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GUIDED NOTEBOOKTEACHER For the Virtual Virginia Personal Finance Coursewww.VCE E.o rg

About Truist FoundationThe Truist Foundation is committed to Truist Financial Corporation’s (NYSE: TFC) purpose to inspire and build better lives and communities. Established in 2020, the foundation makes strategic investments in nonprofit organizations to help ensure the communities it serves have more opportunities for a better quality of life. The Truist Foundation’s grants and activities focus on leadership development, economic mobility, thriving communities and educational equity. Learn more at www.truist.com/truist-foundationThe Virginia Council on Economic Education (VCEE) received a grant from Truist Foundation to support the revised Economics and Personal Finance Online Course and to better lives and drive meaningful change in communities.About Virginia Council on Economic EducationOur mission is simple: to provide Virginia’s K-12 students with the economic knowledge and financial skills needed to thrive in our dynamic economy. VCEE provides quality pro-fessional development opportunities for K-12 teachers to assist them in teaching econom-ics and personal finance. With the support of donors and partners, VCEE institutes and workshops are provided at no cost to teachers or school divisions. Learn more at https://vcee.org

Table of Contents Suggestions for using this Guided Notebook…………………….………..….…….. 1 Module 8 ………………………………………………………………………………………………..…….…………2 Module 9 ………………………………………………………………………………………………….…………..28 Module 10 ………………………………………………………………………………….…………………………57 Module 11 …………………………………………………………………………………………………………..….77 Module 12 …………………………………………………………………………………………….….…….……98 Module 13 ………………………………………………………………………………………………………….122 Module 14 ………………………………………………………………………………………..…………….…146 End-of-course Practice Exam .…………………………………………………………….……174 Practice Exam Solutions …………………………………………………….……………………..…182

Suggestions for using thisGuided Notebook

Virginia Council on Economic Education Suggestions for Using this Guided Notebook 1. Print the Guided notebook and insert it into a binder. 2. Be careful to note and follow any instructions from your teacher. 3. Fill in the Guided Notebook as you complete the online lessons. •Module introduction – review the materials and identify the general content of the module before you begin •Lesson introduction – start by identifying the topic of each lesson •Vocabulary – review the list of new vocabulary terms and complete the vocabulary activity (when one is provided) •Write in the correct answers to the “Check Yourself” features in the online course •Complete any additional “Check Yourself” features provided •Write your response to each end-of-lesson “Think About it” feature or Homework assignment 4. Makes a note identifying any area where you have a question or difficulty. 5. Mark areas for you to review before completing exit slips, module exams, and the end-of-course exam. 6. Check with your teacher for answers to questions when they are not provided in the online course. 7. Review your Guided Notebook before completing exit slips and module exams. 8. Use the practice exam to review for your end-of-course exam. 9. Contact your teacher if you have any questions or need help with any lesson or module! 1

Module 8

Virginia Council on Economic Education MODULE 8 Human Capital and Earnings Module topic – Based on the Module introduction, what do you think is the major theme of this module? Write your response in the box below. Lesson 1a: Individuals’ Investment in Human Capital Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Human capital – the improvement in labor created by knowledge and skills through education, training, experience, and other things an employer values such as health and well-being, reliability and punctuality. Watch it (CEE: Human Capital) Check Yourself Write your answers to the Check Yourself questions in the spaces below. 1.____Tuition and fees, Forgone income, and Books and supplies_________ 2.____Employers, The government, The individual, and Family members____ 3.____$720,000_____________________________________________________________ 2Human capital, earnings, taxes Human capital

Virginia Council on Economic Education Check Yourself (Drag and Drop) Write each item under the appropriate category. Requires a Bachelor’s Degree: 1. __Middle School Teacher_____________ 2. _Computer Systems Analyst__________ 3. __Pharmacist________________________ 4. __Judge____________________________ Does not Require a Bachelor’s Degree 1. __Carpenter________________________________ 2. _Hairstylist_________________________________ 3. _Server_____________________________________ Think About It Write the career you chose and human capital required in the box below. 1. Visit the Virginia Education Wizard website (via vawizard.org) and click "How do I decide what I want to do for a living? Find a Great Career." (You may be prompted to log in; this is optional, but an account will allow you to save your progress. Speak with your school counselor for more information.) 2. Complete the Career Interests & Work Values Assessment, and select a career cluster recommendation, which is based on your results. 3. Next, complete the Skills Assessment and identify a career in the career cluster you selected. 4. Read the information about the career. Note the human capital you will need for the selected career and how much you are likely to earn in that 3

Virginia Council on Economic Education career. You will need to refer to this information to complete the 8.01b Homework assignment. Lesson 1b: Effect of Human Capital on Income Write the economic concept introduced by the introductory cartoon/visual in the box below. Check Yourself (Human Capital) Write the answer to the Check Yourself questions in the blanks below. 1. _120_________________________ 2. __3.7%________________________ 3. _Bachelor’s Degree_________ Check Yourself (Occupations) Write the answers to the Check Yourself questions in the blanks below. 1. ___Healthcare________________________ 2. __Personal care aides___________________ 3. __Alternative energy______________________________ 4Career choice will vary by studentHuman capital (and earnings)

Virginia Council on Economic Education 4. __$71,730_______________________________ Watch It (MRUniversity: Human Capital) Check Yourself Write the answers to the Check Yourself questions below. 1. _declined____________________ 2. _lower than_______________ 3. Globalization, Technology, Occupational licensing, Productivity growth, Changes in labor S and D Homework Go to the O*NET Interest Profiler on the Federal Student Aid website (via studentaid.gov). Complete the interest survey and select your job zone. Look at the career options provided based on your results and choose the one that is most interesting to you. Watch the career video. Recall the information from the career you selected using the Virginia Education Wizard in the Lesson 8.01a Application activity. Were the two careers the same? If not, which do you find more interesting? Which career most interests you, why do you think you might like that career, and what steps would you take to pursue it? Write your response in the box below and submit it on Canvas. Lesson 2a: Sources of Income Write the economic concept introduced by the introductory cartoon/visual in the box below. 5Students’ career choices, explanatory paragraphs, and next steps will vary

Virginia Council on Economic Education Vocabulary Write the letter of the term associated with each statement in the blank provided. A. Earned income – money that you acquire by doing something/spending your time. B. Unearned income–income from investments/other sources unrelated to work. C. Salary – regular compensation people receive for work. It is usually stated as an annual figure ($50,000 per year) but is paid in regular installments. D. Wages – paid to workers based on an hourly wage rate. E. Overtime pay – additional payment for working more than 40 hours per week. F. Tips (gratuities) – payments from customers as gestures of appreciation. G. Commission – payment to a salesperson based on a percentage of the sales price. H. Bonus – a reward paid to productive employees for meeting performance goals. I. Piece rate – amount paid per unit for the production of an object or good. J. Interest income – generated from investments that pay interest, such as a savings account or certificate of deposit. K. Interest – amount paid by banks and other financial institutions to people who deposit money in accounts. L. Inheritance – the distribution of wealth received by a descendant after a family member dies. M. Gift – a voluntary transfer of property made without anything in return. ___C__ 1. Payment of $60,000 per year for work. 6Earning income

Virginia Council on Economic Education ___I___ 2. Payment of $5 for each product produced. ___D___ 3. Payment of $150, $15 per hour for 10 hours worked. ___J___ 4. Payment of $10, 1% of $1000 deposited for a year. ___M___ 5. $10 in a birthday card from your grandparent. ___H___ 6. $100 payment for doing an excellent job completing an important project. ___G__ 7. $400 payment, 2% of the $20,000 price of the car that was sold. ___E__ 8. Payment of 50% more per hour for working more than the full time hours in a week. Check Yourself (Income) Write the workers in order from highest earner to lowest earner. 1. __Kim_______________________________ 2. __Brandon__________________________ 3. __Seybiel___________________________ 4. _Mary Ann________________________ Check Yourself (Drag and Drop) Write the name of each item in the appropriate category. 7

Virginia Council on Economic Education Earned Income: 1. __Commissions_______________ 2. __Overtime pay_______________ 3. _Tips__________________________ 4. _Salary and wages_________ Unearned Income: 1. __Gifts___________________________ 2. _Interest Income__________________ 3. _Tips____________________________ 4. _Salary and wages_____________ Check Yourself (Earned Income vs. Unearned Income) Write the answer to the Check Yourself questions in the blanks below. 1. ___False___________ 2. __False___________ 3. ___False____________ 4. ___True___________ 5. ___True____________ 8

Virginia Council on Economic Education 6. __True____________ Think About It Think back to the occupations you considered in Lessons 1a and 1b. What sources of income do people in those occupations receive? You can search the web or talk to people in the types of jobs you are considering. Write your response in the box below. Lesson 2b: Calculating Net Pay Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Gross pay – the amount you earn before paying any taxes or other deductions. Net pay – the amount you receive in your paycheck after all taxes and payroll deductions are subtracted from your gross pay. FICA – stands for “Federal Insurance Contributions Act.” FICA tax is the money that is taken out of workers' paychecks to pay for Social Security retirement and Medicare (Hospital Insurance) benefits. 9Responses will vary by student and occupation choiceWitholdings/deductions

Virginia Council on Economic Education Write the correct term in the blanks below. ___Gross___ pay = ____Net____ pay – taxes and deductions. Watch It (MoneyCoach: Taxes) Check Yourself Write the answers to the Check Yourself questions in the blanks below. 1. __$24,000_____________ 2. __$1,123_______________ 3. ___4.67%______________ Check Yourself (Calculating Net Pay) Write the answers to the Check Yourself questions in the blanks below. 1. __$2,000__________________ 2. ___$4,000_________________ 3. __$220______________ 4. __$40__________________ 5. ___$124_________________ 6. ___$29________________ 7. ___$100________________ 8. ___$50________________ 10

Virginia Council on Economic Education 9. ____$1657_______________ 10. ____$1657____________ 11. ____O CENTS________ 12. ____$1657_______________ Homework For this assignment, you will complete an earnings statement for an individual named K.S. Perez based on specific information provided to you. 1. Download the 8.02b Homework worksheet. 2. Complete the worksheet. Use the information provided to complete the earnings statement in the worksheet. Submit the worksheet on Canvas. Lesson 3a: Employee Benefits and Incentives Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Write the letter of the term associated with each statement in the blank provided. A. Benefits – compensation for employment over and above the salary or wage. B. Compensation incentives – increased pay for excellent job performance. These include raises, bonuses, profit sharing, and stock options. 11Withholdings and deductions

Virginia Council on Economic Education C. Recognition incentives – provided to acknowledge exemplary employees. These include thanks and praise, certificates of achievement, and announcement of accomplishments. D. Rewards incentives – awarded for achieving specific goals. These include service awards, and gift certificates. E. Appreciation incentives – show appreciation for work. These include company parties and celebrations, paid group lunches, and sponsored sports teams. ___A___ 1. Employer provided health insurance. ___D___ 2. An Amazon gift certificate for 5 years of service to an employer. ___B___ 3. A $.50 per hour raise for doing great at your job. ___C___ 4. Adding your name to an engraved plaque listing employees of the year. ___E___ 5. The company holiday party. Check Yourself (Compensation packages) Write the compensation packages in the correct order, where 1 is the lowest and 3 is the highest. 1. _Annual salary of $40,000 with no benefits ________________________ 2. _Monthly_ salary of $3,000 plus employer-paid health insurance worth $800 per month___ 3. __Annual salary of $35,000 plus $1,000 monthly employer contribution to 401k__ 12

