaint - Can use social media as well as escalate to organizations such as BBB, State Attorney General, FTC, Small Claims Court.

SPENDING & SAVING: Compare the features and costs of online and mobile bill payment services offered by different institutions.

The internet has made paying bills fast and easy for anyone. Using an online bill pay service, you can set up a secure online account that lets you pay all your bills from one place, saving time and effort. Not only that, but you can avoid late payments with automated payments or scheduled reminders and alerts. How Online Bill Pay Services Work Enter your monthly payments into your chosen bill pay service. You'll need to know the name, address, and phone number of the payee (person to whom payment needs to be made), your account number, and the amount due for payments that remain the same every month, such as a car or mortgage payment. For fluctuating costs, such as your electric or water bill, you'll need to go in and adjust the amount every month. You can also set the date for payments to be made. There are 3 broad categories of ways to make online payments - through your bank or credit union, on the company's website, or through specialized bill Pay services such as Quicken or Prism. Each has its own benefits and costs. Your Bank or Credit Union Many banks and brokerages offer bill payments through their websites. However, these online banking sites may not provide all the features that a dedicated online bill pay service offers. Also they may have balance or usage requirements in order to access the service for free. And if your payment exceeds your balance, you will incur overdraft fees which could be significant. Financial institutions that offer bill pay services usually let you schedule payments in advance, which is useful for avoiding late payments. Through the Company's Website Of course, you can always visit your biller's website or online bill pay portal to pay them directly. When you choose this method, you provide the biller (whether it's a utility, mortgage company, phone company, or other service provider) with your financial information and authorize them to withdraw the amount of your bill from your bank account. This can be helpful for bills that have varying amounts each month. Some companies offer a lower cost if the monthly payments are directly debited from your account. You have to make sure you have sufficient balance in your account. Third Party Bill Pay Services - Prism - Quicken Bill Pay - Paytrust

CREDIT & DEBT: Compare the total cost of reducing a credit card balance to zero with minimum versus above minimum payments, all other terms being equal and no further purchases being made.

The minimum payment is the lowest amount you can pay on your credit card balance and avoid a late payment penalty. As long as you pay the minimum by the due date, your account remains in good standing. Typically, minimum payments are 1-3% of your credit card balance. You will save a lot of money in interest by paying off minimums faster. Consider a credit card balance of $5,000, at the current average APR of 20.28%, and minimum payment as 2% of your credit card balance. Making minimum payments only, it would take you over 30 years and a total of $23,500 to pay off that initial $5,000 balance. That doesn't include any fees you might pay over the life of the credit card balance. Increasing your payments to $150 a month would allow you to pay off the same debt in a little over 16 years, for a total of $10,912. Of course, the more you pay toward your debt, the faster you can pay it off and the more you'll save in interest. Federal law requires that your credit card billing statement include the amount of time it will take you to pay off your credit card if you make only the minimum payment. You can also use a credit card payoff calculator to calculate the time it will take to pay off your credit card with minimum payments and the amount of interest you will pay. It will let you see how increasing your payment will help you pay off your balance sooner.

EMPLOYMENT & INCOME: Outline the main components of a business plan.

The required design of a business plan will vary based on investor requests and the type of business. However, some basic components that any business plan should include are: Company Description - What you do and what differentiates your business, Mission and Vision statements. Market Analysis - Research on the industry, market, and competitors. Organization and Management - The hierarchy of power in the organization and your human capital. Product/Service Line - What do you sell? How does it benefit customers? What is your product life cycle? (some products are sold seasonaly). Marketing and Sales - How do you plan to market your business? What is your sales strategy? Financial Projections - What are your projected revenue, expenses, and profit?

SPENDING & SAVING: Devise a system to retain evidence of tax-deductible expenditures.

The responsibility to prove your answers to questions asked by the IRS on your tax forms such as your income and deductions is known as the burden of proof. You must be able to prove (substantiate) certain elements of expenses to deduct them. Generally, taxpayers meet their burden of proof by having the information and receipts (where needed) for the expenses. You should keep adequate records to prove your tax-deductible expenses or have sufficient evidence that will support your own statement. You generally must have documentary evidence, such as receipts, canceled checks, or bills, to support your expenses. It is up to you how you would like to keep track of this evidence. A good system would keep track of your income, spending, expenses, and assets you have purchased. This will help you accurately fill out tax forms.

EMPLOYMENT & INCOME: Match personal skills and interests to various career options.

