Develop+a+Financial+Plan

Grade Level/Subject: Personal Finance Income and Expenses
Grade 9-12

Contributing Teacher(s): Howard Spurgeon
Resources: e4TN PowerPoint

Standards Addressed:
Performance Indicators: The student will: 1.1. Interpret factors affecting income a. Career choices and potential income b. Educational requirements/training costs c. Educational level 1.2 Analyze employer benefits packages a. Savings plan b. Retirement c. Insurance d. Leave (vacation, sick, etc.) e. Stock purchase f. Educational reimbursement g. Incentive plans h. Cafeteria plan 1.3 Demonstrate an understanding of inflation and its effect on purchasing power a. Cost and availability of goods b. Effect of cost on availability of and demand for goods c. Inflation’s effect on the value of money 1.4 Examine the components of paying taxes a. Types of taxes (Federal, State, County, City) b. Personal and employer tax responsibilities c. Various documents for reporting taxes (W-2, W-4, 1040, 1040-EZ, 1099, etc.) 1.5 Analyze the costs and benefits of paying taxes 1. Cost of government services (Police and fire protection, schools, roads, Social Security, AFDC, parks and recreation, etc.)
 * Standard 1: Income**

Performance Indicators: The student will: 4.1 Identify reasons for saving & investing 1. Education 2. Emergencies/rainy day 3. Short term goals 4. Long term goals 5. Retirement 6. Down payment 4.2 Evaluate methods of saving 1. Certificates of Deposit 2. Interest bearing savings account (Passbook savings) 3. Individual Retirement Account (IRA)—Roth and traditional 4. Pension plans (401K, 403B, annuities, etc.) 5. Education savings plans 4.3. Evaluate methods of investing 1. Stocks and bonds 2. Mutual funds 3. Real estate 4. Annuities 5. Business 4.4 Appraise other aspects of saving and investing 1. Diversification 2. Time value of money 3. Compound growth/ Accrued interest 4. Rule of 72 (divide interest rate into 72 to determine number of years in which money will double) 5. Risk and return 4.5 Identify regulatory agencies and their functions 1. Federal Deposit Insurance Corporation (FDIC) 2. Securities Exchange Commission (SEC) 3. Federal Reserve 4. Internal Revenue Service (IRS)
 * Standard 4: Saving & Investing**


 * **Critical Thinking, Problem Solving, and Decision Making** ||
 * || Students use critical thinking skills to plan and conduct research, manage projects, solve problems, and make informed decisions using appropriate digital tools and resources. Students: ||
 * a. || identify and define authentic problems and significant questions for investigation. ||
 * b. || plan and manage activities to develop a solution or complete a project. ||
 * c. || collect and analyze data to identify solutions and/or make informed decisions. ||
 * d. || use multiple processes and diverse perspectives to explore alternative solutions. ||
 * **5.** || **Digital Citizenship** ||
 * || Students understand human, cultural, and societal issues related to technology and practice legal and ethical behavior. Students: ||
 * a. || advocate and practice safe, legal, and responsible use of information and technology. ||
 * b. || exhibit a positive attitude toward using technology that supports collaboration, learning, and productivity. ||
 * c. || demonstrate personal responsibility for lifelong learning. ||
 * d. || exhibit leadership for digital citizenship. ||
 * **6.** || **Technology Operations and Concepts** ||
 * || Students demonstrate a sound understanding of technology concepts, systems, and operations. Students: ||
 * b. || select and use applications effectively and productively. ||
 * c. || troubleshoot systems and applications. ||
 * d. || transfer current knowledge to learning of new technologies. ||
 * d. || transfer current knowledge to learning of new technologies. ||

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To plan for the future by developing goals and devising ways to achieve those goals. ======

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To provide a system of evaluation and revision for your financial progress. ======

Procedures: Using PowerPoint open a discussion on income and expenses and develop an awareness of each students financial status. Students will develop a financial plan that allows for income, expenses, planning for future goals and how to evaluate their financial goals.

The instructor will assign various expenses that would arise to include taxes, insurance, rent, automobile, food, utilities and other expenses. Students will be required to research cost relating to each of the items listed. Research may be completed online for several items but some will require developing a meal plan, shopping list, and expenses for all meals for 30 days. Automobile expenses will also be researched. Misc. expenses for entertainment will also be researched. A monthly budget will be prepared and turned in to match expected salary. Various unexpected expenses may occur.
 * Student Product/Work**: **Students will choose a career from lesson 1 and once the salary has been determined they will establish an Excel spreadsheet that allows for all the basic expenses of living independently.**

Monthly Home Budget

cted expenses will arise as presented by the instructor. Students will need to adjust cost/income.

Use a Monthly account sheet determine expenses. Monthly Worksheet

Assessment/Rubric: Balanced budget will be required along with receipts for expenses. A complete portfolio will be necessary to meet all of the needs of student work presented above.

Enrichment/Reteaching: Require a balanced budget at the end of the lesson. Additional research will be necessary on the part of the student to achieve the balanced budget. Instructor will be available after school for individual evaluation.