Virginia Council on Economic Education Check Yourself (Compensation) Write the answers to the Check Yourself questions in the blanks below. 1. __False___________ 2. __False___________ 3. __True_____________ 4. _False_____________ 5. _True______________ 6. _False______________ Lesson 3b: Personal Income Taxes and Employment Forms Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Employment Eligibility Verification Form (I-9 form) – an important document required to prove you have the legal right to work in the United States. Wage and Tax Statement (W-2 form) – It includes the employee's total compensation, including tips, as well as income and FICA taxes withheld. Employee's Withholding Allowance Certificate (W-4 form) – use to calculate the correct amount of taxes to withhold from employees' paychecks. 13Tax forms

Virginia Council on Economic Education Watch It (FRBSL: Filling out the I-9) Check Yourself Write the answers to the Check Yourself questions in the blanks below. 1. _False_____________ 2. _True______________ 3. _False_____________ Check Yourself (W-2) Write the answers to the Check Yourself questions in the blanks below. 1. __True____________ 2. __True____________ 3. __False___________ Watch It (FRBSL: Filling out the W-4) Check Yourself Write the answers to the Check Yourself questions in the blanks below. 1. __False____________ 2. __False____________ 3. __True____________ Homework Kylie Lyn (SS#000-00-0000) is a 19-year-old working at a summer camp during summer break from college. She is single and has no dependents. She also worked at the camp last year and received a full refund of all of the 14

Virginia Council on Economic Education federal taxes they withheld because she had no tax liability. She expects this year to be the same. She hates waiting until the following year to get her withholdings refunded. Write your answers to the homework questions in the box below and submit them on Canvas. Lesson 4a: Goods Provided by the Government Write the economic concept introduced by the introductory cartoon/visual in the box below. Check Yourself (Drag and Drop) Write each item under the appropriate category. Local: 1. __Income taxes__________________ 2. __Property taxes_______________ 3. __Sales taxes_________________ 15See rubric for solutions.Infrastructure

Virginia Council on Economic Education State: 1. __Income taxes__________________ 2. __Property taxes_________________ 3. __Sales taxes____________________ Federal 1. __Income taxes_________________ 2. _Payroll taxes___________________ 3. _Excise taxes_______________________ Watch It (CEE: Taxes) Check Yourself Write the answers to the Check Yourself questions in the blanks below. 1. _True___________ 2. _True____________ 3. _True____________ Think About It What service would you be willing to cut to balance the government's budget? What taxes would you be willing to raise to balance the government's budget? Write your response in the box below. 16

Virginia Council on Economic Education Lesson 4b: Types of Taxes Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Progressive tax – as income rises, tax rate rises; as income falls, tax rate falls Proportional tax (flat tax) – tax rate stays the same at all income levels Regressive tax – as income rises, tax rate falls; as income falls, tax rate rises Watch It (MJM Foodie: Taxes & Budgets) Check Yourself Write the answers to the Check Yourself questions in the blanks below. 1. _True_____________ 2. _False____________ 3. _True_____________ 17Answers will vary based on student opinionTaxes

Virginia Council on Economic Education Check Yourself (Drag and Drop) Write the definition next to each term. Progressive – A tax system in which the percent of income paid in taxes is higher for high-income individuals. Flat tax – A fixed tax rate that is the same for all income levels. Proportional – A tax system in which all income levels end up paying the same percent of their income in taxes. Regressive – A tax system in which the percent of income paid in taxes is higher for low-income individuals. Check Yourself (Drag and Drop) Write the tax rate next to each tax. _7.65%______ FICA tax _2%_________ Income tax on first $3,000 earned _0.66%_______ Average real estate tax _4.3%________ General sales tax __0%________ Inheritance tax __0.35%_____ Lowest personal property tax _8.75%_______ Highest personal property tax 18

Virginia Council on Economic Education Check Yourself (Estate Taxes) Write the answer to the Check Yourself questions in the blanks below. 1. _False_____________ 2. _False_____________ 3. _True______________ Homework Find the missing values for [a] through [j]. Which tax structure is progressive and which is regressive? Write your answers in the box below and submit on Canvas. Lesson 5a: Calculating Sales Taxes Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Sales tax – collected on goods and services purchased. The tax is calculated as a percentage of the total amount of the sale. Excise tax – a tax on specific goods and services. 19See rubric for solutions.Filing taxes

Virginia Council on Economic Education Check Yourself (Drag and Drop) Write the items in the correct category below. Below: 1. ___School supplies during tax holidays_________________________________ 2. ___Food for home consumption__________________________________ 3. ___Motor vehicle____________________________________________ Equal to: 1. __Furniture______________________________________________________ 2. __Appliances___________________________________________________ 3. __Books_______________________________________________________ Above: 1. __Motor Fuel__________________________________________________ 2. __Tobacco__________________________________________________ 3. __Wine_______________________________________________________ Check Yourself (Sales Taxes pt.1) Write the answers to the Check Yourself questions in the blanks below. 1. __$5.30_____________ 2. __$2.50____________ 20

Virginia Council on Economic Education 3. __$2.12____________ 4. __$1.06____________ 5. __$10.98___________ Write in the answers to the Check Yourself questions during a sales tax holiday. 1. __$0.00____________ 2. __$2.50____________ 3. __$0.00____________ 4. __$1.06____________ 5. __$3.56____________ Check Yourself (Sales Taxes pt. 2) Write the answers to eh Check Yourself questions in the blanks below. Individual 1: 1. _$400___________ 2. _5%_______________ Individual 2: 1. __$1,250__________ 21

Virginia Council on Economic Education 2. __3.57%____________ Individual 3: 1. __$6,250_________ 2. __3.13%_____________ Write the answers to the Check Yourself questions if groceries are exempted from sales taxes. Individual 1: 1. __$3,200___________ 2. __$160______________ 3. __2%________________ Individual 2: 1. __$1,875______________ 2. __$437.50____________ 3. __1.25%______________ Individual 3: 1. _$20,000__________ 2. _$1,000_____________ 3. __0.50%____________ 22

Virginia Council on Economic Education Think About It Find the sales tax rate where you live and write it in the box below. Lesson 5b: Calculating Income Taxes – Deductions and Credits Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Write the letter of the term associated with each statement in the blank provided. A. Tax avoidance - legal minimizing of taxes using methods in the tax code. B. Tax evasion - illegal practice of not paying taxes, e.g. by not reporting income or reporting expenses not legally allowed. C. Tax deduction – an amount that can be subtracted from taxable income. D. Tax credit - an amount that taxpayers can subtract from taxes owed. E. Tax liability—the amount of tax owed to the government in a given year. F. Taxable income - adjusted gross income minus deductions and credits. G. Itemized deductions – tax deductions that are listed individually If they add up to more than the amount of the standard deduction. H. Adjusted gross income—your gross income minus any adjustments. I. Total income (gross income) - all earned, unearned, and investment income. 23Answers will vary based on location.Tax deductions (and credits)

Virginia Council on Economic Education __B___ 1. Failing to pay taxes that are owed. __I____ 2. All income from all sources. __E____ 3. Hoe much you are required to pay to the government in taxes each year. ___A___ 4. Paying as little in taxes as possible while following all laws. ___C___ 5. A legal reduction in taxable income. ___D___ 6. A legal decrease in taxes owed. ___F___ 7. Income left after deductions and credits have been subtracted form adjusted gross income. Watch It (MoneyCoach: How to Do Your Taxes) Check Yourself Write the answers to the Check Yourself questions below. Federal income tax liability (no deductions/credits) ____$20,000______ Taxable income ____$1,000________ Tax liability You deduct $1,000 in state and local taxes. ____$19,000_____ Taxable income 24

Virginia Council on Economic Education ____$950______ Tax liability You deduct $2,000 in work-related educational expenses. __$18,000_______ Taxable income ___$900_________ Tax liability You receive a retirement saving tax credit of $1,000. ___$20,000________ Taxable income ___$0_____________ Tax liability Check Yourself (Calculating Your Tax Liability) Write in the answers t the Check Yourself questions in the blanks below. 1. _$16,400_______ 2. _$23___________ 3. _$0_____________ 4. _$0____________ 5. _$0____________ 6. _$0____________ 7. _$0___________ 25

Virginia Council on Economic Education 8. __$16,423_____ Write in the answers for lines 8a–11b of Form 1040 in the blanks below. 1. __$0_______ 2. __$16,423___ 3. __$12,200___ 4. __$0________ 5. __$12,200___ 6. __$4,223____ Write in the answers for lines 11a–21a of Form 1040 in the blanks below. 1. __$423____ 2. __$423____ 3. __$0______ 4. __$0______ 5. __$423____ 6. __$0______ 7. __$423____ 8. __$1,400__ 26

Virginia Council on Economic Education 9. __$977____ 10. __$977____ Homework Use the 2019 tax tables (PDF, via irs.gov) to determine each of the following values if your adjusted gross income is $18,000. 1. Determine your tax liability if you are filing single using the standard deduction of $12,000 and have no adjustments, itemized deductions, or tax credits. 2. Determine your tax liability if you are filing single using the standard deduction of $12,000, have a child tax credit of $500, and have no other adjustments, deductions or credits. 3. Determine your tax liability if you file as head of household using the $18,000 deduction and have no adjustments, itemized deductions, or tax credits. Write your answer in the box below and submit it on Canvas. 27See rubric for solution.

Module 9

Virginia Council on Economic Education MODULE 9 Consumer Skills Module topic – Based on the Module introduction, what do you think is the major theme of this module? Write your response in the box below. Lesson 1a: Comparing the Costs and Benefits Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Marginal analysis – the study of the costs and benefits of doing a little bit more or less of an activity. Marginal cost (MC) – the additional cost of an additional unit. Marginal benefit (MB) – the additional benefit of an additional unit. Comparison shopping – the process of comparing the price of products or services from different sellers before purchasing. 28The main theme of the module is consumer choiceCost-Benefit analysis

Virginia Council on Economic Education Impulse buying – an unplanned decision made just before making a purchase. Circle the correct symbol in the sentences below. Additional units of a good or service should be purchased as long as marginal benefits > = < marginal costs. (circle one) A person should not continue pursuing an activity when the marginal benefits are > = < marginal costs. (circle one) Check Yourself (Marginal Analysis) Write the answers to the Check Yourself questions in the blanks below. 1. __$+8_______ 2. __$+4_______ 3. __$+1_______ 4. __$-3_______ 5. __$-5_______ 6. __$3________ 7. __$13_______ 29

Virginia Council on Economic Education Check Yourself (Comparison Shopping) Write the answers to the Check Yourself questions in the blanks below. 1. __True__________ 2. __False_________ 3. __False__________ 4. __False__________ 5. __False___________ 6. __True____________ Check Yourself (Comparison Shopping) Place each bottle of dish soap in order, from lowest price per ounce to highest price per ounce. 1. __18 oz. $3.60__ 2. __32 oz. $7.00__ 3. __10 oz. $2.50__ 4. __20 oz. $6.00__ Watch it (FRBSL: Human Capital) Check Yourself (Drag and Drop) Write each criterion to the career (teacher or programmer) with the higher benefit for Martina. 30