The right career for you depends on your interests, your personality, and your skills. There are five categories of people based on personality, interests, and skills. Figuring out which one you are can point you in the right direction in terms of career choice. 1) Realistic: doers more than thinkers. - EMT, Mechanic 2) Investigative: problem solving and analytical skills. - Lab technician, Geologist 3) Artistic: creative, emotional, have a flair for communicating ideas - Architect, Journalist 4) Social: friendly and outgoing; love to help others and make a difference. - Teacher, Nurse 5) Enterprising: confident, assertive risk takers, enjoy leadership. - Entrepreneur, Lawyer

INVESTING: Explain how stock markets facilitate the buying and selling of securities.

The stock market refers to public markets that exist for issuing, buying, and selling stocks that trade on a stock exchange - stock are equity investments in which investors receive a profit known as a dividend when the company does well. in exchange, the business receives a large sum of money they can use to grow their company. Share prices are set by supply and demand as a large number of buyers and sellers place orders. This means the prices are usually fair as no individual has a monopoly on a certain stock. Stock exchanges are facilitated and regulated by government agencies, such as the Securities and Exchange Commission (SEC) in the United States, that oversee the market in order to protect investors from financial fraud and to keep the exchange market functioning smoothly. Order flow and bid-ask spreads are often maintained by specialists or market makers to ensure an orderly and fair market. Largest stock exchanges are New York Stock Exchange (NYSE) and Nasdaq Matching buyers and sellers of stocks on an exchange was is now increasingly carried out through computerized trading systems, which are more efficient than humans, resulting in significant benefits such as lower trading costs and faster trade execution.

CREDIT & DEBT: Identify the primary organizations that maintain and provide consumer credit records.

The three major ones in the U.S. are Equifax, Experian, and TransUnion. Lenders regularly report whether you're paying your bills on time and how much debt you owe to them to one of the CRAs. They also pull relevant public records, like tax liens or bankruptcy information, from state and local courts. This information is included in your credit report. They're monitored by the Federal Trade Commission (FTC), because they handle sensitive information for millions of people.

INVESTING: Illustrate how the concept of the time value of money applies to retirement planning.

The time value of money means that a dollar is worth more today than in the future. This is for 2 reasons. 1) The first is due to inflation. Inflation refers to the general progressive increase in the prices of goods and services. With this general rise, a unit of currency buys less goods and services. Consequently, inflation relates to a loss in purchasing power. Keep inflation in mind when retirement planning by investing in investments that can protect against inflation, such as: - property as real estate tends to increase in value along with inflation - Treasury inflation-protected securities, a government bond which also increases in value along with inflation. - Receive a pension from work, as well as Social Security income, which are both adjusted to account for inflation. 2) Secondly, money is worth more now than in the future because money can grow through investing. An investment delayed is an opportunity lost. For example, if someone asks you if you want $20 now or in 10 years, you should take it now so you are able to invest it and earn interest on it. In 10 years, you will have more than $20. Not only that, there's also the concept of compound interest. Not only are you earning interest on the $20 every single year, but you're also earning interest on the interest you earned on the $20. This means your money grows exponentially if you start investing early. This means a great way to prepare for retirement is to start saving early and benefit from compound interest. Most retirement accounts, like IRAs and 401ks, use mutual funds or ETFs that are indexed to the stock market to grow your savings. The power of compound interest can apply here to exponentially grow your money.

INVESTING: Define the time value of money and explain how money invested regularly over time may grow exponentially.

The time value of money refers to the idea that a dollar is worth more today than in the future. This is for 2 reasons. 1) The first is due to inflation. Inflation refers to a general progressive increase in prices of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services. Counteracting inflation through investments or a rise in salary is crucial to maintaining your purchasing power. 2) Secondly, money is worth more now than in the future because money can grow through investing. An investment delayed is an opportunity lost. For example, if someone asks you if you want $20 now or in 10 years, you should take it now so you are able to invest it and earn interest on it. In 10 years, you will have more than $20. Not only that, there's also the concept of compound interest. Not only are you earning interest on the $20 every single year, but you're also earning interest on the interest you earned on the $20. This means your money grows significantly more if you start investing early.

INVESTING: Use online data to compare investment performance of selected mutual funds and exchange-traded funds over different time periods.

There are a number of online tools to help you compare funds' investment performance. This includes Morningstar. Since you hold investments for different periods of time, the best way to compare their performance is by looking at their annualized percent return. This is historical performance data and can provide some kind of guide to future performance. It's also a good idea to calculate average annual returns over a longer time frame such as 3 yrs, 5 yrs and 10 yrs to account for market cycles and since short term performance can vary widely. Compare against an appropriate benchmark such as an index to determine the relative performance of your mutual fund. All of this can be done on MorningStar - which can also give you a risk score, which tells you how volatile a fund is.

