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Financial Literacy, 1st Quarter

00.0 Start Here - Welcome to Financial Literacy

Course Description

The .5 credit General Financial Literacy Core is designed for junior and senior students and represents those standards of learning that are essential for all students. The implementation of the ideas, concepts, knowledge, and skills contained in the General Financial Literacy Core enable students to become wise and knowledgeable consumers, savers, investors, users of credit, money managers, citizens, and members of a global workforce and society.

CLASS RULES and INSTRUCTIONS

1. Please read all the "Start Here" instructions below to carefully review all class rules and procedures which apply to both 1st and 2nd quarter classes.

2. The first assignment you submit will be the "About Me" assignment.  To begin your first assignment, scroll down to the "About Me" assignment at the bottom of this page and use the instructions there to complete and submit your assignment. Assignments submitted via email will not be accepted.

3. How to complete all subsequent lessons AFTER the "about me" lesson: Lessons are in Module 3, on the left side of the list (out-dented left). Click the desired lesson and carefully follow all instructions. To submit the assignment, copy and paste the assignment instructions (everything between the two lines of asterisks) into a word processing document, answer the questions, and save your work so you will have your own copy of your assignment if anything gets lost.

4. How to SUBMIT assignments into the answer box: After saving a personal copy of your assignment, it is then submitted by clicking the corresponding indented assignment below the lesson name. It requires copying and pasting both the questions and your answers into the answer box. The copied information includes EVERYTHING between two lines of asterisks, including the assignment number and the questions. All answers must be bold (OR UPPER CASE if you are unable to make them bold). MAKE SURE YOU HIT RETURN AFTER EACH COMPLETED ANSWER. Then Save your work according to the instructions.

A correctly formatted assignment is shown below. Note each assignment includes the (1) assignment number, (2) the questions, and (3) the answers immediately following each question.

SAMPLE ASSIGNMENT WITH ANSWERS

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ASSIGNMENT 6.2 - (17K) Copy everything between the asterisks.)
1. Q: Can students use any word processor they want? > ANSWER: Yes - copy and paste from any word processor you prefer.
2. Q: Why should you read returned assignments?> ANSWER: To see your grades and any instructions.
3. Q: Must you write complete sentences?> ANSWER: No--but the answer and question together must form a complete thought like this question does.
4. Q: Do the answers have to be in bold> ANSWER: YES (OR in UPPER CASE if you can't get bold to work).
5. Q: (6.2): When the last question in an assignment says: Write your last and first names and today's date, what should you write?:>ANSWER: example: Susan Carr July 8, 2010 (with your own name) NOTE: Remember your answers must appear in bold or UPPER CASE in your assignments.

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5. How to SUBMIT QUIZZES:

On the front page of the class, use the indented assignment link that matches the lesson you are working on. Follow the instructions and take the quiz online by selecting the proper answers. Save the quiz and exit.

How to SUBMIT TESTS:

Procedures are identical to quizzes.

6. You must follow the EHS HONOR CODE: "As a student of the Electronic High School, I agree to turn in my assignments in a timely manner, do my own work, not share my work with others, and treat all students, teachers and staff with respect."

7.  You have TEN WEEKS to complete this class.

image from Wikimedia Commons,Open Clip Art Library, public domainimage from Wikimedia Commons,Open Clip Art Library, public domain

 

PREREQUISITES

You need to take Financial Literacy Quarter One before you take Financial Literacy Quarter Two.

HOW YOUR WORK IS GRADED:

The meaning of Assignment grades:
"10": Enough was correct to receive full credit.
"5": Too much was incorrect. You have partial credit. You MAY resubmit the assignment, but it is not required.
"0": The assignment did not meet minimum expectations. Resubmit the entire assignment with correct answers.
 

Your grade becomes final after the proctored test, and there is no opportunity to raise your grade after that. If high grades are important to you, remember--you can retake all tests and quizzes and resubmit assignments as many times as you like. The opportunity to resubmit work is lost after the proctored test is complete. Good luck.

IMPORTANT INFORMATION that improves success and raises your grade:
1) Submit work each week.
2) Retake any test if you score less than 60%.
3) Retake tests as often as you like to improve grades or study.
4) Read all returned assignments to find out if your assignments were accepted or if further work is necessary.
5) If a website doesn’t work, submit the assignment anyway, using other sites, asking people, etc. Inform me of the problem.
6) Remember that this class requires two quarters to complete to meet the state .5 credit requirement.
7) Per quarter, you have 7 weeks to complete the assignments, quizzes and unit tests. Then the 8th week, after I have graded everything you submitted the 7th week, you will need to submit the READY message. Take the final the 9th week and I will submit your grade the 10th week.  You will automatically be dropped from the course after TEN weeks.

FINAL PROCTORED EXAM

The proctored final test must be taken with an EHS-certified proctor, who will enter the test password. You must score at least 60% to pass. If you do not, please inform your teacher immediately. 

You may use both sides of a 4X5 note card on the proctored test.

First Quarter:  There are 50 Questions. Your final is weighted 25% of your grade.

Second Quarter:  There are 50 Questions, and the test includes questions from quarter one.  Your final is weighted 36% of your grade.

FINAL GRADE SCALE

(“C-” is the lowest grade given in this class)
"A" begins at 95% of total points.
"A-" Begins at 90% of total points.
"B+" begins at 85% of total points.
"B" begins at 80% of total points.
"B-" Begins at 75% of total points.
"C+" begins at 70% of total points.
"C" begins at 65% of total points and extends to 55% of total points.

00.00 About Me (Financial Literacy Q1)

teacher-scored 1 points possible 10 minutes

About Me Assignment To complete and submit this assignment copy the material between the asterisks into a blank word-processing document. Answer the questions using complete sentences, appropriate punctuation and sentence structure. All answers must be bold or UPPER CASE. Save the document. Finally, select all, copy, then paste the entire document into the box that opens when you click to submit this assignment.

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  1. What high school do you attend?
  2. What grade are you in?
  3. What is an interesting fact about you?
  4. What is your EHS username?
  5. What is your email?
  6. What is a good phone number to reach you?
  7. Are your answers in bold font or all capital letters?
  8. By submitting this assignment you agree to keep the EHS Honor Code, as follows:  
  • "As a student of the Electronic High School, I agree to turn in my assignments in a timely manner, do my own work, not share my work with others, and treat all students, teachers and staff with respect."

And you understand that:

  • YOU HAVE TEN WEEKS TO COMPLETE THIS QUARTER OF FINANCIAL LITERACY.

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Pacing: complete this by the end of Week 1 of your enrollment date for this class.


00.01 Meet Tiff and Cameron (Financial Literacy)

INTRODUCTION: WILL YOUR FINANCES BE LIKE TIFF'S AND CAMERON'S?
Read this introduction and view the video link below.

After graduating from high school, Tiff worked at a convenience store and studied public relations in college. Cameron entered a computer-training program at an Applied Technology Center and worked 30 hours a week at a computer repair shop.

Within two years, Tiff and Cameron met, dated, and married. Tiff “temporarily” quit college to work full-time at a convenience store. Cameron left the computer-training program to work at a plumbing company. He didn't enjoy it as much but pay was much higher though he gave up health insurance. Together, Tiff and Cameron earned a total of $30,000 per year. They rented an apartment, supported themselves, and tried to deposit “left over” money into home savings.

Within two years, Tiff had a baby and temporarily quit her job. She returned to work after arranging child-care for $1,500 per year.

Tiff and Cameron needed a second car, so they borrowed money and used “home” savings to lower the amount of their car loan. After using credit cards to purchase appliances, tools, stereo equipment and a vacation, they owed $3,000 on credit cards. Their fourth year of marriage brought a second child. The same year, a car accident put Cameron out of work for two months. Since they had no health insurance or emergency savings, Tiff and Cameron again used credit cards until Cameron went back to work. They then owed $7,000 on credit cards, $4,000 in medical bills, and $11,000 on their car loan.

Some monthly expenses included rent, car payments and insurance, utilities, childcare, Internet, cable TV, credit card payments, food, clothes, cell phone, car repairs and medical bills. They were only able to make the minimum credit card payments.

When the convenience store closed, Tiff obtained a job at a different convenience store that paid the same. Cameron's employer offered a retirement plan where the company agreed to match Cameron's contributions, but Tiff and Cameron did not participate since it reduced take-home pay too much to pay bills.

Tiff and Cameron didn't balance checkbooks regularly and sometimes paid $30 “bounced check’ fees. This lowered their credit rating and resulted in higher loan payments. Their credit rating became worse when someone filled out and submitted one of Cameron's discarded credit card applications.

Finances improved slightly when Cameron took a second job. However, extra gas, new work clothes, payroll taxes, and rising prices reduced income more than expected. Tiff and Cameron met some financial needs by selling personal items. They also received some money from parents.

In their mid-twenties, Tiff and Cameron realized life was different than they had planned. Both wanted better jobs, but more education was expensive and too time- consuming. They still lived in an apartment, had no down-payment for a house, no emergency funds, no health or life insurance, no retirement savings, and they owed more on their first car than it was worth. Debt created stress. They wished to have greater savings for emergencies, retirement, vacations, and family activities, but they needed all their money just to live from day to day.

Tiff's and Cameron's finances are like thousands of young people today, but hopefully not like yours will be. In this class you will examine five financial principles that will help you NOT be like Tiff and Cameron. The principles are:

FIRST QUARTER:
1) EARN - Raise your income capacity and earnings through education and experience.
2) SAVE - Pay yourself first through saving before spending on other things.
3) SPEND - Establish good spending habits with checking, credit cards, and loans.

SECOND QUARTER
4) PROTECT - Reduce financial risks through insurance and consumer awareness.
5) PLAN - Create overall plans for short-term and long-term financial success.

00.01 Meet Tiff and Cameron (Financial Literacy)

NOTE: This video can take from 3 to 12 minutes to load. I suggest you go ahead and try it, but feel free to open another screen and work on the next activity while it is loading. The video makes the class more interesting but does not contain critical information. Your computer needs to have QuickTime installed to view this video. To view it, click the link then click the play button.

00.01.01 Student Software Needs

 

Students need access to a robust internet connection and a modern web browser.

This class may also require the Apple QuickTime plug-in to view media.

For students using a school-issued Chromebook, ask your technical support folks to download the QuickTime plug-in and enable the plug-in for your Chromebook.

$0.00

01.0 Unit 1 - Earning (Financial Literacy)

Doctor examining patient: image by JoAnn Moravac, U.S. Army, public domainDoctor examining patient: image by JoAnn Moravac, U.S. Army, public domain
EARNING - Raise your earning capacity through education, experience, and work.

"EXCEPT FOR PERFORMING OPERATIONS--BEING A SURGEON SOUNDS LIKE A GREAT WAY TO EARN A LIVING!"

Lots of things sound great--like earning a lot of money--except that it requires education, skills and work experience that many people don't think sound so great. The lessons in Unit 1 are about "EARNING" and how you can improve your earning power.

01.00 Unit 1 - Earning (Financial Literacy)

NOTE: This video can take from 3 to 12 minutes to load. I suggest you go ahead and try it, but feel free to open another screen and work on the next activity while it is loading. The video makes the class more interesting but does not contain critical information. Your computer needs to have QuickTime installed to view this video. To view it,click the link and click the play button.

01.01 Personal Lifestyle Costs, and Education and Earnings (Financial Literacy)

Students will consider personal values that affect financial choices. Describe the correlation between income and a worker's skills and education.