Virginia Council on Economic Education Teacher: 1. __Higher projected job growth_______ 2. __More personal enjoyment_________ Programmer: 1. __Higher earnings________ Identify the criteria Martina used to decide that a public college was right for her. Select ALL that apply. 1. __Location________________________ 2. __Clubs and organizations_________ 3. __Cost____________________________ 4. __Job placement____________________ 5. __Faculty qualifications_________________ Think About It Consider two goods: a laptop computer and a phone charger. Which product do you think you should spend more time comparison shopping and why? For which product are you more likely to consider a product guarantee or warranty and why? How can you use seller reputation to simplify your buying decision? Write your response in the box below. 31Answers will vary. Examples include; Laptop computer because it costs more and is more complex. Seller reputation can help you decide which seller sells a better product and has better customer service in the event of a problem with the product

Virginia Council on Economic Education Lesson 1b: PACED Decision Making Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Decision Model – a systematic way to compare the costs and benefits of an action in order to decide what action to take. PACED decision-making grid – used to organize decision-making steps in a way that helps make the best decision. Watch it (FRBSL: There is No Free Lunch, CEE: Decision Making/C-B Analysis) Check Yourself Write the answers to the Check Yourself questions in the blanks below. 1. _True_________ 2. _True_________ 3. _False_______ Check Yourself (PACED) Write the answers to the Check Yourself questions in the blanks below. 1. _The cost criterion was weighted more heavily in his decision making_____ 2. _The nearby public university____________________________________________ 3. __The nearby public university___________________________________________ 32Risk/reward tradeoff (PACED decision-making model)

Virginia Council on Economic Education Homework Apply the PACED decision-making model to a decision you will need to make about your life after high school. You should: •define the problem; •complete a PACED grid with at least 3 alternatives and 5 criteria; •explain how you define (+), (-), and (x) in your evaluation; •explain your final decision. Use the empty PACED model below as a guide. Write your answer below and submit it on Canvas. PROBLEM: EVALUATION (+) : (–) : DECISION: Lesson 2a: Marketing and Demand Write the economic concept introduced by the introductory cartoon/visual in the box below. Criteria→↓ Alternatives!!!!!!!!!!!!!!!!!!!!!!! 33See rubric for solution.Advertising/marketing

Virginia Council on Economic Education Vocabulary Advertising – a means of communication with the users or potential users of a good or service that are intended to inform and/or influence. Informative advertising – provides information about the benefits and features of a product, for example, what it does and where it can be purchased. Persuasive advertising – tries to convince a consumer to buy a particular product. Marketing – promoting and selling products or services. Outbound marketing – marketing where the business sends its message out to potential customers. Inbound marketing – marketing where customers are identified by creating content and experiences. Identify each of the following as informative (I) or persuasive (P) and as outbound (Out) or inbound (In). __I, In________ 1. Posting a quiz on a company website for consumers to use to identify which product has the characteristics they are looking for. __I, Out__________ 2. Airing a radio ad for a product that provides sale prices for a product. _P, Out__________ 3. A television ad that has celebrities announcing they love a product. _P, In___________ 4. An offer to receive a free gift in exchange for a name and email address on a company website. Watch it (USFTC: Advertising) Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. Informative Advertising: 34

Virginia Council on Economic Education 1. _“Helps lower your cholesterol”____________________________________________ 2. __“Now with bananas, a good source of potassium”________________________ 3. _“Now with real strawberries and almonds”_______________________________ Persuasive Advertising: 1. _“Crave those crazy squares”______________________________________________ 2. _“Mikey likes it!”______________________________________________________ 3. _“Tigers start their day with a bowl”______________________________________ Check Yourself (Drag and Drop) Drag and drop to match each of the 4 Ps to its appropriate example. Place – Free samples given out at a retail store that sells product category Price – 50-cent coupon attached to the outside of package Product – A free temporary tattoo is included in every box of a cereal Promotion – Website and placement of product in search engines Check Yourself (Drag and Drop) Write each of the marketing approaches under inbound marketing or outbound marketing. Inbound Marketing: 1. _An interactive calculator for a product website___________________ 2. __Provide free webinars_______________________________________ 35

Virginia Council on Economic Education 3. ____Search engine optimization (SEO)__________________________________ Outbound Marketing: 1. __Direct mail postcards___________________________________________ 2. __Print and radio ads_____________________________________________ 3. __Social media advertising_________________________________________ Think About It What global advertising and marketing strategies are commonly used to sell goods and services (mass media, direct mail, point of sale)? Choose a business that sells all over the world. What marketing strategies does the firm use? Write your response in the box below. Lesson 2b: How Prices and Advertising Affect Consumer Decisions Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary 36Answers vary based on company selected. Global companies use mass media due to distanceConspicuous consumption

Virginia Council on Economic Education Conspicuous Consumption – buying goods and services not for their intrinsic value but to impress others in hopes of improving one’s social status. Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. Probably Conspicuous Consumption: 1. __Designer Watch____________________________ 2. __Designer Pursue____________________________ 3. __Luxury Car________________________________ 4. __Mansion__________________________________ Probably Not Conspicuous Consumption: 1. __Glass of Milk_______________________________ 2. __Standard Car ______________________________ 3. __White Tee shirt____________________________ 4. __Smaller House__ Check Yourself (Conspicuous Consumption) Write the answers to the Check Yourself questions. 1. __False_______ 2. __True_______ 3. __True_______ 37

Virginia Council on Economic Education 4. __False_______ 5. __True_______ 6. __True_______ Homework Identify a good that could be considered conspicuous consumption. Give an example of how each of the 4 Ps of marketing can be used to get people to buy the good. Write your answer in the box below and submit it on Canvas. Lesson 3a: Types of Consumer Contracts Write the economic concept introduced by the introductory cartoon/visual in the box below. 38See rubric for solutionsContracts

Virginia Council on Economic Education Vocabulary Write the letter of the term associated with each statement in the blank provided. A. Consumer Contract – a contract made between a seller and a consumer. B. Assignment – when one party to a contract hands off the contract's obligations and benefits to another party. C. Breach – an act of breaking the terms set out in a contract. D. Condition – an act or event that affects a party's contractual duty. E. Fine print – text in a formal agreement that is printed smaller. F. Force majeure – unforeseeable circumstances that prevent someone from fulfilling a contract. G. Null and void – having no legal force. H. Party – the people or companies involved in a legal agreement. I. Terms – the conditions relating to what the parties in a contract agreed on. J. Warranty – a promise that specific facts or conditions in a contract are true. 1. A contract is no longer in effect when it is declared ___G______. 2. You no longer have to fulfill a contract when there is a ___F______. 3. You should be very careful to read everything in a contract, even the ___E_____. 4. If you do not fulfill your obligations in a contract, you are in ____C_____ of contract. 5. The things that two parties agree on are the ___I_____ of the contract. 39

Virginia Council on Economic Education Watch it (USFTC: Fine Print on Contracts) Check Yourself (Drag and Drop) Write the definition that goes with each term. Assignment – when one party to an existing contract hands off the contract's obligations and benefits to another party Breach – an act of breaking the terms set out in a contract Condition – an act or event that affects a party's contractual duty Fine print – text in a formal agreement that is printed smaller than the rest of the text Force majeure – unforeseeable circumstances that prevent someone from fulfilling a contract Null and void – having no legal force Party – the people or companies involved in a legal agreement are referred to as parties Terms – the conditions relating to what the parties in a contract agreed on Warranty – a guarantee or promise that specific facts or conditions in the contract are true or will happen Check Yourself (Contracts) Write the answers to the Check Yourself questions in the blanks below. 1. __False_______ 2. __False_______ 3. __True_______ 4. __False_______ 40

Virginia Council on Economic Education 5. __False_______ 6. __True_______ Watch it (USFTC: High Costs & Pitfalls of Payday and Title Loans) Check Yourself Write the answer to the Check Yourself question in the blank below. Your best option is to borrow __$125 from your low-interest credit card___. Lesson 3b: Implications of Contracts: Rental Agreements Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Write the letter of the term associated with each statement in the blank provided. A. Tenant – the person occupying the apartment. B. Co-tenant – two tenants in a single property. C. Landlord – the person renting the property. D. Security deposit – a sum of money kept by the landlord, usually equal to one month’s rent, during the term of the lease. When the lease ends this money is refunded if there is no property damage. E. Rent – the monthly payment to rent the property. F. Utilities – payments for electricity, water, and gas. These are sometimes included in rent and sometimes they are not. G. Eviction – expelling a tenant from a property. H. Sublet – transferring a lease to another tenant. 41Contracts

Virginia Council on Economic Education ___A___ 1. You, when you rent an apartment. ___G___ 2. When you are forced to move out of your apartment. ___H___ 3. When you move out of an apartment and have someone else take over your lease ___B___ 4. Your roommate, when you both rent an apartment together. ___E___ 5. Monthly payment for an apartment you have rented. ___C___ 6. The person who rents you an apartment. ___F___ 7. The collective payments for items like internet service, electricity, gas, and water service. __D___ 8. An amount equal to one month’s rent collected to by a landlord when you rent an apartment. Watch it (USFTC: Renting an Apartment) Check Yourself Write in your answers to the Check Yourself Questions. 1. Your previous address, proof of your income, a credit check, proof of your employment, identification such as a driver’s license 2. A signed lease, the first month’s rent in advance, a fee for processing a credit check, a completed application, the last month’s rent, and a security deposit Check Yourself (Drag and Drop) Write in the answers to the Check Yourself questions in the blanks below. Tenant – the person occupying the apartment 42

Virginia Council on Economic Education Co-Tenant – one of multiple tenants in a single property Landlord – the person renting out the property Security deposit – a sum of money kept by the landlord, usually equal to one month’s rent, during the term of the lease. Rent – the monthly payment to live in the property Utilities – payments for electricity, water, and gas Eviction – expelling a tenant from a property Sublet – transfer a lease to another tenant Check Yourself (Tenant's Rights and Responsibilities) Write the answers to the Check Yourself questions in the blanks below. 1. __False______ 4. _False_________ 2. _False_______ 5. _False________ 3. _False________ Homework You have decided to move into an apartment with your best friend shortly after graduating from high school. Create a roommate agreement that makes sure you and your friend agree on your living arrangements. Write your response in the box below and submit on Canvas. 43

Virginia Council on Economic Education Lesson 4a: Sources of Consumer Information Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Consumer information – used by consumers to research, decide on, and complete a purchase. 44See rubric for solution.Financial information

Virginia Council on Economic Education Consumer organizations – advocacy groups that seek to protect people from business practices like unsafe products, predatory lending, and false advertising. Consumer protection laws – government regulation to protect consumer rights. Watch it (USFTC: Consumer Information) Check Yourself Write the answers to the Check Yourself questions in the box below. 1. __True________ 2. __False_______ 3. __False_______ 4. __False_______ 5. __True_______ 6. __False_______ Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. Reliable Sources of Consumer Information: 1. __Financial Institutions________________________ 2. __Government Agencies_______________________ 3. __Consumer organizations_____________________ 4. __Financial magazines_________________________ 45