CREDIT & DEBT: Assess whether a specific purchase justifies the use of credit.

There are several factors to consider to think about before you borrow to finance a purchase: Is the purchase a Need or a Want? It is inadvisable to borrow to finance a want as although the pleasure of immediate gratification can make these purchases tempting, in the long run, most of these purchases will result in a tighter financial position. Will the purchase yield returns that are potentially higher than the cost of credit? For example, borrowing to finance your education is a good thing because it can lead to potentially higher lifetime earnings enabling you to pay back your student loans. Similarly borrowing to purchase your laundry appliances may be OK if it will save you a daily spend at the laundromat and justify the cost of borrowing. How will you pay back the loan? You should only use credit if you can service the loan interest and repayments. Carefully review your budget and forecast your cash flows based on all your income and expenditure. Only if you have the financial flexibility to service the loan from your monthly cash flows, should you consider credit. Otherwise it can have long lasting implications for your credit score and history. What is the cost of credit? Some form of credit are extremely expensive, like revolving credit such as credit card debt and should be avoided unless you are able to repay the entire amount within the grace period. Carrying credit card debt can hugely increase the amount you owe by adding large interest amounts.

EMPLOYMENT & INCOME: Complete IRS Form 1040EZ, Form 1040 and applicable state income tax forms.

There are three forms for U.S. Citizens to use for filing individual federal income tax returns, which reports income, expenses, and other pertinent tax information. Form 1040EZ The Form 1040EZ is the simplest to fill out. Below are conditions for the Form 1040EZ: - Filing status is single or married filing jointly. - You claim no dependents, adjustments, credits, or itemizing deducations. - Your taxable income is less than $100,000. Form 1040A The Form 1040A is for those who cannot use Form 1040EZ. The conditions include: - Your taxable income is less than $100,000. - You wish to claim some adjustments and credits. - You cannot itemize deductions. Form 1040 The Form 1040 is the most complex of these three forms. The conditions include: - Your taxable income is over $100,000. - You itemize deductions or claim certain tax credits. - You have certain types of income, other than wages, salaries, and tips, like a home-based business.

EMPLOYMENT & INCOME: Explain the difference between earned and unearned income and give an example of each.

There are two ways to make money. Earned income: Money made directly from working. This includes all the income, wages, and tips you get from working. Unearned income: Income people receive even if they don't work for pay. Can include things like interest on savings accounts, investments, inheritance, and financial gifts. Earned income is usually subject to payroll and income taxes, while unearned income is never subject to payroll taxes, and may or may not be subject to income tax.

CREDIT & DEBT: Predict possible consequences of excessive debt.

There's many consequences of a low credit score and excessive debt. 1) Debt trap. This is a situation in which a debt is difficult or impossible to repay, due to high interest charges accumulating and adding to your total debt. This means that despite paying the monthly minimum, your debt is continuing to grow. The huge implication of a debt trap is not having enough money to pay your dues, and in many situations, it can get so bad, you won't have money to pay for essential expenditures. 2) Deteriorating credit score, which has terrible implications in itself. Lower credit scores mean that you will have a difficult time getting approved for certain types of loans and credit cards. On top of that, things like insurance premiums will be a lot higher because insurance companies may expect a customer with a low credit score to be more risky managing their property. Similarly, it may be harder to rent an apartment or even to get a job. 3) Mental Health. All of these financial challenges also have a huge negative implication on your personal life and mental and emotional well being. An inability to take care of basic financial needs is extremely mentally draining and puts a lot of pressure on you. You will likely be constantly living in stress due to demands from creditors. In some cases, you may even live in constant fear of phone calls or visits from debt collectors.

INVESTING: Investigate reasons to use retirement savings plans and health savings accounts.

They are tax-advantaged. Contributions to 401K and IRA are deducted from your taxable income and earnings are tax free until withdrawal. The hope is that your tax rate is lower after retirement than current rates. While contributions to a Roth IRA are made from after tax income, but earnings are tax free. Another reason to use 401Ks specifically is because they are essentially free money, as your employers contributes a percentage of your contribution. It's not a good idea to miss out on this. A HSA is a way that you can pay for qualified medical expenses with tax-free money. You can deduct contributions on your taxes, you can withdraw your money tax-free (when used for medical expenses), and your earnings grow tax-free.