GENERAL INSTRUCTIONS (Note: if you have not yet read the "Start Here" instructions on the main course web-page, please go back and read them now before continuing. Then return to this point and read the instructions below.) Read the “BACKGROUND” information. Visit any URL(s) you see at the bottom of the assignment and follow their instructions. Submit the assignment or quiz. For ASSIGNMENTS: Copy all information between the asterisks (including lesson title and information, and questions.); go to the assignment (either by using the Next button below this lesson or going to the front page of class and clicking on the assignment), then paste the questions into the answer box after clicking on "Edit my submission"; then answer the questions with bold or upper case answers and save them according to the instructions. Finally, MAKE SURE YOU HIT RETURN AT THE END OF EACH ANSWER. For QUIZZES: Go to Assignments, Quizzes, and Tests” to take the quiz. image from Wikimedia Commons, Go Team, public domainimage from Wikimedia Commons, Go Team, public domain

You have 8 weeks to complete the assignments, quizzes and unit tests.  

Then the 9th week, after I have graded everything you submitted the 8th week,  you will need to submit the READY message.

Take the final the 10th week and I will submit your grade the 10th week.

BACKGROUND FOR PERSONAL LIFESTYLE COSTS

How much money will you need to earn right after high school if you are living on your own? This assignment will help you estimate the hourly wage you will need.

VISIT URL #1 shown at the bottom and complete the Reality Check activity.  You will use the monthly salary for your answer to #1 on your assignment.

College graduation ceremony: Image from Wikimedia Commons, Hkeely, CC Attribution 3.0 UnportedCollege graduation ceremony: Image from Wikimedia Commons, Hkeely, CC Attribution 3.0 Unported

BACKGROUND FOR EDUCATION AND EARNINGS

When you share responsibility for supporting a household, you need more money. How much you need depends on things like where you live, family size, personal interests, hobbies, health, and other factors. Tiff and Cameron focused on earning for present needs without thinking long-term. They thought education was too expensive and time-consuming; but the truth is: education pays for itself over and over. See how education affects your earnings.

VISIT URL #2 and read the entire web page. New information will appear when you move your cursor over the different educational levels. This will reveal answers to the assignment questions #3 and #4 below.

01.01 Personal Lifestyle Costs, and Education and Earnings (Financial Literacy)

teacher-scored 10 points possible 30 minutes

Submit your assignment according to the instructions.

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ASSIGNMENT 1.01 (E13) (Copy everything between the asterisks.)

1)What monthly salary did the web site predict you need? > ANSWER:

2)Name one lifestyle change you might make if you only earn minimum wage ($7.25/hr or $1,160 a month): > ANSWER:

3)Please answer the following: a.  Which of the listed education levels do YOU desire? > ANSWER:

b.  After moving the cursor over your preferred educational level, what is the average 1-year income for that level? > ANSWER: 

4)What is the average 40-year income for that level of education? > ANSWER:

5)List one way you think increased income will improve YOUR family life: > ANSWER:

6)Q: (1.01): Write your first and last name and today's date.> ANSWER:

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Make all your answers bold. If that is not possible (in the old system), UPPER CASE is fine.

Pacing: complete this by the end of Week 1 of your enrollment date for this class.


01.01 Personal Lifestyle Costs, and Education and Earnings links (Financial Literacy)

01.02 Typical Family Earnings Quiz (Financial Literacy)

Compare income in various geographical areas.

image from Wikimedia Commons, Steve Polyak, CC Attribution-Share Alike 2.0 Genericimage from Wikimedia Commons, Steve Polyak, CC Attribution-Share Alike 2.0 Generic BACKGROUND

The estimated wages you calculated in assignment 01.01 would be much higher for a whole family (or “household”) than it was for just you. Even Tiff's and Cameron's combined wages of $30,000 may sound like a lot, but it was too little. This assignment helps you estimate how much money you may need to support a whole household in YOUR county in Utah.

VISIT the URL #1 for assignment 01.02 below. (The Real Median Household Income in the US and Utah is shown. Write down the UTAH median income "Number," you will need this number to answer TWO questions on the quiz.

VISIT URL #2 to read about surprise expenses.  (Ignore the advertismentss and comments in this URL.)

01.02 Typical Family Earnings Quiz (Financial Literacy)

computer-scored 10 points possible 20 minutes

You will now complete a 10-question online quiz. You MUST score at least 8 to receive credit for the assignment but don't worry if you don't get at least 8 the first time since you can retake the quiz as many times as you need. Only your last quiz attempt counts. You may continue to increase your score if you want (7 or less = try again, 8 = B, 9 or 10 = A).

Pacing: complete this by the end of Week 1 of your enrollment date for this class.


01.02Typical Family Earnings link (Financial Literacy)

01.03 Explore a Career (Financial Literacy)

Develop career plans that include educational requirements, skill development, and income potential.

Secret Service officers: Public domainSecret Service officers: Public domain BACKGROUND

Right now, you don't know for sure which jobs you will have during your lifetime. One thing is for sure--your occupation will greatly affect your ability to pay for your lifestyle (as Tiff and Cameron found out). Now you will investigate a job that interests you. You will learn about preparing for that job, its skill requirements, future job potential, and more. As you select an occupation, consider the saying, “Since you're going to be working for the rest of your life, you might as well do something you really enjoy.”

VISIT URL #1. Scroll down to the “A-Z index” and choose a letter that corresponds to the career choice you are interested in. Search the list and then click on one of the links that is closest to your interest. Read the entire section about a career of interest that is consistent with your skills, income needs, education plans, and goals.

01.03 Explore a Career (Financial Literacy)

teacher-scored 10 points possible 30 minutes

Exit the web page and submit your assignment as usual.

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ASSIGNMENT 1.03 - (13E) (Copy everything between the asterisks.)

1. Which occupation did you choose? > ANSWER:

2. Scroll to the “Work Environment,” or "What is this job like" (or a similar topic) to find one thing from the site that sounds enjoyable AND one that does not: a. (Enjoyable) > ANSWER: b. (Not Enjoyable) > ANSWER:

3. Q: Scroll to “Job Outlook.” or a similar topic from the web site, to find future employment possibilities for this job: > ANSWER:

4. Q:  If your job were in demand, do you think that would cause your salary to increase or decrease? > ANSWER:

5. Q: Scroll to “pay,” or "How much would this pay?" (or a similar topic) to tell your potential earnings in this job? > ANSWER:

6. Q: (1.03): Write your first and last name and today's date.> ANSWER:

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Pacing: complete this by the end of Week 1 of your enrollment date for this class.


01.03 Explore a Career link (Financial Literacy)

01.04 Employee Benefits as Earnings (Financial Literacy)

Compare common employee benefits.

Electrician at work: image from Wikimedia Commons, editor B, CC Attribution 2.0 GenericElectrician at work: image from Wikimedia Commons, editor B, CC Attribution 2.0 Generic BACKGROUND

You will visit one web site (URL) in this activity. First read the information below. Then visit URL #1. The answers to your assignment (a quiz) are found in the information below, which you should read carefully. Perhaps you thought wages only come from salary. Cameron did. The fact is “Employee benefits” pay almost 1/3 (33%) of full-time employee compensation. Such benefits might include health insurance, life insurance, sick leave, retirement benefits, paid vacation, disability insurance, and more. Furthermore, many employee benefits are non-taxable so your taxes are reduced. Examples of employee benefits include:

  • Health insurance: Pays for doctors, prescriptions, hospitals, exams, and dental work.
  • Disability insurance: Replaces some of your income if you are unable to work for extended periods of time due to accident or illness. It pays the money directly to YOU.
  • Life insurance: pays others who depend on your income if you die.
  • Retirement benefits: Helps you save for retirement. Employers often contribute additional money for your retirement when you contribute. It is free money!
  • Education benefits: Help pay education costs while you work.

Carefully read the “Common Employee Benefits” and “8 uncommon employee benefits” below: Waitress at work: Image from Wikimedia Commons, alan.light, CC Attribution 2.0 GenericWaitress at work: Image from Wikimedia Commons, alan.light, CC Attribution 2.0 Generic

  • Common Employee Benefits: The most common employee benefits offered by small businesses [at least two full-time staff with at least one year of service] are: - Paid Vacations: Offered by 75% of small businesses. - Employee Health Insurance Plan: 61% - Paid Sick Leave: 59% - Disability Insurance: 41% - Education Reimbursement for Job: 39% - Pension Plan: 30% - Life Insurance: 29% - Dental Insurance: 24% . Note: Offering employee benefits provides many paybacks to small business owners. Number one is staff retention. An attractive employee benefit package will help recruit good employees and retain them as well. In addition, staff retention helps reduce turnover.
     
  • 8 Uncommon Employee Benefits
    1. Direct Deposit: Provide your staff with the option of having their checks directly deposited into their bank account at any bank or credit union. [This can make saving automatic.]
    2. Wellness Program: With the rising costs of health care, both employers and employees can take responsibility for the health system by participating in a wellness plan. Any form of fitness programs, smoking cessation, and stress reduction can improve employee absenteeism and overall productivity.
    3. Company Discounts: An overlooked employee benefit to staff is the chance to buy company products or services at discount. Even if it's only one major item or an employee purchase day, your staff will appreciate this benefit.
    4. Parking Privileges: Depending on employee commuting needs, parking privileges can cover payment of a monthly city transit pass or paying an amount of pre-tax payroll dollars for vehicle parking.
    5. Business Cards & Title: Business cards with an employees name and title will offer an emotional appeal to staff. It may seem trivial, but your staff will enjoy the level of professionalism and pride that comes from having a business card.
    6. Computer Loan Interest Free: Many employees will value the ability to buy a computer interest-free. Determine a limit of the dollar value of the computer on the plan. Set up an automatic payroll deduction. Make sure a formal agreement is signed in case the employee leaves the company.
    7. Community Hours: Offer your employees a limit of regular pay hours in community service time. If a staff member wants to be involved in a volunteer event, have the company pick up the tab. You will win the hearts of the staff and community.
    8. Education Plan: There is no doubt today's work force requires lifelong learning to keep pace with the changing demands of employment. Your small company may not be able to pay the tuition costs of an MBA program but some community college course reimbursement is affordable.

VISIT URL #1 (shown below) and read items 1-7 to learn more about specific employee benefits. This lesson has no assignment questions, only a quiz. Please proceed to the “Assignments, Quizzes, and Tests” section for 1.04.

01.04 Employee Benefits as Earnings Links (Financial Literacy)

01.04 Employee Benefits as Earnings Quiz (Financial Literacy)

computer-scored 10 points possible 20 minutes

You will now complete a 10-question online quiz. You MUST score at least 8 to receive credit for the assignment but don't worry if you don't get at least 8 the first time since you can retake the quiz as many times as you need. Only your last quiz attempt counts. You may continue to increase your score if you want (7 or less = try again, 8 = B, 9 or 10 = A).
You may now take the quiz by returning to section 3 of the main course webpage where you should click the 1.04 "Emplyee Benefits as Earnings quiz." Afterward, simply proceed to the next assignment.

Pacing: complete this by the end of Week 2 of your enrollment date for this class.


01.05 The Value of Health Insurance (Financial Literacy)

Discuss the value of health insurance.

X-rays can cost hundreds of dollars: NARA image, public domainX-rays can cost hundreds of dollars: NARA image, public domain BACKGROUND

The average family spends several thousand dollars a year for medical expenses. PLUS, expenses are rising over 10% per year. So health insurance is one of the most valuable employee benefits. Tiff and Cameron did not realize the importance of this benefit. Review the three insurance terms below before proceeding: Deductibles: Insurance policies usually state a dollar amount you must pay before the insurance will start paying for such things as surgical procedures, lab tests, or hospitalizations. This can vary from company to company. Routine office visits are usually not subject to the deductible. A common deductible might be $1000. These can be annual, personal, or family deductibles that YOU pay before the insurance pays. Co-pays: Insurance “co-pays” are the amounts you pay each visit before the insurance pays. The good news is that if you make a copay, the insurance company usually pays the balance even if you haven’t met the overall deductible. The copay might be a percentage (e.g. 20%) or a certain number of dollars (e.g. $30) per visit. Coverage: Even the same kinds of insurance cover different things with different limits as you will see in a moment. Major organ transplants like heart, liver, and bone marrow, for example, might be covered under some policies but not by others. This affects monthly premiums that may run from $75 to $160 per month for a healthy young single person.  Visit URL #1 and #2 to learn more about insurance and how premiums and dedcutibles work.