Virginia Council on Economic Education Unreliable Sources of Consumer Information: 1. __Anonymous investment blogs_________________ 2. __Product websites___________________________ 3. __Investment newsletters selling stocks___________ 4. __Unverified online reviews_____________________ Check Yourself (Drag and Drop) Drag and drop to match each term with its definition. Consumer Product Safety Commission – promotes the safety of consumer products by addressing “unreasonable risks” of injury Food and Drug Administration – protects public health by assuring the safety, efficacy, and security of drugs, food, and cosmetics Federal Trade Commission – protects consumers from fraud and illegal business practices Consumer Financial Protection Bureau – enforces federal consumer financial laws and assures financial products and services are fair, transparent, and competitive Securities and Exchange Commission – protects investors, enhances market stability, and promotes capital formation Think About It How would you rate your overall financial well-being? One way to rate and compare your financial well-being is to go to the Consumer Financial Protection Bureau website (via consumerfinance.gov) and take a survey to get your financial well-being score. Write your score in the box below. 46Answers vary by student

Virginia Council on Economic Education Lesson 4b: Consumer Rights, Responsibilities, and Remedies Write the economic concept introduced by the introductory cartoon/visual in the box below. Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. Consumer Rights: 1. __Ability to file a complaint_________________________________ 2. __Access to reliable information_____________________________ 3. __Safe and effective products_______________________________ Consumer Responsibilities: 1. __Report unsafe products__________________________________ 2. __Report fraud and attempted fraud_________________________ 3. __Take steps to prevent identity theft________________________ 4. __Purchase more of a product of service _____________________ 47Consumer rights

Virginia Council on Economic Education Neither Consumer Rights nor Responsibilities: 1. __Return any purchase_____________________________________ 2. __Tell producers when they don’t like a product________________ Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the spaces below. Step 1: Check the seller’s website for information about how to return defective items and follow the steps provided Step 2: Contact the seller and explain the issue Step 3: Contact the Better Business Bureau and ask for help resolving your issue by filing a complaint Watch it (USFTC: Financing a Car, Understanding Car Add-ons, Minimum Payments on Credit Cards, Prepaid Cards, How to File a Complaint, Why Report Fraud?) ___E____ 1. Which of the following provides information for used car buyers? a. Online research b. A Buyers Guide required on each car c. A used car history report d. An inspection by a mechanic e. All of these ___A____ 2. Which of the following are you required to pay when buying a car from a dealer? a. The car’s purchase price 48

Virginia Council on Economic Education b. Rust protection c. Gap insurance d. Service contract e. All of these ____F___ 3. True or false, paying the monthly $10 minimum payment on a credit card charge of $100 will pay off the charge in 10 months? ____F____ 4. True or false, if you don’t fall for a scam there is no use reporting it to the FTC? Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. Better Business Bureau: 1. __You need help collecting a refund you are due from a local business_ 2. __You have a problem dealing with an unethical seller_______________ Consumer Financial Protection Bureau: 1. __You believe you have been unfairly denied a loan____________________ 2. You have a consumer complaint about a financial product you purchased Federal Trade Commission: 1. __You have received emails you suspect are fraudulent________________ 2. __You are being harassed by telemarketing calls_______________________ Food and Drug Administration: 1. __You need to make sure that a product you are buying has not been recalled________ 49

Virginia Council on Economic Education 2. __You have been made very ill from food that you purchased from a local vender____________ Homework Identify 5 attributes of a credit card you would consider in making your selection and write a brief description of each and how you would use it to select a credit card. Where do you file a complaint if the issuer of a credit card treats you unfairly? Write your response in the box below and submit on Canvas. Lesson 5a: Maintaining Personal Finance Records Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Chronological filing – File folders of documents are arranged in order of date. Alphabetical filing – File folders are titled and arranged alphabetically. Tickler Filing – 43 file folders, one folder for each day of the month (numbered 1 through 31), plus one folder labeled for each month of the year. Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. 50See rubric for solutionsFinancial records/filing systems

Virginia Council on Economic Education Personal Papers: 1. __Birth Certificate ____________________ 2. __Social Security Card__________________ 3. __Dual-enrollment college transcripts_____ Tax Documents: 1. __IRS 1040 form______________________ 2. __W-2 form__________________________ Financial Information: 1. __Bank statements____________________ 2. __Credit card statements_______________ 3. __Student loan application______________ 4. __Savings account information___________ Car Documents: 1. __Car insurance policy___________________ 2. __Car repair invoices____________________ 3. __Car title_____________________________ Health and Medical Records: 1. __Immunization record__________________ 51

Virginia Council on Economic Education Employment Records: 1. __Employee benefits information___________ 2. __Paycheck stubs________________________ Other: 1. __Receipt for donation to Goodwill__ Watch it (FRBSL: Protecting Personal and Financial Information) Check Yourself Write the answers to the Check Yourself questions in the blanks below. 1. __False_______ 4. __True_______ 2. __False_______ 5. __True_______ 3. __False_______ 6. __True_______ Watch it (USFTC: Sharing Information: A Day in Your Life, Computer Security Tips, Public Wi-Fi Networks - Security Tips) ___F____ 1. True or false, information about people and their habits are not frequently shared or sold – that is just an unsupported conspiracy theory. 2. Check all of the recommended ways to foil attempts to steal information from your computer. _____X____ install updated security software _____X____ Set operating systems and web browsers to update automatically 52

Virginia Council on Economic Education ____X____ Treat your financial information like cash _________ Click on pop up virus alerts to address issues ____X____ Don’t share passwords _________ Use the same strong password so you don’t forget it ____F____ 3. True or false, public wifi hot spots are always free and secure Think About It Consider the costs and benefits of going paperless. Which do you think is best for you—paper or paperless? Write your response in the box below. Lesson 5b: Precautions for Protecting Identity Write the economic concept introduced by the introductory cartoon/visual in the box below. 53Answers will vary.Identity theft

Virginia Council on Economic Education Vocabulary Dumpster Diving – thieves go through trash to find personal information. Phishing – soliciting personal information through fraudulent emails purported to be from banks, companies, or government agencies. Skimming – using a special device to illegally record credit or debit card information. Hacking – using computer skills to illegally to break into email or online accounts to obtain personal information. Stealing – taking wallets, purses, mail, pre-approved credit offers, new checks, or anything else to illegally obtain personal information. Check Yourself (Precautions for Protecting Identity) Write the answers to the Check Yourself questions in the blanks below. 1. __Dumpster diving_____________________________ 2. __Phishing____________________________________ 3. __All of these_________________________________ Watch it (USFTC: 5 Ways to Help Protect Your Identity, Why Care About Identity Theft?, and Types of identity fraud) Check Yourself Write the answers to the Check Yourself questions in the blanks below. 1. __False_______ 2. __True_______ 3. __False_______ 54

Virginia Council on Economic Education 4. __True_______ 5. __True_______ Check Yourself (Types of identity fraud) Write the good ways to avoid identity theft in the blanks below. 1. __Use only secure browsers and web pages_______________________________ 2. __Use anti-hacking software_____________________________________________ 3. __Shred documents that contain personal information before discarding them_________ 4. __Know the due dates of all bills and take action if you do not receive one__ 5. __Read all financial statements carefully_________________________________ Watch it (USFTC: Recovering from Identity Theft) _____________ True or false? The first two things you should do if there are unauthorized charges on your credit card statement are 1) cut up your credit card and 2) contact your bank. Homework Go to the FTC website and review the information and videos related to identity theft prevention and recovery. Identify 5 specific steps you personally can take to prevent your personal information from being stolen. For example, you could shred something, file something, change something, review something, or delete something. Briefly describe each of the 5 steps. Each step should be detailed (not general) and specific to you. Write your response in the box below and submit it on Canvas. 55

Virginia Council on Economic Education 56See rubric for solution

Module 10

Virginia Council on Economic Education MODULE 10 Living Expenses and Budgeting Module topic – Based on the Module introduction, what do you think is the major theme of this module? Write your response in the box below. Lesson 1a: The Cost of Operating a Vehicle Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Write the letter of the type of insurance coverage that applies to each situation in the blank provided. A. Property damage liability – covers damages caused to another vehicle if the insured is responsible for an accident. B. Bodily injury liability – covers an injury to or the death of another person that results from an accident the insured caused. C. Medical payment insurance – covers a driver’s medical expenses—and those of any passengers in their vehicle—whether or not an accident was the driver’s fault. D. Uninsured motorist coverage – pays for damages from an accident caused by an uninsured driver. E. Collision coverage – pays for damages to the insured’s car in the event of an accident. 57Budgeting/expensesAutomobile expenses

Virginia Council on Economic Education F. Comprehensive coverage – pays for damages from theft, vandalism, acts of nature, fire, and collisions with animals. _____A____ 1. You rear end a car you were following too closely, causing damage to the other car. ____E_____ 2. The bumper of your car is destroyed when you cause a car accident. ____F_____ 3. During a storm, a tree limb smashes the hood of your car. ____D_____ 4. The back window of your car is shattered when another driver who does not have insurance runs into your car. _____B____ 5. You cause a car accident that breaks the leg of a passenger in the other car. _____C____ 6. You hit your head and need stitches when you are a driver in a car accident. Check Yourself (Matching) Write the answers to the Check Yourself questions below. Collision – Covers repairs to your vehicle if you are in an accident Property damage liability – Covers damages to another vehicle due to an accident you caused Uninsured motorist – Covers damages if you are in an accident caused by another driver who is not insured Medical payment – Covers your medical expenses in case of an accident Comprehensive – Covers damages to your car in case of theft or vandalism 58

Virginia Council on Economic Education Watch it (USFTC: Buying a Used Car) Check Yourself (Car Buying Process) A Write the answers to the Check Yourself questions in the blanks below. 1. _True____________ 2. __True___________ 3. _False____________ 4. __True___________ 5. __False___________ 6. __False__________ Think About It Britney's grandmother drives a 10-year-old car that Britney will receive as a gift upon graduation. Should she continue to save money in her car account since she will get this car for free? Explain. Write your response in the box below. Lesson 1b: Buying vs. Leasing a Car Write the economic concept introduced by the introductory cartoon/visual in the box below. 59Yes, because there will be lots of additional expenses (especially insurance) to operate the car.Leasing versus buying a car

Virginia Council on Economic Education Watch it (MoneyCoach: 4 Serious Lease Drawbacks) Check Yourself (Leasing) A Write the answers to the Check Yourself questions in the blanks below. 1. _True_________________________________ 2. _Both statements are true_____________ 3. _All of these choices__________________ 4. _Buying is the smarter financial decision in the long run 5. _Used cars are generally the better financial deal_ 6. CPO cars are a great deal! They're much less risky than most used cars, but they're still cheaper than new cars Check Yourself (Loan Terms for Car Purchase) A Write the answers to the Check Yourself questions in the blanks below. 1. The amount of money that is borrowed to buy the car is $_17,000___. 2. The total amount of monthly payments made at the end of the loan term is $__18,036____. 3. The total amount of interest paid on the car loan is $_1,036________. 4. The total cost of the car, including down payment and loan payments, is $_22,036___________. Homework Locate an advertisement for new auto vehicles in your area and answer the following questions. Write your response in the box below and submit it on Canvas. 60