FINANCIAL DECISION MAKING: List the main components of a simple will.

Title: Simply - "Last Will and Testament of (name)". Declaration: Beneath the title should be a statement in which the testator (the person drafting the will) states his full name and residential address. Immediately following those statements should be a declaration that the testator is of legal age to make a will and of sound mind and memory to do so. The testator must also declare that this document serves as her last will and testament, revoking all previously made wills and codicils. Lastly, the declaration should include a statement that the testator is not under duress or undue influence to make the will. Name of the Executor: The executor is the person who the testator appoints to carry out terms of the will. Typically a person names the remaining spouse or main beneficiary of the estate as executor. Details of Beneficiaries: Name each beneficiary as specifically as possible. It may also be a good idea to list alternative beneficiaries, in case of simultaneous death. Details about the Assets: This should distinguish between assets that are already assigned to beneficiaries and those which are not. For example, assets that are not part of the will may include policies where the testator has already specified a beneficiary, joint ownership or joint tenancy of property, payable-on-death bank accounts and trusts. Bequests: This section should include specifics about how the testator wishes for his/her estate to be divvied up among beneficiaries. Funeral Arrangements: This is to ensure the person's remains are handled as they wish upon death. Signatures: This should include the testator and at least two witnesses. The actual date and place the document was signed must also be recorded. The witnesses should include their full names and addresses, as well as a declaration that they saw the testator sign the document, that they are legal adults and of sound mind, and that they consider the testator of sound mind, adult age and under no duress or undue influence to sign the will. It is also recommended that the testator sign or initial each page of the will.

FINANCIAL DECISION MAKING: Compare the benefits of financial responsibility with the consequences of financial irresponsibility.

To be financially responsible, you need to live within your means. And to live within your means, you must spend less than you make. There are some basic tenets of financial responsibility. These include knowing the difference between needs and wants, planning your finances in a manner that allow you to pay down your credit card balance each month in full, 'paying yourself first' or planning for savings every month, having an emergency fund with 3-6 months of living expenses, making sure you have insurance - life, asset, health and disability. It means doing what you have to do to take care of your needs and the needs of your family. To make this happen, your focus should be internal, not swayed by advertisements or social media to buy things you don't need. Having a budget and sticking to it is at its core. BENEFITS: - Ability to achieve long term financial and life goals eg. buying a home, sending kids to college, taking care of your health and enjoy retirement - Greater financial flexibility especially when faced with adverse situations - Freedom of choice - when you manage money well and plan for tomorrow, you have greater control over your own life. - Less stress - Freedom to be generous to support causes you believe in - Stable and happy family life Does being financially responsible mean that you have to scrimp and save? No, financial responsibility means living within your means, regardless of the level of those means. So take a close look at your financial situation, evaluate your earning and spending habits, and make the necessary adjustments to put yourself on responsible financial footing. Financial irresponsibility is short sighted spending on what you want in the moment, living beyond your means and not saving enough. CONSEQUENCES: - Emotional overspending, keeping up with the Joneses' - Difficulty in establishing good credit as a young adult, making it difficult for you to borrow at reasonable rates or difficulty in getting a job, or renting a home - Excessive debt leading to a debt trap - Dealing with Debt collectors - Potentially having to declare bankruptcy - Increased stress - Inability to look after family and dependents - Inability to achieve your long term financial goals It's important to develop good habits from a young age so you can achieve your goals and be able to enjoy life in all its facets with loving and meaningful relationships with your family.

FINANCIAL DECISION MAKING: Point out the factors that make a contract legal and binding.

To be valid, a contract must have these three elements: offer, acceptance, and consideration. Offer - One of the parties entering the contract makes a promiseTo do some specified actionTo refrain from some specified action Acceptance - The offer was accepted through: words, deeds, performance. Consideration - Something of value was promised in exchange for a specified action or non-action.This can be: money, effort, a promise to perform a service, or reliance on a promise. Mutuality is also considered in determining if a contract exists between two parties. Mutuality means that the two parties had a "meeting of the minds". In other words, both parties understood to and agreed to the basic terms of the contract. If it can be proven that these 4 items were completed, then the contract is legally binding.

SPENDING & SAVING: Investigate changes in personal spending behavior that contribute to wealth building.