Health insurance becomes even more important when you have a family: US DOD image, public domainHealth insurance becomes even more important when you have a family: US DOD image, public domain  Employee benefits are benefits offered and paid in part by employers.  Common employee benefits are: paid vaction holidays, paid sick days, health insurance, disability income insurance, life insurance, dental/vision insurance, profit sharing, payroll savings plan, tuition reimbursement, etc.

You may have heard about the Affordable Care Act that passed into law on March 23, 2010.  Many people also refer to this Act as "Obamacare," they are the same thing.  The ACA open enrollment starts October 1, 2013 and ends March 2014, and coverage will begin in January 2014.  This is a highly debated topic in America.  It is important for you to do your own research about ACA, so you can understand how it will affect you.

01.05 The Value of Health Insurance (Financial Literacy)

computer-scored 10 points possible 30 minutes

You will now complete a 10-question online quiz. You MUST score at least 8 to receive credit for the assignment but don't worry if you don't get at least 8 the first time since you can retake the quiz as many times as you need. Only your last quiz attempt counts. You may continue to increase your score if you want (7 or less = try again, 8 = B, 9 or 10 = A).

Pacing: complete this by the end of Week 2 of your enrollment date for this class.


01.05 The Value of Health Insurance link (Financial Literacy)

01.06 Self-Employment & Entrepreneurs (Financial Literacy)

Identify the risks and rewards of entrepreneurship and self-employment.

Many artisans and artists are self-employed: Image from Wikimedia Commons, Joe Mabel, Attribution-Share Alike 3.0 UnportedMany artisans and artists are self-employed: Image from Wikimedia Commons, Joe Mabel, Attribution-Share Alike 3.0 Unported BACKGROUND

Another way to earn money besides working for others is to be an “entrepreneur”--to be your own boss and own your own business. This can be full-time or part-time. Entrepreneurs cannot set any wage they want. They must make sufficient profit to pay their own wages and others as well. Nonetheless, many entrepreneurs earn far more than if they worked for someone else. But some make NO profit and incur great debt. So owning a business has risks AND rewards. Anyone can be an entrepreneur, including students, parents, Tiff or Cameron, or someone that works full-time in a regular job. Many young people have a business on the side to bring in extra cash. It often begins when a person identifies some skill they have that fills other people's needs. Entrepreneurs have special skills, interests, or experience in providing a service or product others are willing to pay for.

VISIT URL #1 and read the article. Then exit the web page and proceed to the URL #2 activity. VISIT URL #2 read the article. Then exit the web page to complete the assignment quiz, This lesson has no assignment, only a quiz. Please proceed to the “Assignments, Quizzes, and Tests” section for 1.06.

01.06 Self-Employment & Entrepreneurs links (Financial Literacy)

01.06 Self-Employment & Entrepreneurs Quiz (Financial Literacy)

computer-scored 10 points possible 20 minutes

You will now complete a 10-question online quiz. You MUST score at least 8 to receive credit for the assignment but don't worry if you don't get at least 8 the first time since you can retake the quiz as many times as you need. Only your last quiz attempt counts. You may continue to increase your score if you want (7 or less = try again, 8 = B, 9 or 10 = A).
You may now take the quiz. Afterward, simply proceed to the next assignment.

Pacing: complete this by the end of Week 2 of your enrollment date for this class.


01.07 Self-Employment Risks and Benefits (Financial Literacy)

Identify advantages and disadvantages of self-employment.

Entrepreneurs in cities have made businesses of walking other people's dogs: Image from Wikimedia Commons, revolution cycle, CC Attribution 2.0 GenericEntrepreneurs in cities have made businesses of walking other people's dogs: Image from Wikimedia Commons, revolution cycle, CC Attribution 2.0 Generic BACKGROUND

There are many advantages as well as disadvantages and risks with self-employment: Disadvantages: Working for yourself can be lonely. Most self-employed people work harder than their employees in the beginning so they work more than “9 to 5.” There are often not enough hours in the day. Cash flow problems are common (you may have to wait for months for payments). Business often involves planning, proposals, quotations, marketing, bidding, and more. It takes much time and effort. There is no guarantee you will be successful. It can be difficult to switch off and relax. There is often little security, particularly in the beginning. Difficult issues related to employees are common. Some times may be busy while others may not. Often, there is little money when you start. Advantages: You are in charge and have control. The profits of your labor are yours. Any decisions about the business are yours. Seeing the business develop and grow can be immensely exciting and satisfying. You can keep your business and living costs to a minimum, especially if your home is used as the workplace. It is possible to make a great deal of money if you run a good business.

The activity below helps you further understand advantages and disadvantages of owning your own business. VISIT URL #1 shown below to carefully read why small businesses fail.

01.07 Self-Employment Risks and Benefits (Financial Literacy)

teacher-scored 10 points possible 60 minutes

Assignment for lesson 01.07: This assignment is different from the others because EHS requires one writing assignment in each quarter. In this assignment you will write on the following topic:

To be a successful entrepreneur, you must have a passion for what you do. You must also strongly believe your products and services will meet customer needs.

Grading Criteria:
1. Assignment must contain 450-500 words (including your words AND those copied between the asterisks from the outline below). Do not exceed 500 words total. (Note: Visit "wordcounter.net"I If you don't have a word counter.)
2. Sentences must be complete with correct spelling, grammar and punctuation.
3. Quotations are not required; but any direct quote must be cited with the source identified.
4. Writing must be ORIGINAL, thoughtful, and accurate.

To begin: Copy the outline shown below between the lines of asterisks into a word processing document. Respond to each of the five parts to complete the assignment. A spellchecker and word-counter may be used. When finished, copy the assignment into the answer box and submit like all previous assignments.

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REMINDER: When this assignment is submitted, you must have 450-500 words between the lines of asterisks to receive a passing score. (13E)
1- Describe a "successful entrepreneur." Response:
2- Tell why entrepreneurs must have passion for what they do. Response:
3- Explain why entrepreneurs must strongly believe their products and services will meet customers' needs. Response:
4- Add any additional thoughts about qualities a successful entrepreneur should have. Response:

5- If you were to start your own business, what would it be and why? Response:
6- Answer the following

a) 6 points: How many TOTAL words (including your own) are there between the lines of asterisks? Answer 450-500 (required for full credit):

b) 4 points: Make sure your submission has been spell checked, and thoughtfully revised as necessary.

c) Write your first and last name and today's date. Answer:

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Pacing: complete this by the end of Week 2 of your enrollment date for this class.


01.07 Self-Employment Risks and Benefits links (Financial Literacy)

01.08 The Cost of Living (Financial Literacy)

Compare income (salaries) to the cost-of-living in various cities.

Madison Avenue, in New York City: image from Wikimedia Commons, Leif Knutsen, Attribution-Share Alike 3.0 UnportedMadison Avenue, in New York City: image from Wikimedia Commons, Leif Knutsen, Attribution-Share Alike 3.0 Unported BACKGROUND

One factor that affects the value of your salary, is the “cost of living.” The “cost of living” varies from city to city. For example, a person living in Salt Lake City, Utah, making $50,000 per year may have more buying power than someone earning $100,000 per year in San Francisco, California. Let’s compare some real-life examples.

VISIT URL #1 shown below to compare the costs of living in a Utah city with a different city in order to answer the assignment questions. Here are some brief instructions: 1. Under the words, "I live in", choose Utah and then a city close to you. 2. Under the words, "I want to live in", chose a different state and city. 3. A salary of $50,000 is already selected as the beginning salary in the first city. The comparable salary in the new location will automatically be shown.

01.08 The Cost of Living (Financial Literacy)

teacher-scored 10 points possible 25 minutes

Exit the web page and submit your assignment as usual.

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ASSIGNMENT 1.08 (13E) (Copy everything between the asterisks.)

1) Q: Using the website, Select the Utah city or one close by that you live in. Then, under "I want to live in," select the state “New York,” and select "New York (Manhattan)." Do not change the beginning salary of $50,000. Read the “results” and tell how much the website says you have to earn in “New York (Manhattan)” to have the same purchasing power as the Utah city you selected> ANSWER:
2) Q: Now choose another city outside your state where you personally might want to live to answer the following: a) What city and state did you choose to move to? > ANSWER: b) Do not change the beginning salary of $50,000. How much would you need to make in that city to have the same buying power as your current city?> ANSWER:
3) Q: In your own mind, identify one other expense that might be different in the new city you chose due to climate, location, etc. (answer not on website): > ANSWER:
4) Q: Why do you think living in a city where the salary is double your current salary may not double your purchasing power? > ANSWER:

5) Q: Using the map in the 2nd URL below, how much buying power does $100 have in Utah? > ANSWER: 
6) Q: (1.08): Write your first and last name and today's date.> ANSWER:

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Pacing: complete this by the end of Week 3 of your enrollment date for this class.


01.08 The Cost of Living link (Financial Literacy)

01.09 Inflation Quiz (Financial Literacy)

Explain the effects of inflation on savings and investments.

US Inflation rates 1914-2009: Public domainUS Inflation rates 1914-2009: Public domain BACKGROUND

Inflation reduces the value of your money. That means money won't buy as much. Inflation is an increase in the prices of goods and services. The annual rise in inflation over the past 25 years averaged 4.5%. That may not seem like much until you realize this makes things cost more than twice as much every 16 years. So a $50,000 salary today would be worth about $25,000 salary in 16 years. It is pretty certain that inflation will continue and greatly reduce the value of your money over time.

VISIT URL #1 shown below to see some pretty remarkable effects of inflation. Then use your brain (and a calculator if needed) to complete the assignment.  You will need to have access to this link to complete the quiz.

01.09 Inflation Quiz (Financial Literacy)

computer-scored 10 points possible 20 minutes

You will now complete a 10-question online quiz. You MUST score at least 8 to receive credit for the assignment but don't worry if you don't get at least 8 the first time since you can retake the quiz as many times as you need. You may continue to increase your score if you want (7 or less = try again, 8 = B, 9 or 10 = A).
You may now take the quiz. YOU WILL NEED TO USE THE URL FROM THIS LESSON TO COMPLETE THE QUIZ.

Afterward, simply proceed to the next assignment.

 

Pacing: complete this by the end of Week 3 of your enrollment date for this class.


01.09 Inflation Quiz link (Financial literacy)

01.10 Taxes (Financial Literacy)

Understand required income withholdings, reasons for taxation, uses of Social Security, Medicare, and employee payroll taxes.

US tax rates 1921-2009; brown line shows rates for people in highest income bracket; blue line, rates for those in lowest income bracket: Image from Wikimedia Commons, Quophnix, CC0 1.0 Universal Public Domain DedicationUS tax rates 1921-2009; brown line shows rates for people in highest income bracket; blue line, rates for those in lowest income bracket: Image from Wikimedia Commons, Quophnix, CC0 1.0 Universal Public Domain Dedication BACKGROUND

Taxes: Tiff and Cameron were disappointed when they received their first paycheck. They thought that working 40 hours at $8 dollars per hour (40 hrs. X $8/hr), gives you $320 - right? Wrong! Cameron only received $265 after the Social Security taxes, Medicare taxes, Federal Income taxes, and State Income taxes were taken out. He didn’t know that people spend more on taxes than on any other single item such as clothes, food, or cars. You, too, will pay taxes on income (wages, tips, and interest income.). Then, by April 15th of each year, you will file your income taxes. If you paid too much, you get a “refund.” If you paid too little, you owe more. In this lesson, you will examine:

  • Social Security
  • Medicare
  • Federal Income taxes
  • W-4 Forms (used by employers to calculate how much money to withhold from your check).
  • “Gross” vs.“Net” Pay. “Gross pay” is what Tiff and Cameron thought they'd get. “Net pay” (take-home pay) is what they really got after taxes.

