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NJ World Class Standards
Content Area: 21st-Century Life and Careers
9.2 Personal Financial Literacy
Content Area 21st-Century Life and Careers
Standard 9.2 Personal Financial Literacy All students will develop skills and strategies that promote personal and financial responsibility related to financial planning, savings, investment, and charitable giving in the global economy.
Strand A. Income and Careers
By the end of grade Content Statement CPI# Cumulative Progress Indicator (CPI)
4
Educational achievement, career choice, and entrepreneurial skills all play a role in achieving a desired lifestyle.
9.2.4.A.1 Explain the difference between a career and a job, and identify various jobs in the community and the related earnings.                                                                                                              
Income often comes from different sources, including alternative sources.
9.2.4.A.2 Identify potential sources of income and their limitations.                                                                                                              
Income affects spending decisions and lifestyle.
9.2.4.A.3 Explain how income affects spending and take-home pay.                                                                                                              
Taxes and the cost of employee benefits affect the amount of disposable income.
9.2.4.A.4 Explain the meaning and purposes of taxes and tax deductions and why fees for various benefits (e.g., medical benefits) are taken out of pay.                                                                                                              
8
Educational achievement, career choice, and entrepreneurial skills all play a role in achieving a desired lifestyle.
9.2.8.A.1 Relate how career choices, education choices, skills, entrepreneurship, and economic conditions affect income.                                                                                                              
9.2.8.A.2 Differentiate among ways that workers can improve earning power through the acquisition of new knowledge and skills.                                                                                                              
9.2.8.A.3 Relate earning power to quality of life across cultures.                                                                                                              
9.2.8.A.4 Relate how the demand for certain skills determines an individual’s earning power.                                                                                                              
Income often comes from different sources, including alternative sources.
9.2.8.A.5 Explain the difference between “earned income” and “unearned income” (e.g., gifts) and why earned income is important.                                                                                                              
Income affects spending decisions and lifestyle.
9.2.8.A.6 Examine how labor market trends and the cost of living can affect real income, spending decisions, and lifestyle.                                                                                                              
Taxes and the cost of employee benefits affect the amount of disposable income.
9.2.8.A.7 Explain the purpose of the payroll deduction process, taxable income, and employee benefits.                                                                                                              
9.2.8.A.8 Differentiate among the types of taxes and employee benefits.                                                                                                              
9.2.8.A.9 Differentiate between taxable and nontaxable income.                                                                                                              
12
Educational achievement, career choice, and entrepreneurial skills all play a role in achieving a desired lifestyle.
9.2.12.A.1 Analyze the relationship between various careers and personal earning goals.                                                                                                              
9.2.12.A.2 Identify a career goal and develop a plan and timetable for achieving it, including educational/training requirements, costs, and possible debt.                                                                                                              
9.2.12.A.3 Analyze how the economic, social, and political conditions of a time period can affect starting a business and can affect a plan for establishing such an enterprise.                                                                                                              
9.2.12.A.4 Summarize the financial risks and benefits of entrepreneurship as a career choice.                                                                                                              
9.2.12.A.5 Evaluate current advances in technology that apply to a selected occupational career cluster.                                                                                                              
Income often comes from different sources, including alternative sources.
9.2.12.A.6 Analyze and critique various sources of income and available resources (e.g., financial assets, property, and transfer payments) and how they may substitute for earned income.                                                                                                              
9.2.12.A.7 Analyze different forms of currency, how currency is used to exchange goods and services, and how it can be transferred from one person’s business to another.                                                                                                              
Income affects spending decisions and lifestyle.
9.2.12.A.8 Analyze how personal and cultural values impact spending and other financial decisions.                                                                                                              
Taxes and the cost of employee benefits can affect the amount of disposable income.
9.2.12.A.9 Demonstrate how exemptions and deductions can reduce taxable income.                                                                                                              
9.2.12.A.10 Explain the relationship between government programs and services and taxation.                                                                                                              
9.2.12.A.11 Explain how compulsory government programs (e.g., Social Security, Medicare) provide insurance against some loss of income and benefits to eligible recipients.                                                                                                              
9.2.12.A.12 Analyze the impact of the collective bargaining process on benefits, income, and fair labor practice.                                                                                                              


Content Area 21st-Century Life and Careers
Standard 9.2 Personal Financial Literacy All students will develop skills and strategies that promote personal and financial responsibility related to financial planning, savings, investment, and charitable giving in the global economy.