To build wealth, people must spend less than their income over a series of time periods. They must be willing to spend less now to be able to enjoy the reward later. Changes in current spending habits can take on a number of forms. Cutting back on several small expenses can add up over time. - For example, the average American worker spends over $1,000 on buying coffee each year. Think about how much money could be saved by making coffee at home more often. - Going out to eat one time less per week could also save thousands of dollars a year. Small changes in spending can go a long way in creating wealth. Additionally, making smarter decisions on large purchases is important. Do you need a $30,000 car when a $15,000 one will do what you need? Being responsible on large purchases can largely impact wealth building. Remember - pay yourself first - weigh the costs and benefits for each purchase - live within your means - DO NOT go into debt - do not give in to influences by social media or ads

RISK & INSURANCE: Illustrate how to use insurance to share the risk of financial loss.

Transferring Risk through Insurance refers to insurance companies assuming the financial risk in exchange for a fee known as a premium and a documented contract between the insurer and individual, which states all the requirements to be met. The insured individual is liable to pay his deductible amount and co pay amount but has transferred the risk of loss to the insurance company beyond that amount and upto his coverage limits.

CREDIT & DEBT: Explain the rights that people have to examine their credit reports.

Under the Fair Credit Reporting Act, you have a right to access your credit report once per year, for free. You have a right to a free copy of your credit report within 15 days of your request. You can access a free copy by writing to the 1 of the 3 agencies or through the Internet at AnnualCreditReport.com. You are also entitled to a free annual copy of any specialty reports that are compiled about you by smaller credit reporting agencies, which may keep records of financial data to sell them to companies considering doing business with you.

FINANCIAL DECISION MAKING: Devise a family agreement that establishes the terms of use of a personal cell phone or the family car.

Use of a cell phone or the family car have significant associated safety issues. Therefore establishing terms of their use will help set expectations, define safe behavior and establish clear rules to be followed and consequences for breaking them. Terms for Cell Phone Usage - a smartphone is a privilege, not a right. - this phone is the property of my parents, and that my use is dependent on following the guidelines in this cell phone contract. - be honest and forthcoming with parents and not hide anything from them, parents will always have access to my passwords, social media, and messages. - only download apps, games, or other files that are age appropriate. - understand that nothing is truly private in the digital world, and that risky conduct can affect the future or cause legal problems for my parents. - always notify my parents of any suspicious messages or requests I receive on my phone or social media.

SPENDING & SAVING: Assess how spending priorities reflect goals and values.

Values are personal qualities (e.g., honesty), relationships (e.g., friends), and/or material things (e.g., name brand clothing) that are very important to people. An indication of what people value is the things that they spend their time and money on. People generally do not waste scarce personal resources on things that are perceived to be of little value. Goals are an extension of a person's values. If something is important to people, they will want to set a goal and create an action plan to achieve it. Values help set and prioritize financial goals so that people address the most important aspects of their life (according to them) first. How are values and goals related to saving and spending money? People are generally more committed to saving money for the future (which means spending less today) when they are saving for something that is important to them personally and when they have a clearly defined goal and action plan. It is a lot easier to save for something specific than to save for savings sake. Similarly how anyone chooses to spend their money will always reflect their goals and values, whether consciously or unconsciously.

CREDIT & DEBT: Describe debtors' and creditors' rights related to wage garnishment and repossession when an overdue debt is not paid.

Wage garnishment happens when a court orders that your employer withhold a specific portion of your paycheck and send it directly to the creditor or person to whom you owe money, until your debt is resolved. It occurs when a creditor sues you for nonpayment of a debt and wins in court. You have some rights in the wage garnishment process: - There are caps on the percent of your wages that can be garnished. - You have to be legally notified of the garnishment. - You can't be fired for having one wage garnishment, but you'll lose this protection if you incur more than one garnishment. Repossession is what happens when a creditor takes property put up as collateral because you've defaulted on a secured debt.

FINANCIAL DECISION MAKING: Develop a definition of wealth based on personal values, priorities and goals.

Wealth is an individual's or household's net worth, which is defined as the excess of assets such as money in savings and investment accounts as well as real estate over debts like loans and mortgages. The definition of wealth is very personal and varies from individual to individual. This is because everyone has a different view of how they would like to live their life, the comforts and luxuries they need and therefore how much wealth they need to feel secure and happy. For eg. If you intend to remain single your values, priorities and goals for your life and therefore your definition of wealth will be very different from someone who is married and has 4 children. Further, for some people, wealth has a different connotation. For example, some people might consider it a priority to have more leisure time over spending long hours at work earning higher and higher income. Those people may value time over money and may decide to live with less monetary assets as more leisure time to pursue their hobbies gives them greater happiness. Understanding their definition of wealth can help individuals determine a personal baseline to measure their own savings and income-producing assets, and make a plan to build their own wealth.