Virginia Council on Economic Education 1. What is the make and model of the vehicle? (Example: Ford Escape) 2. What is the total price listed for the vehicle? 3. What is the monthly payment for the vehicle? Is this a lease payment or a purchase payment? 4. How long is the term of the loan/lease? Examples: 24 months, 36 months, 48 months Lesson 2a: Renting vs. Buying a Home Write the economic concept introduced by the introductory cartoon/visual in the box below. Watch it (MoneyCoach: Buy or Rent a House?) Check Yourself A Write the answers to the Check Yourself questions in the blanks below. 1. ___All of these choices_________________________ 2. _False__________________________________ 3. _True___________________________________ 4. This isn't a simple decision. Check out a rent vs. buy calculator to crunch the numbers for your situation 61See rubric for solutions.Leases and renting

Virginia Council on Economic Education 5. Great idea! Homes are great places to raise a family and can provide you with way more flexibility than renting 6. Actually, a home is a pretty poor investment relative to investing the excess cash you'd get by renting Check Yourself (Drag and Drop) A Write the answers to the Check Yourself questions in the blanks below. Homeowner expense: 1. ____Mortgage __ 2. ___Property tax__ 3. ___Water heater__ Both: 1. _Internet and TV service__ 2. _Vacuum cleaner__ Renter expense: 1. _____Rent__ 2. ___Security Deposit__ Watch it (MRUniversity: Econ Duel– Rent or Buy?) Check Yourself A Write the answers to the Check Yourself questions in the blanks below. 1. _____________True__ 5. _____________True__ 2. _____________False__ 6. _____________True__ 62

Virginia Council on Economic Education 3. _____________False__ 7. _____________False__ 4. _____________True__ 8. ______________True__ Lesson 2b: The Process of Renting a Residence Write the economic concept introduced by the introductory cartoon/visual in the box below. Watch it (MoneyCoach: How to Get an Apartment?) Check Yourself (Leases) A Write the answers to the Check Yourself questions in the blanks below. 1. ___Both of these_________________________________________ 2. _All of the above__________________________________________ 3. _False_________________________________________________ 4. ___Always bring an apartment checklist during tours______ 5. You’re not out of luck. You can either find a roommate or find someone to provide a notarized letter saying they’ll pay your rent 6. _Both of these___________________________________________ Check Yourself (Leases pt.2) A Write the answers to the Check Yourself questions in the blanks below. 1. ____________False__ 63Renting an apartment (apartment features)

Virginia Council on Economic Education 2. ____________False__ 3. _____________True__ 4. ____________False__ Check Yourself (Leases pt.3) Write the answers to the Check Yourself questions in the blanks below. 1. ____________All of the choices__ 2. ______________________False__ 3. ______________________False__ 4. While you're technically correct, renters' insurance is actually quite important. After all, it covers damage and theft of your possessions, which your landlord will not 5. Actually, renters' insurance is a very cheap way to protect your property. It will only cost you around $20 a month 6. ______________________$300__ Homework Look at advertisements for a two-bedroom apartment in your zip code using a real estate listing website like Zillow.com. Be sure to specifically search for rental properties. What is the price range for apartments shown? What amenities do the highest-priced apartments have that the lowest-priced apartments do not have? Write your answer in the box below and submit it on Canvas. 64

Virginia Council on Economic Education Lesson 3a: Costs/Benefits of Purchasing a Residence Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Credit score – indicates a borrower’s level of financial risk to a lender Default – when a borrower stops making mortgage payments Check Yourself (Matching) A Write the answers to the Check Yourself questions in the blanks below. Problem – Find a place to live Alternatives – One-bedroom, two-bedroom, studio, condo, house Criteria – Size, location, budget Evaluate – Studio too small; house too large; condo too far away from work; one-bedroom meets all; two-bedroom too expensive 65See rubric for solutionsMortgages

Virginia Council on Economic Education Decision – Choose the one-bedroom because it fits most or all criteria Check Yourself (Costs and Benefits of Buying a Home) A Write the answers to the Check Yourself questions in the blanks below. 1. ____________True__ 4. ____________True__ 2. ____________True__ 5. ____________True__ 3. ____________False__ Check Yourself (Process of Buying a Home) A Write the answers to the Check Yourself questions in the blanks below. 1. ____________True__ 2. ____________False__ 3. ____________False__ 4. ____________False__ 5. ____________False__ Think About It Pre-approval letters are necessary to buy a house. Which lenders in your area would you seek information from if you were ready to buy a house? Write your response in the box below. 66Answers will vary by area

Virginia Council on Economic Education Lesson 3b: The Process of Buying a Home Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Write the correct term the blanks provided. A. Down payment – a payment used to secure a loan. The minimum down payment required by the mortgage lender is usually 20% of the purchase price. B. Lien – gives the lender the right to evict the borrower from the property if they fail to make their mortgage payments or live up to other terms of the loan. C. Foreclosure – process in which a lender takes over a property when a borrower defaults on a loan. D. Bankruptcy – legal procedure when individuals/companies cannot repay debts. E. Collateral – property used to guarantee a loan. F. Mortgage – a type of loan in which property or real estate is used as collateral. G. Default – when a borrower fails to repay a loan. H. Fixed-rate mortgages – mortgage loans with interest rates that do not change as the borrower repays the loan. I. Adjustable-rate mortgage (ARM) – mortgage loans with interest rates that increase or decrease based on the current prime rate. J. Point – fee paid to a lender in exchange for a lower interest rate on a mortgage. When you borrow money to buy a house, you apply for a ___mortgage_____ from a bank to pay the amount of the purchase price that is above the 20% 67Buying a house

Virginia Council on Economic Education __down payment______(which you will pay in cash). The house you buy serves as __collateral____________ for the loan. Because the bank has loaned you money to buy the house, they will have a ___lien____ on the property. If the interest that you pay for the loan changes over time as the market fluctuates, your loan is a(n) ___adjustable__________ rate loan. You can reduce the interest rate on your loan by paying the lender ___points______. If you fail to make the required payments for the house, your lender may _foreclose_________ on the property and you will be in _default_________ on the loan. Check Yourself (Matching) A Write the answers to the Check Yourself questions in the blanks below. Foreclosure – Process in which a lender takes over a property when a borrower defaults on a loan Depreciation– A loss of value Default – When a borrower fails to repay a loan Appreciation – A gain in value Collateral – Use of property to guarantee a loan Bankruptcy – Right of a lender to reclaim property Lien – Legal procedure in which individuals or companies cannot repay their debts Mortgage – A type of loan in which property or real estate is used as collateral 68

Virginia Council on Economic Education Check Yourself (Interest Rates on Buying a Home) A Write the answers to the Check Yourself questions in the blanks below. 1. ________________________________fixed-rate mortgage__ 2. ____________________________adjustable-rate mortgage__ 3. ____________________________adjustable-rate mortgage__ 4. ________________________________fixed-rate mortgage__ 5. _________________________________fixed-rate mortgage__ 6. ____________________________adjustable-rate mortgage__ Homework Use a mortgage calculator—such as this calculator by MoneyCoach.io – determine the monthly mortgage payment due for an $80,000 loan at 5% when it is borrowed for 30 years. Assume there are no closing costs to be paid by the buyer. Write your answer in the box below and submit it on Canvas. Lesson 4a: Utilities Write the economic concept introduced by the introductory cartoon/visual in the box below. 69Expenses for utilitiesSee rubric for solution

Virginia Council on Economic Education Check Yourself (Utilities) A Write the answers to the Check Yourself questions in the blanks below. 1. ____________False__ 2. ____________False__ 3. _____________True__ 4. _____________True__ 5. _____________False__ Check Yourself (Calculating Riley’s Utilities) A Write the answers to the Check Yourself questions in the blanks below. 1. ____________$69.99__ 2. ____________$22.73__ 3. ___________$272.80__ Think About It Let's assume you have found the perfect apartment to rent. What questions should you ask the rental agent about the utilities? Write your response in the box below. 70Example responses: What utilities must be paid for the apartment, which are included in rent and which are not, what are the average amount of the utility bills, how do set up utilities?

Virginia Council on Economic Education Lesson 4b: Maintenance Write the economic concept introduced by the introductory cartoon/visual in the box below. Watch it (MoneyCoach: Homeowners Insurance 101) Check Yourself A Write the answers to the Check Yourself questions in the blanks below. 1. ____________True__ 2. ____________False__ 3. ____________False__ 4. Get enough dwelling coverage to cover the total cost of rebuilding of your home 5. __Both of these__ 6. Look at moving your car insurance to the same insurance company and shop around for a new homeowners' insurance policy Homework Congratulations! You've just purchased your first home. Before you can move in, you need new appliances. Look at several websites to determine a representative price for the items listed below. Include a link to each web page. Write your answer in the box below and submit it on Canvas. 1. Refrigerator 2. Gas stove 3. Washing machine 4. Microwave oven 5. Dishwasher 71Maintenance and repairs

Virginia Council on Economic Education Lesson 5a: Types of Discretionary Spending Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Discretionary spending – spending for goods and services beyond the essentials of food, shelter, and clothing. Discretionary funds –funds left over after necessities have been paid for. Marketing – the overall plan that businesses use to sell their goods or services. Conspicuous consumption – buying goods and services for the purpose of impressing others. Watch it (MoneyCoach: Spending Plans 101) Check Yourself (Spending Plans) A Write the answers to the Check Yourself questions in the blanks below. 72See rubric for solutionsDiscretionary spending

Virginia Council on Economic Education 1. _____They're centered around one rule: 50/30/20__ 2. __True________________________________________________________________ 3. _Both Rent and ESI_____________________________________________ 4. A budget requires you to track every expense and follow strict guidelines, whereas a spending plan is more flexible and requires you to automate your spending 5. _All of these statements___________________________________ 6. _Pay with cash, never with credit card________________ Check Yourself (Spending Plans) A Write the answers to the Check Yourself questions in the blanks below. 1. _______________________Problem__ 2. _______________________Decision__ 3. ________________________Criteria__ 4. _______________________Evaluate__ 5. ____________________Alternatives__ Check Yourself (Drag and Drop) A Write the answers to the Check Yourself questions in the blanks below. Conspicuous Consumption 1. __“Ill be the first in the club to have one”__________________________________ 73

Virginia Council on Economic Education 2. “It will go down in price in a year or so, but I want it now because I want to be the first one to own it” Discretionary Spending 1. _____“I’m going to the store to buy myself a new pair of earning” __ 2. _________“I bought a designer version of my uniform shirt”__ Necessity 1. __“I need dress pants for my job’s professional dress policy”_______________ Think About It Robert inherited a lot of money and needs to furnish his new home. What purchases could he make that might be considered conspicuous consumption? Write your response in the box below. Lesson 5b: Deciding on Discretionary Spending Write the economic concept introduced by the introductory cartoon/visual in the box below. 74OverspendingResponses will vary. Examples could include an overly large/expensive TV.