Strand B. Money Management
By the end of grade Content Statement CPI# Cumulative Progress Indicator (CPI)
4
Money management involves setting financial goals.
9.2.4.B.1 Differentiate between financial wants and needs.                                                                                                              
9.2.4.B.2 Identify age-appropriate financial goals.                                                                                                              
Money management is reliant on developing and maintaining personal budgets.
9.2.4.B.3 Explain what a budget is and why it is important.                                                                                                              
9.2.4.B.4 Identify common household expense categories and sources of income.                                                                                                              
Money management requires understanding of cash flow systems and business practices.
9.2.4.B.5 Identify ways to earn and save.                                                                                                              
9.2.4.B.6 Distinguish among cash, check, credit card, and debit card.                                                                                                              
9.2.4.B.7 Explain the purposes of financial institutions in the community.                                                                                                              
8
Money management involves setting financial goals.
9.2.8.B.1 Construct a simple personal savings and spending plan based on various sources of income.                                                                                                              
9.2.8.B.2 Justify the concept of “paying yourself first” as a financial savings strategy.                                                                                                              
9.2.8.B.3 Relate the concept of deferred gratification to investment, meeting financial goals, and building wealth.                                                                                                              
9.2.8.B.4 Analyze the effect of the economy on personal income, individual and family security, and consumer decisions.                                                                                                              
9.2.8.B.5 Evaluate the relationship of cultural traditions and historical influences on financial practice.                                                                                                              
Money management is reliant on developing and maintaining personal budgets.
9.2.8.B.6 Construct a budget to save for long-term, short-term, and charitable goals.                                                                                                              
9.2.8.B.7 Develop a system for keeping and using financial records.                                                                                                              
Money management requires understanding of cash flow systems and business practices.
9.2.8.B.8 Explain the concept of cash flow and construct cash flow statements.                                                                                                              
9.2.8.B.9 Create debit and credit balance sheets and income and cash statements.                                                                                                              
9.2.8.B.10 Determine the most appropriate use of various financial products and services (e.g., ATM, debit cards, credit cards, checkbooks).                                                                                                              
9.2.8.B.11 Justify safeguarding personal information when using credit cards, banking electronically, or filing forms.                                                                                                              
9.2.8.B.12 Evaluate the appropriate financial institutions to assist with meeting various personal financial needs and goals.                                                                                                              
12
Money management involves setting financial goals.
9.2.12.B.1 Prioritize financial decisions by systematically considering alternatives and possible consequences.                                                                                                              
9.2.12.B.2 Compare strategies for saving and investing and the factors that influence how much should be saved or invested to meet financial goals.                                                                                                              
9.2.12.B.3 Construct a plan to accumulate emergency “rainy day” funds.                                                                                                              
Money management is reliant on developing and maintaining personal budgets.
9.2.12.B.4 Analyze how income and spending plans are affected by age, needs, and resources.                                                                                                              
9.2.12.B.5 Analyze how changes in taxes, inflation, and personal circumstances can affect a personal budget.                                                                                                              
9.2.12.B.6 Design and utilize a simulated budget to monitor progress of financial plans.                                                                                                              
Money management requires understanding of cash flow systems and business practices.
9.2.12.B.7 Develop personal financial planning strategies that respond to and use tax deductions and shelters.                                                                                                              
9.2.12.B.8 Describe and calculate interest and fees that are applied to various forms of spending, debt, and saving.                                                                                                              
9.2.12.B.9 Chart and evaluate the growth of mid- and long-term investments.                                                                                                              
9.2.12.B.10 Develop a plan that uses the services of various financial institutions to meet personal and family financial goals.                                                                                                              


Content Area 21st-Century Life and Careers
Standard 9.2 Personal Financial Literacy All students will develop skills and strategies that promote personal and financial responsibility related to financial planning, savings, investment, and charitable giving in the global economy.