FINANCIAL DECISION MAKING: Identify the individuals and charitable organizations that are potential beneficiaries of personal property.

What is a Will Beneficiary The beneficiary or beneficiaries in your last will and testament are the people or entities you choose to receive your property after you pass away. They can be family members or loved ones, but a beneficiary can also be an organization or charity that is close to your heart. The beneficiaries of your will can receive anything you own from your real estate, to your personal property such as your beloved family heirlooms. However, when it comes to financial accounts (retirement accounts, bank accounts, life insurance policies, etc.), you should make sure to contact your financial institution to determine if there are any beneficiaries already designated on the account. These can be changed by simply filling out a form from your bank. Who can be a beneficiary in your will? Generally, you can name anyone you want to be a beneficiary of your last will and testament except someone who is serving as a witness to the signing of your will, as long as they are alive. Married couples usually name each other as the beneficiaries of their wills. In fact, in common law states-most of the country-spouses are protected by state laws that do not allow them to be completely left out of the will. If you leave your assets to your child, who is still a minor, you should know that minors cannot directly receive or control any property you leave to them. Generally, if you are leaving property to a minor, their legal guardian will be responsible for managing the property that you left to the minor until they turn 18. How to name Beneficiaries? If you are selecting multiple beneficiaries in your will, you have to decide how to distribute your assets among them. You can choose to divide the property in proportions. Another method is to leave specific gifts to certain beneficiaries. This final option might be for you if you have sentimental items or heirlooms that you'd like to go to one specific person or a charity of your choosing. If you're giving specific assets (like a car or real estate) to a charity, it's a good idea to contact the charity first. This will help ensure the process is seamless and head off any unexpected complications.

SPENDING & SAVING: Prepare a personal property inventory, including descriptions, locations and estimates of value.

What is a property inventory list? A personal property inventory list is basically a list of all the items you own — in your house, in your garage, and anywhere on your property. Why does it matter? Making a personal property inventory is a critical step in helping you protect your possessions. If you are ever the victim of a burglary or a natural disaster that damages or destroys your home, the personal property inventory list can help both with the recovery of stolen items and with the filing of insurance claims. What needs to be included in the inventory? All your personal items, including: - Personal records like passports, social security cards, bank statements, birth certificates, insurance records, deeds of trust, last wills and testaments, and any other items containing confidential information. - High-value items like home electronics or appliances, automobiles, jewelry, firearms, artwork, and antiques. - Precious personal items like family heirlooms, photographs, books, or memorabilia. Things to remember: - In your personal property descriptions, be sure to include distinguishing features that could uniquely identify the item when compared to similar products. - Be sure to record critical information for each possession on your personal inventory list, including a full description, serial or other identifying number, purchase price or value, estimated current value, and the item's location in your home or on your property. - Keep copies of your personal property inventory spreadsheet as well as photographs and videos of personal property in a safe place with your insurance policy. A fireproof safe or safety deposit box at your bank are both good places. -Make sure your insurance agent has copies of your personal property inventory list and photographs, too. - Update your personal property inventory at least once a year or whenever you add new items to your household inventory.

SPENDING & SAVING: Differentiate between an expense that is tax deductible and one that is not.

When an expense is tax deductible, you can subtract it from your taxable income, which reduces your tax liability. This means you'll pay less tax because the government will be basing your tax on a lowered overall total income. Generally, expenses that are deductible include charitable donations, 401K and IRA contributions, health saving account contributions, and interest on student loans. A nondeductible expense does not impact your taxable income, and cannot be subtracted. A person's normal, everyday expenses such as food, clothing, gas, rent, and entertainment, are not tax deductible expenses unless they may be associated directly with a career or are a cost of doing business for a business owner.

FINANCIAL DECISION MAKING: Identify how money and property will be distributed in one's state of residence when a person dies without a valid will.