More questions on test #1 come from this lesson than any other so read the material carefully and pay close attention to the website when you get to that part.

PAYROLL TAXES

What are “payroll taxes” and what is their purpose? And why do you care about this? Payroll taxes are taxes that will be withheld from your paycheck that include Social Security (also called FICA), Medicare, and Income tax. Here is a short description of each:

  1. Social Security taxes provide benefits for retired workers, the disabled, and their dependents.
  2. Medicare tax is used to provide medical benefits for individuals when they reach age 65. Workers, retired workers, and their spouses are eligible upon reaching age 65.
  3. Federal income taxes are used for national programs.

How will the Federal government spend the federal income tax portion of payroll taxes? It will use the money to pay for such things as national defense, foreign affairs, social programs, law enforcement, interstate highways, and to pay interest on the national debt. How will your employer know how much of your hard-earned money to withhold?

  • Social Security tax will be 6.2% of your total (gross) income.
  • Medicare tax will be: 1.45% of your total (gross) income.
  • Federal Income tax: It varies according to the “W-4” form you complete. The form determines how much income tax to withhold. If too much is withheld, you get some back when you file a tax return. If too little is withheld, you pay more when you file a tax return.

Here is a typical example of the taxes that could be withheld from a person’s $2000 paycheck:

  • Social Security tax (6.2 percent of your total [gross] pay) = $124 (note: your employer contributes an additional 6.2%). (Note: These numbers sometimes change and can vary over time.)
  • Medicare tax (1.45 percent of your total [gross] pay) = $29
  • Income tax (as indicated by your form W-4) = $220

Your take-home (net) pay is $1,667. Therefore, you don’t really have $2000 to spend after taxes. You may get less money if other things are withheld such as payments to retirement plans or health benefits. These, however, are not payroll taxes. U.S. Government IRS logo, public domain, via Wikimedia CommonsU.S. Government IRS logo, public domain, via Wikimedia Commons FILING A TAX RETURN

At the end of the tax year, most people are required to file an income tax return IF they earned over a certain amount of money for the year. Sometimes you get some of the tax money back if you paid too much. Sometimes you pay more if you didn’t pay enough. This will be determined when you complete and file a tax return. Often, young people earn too little money to pay taxes. That means that either they won’t have payroll deductions, or they will get all payroll deductions back. They will file their taxes using special forms provided by the IRS such as 1040, 1040A, and 1040EZ. What determines how much tax you get back OR how much you have to pay? There are many things that determine this. We will consider only two things that affect how much tax you pay. Your filing status is the first thing that affects how much you pay. Everyone must choose one of the following tax filing statuses: single, head of household, married filing a joint return, qualifying widow(er) with dependent child, or married filing a separate return. Each filing status has a different standard deduction. The size of that deduction affects how much total tax you will have to pay. “Deductions” refer to deductions from your income that reduce taxes. There are two kinds of deductions:

  1. the Standard Deduction (which is different for each filing status listed above)
  2. the Itemized Deduction (a list of personal deductions that sometimes total more than the standard deduction)

Most people should choose whatever deduction is larger so that they pay taxes on a smaller income; therefore, they pay less tax. Furthermore, you would choose to “itemize” deductions only if your itemized deductions total more than your standard deduction.

(Now VISIT URL #1 to learn more about taxes, and click through the 9 pages of the tutorial.) After reviewing URL#1 mentioned above, proceed to the “Assignments, Quizzes, and Tests” section for 1.10. to take an online quiz (rather than submit an assignment). The quiz submits itself automatically. You MUST score at least 8 to receive credit for the assignment, but don't worry if you don't get 8 or higher the first time since you can retake the quiz as many times as you need. Only your last quiz attempt appears in the grade book. You may continue to increase your score if you want (8 = B, 9 or 10 = A). Take the assignment 1.10 quiz now (in the Assignments, Quizzes and Tests area of the main class page).

01.10 Taxes Link (Financial literacy)

01.10 Taxes quiz (Financial Literacy)

computer-scored 10 points possible 20 minutes

Take the quiz. You must score 8 or higher on this quiz to continue. If your score is lower, simply re-take the quiz as many times as you need after examining the review of the questions that appears at the end of the quiz.

 

Pacing: complete this by the end of Week 3 of your enrollment date for this class.


01.11 Unit 1 Test (Financial literacy)

When you have finished the assignment 1.10 quiz and all the unit 1 assignments, you may take the 20-question Unit TEST 1. It requires no password. (In fact, only the final proctored test for 1st quarter will require a password.) Good luck as you now complete the Unit 1 test. IMPORTANT NOTE: the test is not complete until you click the “submit button” at the end of the test. Many students forget and do not receive credit for the first test. Also, you may retake the unit 1 test (and all other unit tests) as many times as you like to raise your grade and better learn the material.

01.11 Unit 1 Test (Financial literacy)

computer-scored 100 points possible 45 minutes

After you have submitted all unit 1 assignments, take this unit test.

Pacing: complete this by the end of Week 3 of your enrollment date for this class.


02.00 Savings (Financial Literacy)

SAVING--Pay yourself first by saving first and early.

"THE BOMB EXPLODES IN 90 SECONDS BUT NOT TO WORRY--HERE COME THE INSTRUCTIONS TO DISARM IT:
DOWNLOAD TIME: 2 MINUTES"

Saving, like disarming a bomb, is something that needs to be started early before it's too late, and BEFORE you spend it on something else. The lessons in Unit 2 are about "SAVING" and how you can successfully begin saving on time.

NOTE: This video can take from 3 to 12 minutes to load. I suggest you go ahead and try it, but feel free to open another screen and work on the next activity while it is loading. The video makes the class more interesting but does not contain critical information. Your computer needs to have QuickTime installed to view this video. To view it, click the link then click the play button.

02.01 Saving and the POWER of Compound Interest (Financial Literacy)

Describe the concept of the time value of money.

Compound interest (5% per annum) graph: image from Wikimedia Commons, Pfelton, public domainCompound interest (5% per annum) graph: image from Wikimedia Commons, Pfelton, public domain BACKGROUND

The power of “compound interest” helps your money grow more quickly than you might imagine! The ability of money to grow over time is called “The Time Value of Money.”

Visit the links below to learn more about the awesome power of “The Time Value of Money” and compound interest. Deposits in Banks and Credit unions are now insured for $250,000. Now you know the answer to one of the quiz questions! Visit URL #1 to read about the difference between simple and compound interest. (There are also two links on the page that you should click on and read ("Compounding Calculator" and "Millionaire Calculator ). Then exit the web page and continue to the next URL (URL #2). Visit URL #2 to learn about the power of 72, which tells you how long it takes for money to double by dividing the interest rate into 72. You can check your answers with the online calculator. Learning about how your money "grows" as you save, is important as you plan for retirement. Many people wait until they are "grow-ups" to begin saving for retirement, but using the power of compound interest and saving even a little bit now, will put you way ahead than if you waited to start saving 10 years from now.

This lesson has no assignment questions, only a quiz. Please proceed to the “Assignments, Quizzes, and Tests” section for 02.01.

02.01 Saving and the POWER of Compound Interest (Financial Literacy)

computer-scored 10 points possible 20 minutes

You will now complete a 10-question online quiz. You MUST score at least 8 to receive credit for the assignment but don't worry if you don't get at least 8 the first time since you can retake the quiz as many times as you need. Only your last quiz attempt counts. You may continue to increase your score if you want (7 or less = try again, 8 = B, 9 or 10 = A).

Pacing: complete this by the end of Week 4 of your enrollment date for this class.


02.01 Saving and the POWER of Compound Interest links (Financial Literacy)

02.02 How to Save (Financial Literacy)

Analyze reasons to save.

Piggy Bank: By User Cornischong; CC-BY-SA-3.0, via Wikimedia CommonsPiggy Bank: By User Cornischong; CC-BY-SA-3.0, via Wikimedia Commons BACKGROUND

This lesson is about how to save. And here is some information of importance that is not on the website you will visit:

  • Financial planners suggest you save at least 10% of your income.
  • To open an account at a bank or credit union, you will probably need the following: Photo ID (maybe your school ID, or a driver’s license), Your Social Security number (a good number to memorize, NOT carry around with you), and Money to open the account.
  • Here is a note to remember from bankrate.com (and also the answer to #1 below): The minimum balance required to open a savings account is usually quite low, sometimes just $1 or $5, but don't let that fool you. Many institutions require a minimum balance of $100, $300 or more to avoid paying a monthly maintenance fee. Those fees can be stiff, $5 or even $10 a month, and will erode your money quickly.

VISIT URL #1 and read the first page. Then click and read the following links in the left margin * "Saving Tricks" (especially Trick #1 [Pay yourself First]) to answer question #2 . * The 5-step Save/Spend Plan (especially sep #3 to see savings categories for question #3) * How Banks Work * About Savings Accounts (liquidity, safety, compound interest) * The Truth about millionaires quiz (take this quiz).

02.02 How to Save (Financial Literacy)

teacher-scored 10 points possible 30 minutes

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Assignment 02.02 (13E)
(Copy everything between the asterisks.)
1) Q: From the information above, even though minimum balances required to open a savings account are usually low ($1 or $5), what might you avoid by opening an account with $100, $300 or more? > ANSWER:
2) Q: Why should you pay yourself first according to the website? >ANSWER:
3) Q: In your own judgment, give an example of one possible ITEM (not a dollar amount or %) in each of the following saving categories:
a. Example of an everyday expense > ANSWER:
b. Example of an expense from short-term savings or emergencies > ANSWER:
c. Example of an expense from long-term saving > ANSWER:
d. Example of an expense for a charity > ANSWER:

4) Q: Using the 2nd URL below, put $500 into the amount you want to save each year, select CD's at 1%, and enter 10 for the number of years you would like to save, then calculate.  How much INTEREST will you make? (HINT: You need to subtract the money you put in the account over the 10 years from the total) > ANSWER:
5) Q: How can you apply this assignment in YOUR life? > ANSWER:
6) Q: (02.02): Write your first and last name and today's date.> ANSWER:

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Pacing: complete this by the end of Week 4 of your enrollment date for this class.


02.02 How to Save links (Financial Literacy)

02.03 Emergency Savings Quiz (Financial Literacy)

Understand the importance of emergency savings.

Are you financially prepared for emergencies?: Image from Wikimedia Commons, Huhu Uet, CC Attribution 3.0 UnportedAre you financially prepared for emergencies?: Image from Wikimedia Commons, Huhu Uet, CC Attribution 3.0 Unported BACKGROUND

Tiff and Cameron would have been better off to have “EMERGENCY SAVINGS” for accidents, theft, repairs, job loss, etc. These savings are usually in a bank or credit union where money is quickly available in short-term, liquid accounts. (“Liquid” means you can get cash quickly.)

Visit URL #1 to learn about the importance of Emergency Savings, and then take the 02.03, Emergency Savings quiz.

02.03 Emergency Savings Quiz (Financial Literacy)

computer-scored 10 points possible 20 minutes

You must score 8 or higher on this quiz to continue. If your score is lower, simply re-take the quiz as many times as you need to, after reviewing the material.