Strand C. Credit and Debt Management
By the end of grade Content Statement CPI# Cumulative Progress Indicator (CPI)
4
Credit management includes making informed choices about sources of credit and requires an understanding of the cost of credit.
9.2.4.C.1 Explain why people borrow money and the relationship between credit and debt.                                                                                                              
9.2.4.C.2 Identify common sources of credit (e.g., banks, credit card companies) and types of credit (e.g., loans, credit cards, mortgages).                                                                                                              
9.2.4.C.3 Compare and contrast credit cards and debit cards and the advantages and disadvantages of using each.                                                                                                              
9.2.4.C.4 Determine the relationships among income, expenses, and interest.                                                                                                              
Credit worthiness is dependent on making informed credit decisions and managing debt responsibly.
9.2.4.C.5 Determine personal responsibility related to borrowing and lending.                                                                                                              
9.2.4.C.6 Summarize ways to avoid credit problems.                                                                                                              
8
Credit management includes making informed choices about sources of credit and requires an understanding of the cost of credit.
9.2.8.C.1 Compare and contrast the financial products and services offered by different types of financial institutions.                                                                                                              
9.2.8.C.2 Compare and contrast debt and credit management strategies.                                                                                                              
9.2.8.C.3 Demonstrate an understanding of the terminology associated with different types of credit (e.g., credit cards, installment loans, mortgages) and compare the interest rates associated with each.                                                                                                              
9.2.8.C.4 Calculate the cost of borrowing various amounts of money using different types of credit (e.g., credit cards, installment loans, mortgages).                                                                                                              
Credit worthiness is dependent on making informed credit decisions and managing debt responsibly.
9.2.8.C.5 Determine ways to leverage debt beneficially.                                                                                                              
9.2.8.C.6 Determine potential consequences of using “easy access” credit (e.g., using a line of credit vs. obtaining a loan for a specific purpose).                                                                                                              
9.2.8.C.7 Explain the meaning and possible consequences of “predatory lending practices.”                                                                                                              
9.2.8.C.8 Explain the purpose of a credit score and credit record, and summarize borrowers’ credit report rights.                                                                                                              
9.2.8.C.9 Summarize the causes and consequences of personal bankruptcy.                                                                                                              
9.2.8.C.10 Determine when there is a need to seek credit counseling and appropriate times to utilize it.                                                                                                              
12
Credit management includes making informed choices about sources of credit and requires an understanding of the cost of credit.
9.2.12.C.1 Compare and contrast the financial benefits of different products and services offered by a variety of financial institutions.                                                                                                              
9.2.12.C.2 Compare and compute interest and compound interest and develop an amortization table using business tools.                                                                                                              
9.2.12.C.3 Compute and assess the accumulating effect of interest paid over time when using a variety of sources of credit.                                                                                                              
9.2.12.C.4 Compare and contrast the advantages and disadvantages of various types of mortgages.                                                                                                              
Credit worthiness is dependent on making informed credit decisions and managing debt responsibly.
9.2.12.C.5 Analyze the information contained in a credit report and explain the importance of disputing inaccurate entries.                                                                                                              
9.2.12.C.6 Explain how predictive modeling determines “credit scores.”                                                                                                              
9.2.12.C.7 Explain the rights and responsibilities of buyers and sellers under consumer protection laws, and discuss common unfair or deceptive business practices.                                                                                                              
9.2.12.C.8 Evaluate the implications of personal and corporate bankruptcy for self and others.                                                                                                              


Content Area 21st-Century Life and Careers
Standard 9.2 Personal Financial Literacy All students will develop skills and strategies that promote personal and financial responsibility related to financial planning, savings, investment, and charitable giving in the global economy.
Strand D. Planning, Saving, and Investing
By the end of grade Content Statement CPI# Cumulative Progress Indicator (CPI)
4
Information about investment options assists with financial planning.
9.2.4.D.1 Determine various ways to save.                                                                                                              
Appropriate application of basic economic principles leads to wiser decisions for individual, family, and business financial planning.