When someone dies without a will, that means he or she has died "intestate." The person who has died is the "decedent". Every state has laws that direct what happens to property when someone dies without a valid will and the property was not left in some other way (such as in a living trust). Generally, only spouses, registered domestic partners, children and blood relatives inherit under intestate succession laws. More distant relatives inherit only if there is no surviving spouse and there are no children. In the rare event that no relatives can be found, the state takes the assets. In Georgia, Georgia law decides who will inherit property from someone who dies intestate. The personal representative of the decedent must distribute the property according to Georgia intestacy law. If the Decedent has children but no spouse: Children inherit everything. If the Decedent has a spouse but no living parents or children: Spouse inherits everything. If the Decedent has spouse and children who are minors (under 18): Spouse inherits ½ of intestate property; and Children inherit everything else. If the Decedent has spouse and descendants, but no minor children: Spouse inherits first $40,000 of intestate property and ½ of the rest; and Descendants inherit everything else. If the Decedent has spouse and living parents but no descendants: If the spouse and the decedent have been married for at least 5 years, then the spouse inherits everything. If the Decedent has parents but no spouse or descendants: Parents inherit everything. If the Decedent has siblings, but no spouse, descendants, or parents: Siblings inherit everything.

SPENDING & SAVING: Investigate the records required to claim possible tax credits.

When you claim federal tax credits and deductions on your tax return, you can change the amount of tax you owe. Deductions can reduce the amount of your income before you calculate the tax you owe. Credits can reduce the amount of tax you owe or increase your tax refund, and some credits may give you a refund even if you don't owe any tax. Credits are generally designed to encourage or reward certain types of behavior that are considered beneficial to the economy, the environment or to further any other purpose the government deems important. Examples: - Earned Income Tax credit: This is for individuals who work but have a very low income. They can qualify to get a tax refund even if they haven't paid or owe any income tax but will need to file a return. You will need to - The Child Tax Credit is for individuals who have children who are under the age of 17. This credit can be as much as $2000 per qualified child, in addition to the exemption that comes along with dependents. However, there are income restrictions as well as phase out provisions. RECORDS NEEDED You will need to have records of the expenses incurred for which you are filing the tax credit (for example, expenses incurred for education or home improvement or health premium or hybrid car or child or dependent care). You shld also have the birth certificate of your child or adoption papers and also documents to prove they resided with you. You must file the return to enable you to claim the tax credit.

FINANCIAL DECISION MAKING: Consider how personal finance decisions might affect others.

Whether you realize it or not, your financial decisions will have an impact on others in your life. You should consider this when making financial decisions and deciding on financial goals. FAMILY Family can include your parents, siblings, or future family such as a spouse and children or grandchildren. It is especially important to consider your financial decisions when you have a spouse and children to take care of. Additionally, as your parents get older, they may rely on you to help support them. It is important to realize that, at an early age, your financial decisions will impact others around you, either now or later in life. Those Involved in an Incident If you are in a wreck and do not have auto insurance, or someone is injured on your property without having homeowners insurance, this would impact everyone involved. Not only will you be financially burdened, but the injured party may be as well FRIENDS How you budget your money may affect your friends. If you spend too much money on your rent, clothes, or other items, you may not have enough money to spend to socialize with your friends. On the other hand, if you spend too much money going out with friends, you may adversely affect your budget and take away money used for necessities. Financial decisions have the power to affect many people in your life. It is important to take responsibility for your actions and make smart choices.

INVESTING: Compare gambling and other games of chance with investments as a means of building wealth.

While both activities involve risking capital in the hope of making a profit, there are some key differences: - Gambling is time bound (once the game is over, your chance of winning is over) but investing can last many years, and the time frame is often up to you. - In investing you can minimize your losses - if the stock market falls, you can sell you stock and regain part of your capital but in gambling there is no loss minimization strategy - you will lose the entire amount. - Before investing you research easily available public information related to the company who's stocks or bonds you want to invest in to understand the associated risks. However, when you sit down to a game of chance in a casino you don't have access to any information to help you assess risk. - When you invest you own an asset - for example, a stock is a share of a company - while you dont own any tangible asset in gambling. - Unlike gambling, investing also aids economic activity and growth, for example by making money available to the company you invest in. For these reasons, investing is a safer and better risk to make a profit.

FINANCIAL DECISION MAKING: Describe the consumer protection agencies and their responsibilities in one's state and community.

Within each state, there are various agencies responsible for consumer protection. State Attorney General Serves as the chief legal adviser and chief law enforcement officer for the State. One role of the State Attorney General is to act as a public advocate for consumer protections. Commissioner of Financial Regulation - overseeing banking authorities such as state chartered banks for any consumer related banking issues. Georgia Insurance Administration - enforcing state specific laws and regulations regarding insurance as well as educating consumers. Georgia office of the Attorney General enforcing laws and regulations related to securities brokers as well as securities such as stocks, bonds, mutual funds, commodities. Georgia Public Service Commission which oversees Utility Commissions regulate services and rates for gas, electricity and telephones within your state.