Pacing: complete this by the end of Week 4 of your enrollment date for this class.


02.03 Emergency Savings Quiz link (Financial Literacy)

02.04 Other Types of Savings (Financial Literacy)

Compare savings in various types of financial institutions.

Understanding the Money Market Funding Engine: By cflm, CC-BY-SA-3.0, via Wikimedia CommonsUnderstanding the Money Market Funding Engine: By cflm, CC-BY-SA-3.0, via Wikimedia Commons

BACKGROUND

Banks or credit union savings accounts are some of the most common and safest places to save. Each account is insured for $250,000. Always look for the “FDIC” sign in banks or the “NCUA” sign in credit unions to signify that your money is insured. This $250,000 of insurance means that if you deposit $315,000 in a bank or credit union that fails, for example, you will only lose $65,000 since the rest is insured.

In the following activities, you will learn about CD's, Money Market accounts, what “liquid” means, and the “financial pyramid.” Visit the following links paying particular attention to CD's, money market accounts, liquid, and the "financial pyramid."

Examine the chart below: It shows information about the three main kinds of savings you have studied (CD rates, Money Market rates, and regular Passbook/Saving rates). (Note: the rates are not accurate for current conditions but in comparison to each other, they are fairly typical.)

CERTIFICATE OF DEPOSIT RATE MONEY MARKET ACCT. RATE REGULAR SAVINGS RATE
3 mo CD…… 4.8% $5000…… 3.5% 1 yr. Bank…… 2.3%
6 mo CD…… 5.% $10,000… 3.8% 1 yr. Cred. Union…. 3.1%
1 yr CD…… 5.5% $25,000… 4.1%

You do NOT need to answer the following two questions, BUT, there are similar questions on the assignment quiz--so you should know the answers before taking the quiz:


  • Q: From the chart above, what happens to CD rates when the duration of the CD is longer? (Don’t answer, but learn the answer for the quiz).
  • Q: What do you conclude about Passbook savings rates compared to CD's and MMA's? (Don’t answer. but learn the answer for the quiz).

Visit URL #1 making sure also to click on the links:"Certificates of Deposit," "Money Market Accounts" and "Risks and Rewards" which discusses the financial pyramid.

This lesson has no assignment, only a quiz. Please proceed to the “Assignments, Quizzes, and Tests” section for 02.04.

02.04 Other Types of Savings link (Financial Literacy)

02.04 Other Types of Savings Quiz (Financial Literacy)

computer-scored 10 points possible 20 minutes

You will now complete a ten-question online quiz. You MUST score at least 8 to receive credit for the assignment but don't worry if you don't get at least 8 the first time, since you can retake the quiz as many times as you need. Only your last quiz attempt counts. You may continue to increase your score if you want (7 or less = try again, 8 = B, 9 or 10 = A).
You may now take the quiz. Afterward, simply proceed to the next assignment.

Pacing: complete this by the end of Week 4 of your enrollment date for this class.


02.05 Savings vs. Investments (Financial Literacy)

Compare long-term and short-term savings and investments.

Dow Jones Industrial Index average, 1900-2008: Public domainDow Jones Industrial Index average, 1900-2008: Public domain

BACKGROUND

In this unit, you will study investments. Savings (like bank savings, CD's, and bank "money market" accounts) are different from investments (like stocks, bonds, and mutual funds). Each has advantages and disadvantages. Sometimes low-interest savings are better than investments because the risk with savings is lower, and the money is more liquid. Sometimes higher returns with higher risk are preferable--that’s when investments are preferred. This assignment compares savings and investments.

Savings vs. Investments

> Rate of return: Investments usually have higher potential rates of return. Savings rates tend to be lower.
> Risk: Investments are not guaranteed and may even go down. Savings are usually insured with guaranteed growth.
> Length of time: Investments are generally for longer times. Savings are generally for shorter times.
> Purpose: Investments are used for long term goals like education and retirement where there is a long-term need to increase the value of money and protect earnings against inflation. Investments should not be used as emergency funds since they are often more risky and not as accessible. Savings ARE more for suitable for emergencies and items that are too expensive to purchase from one paycheck.
> Costs & Fees: Investments are usually more complex than savings. Hence, there are investment fees to pay for advisors and those who offer advice and sell the investments. In addition, there are often costs for transactions such as for buying stocks, managing mutual funds and annuities, purchasing bonds, etc. Savings, on the other hand, do not generally involve so many fees but are just one of the standard services offered by banks, credit unions and similar institutions.
> Liquidity: Savings are usually more liquid than investments. For example, a savings account is much easier to convert to cash than your house. Cash is more liquid than real estate. Investments are usually not as liquid.

Complete the three URL Activities below. Read the instructions for each activity carefully to make sure you visit all the required web pages but do not visit more than is necessary. All three parts include pages from the same web site.

Visit URL #1: to read the site information until you reach the “Detour” sign. Then exit and proceed to the next URL.

Visit URL #2: to read the site information until you reach the “Detour” sign. Then exit and proceed to the next URL.

Visit URL #3: to complete “Getting Ready to Invest” (Skip the “Bloomberg” link.) Stop when you reach the “Detour” sign. Then exit and proceed to the “Assignments, Quizzes, and Tests” section.

02.05 Savings vs. Investments (Financial Literacy)

teacher-scored 10 points possible 30 minutes

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ASSIGNMENT 02.05 Questions (13E)
(Copy everything between the asterisks.)
1) Q: What do you think happens to the value of investments that grow slower than inflation? > ANSWER:

2) Q: List the two ways to "beat inflation" with your SHORT-TERM savings from URL #1: > 

ANSWER:
ANSWER:

3) Q: List two of the places you should put your LONG-TERM savings from URL #1(pages 3-4): 

 

ANSWER:
ANSWER:

4) Q: The web page says people should pay off high-interest loans and credit before starting long-term investments. What do you think happens to your total earnings if you pay higher interest on loans than you earn on investments? > ANSWER:
5) Q: Experts say people should save about 10% of their income; how many dollars per month do you think you should save as a minimum?> ANSWER:
6) Q: (02.05): Write your first and last name and today's date.> ANSWER:

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Pacing: complete this by the end of Week 4 of your enrollment date for this class.


02.06 Types of Investments (Financial Literacy)

Identify and explain types of investment vehicles.

Crowd gathering on Wall Street after the stock market crash of October 25, 1929: By Freelancer Journalist (CC0), via Wikimedia CommonsCrowd gathering on Wall Street after the stock market crash of October 25, 1929: By Freelancer Journalist (CC0), via Wikimedia Commons

BACKGROUND

Next, we consider several common types of investments. Examples of investments include stocks, bonds, mutual funds, collectibles, real estate and more. These investments are more risky than regular bank savings, CD's, and Money Market accounts, BUT they have potentially higher earnings--especially over long periods (many years).

Investments are not insured like bank and credit union savings. That is part of the reason investment money should NOT be needed for emergencies or everyday expenses since the money can be lost. You should have more liquid funds for emergencies in such places as savings or Bank Money Market Accounts.

Stocks, bonds, and certain other investments are often referred to as “securities.” A person must be licensed and meet certain standards to sell securities. This helps reduce risk but you still have to be careful since “securities fraud” happens all the time.

As an introduction, visit and read the link in the URLs. Make sure you click on the side links entitled "What is the Stock Market," that discusses Stocks, Mutual Funds, Bonds, and Collectibles. Then take the quiz.

02.06 Types of Investments Links (Financial Literacy)

02.06 Types of Investments Quiz (Financial literacy)

computer-scored 10 points possible 20 minutes

Take the 2.6.1 quiz. You must score 8 or higher on this quiz to continue. If your score is lower, simply re-take the quiz as many times as you need after reviewing the material.

Pacing: complete this by the end of Week 5 of your enrollment date for this class.


02.07 Investments and Taxes (Financial Literacy)

Understand longterm investments and their tax implications.

By ScottSteiner (Own work), public domain, via Wikimedia CommonsBy ScottSteiner (Own work), public domain, via Wikimedia Commons BACKGROUND

The government encourages people to invest money for retirement so they will not have to depend on government or others to support them in old age. The government encourages investment by allowing people to postpone (defer) their taxes using “401Ks,” “IRAs," and other savings plans. Such “Tax-deferred" savings allow people to earn extra interest until they pay the taxes--usually after retirement. Tiff and Cameron did not put money in tax-deferred savings--a serious mistake.

Visit URL #1 to see the advantage of tax-deferred savings over taxable savings. The following instructions will tell you what numbers to put in the website calculator: - click reset to begin - Input "initial balance or deposit": 1000 - Input "annual savings amount": 6000 - Input "annual increase in contributions": 0 - Input "Number of years for the analysis": 30 - Input before-tax return on savings: 8 - Input marginal tax bracket": 25 - Select "compounding/savings frequency" Annual - click submit. If you did this correctly, you will be able to compare the pre-taxed amount with the deferred amount to help you with question #2.

Visit URL #2 to see what each citizen’s share of the NATIONAL debt is. You will find it near the top under "debt per citizen." Write the amount down.  You will also need the U.S. National Debt amount.

Visit URL #3 to see what each Utah citizen’s share of their STATE debt is. Look at Utah and then compare it with other states. One of the assignment questions will ask you the Utah debt per capita and how it compares with other states.

02.07 Investments and Taxes (Financial Literacy)

teacher-scored 10 points possible 30 minutes

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Assignment 02.07 (13E) (Copy everything between the asterisks.)

1) Q: Tax-Deferred savings grow untaxed until they are withdrawn. What event in a person’s life would USUALLY cause them to begin withdrawing their tax-deferred savings (see background notes above) .> ANSWER:
2) Q: After 30 years, the difference between "taxed deferred" and "pre-taxed" earnings is about $95,000. Which saves you the most money?
3) Q: A rising NATIONAL debt increases people’s taxes. What is the “debt per citizen” (found near the top under "debt per citizen) on the debt-clock (NOT the U.S.A. total) ANSWER:

4) Q: What is the U.S. National debt? > ANSWER:
5) A rising STATE debt increases people's taxes.
a. Q: What is the "debt per capita" just for Utah? > ANSWER:
b. Q: Is Utah's debt higher or lower than MOST other states?>ANSWER:
6) Q: (02.07): Write your first and last name and today's date.> ANSWER:

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Pacing: complete this by the end of Week 5 of your enrollment date for this class.


02.07 Investments and Taxes links (Financial Literacy)

02.08 Investment Principles (Financial Literacy)

Identify strategies for investing.

Save and Invest in the Safest, Simplest Security buy W.S.S. war Saving Stamps issued by the United States Government. Jan. 1, 1923 - $5.00: This work is in the public domain.Save and Invest in the Safest, Simplest Security buy W.S.S. war Saving Stamps issued by the United States Government. Jan. 1, 1923 - $5.00: This work is in the public domain. BACKGROUND

In this assignment, you will learn about principles that increase the likelihood of successful investing.

Complete the following tasks below: Visit and study URL #1 below until you reach the “detour sign.” Now proceed to URL#2 to study more information until you reach the “detour sign.” Then exit the web page and read the information below: Read the following information regarding two financial terms. The information below tells the answers to some of the quiz questions: * DISCOUNT BROKER - a broker who charges less than the prevailing commission rates in his or her community." (Note: A broker is someone who assists in the acquisition of stocks, bonds, and other investments. A discount broker does not manage the funds or provide as many services as a conventional or full-service broker.) * DOLLAR COST AVERAGING - "An investment strategy in which securities (typically mutual funds) are purchased in fixed dollar amounts at regular intervals -- regardless of how the market is performing." (Note: People sometimes ask for a "dollar cost averaging" investment strategy because it generally has less risk and a more conservative strategy for buying stocks than buying all investments at one point in time.) Now proceed to URL  #3. Read the information in URL #3 and be sure to click on the link "Risk/Reward Pyramid and read that information as well.