9.2.4.D.2 Explain the concept of “opportunity cost.”                                                                                                              
9.2.4.D.3 Explain what it means to “invest.”                                                                                                              
9.2.4.D.4 Distinguish between saving and investing.                                                                                                              
8
Information about investment options assists with financial planning.
9.2.8.D.1 Determine how saving contributes to financial well-being.                                                                                                              
9.2.8.D.2 Differentiate among various savings tools and how to use them most effectively.                                                                                                              
9.2.8.D.3 Differentiate among various investment options.                                                                                                              
9.2.8.D.4 Distinguish between income and investment growth.                                                                                                              
Appropriate application of basic economic principles leads to wiser decisions for individual, family, and business financial planning.
9.2.8.D.5 Explain the economic principle of supply and demand.                                                                                                              
9.2.8.D.6 Relate saving and investing decisions to successful entrepreneurship.                                                                                                              
9.2.8.D.7 Calculate short- and long-term returns on various investments (e.g., stocks, bonds, mutual funds, IRAs, deferred pension plans, and so on).                                                                                                              
9.2.8.D.8 Assess the impact of inflation on economic decisions and lifestyles.                                                                                                              
12
Information about investment options assists with financial planning.
9.2.12.D.1 Summarize how investing builds wealth and assists in meeting long- and short-term financial goals.                                                                                                              
9.2.12.D.2 Assess factors that influence financial planning.                                                                                                              
9.2.12.D.3 Justify the use of savings and investment options to meet targeted goals.                                                                                                              
9.2.12.D.4 Analyze processes and vehicles for buying and selling investments.                                                                                                              
9.2.12.D.5 Compare the risk, return, and liquidity of various savings and investment alternatives.                                                                                                              
9.2.12.D.6 Explain how government and independent financial services and products are used to achieve personal financial goals.                                                                                                              
Appropriate application of basic economic principles leads to wiser decisions for individual, family, and business financial planning.
9.2.12.D.7 Relate savings and investment results to achievement of financial goals.                                                                                                              
9.2.12.D.8 Differentiate among various investment products and savings vehicles and how to use them most effectively.                                                                                                              
9.2.12.D.9 Assess the role of revenue-generating assets as mechanisms for accruing and managing wealth.                                                                                                              
9.2.12.D.10 Compare and contrast the past and present role of government in the financial industry and in the regulation of financial markets.                                                                                                              
9.2.12.D.11 Determine the impact of various market events on stock market prices and on other savings and investments.                                                                                                              
9.2.12.D.12 Evaluate how taxes affect the rate of return on savings and investments.                                                                                                              
9.2.12.D.13 Analyze how savings, retirement plans, and other investment options help to shift current income for purposes of tax reporting and filing.                                                                                                              


Content Area 21st-Century Life and Careers
Standard 9.2 Personal Financial Literacy All students will develop skills and strategies that promote personal and financial responsibility related to financial planning, savings, investment, and charitable giving in the global economy.
Strand E. Becoming a Critical Consumer
By the end of grade Content Statement CPI# Cumulative Progress Indicator (CPI)
4
The ability to prioritize wants and needs assists in making informed investments, purchases, and decisions.
9.2.4.E.1 Determine factors that influence consumer decisions related to money.                                                                                                              
Cost-benefit analysis informs responsible spending practices.
9.2.4.E.2 Identify ways interest rates add to the cost of goods and services.                                                                                                              
9.2.4.E.3 Evaluate financial information from a variety of sources.                                                                                                              
9.2.4.E.4 Apply comparison shopping skills to purchasing decisions.                                                                                                              
Consumer protection includes providing information about the range of products and services and about consumer resources, rights, and responsibilities.
9.2.4.E.5 Explain what it means to be a responsible consumer and the factors to consider when making consumer decisions.                                                                                                              
9.2.4.E.6 Identify personal information that should not be disclosed to others and the possible consequences of doing or not doing so.                                                                                                              
9.2.4.E.7 Compare and contrast product facts versus advertising claims.                                                                                                              
8
The ability to prioritize wants and needs assists in making informed investments, purchases, and decisions.