FINANCIAL DECISION MAKING: Analyze money-handling decisions that young adults commonly face.

Young adults commonly face the financial challenges of: - Establishing financial independence by pursuing a career in a field that they are interested in. - Earning enough income to pay for daily living expenses. - Learning to create a budget, differentiating between needs and wants and allocating money for savings - Identifying their financial goals and accordingly determining their spending priorities - Obtaining insurance (i.e. disability, life, medical) - Paying off student debt - Saving for a down payment on a home - Paying off or saving for a car - Saving for an emergency fund

RISK & INSURANCE: Recommend insurance for the types of risks that young adults might face.

Young individuals typically purchase fewer insurance products than older individuals, but this is not always the best choice. There are multiple forms of insurance that all people are required to have, such as: Automobile Insurance - it is illegal to drive a car without insurance. Health Insurance - Currently, under the Affordable Care Act (ACA) everyone is required to be covered by insurance. If you are under age 26, you are allowed to be covered by your parent's health insurance. Furthermore, young adults should consider purchasing other forms of insurance, to further protect them and their money: Life Insurance - Many young adults don't feel they need insurance at a young age. But, there are benefits to acquiring life insurance at a young age: - Lower cost - Purchasing insurance while you are young and healthy will lower the cost of premiums and save you money in the long run. - Some life insurance plans can be utilized also as savings instruments and will mature with a cash value after a stated time. You can also benefit from compound interest. Disability Insurance - If you have a job, you should consider purchasing disability insurance. Disability insurance insures your earned income against the risk of an unforeseen disability.

CREDIT & DEBT: Weigh the potential payoffs of a positive borrowing reputation versus the potential consequences of a poor borrowing reputation.

Your borrowing reputation is a measure of your creditworthiness and is the key factor that lenders use to decide whether to lend you money or not. A measure of your borrowing reputation is obtained through your credit score - numbers calculated from your credit history to express your creditworthiness. Consequences of a poor borrowing reputation: - Difficulty getting a loan: whether car loan, mortgage or a credit card account. - Higher interest rates on credit cards and loans, if you do get approved. - Difficulty getting approved for an apartment - landlords check credit before approving a rental application and they might not rent to you or ask for a higher upfront security deposit. - Security deposits on utilities - electricity, phone, and cable companies—check your credit as part of the application process. If you have a poor borrowing reputation you may have to pay a security deposit to establish service in your name, even if you've always paid your utility bills on time. The security deposit will be charged upfront before you can establish service in your name. - Getting denied for employment: certain jobs, especially those in upper management or the finance industry, require you to have a good credit history. You can actually be turned down for a job because of negative items on your credit report, especially high debt amounts, bankruptcy, or outstanding bills. Employers are interested in items that could affect your job performance. - Higher insurance premiums: insurance companies also look at your credit history to determine your insurance premiums.

CREDIT & DEBT: Categorize the information in a credit report and how long it is retained.

Your credit report information covers four key areas: 1) Identifying information - name, ssn, employer 2) Credit accounts These are records of every loan and credit card in your name. For each one, your report will list: - The type of credit account - The date you opened the account - Your payment history Generally speaking, negative information such as late or missed payments stay on your credit report for 7 years. 3) Credit Inquiries Every time you, a lender, a prospective employer, or anyone else pulls your credit report, it's considered a credit inquiry. SOFT INQUIRY: When you check your own credit report. This type of inquiry doesn't affect your credit score. HARD INQUIRY (2 years): When you apply for a loan or another service where the company wants to run a credit check on you. These inquiries lower your credit score by a few points, but the effect is usually negligible. 4) Information from public records Your credit report also lists any financial information that's in the public record, like bankruptcies and repossessions. You don't want to have any information in this part of your credit report because everything that shows up here can seriously drop your credit score for a long time (over 10 yrs).

CREDIT & DEBT: Analyze how a credit score affects creditworthiness and the cost of credit.

Your credit score is a number 300-850 that measures your creditworthiness. It tells lenders how likely you are to pay your bills on time or repay money that you borrow. Higher credit scores are best because they indicate that you've handled credit well in the past and are likely to pay new credit on time. This affects the cost of credit because your interest rates from bank loans are based on your credit score. To improve your chances of getting a better interest rate, you can spend a few months working to raise your credit score. It is especially important with a major loan like a mortgage where a higher credit score can decrease your monthly payment by hundreds of dollars. That can save you tens of thousands of dollars in interest over the life of the loan.

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