02.08 Investment Principles (Financial Literacy)

computer-scored 10 points possible 20 minutes

You will now complete a 10-question online quiz. You MUST score at least 8 to receive credit for the assignment but don't worry if you don't get at least 8 the first time since you can retake the quiz as many times as you need. Only your last quiz attempt counts. You may continue to increase your score if you want (7 or less = try again, 8 = B, 9 or 10 = A).

Pacing: complete this by the end of Week 5 of your enrollment date for this class.


02.08 Investment Principles links (Financial Literacy)

02.09 Test on Unit Two (Financial literacy)

When you have finished all the unit 2 assignments, you may take the Unit Two TEST. It requires no password. (In fact, only the final proctored test for 1st quarter will require a password.) Good luck as you now complete the Unit 2 test.

IMPORTANT NOTE: the test is not complete until you click the “submit button” at the end of the test. Many students forget and do not receive credit for the first test. Also, you may retake the unit 2 test (and all other unit tests) as many times as you like to raise your grade and better learn the material.

02.09 Test on Unit Two (Financial literacy)

computer-scored 100 points possible 45 minutes

Take the unit 2 test.

Pacing: complete this by the end of Week 5 of your enrollment date for this class.


03.00 Spending (Financial Literacy)

03.00 Spending (Financial Literacy)

Spending is easier than earning!: image from Wikimedia Commons, Doug Falconer, CC Attribution-Share Alike 3.0 UnportedSpending is easier than earning!: image from Wikimedia Commons, Doug Falconer, CC Attribution-Share Alike 3.0 Unported

SPENDING - Spend less than you earn.

"AS YOUR ATTORNEY, I CAN USE A COMPUTER TO COMPLETE IN DAYS WHAT USED TO TAKE YEARS! ‘COURSE, THAT’LL BUMP UP YOUR EXECUTION DATE."

You can also complete the spending of your money in "days." But, as in the example above, that might also bump up some bad consequences you never thought about. The lessons in Unit 3 are about how you can slow down spending and wisely use your money in a way that will make you happier without bad consequences.

Use the link below to check in with Tiff and Cameron.

NOTE: This video can take from 3 to 12 minutes to load. I suggest you go ahead and try it, but feel free to open another screen and work on the next activity while it is loading. The video makes the class more interesting but does not contain critical information. Your computer needs to have QuickTime installed to view this video. To view it, click the link, then click the play button.

03.01 Take Home Pay (Financial Literacy)

Calculate net income from an employee payroll record

BACKGROUND

One of the most important things to learn in this class (perhaps the most important) is: “Don't spend more than you earn!” Spending more than you earn is not sustainable. It always catches up with you by putting you in debt and can even lead to bankruptcy. Spending less than you earn, on the other hand, leads to: Less “paycheck-to-paycheck stress.” A more enjoyable and sustainable lifestyle. Making your money go where YOU want it to. Having savings for the things you need. To spend less than you make, you must know how much you make. This is harder than it sounds because paychecks have “withholdings” for taxes and other things as Tiff and Cameron discovered. This assignment lets you see how much is commonly withheld from your check.

Visit URL #1 to see your take home pay if you make $1000 per month ($12,000 per year). Do the following: Select state (Utah) and press “Go” Change Federal Withholding Status: Single Change State Withholding : Single Change Pay Periods per Year: 12 Change Gross Salary Per Pay Period: 1000 Click the “Calculate” button Write down the Take Home Pay (same as Net Pay): and save this amount for one of the 3.01 quiz questions. Visit URL #2 to read the first web page only. You do not need to follow any links.

03.01 Take Home Pay (Financial Literacy)

computer-scored 10 points possible 30 minutes

You will now complete a 10-question online quiz. You MUST score at least 8 to receive credit for the assignment but don't worry if you don't get at least 8 the first time since you can retake the quiz as many times as you need. Only your last quiz attempt counts. You may continue to increase your score if you want (7 or less = try again, 8 = B, 9 or 10 = A).

Pacing: complete this by the end of Week 6 of your enrollment date for this class.


03.01 Take Home Pay links (Financial Literacy)

03.02 Budgeting Principles (Financial Literacy)

Learn how a budget helps individuals be financially responsible

Budget planning: USN image, public domainBudget planning: USN image, public domain

BACKGROUND

Budgeting doesn't mean you never get what you want. Instead, it is a powerful tool for getting exactly what you want--with what you have. Everyone needs to learn how to spend less than they earn while trying to obtain what they want. Budgeting helps you do this. It is best learned when you start to receive money in any form (allowances, gifts, and jobs).

Visit URL #1 (“Wealth-Building Priorities.”) You will NOT need to do the activities on the “detour” pages.

Visit URL #2: You will not need to do the activities on the “detour” pages.

This lesson has no assignment, only a quiz. Please proceed to the “Assignments, Quizzes, and Tests” section.

03.02 Budgeting Principles links (Financial Literacy)

03.02 Budgeting Quiz (Financial Literacy)

computer-scored 10 points possible 20 minutes

Take the quiz on budgeting. You must score 8 or higher on this quiz to continue. If your score is lower, simply re-take the quiz as many times as you need after reviewing the material.

Pacing: complete this by the end of Week 6 of your enrollment date for this class.


03.03 Creating a Budget (Financial Literacy)

Develop, monitor, and evaluate a personal budget and consider the trade-offs

Chemist drawing chemical compound: DARPA image, public domainChemist drawing chemical compound: DARPA image, public domain

BACKGROUND

There are many ways to create a budget. Some people use computer budget programs. Some use spreadsheets. Others write budget categories on envelopes and put the desired cash in an envelope for each category. Some deposit all the money in the bank and track the money according to a written plan which they monitor. Each method has advantages since no single method fits everyone. Many people manage finances over the Internet so that they can pay bills on-line and check their accounts easily. This assignment introduces you to developing a balanced budget no matter what method you use. The reason for a budget is simple: Budgets help people buy what is most important since their wants always exceed their money. They HELP you get what you want instead of prohibiting it if you plan correctly.

Visit URL #1 To fill in all the blanks, try to imagine how much you will earn and spend in the first year after high school if you were living alone. You will have no idea on some things but enter what you imagine what you will earn and spend. Note: when a category is marked "monthly," you just need to estimate what you would spend each month for that category, and if a category is marked "annually," then you need to estimate what you would spend a year for that category. Towards the bottom, in the box marked "Income" input your estimated "Monthly Pay," (take home pay after taxes). Then look at the bottom box marked "Budget Review," and the bottom category marked "Under/Over Budget" to see if you are over budget (positive number) or under budget (negative number). Write that number down to answer question #1. Then, if the number is negative, (under budget), change your budget until it is positive and write the amount for question #2. This is what it is like in real life--having to keep you from going into debt.

Then exit the web page and submit your assignment as usual.

03.03 Creating a Budget (Financial Literacy)

teacher-scored 10 points possible 30 minutes

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ASSIGNMENT 03.03 (13E)
(Copy everything between the asterisks.)
1) Q: What was your “Difference” (the remaining money in your budget) the first time? > ANSWER:
2) Q: If your “Difference” (Income Minus expenses) was negative, make adjustments until the balance is zero or greater. What is the new balance? (If your balance was zero or greater, write “same.”): > ANSWER:
3) Q: What will happen over time if your “Net Income (paycheck) minus all expenses” is negative? > ANSWER:
4) Q: When you spend money in one place, you lose the opportunity to save or spend it somewhere else. This trade-off is called “opportunity cost” and applies to every purchase made--even good purchases. Name just one “opportunity cost” that could be lost by going on an expensive vacation that costs several thousand dollars for example, instead of putting the very same money into savings: > ANSWER:
5) Q: (3.3): Write your first and last name and today's date.> ANSWER:

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Pacing: complete this by the end of Week 6 of your enrollment date for this class.


03.03 Creating a Budget links (Financial Literacy)

03.04 Smart Shopping and Advertising (Financial Literacy)

Describe the influence of peer pressure and advertising as it relates to purchasing decisions (e.g., fashion, acceptance, desire for latest gadget)

1902 ad for electric automobile1902 ad for electric automobile BACKGROUND

Good budgeting entails making decisions according to a plan--YOUR plan! That can be difficult because thousands of people (sales people, savings & loan agencies, advertisers, and nearly everyone trying to make money) are trying to get you to spend money according to their plan. Millions of dollars are used to effectively get you to spend your money the way others want. The following activity helps you understand how people try to get you to spend your money their way. You will compare two lists of spending tips. You will see that the tips from advertisers may actually cause you to spend MORE money, not less.

Visit URL #1 to read ten suggestions for good spending habits. Then exit the web page and follow the instructions below.

Visit URL #2 to read the lure of advertisers. Then exit the web page and follow the instructions below. Then exit the web page and follow the instructions below. This lesson has no assignment, only a quiz. Please proceed to the “Assignments, Quizzes, and Tests” section.

03.04 Smart Shopping and Advertising Link (Financial literacy)

03.04 Smart Shopping and Advertising Quiz (Financial Literacy)

computer-scored 10 points possible 20 minutes

You must score 8 or higher on this quiz to continue. If your score is lower, simply re-take the quiz as many times as you need after reviewing the material.

Pacing: complete this by the end of Week 6 of your enrollment date for this class.


03.05 Major Purchases (Financial Literacy)

Evaluate the impact and considerations of making major purchases (e.g. automobile).

SanjibLemar image, public domainSanjibLemar image, public domain BACKGROUND

From time to time, everybody needs to purchase items too costly for one paycheck. It might be a car, vacation, four-wheeler, big date, boat, house, CD player, etc. You can often save hundreds or thousands of dollars by researching large purchases, considering, for example, whether to buy a new or a used car, where to buy it, finding the lowest cost, paying cash or borrowing, etc. These are some of the issues to be considered in this assignment.

Visit URL #1 to understand more about large purchases. Be sure to also read the information in the link "tips for purchasing a car," located on the first page under Transportation. Also pay special attention to the "benefits of home ownership!" link in the section "there's no place like home!". Continue on until you reach the "DETOUR sign. Then exit the web page and follow the instructions below. Eric Jones image, CC Attribution-Share Alike 2.0 GenericEric Jones image, CC Attribution-Share Alike 2.0 Generic Visit URL #2 below to find the value of a USED car that would be PRACTICAL for you to purchase after high school (not a dream car you couldn't afford). Find the answers to the assignment questions by following the instructions below EXACTLY. This will not work unless you do it exactly right. 1) Click the "Used Cars" tab at top. 2) Locate the "Appraise a Used Car" section to see 4 boxes (select year, select make, select model, select trim). Make selections in each of the 4 boxes using the pull-down menus. In the last box, Click "APPRAISE IT". 3) Next you will see a box with four steps to make further decisions about the car you want (Zip Code & Style, Colors and Options, Condition and Mileage, True Market Value). Click each of the four boxes in turn to make final selections. When you finish the fourth box (True Market Value), you will see the values you are looking for: Trade-In, Private Party, dealer retail. 

03.05 Major Purchases (Financial Literacy)

computer-scored 10 points possible 30 minutes

You will now complete a 10-question online quiz. You MUST score at least 8 to receive credit for the assignment but don't worry if you don't get at least 8 the first time since you can retake the quiz as many times as you need. Only your last quiz attempt counts. You may continue to increase your score if you want (7 or less = try again, 8 = B, 9 or 10 = A).

Pacing: complete this by the end of Week 6 of your enrollment date for this class.