9.2.8.E.1 Prioritize personal wants and needs when making purchases.                                                                                                              
Cost-benefit analysis informs responsible spending practices.
9.2.8.E.2 Analyze interest rates and fees associated with financial services, credit cards, debit cards, and gift cards.                                                                                                              
9.2.8.E.3 Evaluate the appropriateness of different types of monetary transactions (e.g., electronic transfer, check, certified check, money order, gift card, barter) for various situations.                                                                                                              
9.2.8.E.4 Compare the value of goods or services from different sellers when purchasing large quantities and small quantities.                                                                                                              
9.2.8.E.5 Identify the components of written and verbal contracts and the inherent responsibilities of the contracting parties.                                                                                                              
Consumer protection includes providing information about the range of products and services and about consumer resources, rights, and responsibilities.
9.2.8.E.6 Evaluate how fraudulent activities impact consumers, and justify the creation of consumer protection laws.                                                                                                              
9.2.8.E.7 Recognize the techniques and effects of deceptive advertising.                                                                                                              
12
The ability to prioritize wants and needs assists in making informed investments, purchases, and decisions.
9.2.12.E.1 Analyze and apply multiple sources of financial information when prioritizing financial decisions.                                                                                                              
9.2.12.E.2 Determine how objective, accurate, and current financial information affects the prioritization of financial decisions.                                                                                                              
9.2.12.E.3 Evaluate how media, bias, purpose, and validity affect the prioritization of consumer decisions and spending.                                                                                                              
Cost-benefit analysis informs responsible spending practices.
9.2.12.E.4 Evaluate business practices and their impact on individuals, families, and societies.                                                                                                              
9.2.12.E.5 Evaluate written and verbal contracts for essential components and for obligations of the lender and borrower.                                                                                                              
Consumer protection includes providing information about the range of products and services and about consumer resources, rights, and responsibilities.
9.2.12.E.6 Apply consumer protection laws to the issues they address.                                                                                                              
9.2.12.E.7 Relate consumer fraud, including online scams and theft of employee time and goods, to laws that protect consumers.                                                                                                              
9.2.12.E.8 Determine when credit counseling is necessary and evaluate the resources available to assist consumers who wish to use it.                                                                                                              
9.2.12.E.9 Determine reasons for the increase of identity theft worldwide and evaluate the extent to which victims of identity theft are successful in fully restoring their personal identities.                                                                                                              


Content Area 21st-Century Life and Careers
Standard 9.2 Personal Financial Literacy All students will develop skills and strategies that promote personal and financial responsibility related to financial planning, savings, investment, and charitable giving in the global economy.
Strand F. Civic Financial Responsibility
By the end of grade Content Statement CPI# Cumulative Progress Indicator (CPI)
4
The potential for building and using personal wealth includes responsibility to the broader community and an understanding of the legal rights and responsibilities of being a good citizen.
9.2.4.F.1 Demonstrate an understanding of individual financial obligations and community financial obligations.                                                                                                              
9.2.4.F.2 Relate a country’s economic system of production and consumption to building personal wealth and achieving societal responsibilities.                                                                                                              
Philanthropic, charitable, and entrepreneurial organizations play distinctly different but vitally important roles in supporting the interests of local and global communities.
9.2.4.F.3 Explain the roles of philanthropy, volunteer service, and charitable contributions, and analyze their impact on community development and quality of living.                                                                                                              
9.2.4.F.4 Identify skills related to organizing, managing, and taking on the risks of owning a business.                                                                                                              
8
The potential for building and using personal wealth includes responsibility to the broader community and an understanding of the legal rights and responsibilities of being a good citizen.
9.2.8.F.1 Explain how the economic system of production and consumption may be a means to achieve significant societal goals.                                                                                                              
9.2.8.F.2 Examine the implications of legal and ethical behaviors when making financial decisions.                                                                                                              
9.2.8.F.3 Relate the impact of business, government, and consumer fiscal responsibility to the economy and to personal finance.                                                                                                              
Philanthropic, charitable, and entrepreneurial organizations play distinctly different but vitally important roles in supporting the interests of local and global communities.