Virginia Council on Economic Education Check Yourself (Costs-Benefits to Discretionary Spending Decisions) Write the answers to the Check Yourself questions in the blanks below. 1. ____________True__ 2. ____________False__ 3. ____________False__ 4. Build up a small emergency fund (for example, $1,000) in your checking account 5. Building a much larger emergency fund, enough to cover six months' worth of living expenses 6. All three are great options, but be sure 10–15% of your total paycheck is going toward retirement Check Yourself (Drag and Drop) A Write the answers to the Check Yourself questions in the blanks below. Marginal Cost 1. It will take time unpack and assemble the lamp – no more than half an hour 2. A floor lamp costa $70 more than a basic desk lamp 3. The price of the floor lamp is $120 Marginal Benefit 1. Adding lighting in the office will make it easier to work 2. Floor lamps can be moved from room to room to provide light as needed 3. A floor lamp is more easily adapted to different decors than a desk lamp Check Yourself (PACED Model) A Write the answers to the Check Yourself questions in the blanks below. 75

Virginia Council on Economic Education 1. ______________Problem__ 2. ______________Decision__ 3. ___________Alternatives__ 4. ______________Evaluate__ 5. _______________Criteria__ 6. ______________Evaluate__ Watch it (FTC: Online Shopping – Security Tips) Check Yourself A Write the answers to the Check Yourself questions in the blanks below. 1. ____________True__ 2. ____________True__ 3. ____________True__ Homework Apply the PACED decision model to a purchase decision that you recently made. List all five steps and include an explanation of the considerations you made at each step. What was the outcome? Write your answer in the box below and submit it on Canvas. 76See rubric for solutions

Module 11

Virginia Council on Economic Education MODULE 11 Module topic – Based on the Module introduction, what do you think is the major theme of this module? Write your response in the box below. Lesson 1a: Simple and Compound Interest Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Write the correct response in the blanks provided. Principal – initial money placed in an investment Interest – money earned from investing, based on an interest rate percentage Simple interest – interest calculated using the principal amount of a deposit Compound interest – interest calculated using the principal amount AND the interest that has accumulated in earlier periods You placed $1000 in a savings account earning 10% and earned $20 after 2 years. The principle amount in this situation is equal to $__1,000________ and the amount of interest earned is $_20____________. The account pays __simple___________ interest. Watch it (FRBSL: Growing Money) Check Yourself Write the answers to the Check Yourself questions in the blanks below. 77Saving and investing(Saving and) Interest

Virginia Council on Economic Education 1. __$1,299.50__________ 2. __$237.50____________ 3. __Compound Interest___ 4. __$295.26____________ 5. __$1,075_____________ 6. __$76.90_____________ Think About It You receive a large sum of money for graduation and you want to spend $200 on a ticket to see your favorite band this summer. How might the concept of compounding interest impact your decision to spend the money...or save it instead? Write your response in the box below. Lesson 1b: The Rule of 72 &Time Value of Money Write the economic concept introduced by the introductory cartoon/visual in the box below. 78Compound interest means that any amount saved/invested will grow even more over time. This might make the student want to forego the concert and save the entire amount, or at least consider the benefits of the concert more carefully.The value of money doesn’t grow if it’s not invested

Virginia Council on Economic Education Vocabulary Future Value – the value of a sum of money after it earns interest over time Present Value – the current value of a sum of money to be received in the future Check Yourself (Rule of 72) Write the answer to the Check Yourself question in the blank below. 1. ______20.57 years__ 2. _____28 years______ 3. ____12% _______ Watch it (MRUniversity: Rule of 70 and 72) Check Yourself (Rule of 72) Write the answers to the Check Yourself questions in the blanks below. 1. ____________True__ 2. ____________False__ 3. ____________False__ Homework Congratulations! You won a prize in a contest! There are two choices: take the $500 prize today or wait one year and take the $500 prize a year from now. If the interest rate is 3%, compounded annually, how much interest would you be giving up if you took the prize a year from now? Write your answer in the box below and submit it on Canvas. 79

Virginia Council on Economic Education Lesson 2a: Savings and Investment Options Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Write the letter of the term associated with each statement in the blank provided. A. Savings account – the most basic type of account a bank offers; deposits are insured and earn interest. B. Checking account – similar to savings account but has additional methods for withdrawing funds. C. Liquidity – how easily an asset can be turned into cash. D. Certificates of deposit (CDs) – accounts that earn an interest rate based on the length of time the deposit is held. E. Stock – a share in the ownership of a company. F. Dividend – a portion of the profits of a company earned by owners. G. Bond – a type of loan to a company or government. H. Mutual fund – ownership of a group of stocks and bonds purchased by pooling the funds of multiple investors. 80See rubric for answersInterest rates

Virginia Council on Economic Education ___A____ 1. Deposited funds earn interest, but at interest rates below most other options. ___E____ 2. A way to purchase a tiny fraction of a large company. ___G____ 3. Corporate debt purchased by an investor. ____F___ 4. Payments to the stockholders when a company performs well. ____B___ 5. Deposited funds are easy to withdraw using checks, ATMs, or electronic funds transfers. ____H___ 6. What investors purchase when they want diversify their portfolios by pooling their funds to purchase a group of stocks. ____C___ 7. Higher for a checking account than a CD, but highest for cash in your pocket. Check Yourself (Saving Options) Write the answers to the Check Yourself questions in the blanks below. 1. _________________________________________increase__ 2. __________________________________________positive__ 3. ______________________________between 0.6% and 0.8%__ 4. _____________________________________________lower__ 5. __higher interest rates lead to a faster accumulation of wealth__ 81

Virginia Council on Economic Education 6. ________________________________________________30__ Check Yourself (Investing Your Money) Write the answers to the Check Yourself questions in the blanks below. 1. __________________Savings account__ 2. ____________________________CD__ 3. ____________________________CD__ 4. ________________Checking account__ 5. ____________Money Market account__ Watch it (FRBSL: Understanding Bonds) Check Yourself Write the answers to the Check Yourself questions in the blanks below. 1. ____________Graph A__ 2. ____________Graph D__ 3. ____________Graph D__ 4. ____________Graph A__ 5. ____________Graph A__ Think About It Your grandmother gave you $500 for helping her move, but she told you that you need to save the money for college or vocational school. Since you'll need the money soon, what types of savings and investment options should you consider? Write your response in the box below. 82

Virginia Council on Economic Education Lesson 2b: Investment Options, Income Sources, and Costs of Investments Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary U.S. Treasury Securities – government debt instruments issued by the United States Department of the Treasury to finance federal government debt. Real estate investment – the purchase, ownership, lease, or sale of land and any structures on it for the purpose of earning money. Retirement plan – long-term savings plan into which money is added during an employee's employment years to fund retirement. Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. Certificate of deposit – money is unavailable for a period of time. Money Market account – the return varies from day to day due to the variable interest rate. Savings account – easiest to convert to cash but has a low interest rate. Watch it (MRUniversity: Diversify! Diversify! Diversify!) Check Yourself Write the answers to the Check Yourself questions in the blanks below. 83Answers vary, for example, depending on how “soon”. CDs would need to be short enough to make the funds available when needed. Stocks and mutual funds are risky and may not earn returns in the short run. Savings accounts are safe but have low interest ratesWise investing

Virginia Council on Economic Education 1. ______________________________Oil firm and airline firm__ 2. ___________________________________Marry a physician__ 3. _____________________________________________False__ Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. Mutual funds – managed funds that pool money from many investors and invests the money in securities such as stocks, bonds, and short-term debt. Retirement plans – long-term savings plans into which money is added during a person's employment and from which payments are drawn during retirement. Stocks – represents an ownership share in a company. Real estate investing – the purchase, ownership, lease, or sale of land and any structures on it for the purpose of earning money. U.S. Treasury securities – government debt instruments issued to finance government spending. Bonds – loans you make to corporations, the government, or federal agencies; often called debt securities. Check Yourself (Income Sources and Funds) Write the answers to the Check Yourself questions in the blanks below. 1. ______________certificate of deposit__ 2. _________________________interest__ 3. _____________________income fund__ 84

Virginia Council on Economic Education 4. _______predictable income investment__ 5. _______________________dividends__ Homework Use websites to find and compare the interest rates paid by three different banks or credit unions on three different savings options. For each bank, provide; •Bank name •Bank website address •Interest rate for CD, 6 months •Interest rate for CD, 12 months •Interest rate for savings account How can you explain the differences in interest rates being paid? Write your response in the box below and submit on Canvas. 85See rubric for answers

Virginia Council on Economic Education Lesson 3a: The Social Security Program Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Social Security – a safety net to provide income for older people when they retire. Medicare – the national health insurance program for people over the age of 65. Check Yourself (Social Security) Write the answers to the Check Yourself questions in the spaces below. 1. has existed since the stock market crash of 1929 2. stands for the Federal Indebtedness Consolidation Act 3. are paid to active business owners 4. benefits for children who work in factories 5. enough to maintain the funds for now, but assistance will be needed in the future Watch it (MoneyCoach: Retirement) Check Yourself A Write the answers to the Check Yourself questions in the blanks below. 1. ________________All of these__ 2. __________________False__ 86Social Security

Virginia Council on Economic Education 3. _______long-term care insurance and annuities__ 4. _______Original Medicare + Part D + Medigap__ 5. ____Try to save 10%–15% of your paycheck for retirement__ 6. ___You’re not ready. Target 33x your annual expenses.__ Think About It The Social Security program was designed to provide older adults with a limited amount of money in their retirement years. In order to have enough money in retirement, how should you prepare? Write your response in the box below. Lesson 3b: Social Security as Retirement Savings, Medicare, and Disability Write the economic concept introduced by the introductory cartoon/visual in the box below. Watch it (NASI: Social Security: Just the Facts) Check Yourself Write the answers to the Check Yourself questions in the blanks below. Deductible – the portion of health care expenses the patient must pay before insurance goes into effect. 87Work and pay into Social Security, but also have a retirement plan.Social Security and retirement plans

Virginia Council on Economic Education Medicare Part A – covers inpatient hospital care and some follow-up care. Medicare Part B – covers doctor’s services and medical supplies Medicare Part D – covers prescription drug expenses. Copayment – the portion of medical expenses that the patient must pay in addition to the payments made by Medicare. Check Yourself (Social Security and Retirement) Write the answers to the Check Yourself questions in the blanks below. 1. ______a monthly check and Medicaid__ 2. ___Supplemental Security Income__ 3. ____________________True__ Homework Is Social Security expected to be around when you retire? Explain. Write your response in the box below and submit on Canvas. 88See rubric for answers

Virginia Council on Economic Education Lesson 4a: Types of Retirement Plans (Part 1) Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary IRA – account that could include stocks, bonds, mutual funds and other assets that are used save money for your retirement expenses. Check Yourself (IRA’s) Write the answers to the Check Yourself questions in the blanks below. 1. ____________True__ 4. ____________True__ 2. ____________False__ 5. ____________True__ 3. ____________True__ 6. ____________True__ Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. Traditional IRA Advantages: 1. The worker can deduct the IRA contribution from their taxable income Traditional IRA Disadvantages: 1. You cannot contribute money once you reach age 70.5 2. Your savings is taxable upon withdrawal in retirement 89IRAs

Virginia Council on Economic Education Roth IRA Advantages: 1. Your savings is not taxable upon withdrawal at retirement 2. You can pay into the IRA regardless of age Roth IRA Disadvantages: 1. When you pay taxes before saving, you have lower take-home pay while working 2. Those with high incomes cannot contribute to this type of account Think About It You received an inheritance of $5,000 with instructions to invest it for retirement. How might a Roth IRA help you reach your retirement goals? Write your response in the box below. Lesson 4b: Types of Retirement Plans (Part 2) Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Annuity – an investment plan that is an agreement between an individual and an insurance company. 90It earns interest safely and has tax advantagesRetirement savings plans (annuities)