03.05 Major Purchases links (Financial Literacy)

03.06 Checking Account Intro (Financial Literacy)

Bank building: image from Wikimedia Commons, Nyttend, public domainBank building: image from Wikimedia Commons, Nyttend, public domain

BACKGROUND

Checks and DEBIT cards are convenient for buying gas, groceries, and other items that cost more than the amount of cash you want to carry. Review the following information and websites before answering the assignment 3.6 questions:


  • Always make sure you have enough money in the bank to “cover” any checks and DEBIT card withdrawals.
  • Make sure you and the bank agree on how much money you have left. This is called balancing your checkbook, or reconciling your accounts, or balancing your bank statement.
  • Protect your accounts against improper use by others (fraud, identity theft, etc.) by protecting your passwords, statements, and use of your accounts.

Later, we will consider the use of credit cards and loans.

Checks and DEBIT cards are similar. They allow you to spend money that you already have in the bank or credit union without having to carry cash. They usually draw money from the same financial account at your bank or credit union.

Note: Much of this assignment focuses on Banks and Credit Unions. Other institutions are also available such as “savings and loans” agencies, investment agencies, investment brokers, etc. In all your financial activities, you should consider interest rates, fees, fund safety, convenience, service and support, and Internet or web-based services, etc. Credit Unions are usually member-owned institutions that are created and operated by its members. Profits are usually shared amongst the owners. As a result, they often have better rates and lower fees because they are non-profit institutions owned by the shareholders.

Visit URL #1 to read the initial “banking” page and the “Choosing a Bank” link at the bottom of the page. (Be sure to read “How To Shop For A Bank.” Then exit the web page and proceed to the next URL.

Visit URL #2 to read the article on banking. Be sure to read all the links located on the first page of the article under "Types of checking accounts," and then continue reading the article following the arrows at the bottom of each page until you reach the "stop" sign. Then exit the web page and proceed to the next URL.

Visit URL #3 to examine several types of checking accounts. Note: This is a real bank but it is only used as an example. In real life, you would want to compare checking accounts options at several banks of your choice. (Note: you can use this site to answer Question #4 or you may use any other bank site of your choice to answer the question)

Visit URL #4 to learn differences between "debit" and "credit" cards (read pages 1 and 2).

03.06 Checking Account Intro (Financial Literacy)

teacher-scored 10 points possible 30 minutes

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ASSIGNMENT 03.06 (13E) (Copy everything between the asterisks.)

1) Q: After studying the difference between a Debit card and Credit card, answer the following:
a) Why does a DEBIT card prevent you from going in debt? > ANSWER:
b) If you pay off ALL charges in full before payment is due on a CREDIT card each month, it is like a free loan. How much would you pay in interest (answer not on website)? > ANSWER:
2) Q: Why should you always know the balance of available funds on your DEBIT card? > ANSWER:
3) Q: After reading the web page, why should you NOT use a “debit card” to purchase items online due to potential fraud? > ANSWER:
4) Pick one of the checking accounts in URL #3 OR pick a different bank or credit union YOU choose to answer the following questions:
a) Q: Which did you pick? > ANSWER:
b) Q: What did you LIKE about this account. > ANSWER:
c) Q: What did NOT like about this account? > ANSWER:
5) Q: (3.6): Write your first and last name and today's date.> ANSWER:

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Pacing: complete this by the end of Week 7 of your enrollment date for this class.


03.06 Checking Account Intro links (Financial Literacy)

03.07 Using Checks (Financial literacy)

Students will learn how to manage a checking account.

Image from Wikimedia Commons, Airodyssey, CC Attribution-Share Alike 3.0 UnportedImage from Wikimedia Commons, Airodyssey, CC Attribution-Share Alike 3.0 Unported

BACKGROUND

Using a checking account and/or ATM or Debit card allows you more flexibility in how you pay for the things you buy. There are some things you can do to safely use these financial tools. This assignment provides some common sense information that you should follow when using checking accounts and/or ATM or Debit cards. When you use checks OR DEBIT cards (as opposed to credit cards), you should regularly review your bank statements (paper or online) to make sure the charges are correct and to see if the bank balance is correct. This process of making sure you and the bank agree on the amount of money you have is called balancing your checkbook or reconciling your account. This should be done every time you receive a statement (about monthly).

Visit URL #1 to read 5 tips for protecting your checking account.

03.07 Using Checks (Financial literacy)

computer-scored 10 points possible 30 minutes

You will now complete a 10-question online quiz. You MUST score at least 8 to receive credit for the assignment but don't worry if you don't get at least 8 the first time since you can retake the quiz as many times as you need. Only your last quiz attempt counts. You may continue to increase your score if you want (7 or less = try again, 8 = B, 9 or 10 = A).

Pacing: complete this by the end of Week 7 of your enrollment date for this class.


03.07 Using Checks links (Financial literacy)

03.08 Credit Use and Abuse (Financial Literacy)

Describe the risks and responsibilities associated with using credit.

USN image, public domainUSN image, public domain

BACKGROUND

Good credit helps you get car loans, home loans, and any other loan. Bad credit can stop you from qualifying for a loan and makes you pay higher payments and higher interest. You pay much more if you buy something over time with credit (e.g. loan, credit card loan) than if you just pay cash from the beginning.

Some loan institutions are much worse than others to borrow from because of interest rates. One of the worst places (in terms of interest rates) is to borrow from quick loan businesses that lend you money until your next payday. Usually, their interest rates are extremely high.

One of the best ways for students to borrow money is through government subsidized “student loans” that have low interest rates and more lenient repayment schedules. Some student loans are “interest free” until payments are due.

When borrowing money, check the costs of borrowing from different sources; compare finance charges, interest rates, late fees, and closing costs from banks, credit unions, investment brokers, and loan agencies.

Lower rates are usually obtained (1) if you have collateral (assets pledged to secure repayment of a loan--like a car, for example) or (2) if someone with good credit “co-signs” your loan with you. When someone cosigns a loan with you, they agree to accept joint responsibility for repaying the loan. This provides greater assurance to the loaner that the loan will be repaid. If the loan is not repaid, the loaner can recover money through sale of the collateral. Be careful if someone asks you to co-sign a loan. Be sure he or she is really able to make the payments or it might hurt YOUR credit (plus you are responsible to pay if they don't). Let's learn more about loans.

One last piece of advice about borrowing: experts generally consider it good to borrow for things that go up in value or increase your ability to earn income. Experts generally consider it bad to borrow for things that go down in value or do not raise your income earning ability.

Visit URL #1 and read each page very carefully. Also follow the link entitled: “What is Credit?”

This lesson has no assignment, only a quiz.

03.08 Credit Use and Abuse Links (Financial Literacy)

03.08 Credit Use and Abuse Quiz (Financial Literacy)

computer-scored 10 points possible 30 minutes

Take the credit cards quiz. You must score 8 or higher on this quiz to continue. If your score is lower, simply re-take the quiz as many times as you need after reviewing the material.

Pacing: complete this by the end of Week 7 of your enrollment date for this class.


03.09 Credit Rating links(Financial literacy)

03.09 Credit Rating Quiz (Financial literacy)

Describe consequences of excessive debt and describe the social and economic consequences of bankruptcy.

Handle with care!: Image from Wikimedia Commons, Lotus Head, CC Attribution-Share Alike 3.0 UnportedHandle with care!: Image from Wikimedia Commons, Lotus Head, CC Attribution-Share Alike 3.0 Unported BACKGROUND

Your credit rating determines if you can get a loan, how much interest you will pay, and the size of the monthly payment. It can affect your ability to get a job, rent an apartment, buy a car, use a cell phone, and more. Some people think they need many credit cards, but in most cases, a person really needs only one. Even with one credit card, you still need to be very careful. You should check your credit report annually to make sure you haven't become a victim of “identity theft.” A new law lets anyone check his or her credit report from each of the three main credit agencies once a year for free. You should also check your monthly credit card statements carefully to make sure all charges are correct. This assignment teaches you important concepts about credit cards, credit ratings, and bankruptcy.

One other important note: EVERYBODY gets a free credit score once per year from all three credit rating companies by going to the site: "https://www.annualcredit report.com". You should check your free credit rating once per year for free. Visit URL #1 to read about "credit reports and scores" (first page only) Visit URL #2 to read about bankruptcy and how to avoid it (first two paragraphs and "6 reasons to avoid bankruptcy")

03.09 Credit Rating Quiz (Financial Literacy)

computer-scored 10 points possible 20 minutes

Take the credit rating quiz. You must score 8 or higher on this quiz to continue. If your score is lower, simply re-take the quiz as many times as you need to, after reviewing the material..

Pacing: complete this by the end of Week 7 of your enrollment date for this class.


03.10 Bad Credit (Financial Literacy)

Identify warning signs of credit abuse, ways to correct credit problems, and methods of establishing and maintaining a good credit rating.

No money, no honey: By Ikiwaner (Own work) CC-BY-SA-3.0, via Wikimedia CommonsNo money, no honey: By Ikiwaner (Own work) CC-BY-SA-3.0, via Wikimedia Commons

BACKGROUND

“Bad” credit occurs when you owe more money than you can pay. You start to miss payments, incur late fees, get collection notices, bounce checks because you have insufficient funds in the bank, or your debit card stops working. All this creates stress, family instability, and inability to get loans, higher loan rates, and even bankruptcy. Bankruptcy has great personal costs in terms of your long-term credit rating and financial independence. People should always consider alternatives to taking out bankruptcy such as selling assets, negotiating repayment schedules, consolidating loans, and paying off the highest interest loans first.

Here are some other points to remember about debit cards compared to credit cards: Debit cards have the advantage of requiring you to have the money in the bank before you spend it--so you don't borrow money or go in debt since you already have the money and you can draw it from existing funds. You are able to withdraw your money electronically without having to borrow.

Visit URL #1 to read every page (but no other links) until you reach the “Detour” sign.

This lesson has no assignment, only a quiz. Please proceed to the “Assignments, Quizzes, and Tests” section.

03.10 Bad Credit links(Financial Literacy)

03.10 Bad Credit Quiz (Financial Literacy)

computer-scored 10 points possible 20 minutes

You must score 8 or higher on this quiz to continue. If your score is lower, simply re-take the quiz as many times as you need after reviewing the material.

Pacing: complete this by the end of Week 7 of your enrollment date for this class.


03.11 Effects of Delayed Payments (Financial Literacy)

Identify methods of establishing and maintaining a good credit rating.

Shall we go tomorrow to make the installment?: By Unuplusunu (Own work), public domain, via Wikimedia CommonsShall we go tomorrow to make the installment?: By Unuplusunu (Own work), public domain, via Wikimedia Commons BACKGROUND

You may be very surprised to learn how much money you could save by doubling the amount of your monthly payments credit card. In this activity, you will see the effects. Your parents, too, may find this interesting if they have credit card debt.

Visit URL #1 to see how much interest the average American household would pay if they paid only the minimum each month on a credit card balance of $10,000. (The average American has about $10,000 of credit card debt.) Follow the instructions below carefully after the URL#1 website appears: IMPORTANT NOTE: DO NOT HIT RETURN AFTER EACH ENTRY. INSTEAD, SIMPLY CLICK IN THE NEXT BOX OR THE ENTRY WILL SIMPLY RESET. After “What is your credit card balance” input 10000 (do not put a comma, $ sign, or return.) After “What is the interest on your credit card?” select 18% (which may show already - do not push retun) After “How is your minimum payment calculated?” select "interest + 1% of balance" (which may show already - do not push return). After “Your minimum payment" input 250.00 (which may show already - do not hit return) After " What fixed payment could you make each month?" input 500.00 (twice as much as the minimum payment) - do not hit return. After "Select a payment schedule based on", select Fixed Payment - do not hit return. Then click Calculate and read the number of months and interest you will pay for each option (paying $250 and paying $500). That will provide you with the answers to 1-3 below. Use the information you wrote down (and a little bit of subtraction) to answer the assignment questions below.