9.2.8.F.4 Calculate appropriate amounts of charitable giving based on current financial status.                                                                                                              
9.2.8.F.5 Determine opportunities for micro-financing of global charities and causes.                                                                                                              
12
The potential for building and using personal wealth includes responsibility to the broader community and an understanding of the legal rights and responsibilities of being a good citizen.
9.2.12.F.1 Demonstrate an understanding of the interrelationships among attitudes, assumptions, and patterns of behavior regarding money, saving, investing, and work across cultures.                                                                                                              
9.2.12.F.2 Summarize the concept and types of taxation used to fund public initiatives.                                                                                                              
9.2.12.F.3 Assess the impact of emerging global economic events on financial planning.                                                                                                              
9.2.12.F.4 Analyze how citizen decisions and actions can influence the use of economic resources to achieve societal goals and provide individual services.                                                                                                              
9.2.12.F.5 Summarize the purpose and importance of a will.                                                                                                              
Philanthropic, charitable, and entrepreneurial organizations play distinctly different but vitally important roles in supporting the interests of local and global communities.
9.2.12.F.6 Compare and contrast the role of philanthropy, volunteer service, and charities in community development and quality of life in a variety of cultures.                                                                                                              
9.2.12.F.7 Explain the concept and forms of taxation and justify the use of taxation to fund public activities and initiatives.                                                                                                              
9.2.12.F.8 Evaluate the effects of entrepreneurship on economic stability and quality of living in local and global communities.                                                                                                              
9.2.12.F.9 Assess the impact of the global economy on entrepreneurial opportunities.                                                                                                              


Content Area 21st-Century Life and Careers
Standard 9.2 Personal Financial Literacy All students will develop skills and strategies that promote personal and financial responsibility related to financial planning, savings, investment, and charitable giving in the global economy.
Strand G. Risk Management and Insurance
By the end of grade Content Statement CPI# Cumulative Progress Indicator (CPI)
4
There are common financial risks and ways to manage risks.
9.2.4.G.1 Summarize common types of financial risks and basic risk management strategies.                                                                                                              
Insurance is designed to protect the consumer against unintended losses.
9.2.4.G.2 Explain the importance of protection against financial loss and reasons for risk assessment.                                                                                                              
9.2.4.G.3 Describe how valuable items might be damaged or lost and ways to protect them.                                                                                                              
8
There are common financial risks and ways to manage risks.
9.2.8.G.1 Compare the impact of losses associated with different types of financial risk.                                                                                                              
9.2.8.G.2 Explain why it is important to develop plans for protecting current and future personal assets against loss.                                                                                                              
Insurance is designed to protect the consumer against unintended losses.
9.2.8.G.3 Explain the purpose and importance of health, disability, life, and consumer insurance protection.                                                                                                              
9.2.8.G.4 Determine criteria for deciding the amount of insurance protection needed.                                                                                                              
9.2.8.G.5 Analyze the need for and value of different types of insurance and the impact of deductibles.                                                                                                              
9.2.8.G.6 Evaluate the need for different types of extended warranties.                                                                                                              
12
There are common financial risks and ways to manage risks.
9.2.12.G.1 Analyze risks and benefits in various financial situations.                                                                                                              
Insurance is designed to protect the consumer against unintended losses.
9.2.12.G.2 Differentiate between property and liability insurance protection.                                                                                                              
9.2.12.G.3 Compare the cost of various types of insurance (e.g., life, homeowners, motor vehicle) for the same product or service, given different liability limits and risk factors.                                                                                                              
9.2.12.G.4 Evaluate individual and family needs for insurance protection using opportunity-cost analysis.                                                                                                              
9.2.12.G.5 Compare insurance policy coverage limits and related premiums and deductibles to minimize costs.                                                                                                              
9.2.12.G.6 Differentiate the costs and benefits of renter’s and homeowner’s insurance.                                                                                                              
9.2.12.G.7 Compare sources of health and disability coverage, including employee benefit plans, with options in another country.                                                                                                              
9.2.12.G.8 Compare and contrast options for long-term healthcare insurance for home care and external care.                                                                                                              
9.2.12.G.9 Explain how to self-insure and how to determine when self-insurance is appropriate.