Virginia Council on Economic Education Watch it (FRBSL: Ways to Save) Check Yourself (Retirement plans) Write the answer to the Check Yourself questions in the blanks below. 1. __________employees of nonprofit organizations______________________ 2. _______You are guaranteed to earn a high return on your investment.__ 3. ________________All of these___________________________________________ Check Yourself (Drag and Drop) Write the answer to the Check Yourself questions in the blanks below. Tax-sheltered annuity – Non-profit and other similar organizations can contribute to retirement plans with pre-tax dollars 401(k) – Employer-funded retirement plans; once vested, employees can take their retirement savings with them to new jobs if they leave an employer Public pension plan – Government retirement plan SIMPLE IRA – A basic retirement savings plan where employers and employees contribute to a worker’s retirement plan SEP IRA– Allows employers and the self-employed to set aside up to 25% of their compensation or $57,000, whichever is lower Annuity – An agreement to provide a steady stream of income at retirement Homework Susie asks you for investment advice as she's not sure if she should invest in a Roth or Traditional IRA. She has a great job now and will have lower earnings and a lower marginal tax rate once she retires. Which would you recommend and why? Write your answer in the box below and submit on Canvas. 91

Virginia Council on Economic Education Lesson 5a: Stock Market Basics Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Write the letter of the term associated with each statement in the blank provided. A. Share – a unit of ownership in a company B. Initial Public Offering (IPO) – when a corporation sells stock for the first time C. Stock table – provides information regarding the performance of a stock. D. Dividend per Share (Div.) – refers to the annual dividend payment shareholders receive based on each share owned E. Yield– percent return on investments provided by dividends over the last year F. Price-to-Earnings Ratio (P/E ratio) – the current stock price divided by the earnings per share for the last four quarters 92See rubric for answersStock Market (fluctuations)

Virginia Council on Economic Education ___C____ 1. Consulted by investors deciding on stock investments. ___A____ 2. These are purchased when an investor buys stock in a company. ___F____ 3. A measure of how well a stock performed last year. ___E____ 4. The profits of a company returned to investors last year, as a percent of funds invested. ___B____ 5. The process through which a company “goes public.” ___D___6. The profit returned to investors for each share of stock they owned last year. Watch it (FRBSL: Get Into Stocks!) Check Yourself (Stock Market Basics) Write the answer to the Check Yourself questions in the blanks below. 1. ____________________________________________stock__ 2. ___________________________dividends and capital gains__ 3. __the money could be difficult to obtain from another source__ 4. _____________________________________________True__ 5. ____________________________________Investment risk__ 6. _____________________________________________True__ 93

Virginia Council on Economic Education Check Yourself (Basics of Buying Stocks) Write the answer to the Check Yourself questions in the blanks below. 1. _______These loans are made to governments and companies__ 2. __They're a little piece of a business. That means when the business does well, the stock price generally goes up__ 3. __Both of these________________________________________________________ 4. __Excuse me, but you’re actually losing money to inflation doing that__ 5. ___All of these_________________________________________________________ 6. ____Yes. The earlier you start, the longer your investment can compound__ Check Yourself (Drag and Drop) Write the answer to the Check Yourself questions in the blanks below. 52W High – highest price for a stock in the last 52 weeks 52W Low – lowest price for a stock in the last 52 weeks. Stock name – the name of the company Ticket symbol – series of letters used to identify each stock. Div – payment received by stock owners as an annual dividend payment Yield – return on investment P/E ratio – ratio of the price of the stock and earnings of the company. Close – the final price of the day 94

Virginia Council on Economic Education Think About It If buying shares of stocks from two or three companies, what types of companies would those be? How does an investor decide what to buy? Write your response in the box below. Lesson 5b: The Stock Market as an Investment Write the economic concept introduced by the introductory cartoon/visual in the box below. Check Yourself (Drag and Drop) Write the answer to the Check Yourself questions in the blanks below. Stock Market – a place for buying, selling, or trading stock NASDAQ – the second-largest stock exchange in the United States; all transactions are electronic NYSE – the largest organized stock exchange in the United States Shareholder – a person who owns part of a company through stock ownership Stock – shares in a publicly traded company 95Responses will vary, for example; choose based on personal knowledge/preference, diversification, history of the company, stock performance data.Stock market (unpredictability)

Virginia Council on Economic Education Check Yourself (Building an Investment Portfolio) Write the answer to the Check Yourself questions in the blanks below. 1. ____Why are you investing?___ 2. You will not have to constantly worry about short-term ups and downs of stock markets Watch it (FRBSL: Mutual Benefit) Check Yourself (Diversification) Write the answer to the Check Yourself questions in the blanks below. 1. _______________________________Credit-based banking__ 2. _____________________________an investment company__ 3. ________________________________________Type of job__ Check Yourself (Investment Portfolio) Write the answer to the Check Yourself questions in the blanks below. 1. ____________True__ 6. ____________True__ 2. ____________True__ 7. ____________True__ 3. ____________True__ 8. ____________False__ 4. ____________True__ 9.____________False__ 5. ____________False__ Homework Locate a website or news article about a company that has done an IPO in the last five years. What is the company? How much money did they make from their IPO? Did the IPO bring in as much money as the company and media had anticipated? Include the website/publication title, date of 96

Virginia Council on Economic Education publication, and web address for your source. Write your response in the box below and submit on Canvas. 97See rubric for answers

Module 12

Virginia Council on Economic Education MODULE 12 Banking and Financing Purchases Module topic – Based on the Module introduction, what do you think is the major theme of this module? Write your response in the box below. Lesson 1a: Types of Financial Institutions Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Financial institutions – provide financial products and services. They include credit unions, commercial banks, savings and loans, finance corporations, insurance agencies and other non-bank institutions. Commercial bank – a financial institution that accepts deposits, provides loans and offers a variety of other services. Credit Union– a financial institution that accepts deposits and makes loans. It is not-for-profit and is owned by its members. Savings and Loan– a financial institution specializes in savings deposits from consumers and making mortgage loans to homebuyers. Check Yourself (Financial Institutions) Write the answers to the Check Yourself questions in the blanks below. 98The main theme of the module is financial institutionsBank/financial institution deposits

Virginia Council on Economic Education 1. ____________True __ 2. _________$250,000__ 3. __________savings__ 4. ____________False__ 5. ____Another FDIC bank__ Watch it (USFTC: Banking Accounts) Check Yourself Write the answers to the Check Yourself questions in the blanks below. 1. _______________commercial bank__ 2. ___________________credit union__ 3. ___________________credit union__ 4. ___________________credit union__ Watch it (FRBSL: Banks & Alternatives) Check Yourself Write the answers to the Check Yourself questions in the blanks below. 1. ___________________Credit unions__ 2. ____________________All of these__ 3. _______________Savings and Loans__ 4. _______Banks and savings and loans__ 5. ___________________Credit unions__ 99

Virginia Council on Economic Education Watch it (USFTC: Payday Lending) Check Yourself (Financial Institutions) Write the answers to the Check Yourself questions in the blanks below. 1. ____________False__ 2. ____________False___ 3. _____________True__ 4. _____________True__ 5. _____________True__ 6. _____________False__ Think About It You did some yard work for a neighbor, and they paid you with a check. If you don't have a bank account, how could you cash the check? Write your response in the box below. Lesson 1b: Services provided by Financial Institutions Write the economic concept introduced by the introductory cartoon/visual in the box below. 100It would be difficult and costly to cash a check through a check cashing serviceFinancial services

Virginia Council on Economic Education Vocabulary Write the letter of the term associated with each statement in the blank provided. Saving – holding money to spend later and /or earn interest Spending – conducting financial transactions to purchase gods and services using cash or other methods including ATM cards, electronic payments, and checks Borrowing – taking out a loan for a specific purpose, such as paying college tuition or buying a house or car Investing – earning income over the long term by loaning it to companies by purchasing financial products ___D____ 1. Buying shares of stock i ___B____ 2. Using Apple Pay on a phone to buy lunch ___A____ 3. Placing $1000 in an interest-bearing account at a bank ___C____ 4. Receiving a mortgage from a bank or savings and loan Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. Saving – you keep your babysitting money in a jar in your room to buy a new pair of jeans Spending – you use an ATM at the mall to get some money for the movies Investing – you and a friend chip in on a sound system so you can take some DJ jobs at parties around town 101

Virginia Council on Economic Education Lending – you give your little brother $5 to buy baseball cards and make sure he pays you back Borrowing – you ask your parents for $120 to cover the cost of a new bike and plan to pay them back $10 a month for the next year Watch it (USFTC: Cashing a Paycheck) Check Yourself (Cashing a Paycheck) Write the answers to the Check Yourself question in the blanks below. 1. ______The bank that issued her paycheck______________________________ Homework You want to buy a used car but don't have enough money to purchase it outright. Your parents suggest that you check around at local banks, credit unions, and savings and loans to compare the interest rate on a 36-month $2,000 loan for an older used car. 1. What is the lowest interest rate that is being charged to borrow money for a used car at a bank, credit union, and savings and loan? Include the interest rate and the name of the institution offering the loan. 2. Of the three options, which location has the lowest interest rate for a loan? Is this surprising given what you learned about these types of institutions? Why or why not? Write your answer in the box below and submit it on Canvas. 102See rubric for solutions

Virginia Council on Economic Education Lesson 2a: Benefits and Costs of Banking Services Write the economic concept introduced by the introductory cartoon/visual in the box below. Check Yourself (Benefits and Costs of Banking Services) Write the answers to the Check Yourself questions in the blanks below. 1. ____________________________All of these__ 2. __________________Withdrawals are limited__ 3. _________________________________True__ 4. _______________________Checking account__ 5. __________________Put in a savings account__ 6. __________________Put in a savings account__ Check Yourself (Bank Accounts) Write the answers to the Check Yourself questions in the blanks below. 1. ______________will earn interest__ 2. _______________________safety__ Think About It Your great-aunt Susie gives you $800 as your high school graduation present! Should you put it into a checking account, a savings account, or split it up in both? Write your response in the box below. 103Banking fees/costs

Virginia Council on Economic Education Lesson 2b: Online Banking Checking and Savings Accounts Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Electronic banking – refers to services that allow customers to access bank information, conduct financial transactions, make deposits and withdrawals, and pay bills electronically without visiting a bank. Check Yourself (Checking Accounts) Write the answers to the Check Yourself questions in the blanks below. 1. ___ shows how much money you want to take out of your account__ 2. _________________________________automated teller machine__ 3. ___________________________________________direct deposit__ Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. Step 1: Choose a bank 104Answers will vary; the money will earn interest in a savings account but can be more easily spent in a checking account,Online banking

Virginia Council on Economic Education Step 2: Complete the application Step 3: Provide Identification Step 4: Meet a banker Step 5: Complete signature card Check Yourself (Checking Accounts) Write the answers to the Check Yourself questions in the blanks below. 1. _______________All of these__ 2. _____________________True__ 3. _____________________True__ 4. ___Get a checking account offered by either a traditional bank or credit union__ 5. ___Never go below your account’s minimum balance requirement__ Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. Step 1: Review your statement as soon as you receive it Step 2: Find transactions that are on the statement but not in the register Step 3: Add any transactions or fees you did not record to the register 105