03.11 Effects of Delayed Payments (Financial Literacy)

teacher-scored 10 points possible 30 minutes

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ASSIGNMENT 03.11 (13E)
(Copy everything between the asterisks.)
1) Q: For minimum payments:
a) What was the number of months? (note: if you did not get 342, all your other answers will be wrong)> ANSWER:
b) What was the interest you will pay? > ANSWER:
2) Q: For doubling the payments:
a) What was the number of months?> ANSWER:
b) What was the interest you will pay? > ANSWER:
3) Q: What was the difference between the minimum payments and when you doubled the minimum payments for each of the following:
a) Difference in the number of months: > ANSWER:
b) Difference in the interest you pay: > ANSWER:
4) Q: If you pay off your credit card in full every month – you NEVER pay any interest on the account. Why would this be one of the most important things to learn in this class? (Answer not on web site): > ANSWER:
5) Q: (03.11): Write your first and last name and today's date.> ANSWER:

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Pacing: complete this by the end of Week 8 of your enrollment date for this class.


03.11 Effects of Delayed Payments links (Financial Literacy)

03.12 Paying Your Bills (Financial Literacy)

Identify warning signs of credit abuse (e.g., late fees, missed payments, collection notices, bounced checks) and ways to correct credit problems.

Envelope: © Nevit Dilmen, CC-BY-SA-3.0, via Wikimedia CommonsEnvelope: © Nevit Dilmen, CC-BY-SA-3.0, via Wikimedia Commons BACKGROUND

This unit helps you understand the importance of paying your bills.

VISIT URL #1 to read the main section and also complete the two subsections: “Why it's Important to Pay Bills” and “Benefits/Costs of Different Transaction Instruments.” Skip the quiz at the end of the web page section. Use the information from the web pages to answer the quiz questions

03.12 Paying Your Bills (Financial Literacy)

computer-scored 10 points possible 30 minutes

You will now complete a 10-question online quiz. You MUST score at least 8 to receive credit for the assignment but don't worry if you don't get at least 8 the first time since you can retake the quiz as many times as you need. Only your last quiz attempt counts. You may continue to increase your score if you want (7 or less = try again, 8 = B, 9 or 10 = A).

Pacing: complete this by the end of Week 8 of your enrollment date for this class.


03.12 Paying Your Bills links (Financial Literacy)

03.13 Federal Trade Commission (FTC) (Financial Literacy)

Describe the risks and responsibilities associated with using credit.

U.S. Government FTC logo, public domain, via Wikimedia CommonsU.S. Government FTC logo, public domain, via Wikimedia Commons BACKGROUND

This assignment will help you understand your risks and rights pertaining to credit cards. One of the most important things to know is that when you apply for a credit card, ALWAYS check your credit report first to see that it is correct! ACTIVITY: There is NO WEBSITE to visit on this assignment.  Simply read the "FTC Facts for Young Consumers” below.

Ready, Set... Credit
A credit card is a great financial tool. It can be more convenient to use and carry than cash, and it offers valuable consumer protections under federal law. At the same time, it’s a big responsibility. If you don’t use it carefully, you may owe more than you can repay, damage your credit rating, and create credit problems for yourself that can be difficult to fix. Chances are your mail is full of offers from credit card issuers. How do you know if the time is right for a credit card? Here is some important information that may help you determine whether you’re ready for plastic, what to look for when you select a company to do business with, and how to use your credit card responsibly.

QUALIFYING FOR A CREDIT CARD
If you’re at least 18 years old and have a regular source of income, you’re well on your way to qualifying for a card. Even if you get invitations from card issuers, you’ll still have to demonstrate that you’re a good risk before they grant you credit. The proof is in your credit report. If you’ve financed a car loan or other purchase, you probably have a record at a consumer reporting company. This credit history shows how responsible you’ve been in paying your bills and helps the credit card issuer decide how much credit to extend. You also can review a copy of your credit report to make sure it’s accurate. Each of the nationwide consumer reporting companies--Equifax, Experian, and TransUnion--must provide you with a free copy of your credit report, at your request, once every 12 months. To protect your rights under the law, contact both the consumer reporting company and the information provider to dispute any information. For more information, see How to Dispute Credit Report Errors at ftc.gov/credit.

GETTING THE BEST DEAL
Fees, charges, and benefits vary among credit card issuers. When you’re choosing a credit card, shop around. Compare these important features: ANNUAL PERCENTAGE RATE (APR) The APR is a measure of the cost of credit, expressed as a yearly interest rate. Check out the “periodic rate,” too. That’s the rate the issuer applies to your outstanding balance to figure the finance charge for each billing period. If the card offers a very low introductory rate, find out what the rate will be after the initial period. Ask about other limitations on the initial rate. For example, is it only for balance transfers, and not regular purchases? Be aware that some companies have high penalty rates. For example, if you’re late paying your bill, your rate may increase significantly. Ask when the company may apply a penalty rate to your account.

GRACE PERIOD
This is the time between the date of a purchase and the date interest starts being charged on that purchase. If your card has a standard grace period, you have an opportunity to avoid finance charges by paying your current balance in full. Some issuers allow a grace period for new purchases even if you don’t pay your balance in full every month. If there is no grace period, your report may cost up to $9.50.

ESTABLISHING A CREDIT HISTORY
Suppose you haven’t financed a car loan, a computer, or some other major purchase. How do you begin to establish credit? Consider applying for a secured credit card. It requires that you open and maintain a bank account or other asset account at a financial institution as security for your line of credit. Your credit line will be a percentage of your deposit, typically from 50 to 100 percent. Application and processing fees are not uncommon for secured credit cards. In addition, secured credit cards usually carry higher interest rates than traditional non-secured cards. Also consider asking someone with an established credit history--perhaps a relative--to co-sign the account if you don’t qualify for credit on your own. The co-signer promises to pay your debts if you don’t. You’ll want to repay any debt promptly so you can build a credit history and apply for credit in the future on your own. A positive credit history is an asset, not only when you apply for a credit card, but also when you apply for a job or insurance, or when you want to finance a car or a home.

IF YOUR APPLICATION IS DENIED
If you’re turned down for a card, the creditor must tell you so and why. It may be that you haven’t been at your current address or job long enough. Or, your income may not be high enough. Different credit card companies have different standards. But if you’re turned down by several companies, it may indicate that you are not ready for a credit card. If you don’t get the card because of information in your report, the creditor must tell you how to get a copy of the report from the consumer reporting company that provided it.

ANNUAL FEES
Many credit card issuers charge an annual fee for granting you credit.

TRANSACTION FEES AND OTHER CHARGES
Some issuers charge a fee if you use the card to get a cash advance, if you fail to make a payment on time, or if you exceed your credit limit. Some may charge a flat fee every month whether you use the card or not.

CUSTOMER SERVICE
Many issuers have 24-hour toll-free telephone numbers.

OTHER BENEFITS
Issuers may offer additional benefits, some with a cost, like insurance, credit card protection, discounts, rebates, and special merchandise offers.

CREDI-QUETTE $
Once you get a card, sign it immediately so no one else can use it. Note that the accompanying papers have important information, such as customer service telephone numbers, in case your card is lost or stolen. File this information in a safe place. $ Call the card issuer to activate the card. Many issuers require this step to minimize fraud and to give you additional information. $ Keep your account information to yourself. Never give out your credit card number or expiration date over the phone unless you know whom you’re dealing with. A criminal can use this information to steal money from you, or even assume your credit identity. $ Keep copies of sales slips and compare charges when your bill arrives. Promptly report any questionable charges to the card issuer in writing. $ Don’t lend your card to anyone, even a friend. Your credit privilege and history are too precious to risk.

YOU ARE RESPONSIBLE
While a credit card makes it easy to buy something now and pay for it later, if you’re not careful, you can lose track of how much you’ve spent by the time the bill arrives. And if you don’t pay your bill in full, you’ll probably have to pay finance charges on the unpaid balance. What’s more, if you continue to charge while carrying an outstanding balance, your debt can snowball. Before you know it, your minimum payment is only covering the interest. If you start having trouble repaying your debt, you could tarnish your credit report. And that can have a big impact on your life. A negative report can make it more difficult to finance a car or home, get insurance, and even get a job.

FEDERAL PROTECTIONS
Federal law offers the following protections when you use credit cards.

ERRORS ON YOUR BILL
You must notify the card issuer in writing within 60 days after the first bill containing the error was mailed to you. In your letter, include, your name, account number, date, the type and amount of the error and the reason why you believe the bill contains an error. In return, the card issuer must investigate the problem and either correct the error or explain to you why the bill is correct. This must occur within two billing cycles and not later than 90 days after the issuer receives your billing error notice. You do not have to pay the amount in question, and related fees like the finance charges, during the investigation.

UNAUTHORIZED CHARGES
If your credit card is used without your authorization, you can be held liable for up to $50 per card. If you report the loss of a card before it is used, the card issuer cannot hold you responsible for any unauthorized charges.

KIND OF CREDIT ACCOUNTS
Credit grantors generally issue three types of accounts. The basic terms of this account agreements are

  • REVOLVING AGREEMENT A consumer pays in full each month or chooses to make a partial payment based on the outstanding balance. Department stores, gas and oil companies, and banks typically issue credit cards based on a revolving credit plan.
  • CHARGE AGREEMENT A consumer promises to pay the full balance each month, so there are no interest charges. Charge cards, not credit cards, and charge accounts with local businesses often require repayment on this basis.
  • INSTALLMENT AGREEMENT A consumer signs a contract to repay a fixed amount of credit in equal payments over a specific period of time. Automobiles, furniture, and major appliances often are financed this way. Personal loans usually are paid back in installments, too.

03.13 Federal Trade Commission (FTC) (Financial Literacy)

computer-scored 10 points possible 30 minutes

You must score 8 or higher on this quiz to continue. If your score is lower, simply re-take the quiz as many times as you need after reviewing the material.

Pacing: complete this by the end of Week 8 of your enrollment date for this class.


03.14 Test on Unit Three (Financial literacy)

When you have finished all the unit 3 assignments, you may take the Unit Three TEST. It requires no password. (In fact, only the final proctored test for 1st quarter will require a password.) Good luck as you now complete the Unit 3 test. IMPORTANT NOTE: the test is not complete until you click the “submit button” at the end of the test. Many students forget and do not receive credit for the first test. Also, you may retake the unit 3 test (and all other unit tests) as many times as you like to raise your grade and better learn the material.

03.14 Unit 3 Test Quiz

computer-scored 100 points possible 90 minutes

Take the Unit 3 Test

A 4X5 note card IS allowed (both sides).

Pacing: complete this by the end of Week 8 of your enrollment date for this class.


03.15 Ready Quiz (Financial Literacy)

computer-scored 5 points possible 10 minutes

You will now complete a 5-question online quiz.

Pacing: complete this by the end of Week 8 of your enrollment date for this class.


03.16 Ready (Financial Literacy)

teacher-scored 1 points possible 10 minutes

Please write a short paragraph to your teacher detailing how you have met the class requirements and are now Ready to arrange for a certified proctor so you can take the proctored final test.

Pacing: complete this by the end of Week 9 of your enrollment date for this class.


03.17 First Quarter Final (Financial Literacy)

computer-scored 200 points possible 90 minutes

This proctored final test must be taken with an EHS-certified proctor, who will enter the test password.You must score at least 60% to pass. If you do not, please inform your teacher immediately. 

You may use both sides of a 4X5 note card on the proctored test.

Pacing: complete this by the end of Week 9 of your enrollment date for this class.