Virginia Council on Economic Education Step 4: Check off every transaction that is in the register and on the statement Step 5: Compare the register balance and the statement balance Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. Step 1: Look for transactions in bank statement that match transactions in your check register Step 2: Add the total credits in transit to the ending balance on your bank statement Step 3: Subtract the total debits in transit from the new total Step 4: Check transactions off in your check register as "reconciled.” Step 5: Confirm that the new total matches your check register balance Homework Your friend Tim wants to open a checking account, but he's not sure how to do it. Explain the process from start to finish. Write your response in the box below and submit it on Canvas. 106See rubric for solutions

Virginia Council on Economic Education Lesson 3a: Methods for Financing a Purchase Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Finance Charges – the amount paid to use credit—could include interest, service charges, application fees, and other costs for using credit. Annual Percentage Rate (APR) – the interest rate, compounded over one year and expressed as a percentage, charged for borrowing money Annual Fee – a yearly fee charged for having a credit card Transaction Fees – cash advance fees, late payment fees, balance-transfer fees, over-limit fees, and any other fees credit card companies charge for services You have a credit card from your bank that costs you $20 each year and charges 18% interest. Your credit card statement for the first month shows that you have been charged $38 interest and a $10 late fee on your credit card charges. Write the amount of each of the following for your credit card. __________$20__ 1. Annual fee __________$10__ 2. Transaction fees __________18%__ 3. APR __________$48__ 4. Finance charges Watch it (MoneyCoach: Credit Cards 101) Check Yourself Write the answers to the Check Yourself questions in the blanks below. 107Financing purchases

Virginia Council on Economic Education 1. ________________________________________All of these__ 2. _____________________________________________True__ 3. ________________________________Both of these are true__ 4. ____Don't worry. Student credit cards are designed for people with no credit history__ 5. __Get a credit card. They are a great way to earn free money and build a credit score__ 6. ______________________Get the cosigned card__ Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. Annual fee – a fee charged to possess a specific credit card, whether the consumer uses it or not Debit card purchase – money is removed from the customer’s checking account as soon as the transaction clears Carry a balance – this happens when the card user does not pay the full amount of their bill during a billing period Returned check fee – charged when someone writes a check for more than they have in their checking account Overdrawn account – an overdraft fee charged when the amount of money in an account is less than the amount of a debit card or check purchase Check Yourself (Fees and the Cost of Credit) Write the answers to the Check Yourself questions in the blanks below. 1. ____________True__ 108

Virginia Council on Economic Education 2. ____________False__ 3. ____________True__ 4. ____________True__ 5. ____________False__ Think About It You need a new laptop because yours is no longer working well. Should you use a debit card or a credit card to pay? How would you decide? Write your response in the box below. Lesson 3b: Credit Cards Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Purchase protection – money will be refunded if the product purchased is faulty Fraud protection – consumer is protected if someone makes a purchase with their credit card that is unauthorized Online payments – the ability to make instant payments for purchases Deferred payments – buyer has some time until payment is due Check Yourself (Credit Cards) 109Answers will vary. Credit cards have charges and fees but you must have the money in your account to use a debit cardCredit cards

Virginia Council on Economic Education Write the answers to the Check Yourself questions in the blanks below. 1. ______________________________________Both of these__ 2. ____________________________________________False__ 3. _____________________________________________True__ 4. __Unless it’s an amazing travel credit card, avoid cards with annual fees__ 5. _______Avoid using the card if it charges a foreign transaction fee__ 6. Don’t! You’ll have to pay a cash-advance fee, plus the money you withdraw will immediately start accruing interest Check Yourself (Sample Credit Card Application) Write the answers to the Check Yourself question in the blanks below. 1. ___$95_______________________________________________________________ Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. Purchase protection – money will be refunded if the product purchased is faulty Fraud protection – consumer is protected if someone makes a purchase with their credit card that is unauthorized Online payments – the ability to make instant payments for purchases Deferred payments – buyer has some time until payment is due 110

Virginia Council on Economic Education Watch it (USFTC: Minimum Payments on Credit Cards) Check Yourself Write the answers to the Check Yourself question below. 1. The total cost of the item purchased will be more than the initial purchase price if the cardholder only makes minimum payments Homework Locate two credit card applications that show the terms and conditions of the card. 1. Compare the cards and their fees by providing the following information for each card: Name of the credit card, Website address for the card, Annual Percentage Rate, Cash Advance Fee, Annual Fee 2. Does one credit card have lower fees overall than the other? Explain. Write your response in the box below and submit it on Canvas. Lesson 4a: The 5 Cs of Credit Write the economic concept introduced by the introductory cartoon/visual in the box below. 111See rubric for solutionCredit history/co-signing loans

Virginia Council on Economic Education Vocabulary Write the letter of the term associated with each statement in the blank provided. A. Credit rating – an assessment of creditworthiness B. Credit score – number from a formula that estimates creditworthiness C. Character – a borrower’s reputation and history of paying obligations D. Capacity – a person’s ability to repay debt E. Capital – savings and other assets F. Conditions – circumstances that may make it easier, or harder, to obtain credit G. Collateral – assets, such as property, used to repay a loan if repaying with cash is not possible __C__ 1. Always paying bills on time __E__ 2. Cash for a large down payment for a mortgage __F__ 3. You have a secure job and the economy is doing well __D__ 4. A high income and large deposits in your savings and checking accounts __G__ 5. The title to a car or mortgage for a house that goes to a lender if a loan is not repaid __B__ 6. A FICO of 700 Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. 112

Virginia Council on Economic Education 1. An assessment of creditworthiness is known as a credit rating. 2. The length of a person's credit history is factored into the FICO score. 3. The number that evaluates creditworthiness is known as a credit score. 4. Equifax, Experian, and TransUnion perform credit ratings. Watch it (USFTC: Credit Scores) Check Yourself (The 5 Cs of Credit) Write the answers to the Check Yourself questions in the blanks below. 1. ______________Collateral__ 2. _______________Capacity__ 3. _______________Capacity__ 4. ______________Character__ Check Yourself (Credit Rating Perks and Pitfalls) Write the answers to the Check Yourself questions in the blanks below. 1. ____________True__ 2. ____________True__ 3. ____________True__ 4. ____________True__ Think About It 113

Virginia Council on Economic Education The 5 Cs of Credit are character, capacity, capital, conditions, and collateral. What could you do to improve each of these? Write your response in the box below. Lesson 4b: Credit and Loan Laws, Credit Ratings Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Credit report – a detailed compilation of an individual's credit history Check Yourself (Credit Ratings) Write the answers to the Check Yourself questions in the blanks below. 1. ____________________All of the above__ 2. _____________________________True__ 114Answers vary, for example; Character: pay bills on time Capacity: increase income Capital: save Conditions: have a steady job Collateral: borrow for large items (house/car) Credit scores

Virginia Council on Economic Education 3. _____________________________False__ 4. _______________________Both of these__ 5. ______Check his credit report. There might be a mistake that is hurting his credit score__ Check Yourself (Credit Scores) Write the answers to the Check Yourself questions in the blanks below. 1. ___________________________________________Experian__ 2. ________________________________credit card applications__ 3. _________________________________________loan lenders__ 4. ______________________pay lower interest rate on a car loan__ 5. __________________________________your payment history__ 6. ________________________________________________FICO__ Watch it (USFTC: Your Source for a Truly Free Credit Report?) Write the number of free credit reports can you receive each year in the blank below. __3___________________ Homework Jesse has a job and pays off his credit card every month. He was surprised he was rejected when he applied for a car loan. Explain the steps that he should 115

Virginia Council on Economic Education take to check his credit report for errors. How can he resolve any errors that he discovers? Write your response in the box below and submit it on Canvas, Lesson 5a: Cost of Credit Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Payday Loan – cash advance loan from an individual’s paycheck Title Loan – loan that requires the borrower signs over a car title Pawnshop (Pawn Broker) – provide loans on the value of items used as collateral Unsecured Loan– a loan that does not require collateral; often given to borrowers with a good credit record. Secured Loan – a loan guaranteed by property 116See rubric for solutionCredit card costs

Virginia Council on Economic Education Watch it (MoneyCoach: Loans 101) Check Yourself Write the answers to the Check Yourself questions in the blanks below. 1. __________________Both principal and interest payments__ 2. __________The APR includes both the interest rate and the loan’s fees__ 3. _____________________________All of these__ 4.5. Secured loans come with lower interest rates and approval rates, but the bank can take the financed asset (like a car) if you fail to repay 6. Get the short-term loan (if you can afford it). It comes with a lower interest rate and less interest paid over the life of the loan 7. ________________Compare them by their APRs__ Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. Bank – makes many types of loans easily available but requires good credit Credit Union – institution where members can get lower-rate loans Pawn shop – loan based on the worth of the item used as collateral; item returned if the loan is paid off Payday loan – high-fee, short-term loan repaid when borrower receives income from work Title loan – high-interest loan in which borrower signs over title to their automobile Check Yourself Write the answers to the Check Yourself questions in the blanks below. Secured Loan: 117

Virginia Council on Economic Education 1. _______________________Collateral is required__ 2. ____________Collateral can be lost if the loan is not repaid__ 3. _____Can be repaid in equal monthly payments for as long as 45 years__ Unsecured Loan: 1. Borrower can be sued of their wages be taken if the loan is not repaid__ 2. Sometimes has higher interest rates because there is higher risk for the lender Think About It While shopping at the mall you see a sign at the register that reads, "Save 10% today! Apply for a credit card!" What are the benefits and drawbacks associated with applying for the card? Write your response in the box below. 118Benefits: convenience, safety, build credit Drawbacks: cost of credit

Virginia Council on Economic Education Lesson 5b: Debt and Bankruptcy Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary A. Lien – property can be taken to pay a debt or may not be sold until debt is paid B. Foreclosure – the lender can take back a house if the mortgage is not paid according to schedule C. Repossession – a seller can take goods back when the buyer fails to make payments on time D. Eviction – a landlord can have renters removed from a house or apartment if rent is not paid on time E. Voluntary bankruptcy – when debtors file a bankruptcy petition because they have more debts than assets and believe they cannot pay their debts F. Involuntary bankruptcy – when creditors file petitions of bankruptcy against debtors who owe them money It is important to pay as required for housing. If a borrower fails to pay a mortgage on time, the property can go into ___foreclosure______ because the lender has a __lien___________ on the property as collateral for the debt. If a renter fails to pay rent on time, they can face __eviction__________ by their landlord. Failure to pay for goods purchased with credit, like a car, can result in __repossession_________ of the item by the lender. 119Bankruptcy

Virginia Council on Economic Education Watch it (MoneyCoach: Loans – Mistakes and Best Practices) Check Yourself Write the answers to the Check Yourself questions in the blanks below. 1. ______________________________________Both of these__ 2. _____________________________________________False__ 3. _____________________________________________True__ 4. ________________________________________All of these__ 5. __Find someone with great credit willing to cosign your loan__ 6. ________________________________________All of these__ Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. Liens – You owe a debt that has not been paid. Your property can taken away from you or you can be prevented from selling your property. Foreclosures – The bank that holds your mortgage can take back your house if the mortgage is not paid according to schedule Repossessions – You fail to make payments, so the seller of the item can take the goods back from you. Evictions – When a renter fails to pay the rent and the landlord has them removed from the property Check Yourself (Bankruptcy) Write the answers to the Check Yourself questions in the blanks below. 120

Virginia Council on Economic Education 1. _________________________________are in serious financial trouble__ 2. ________________________________U.S. Bankruptcy Code, Title 11__ 3. ________________________________________________the court__ 4. ____________________________________________________Involuntary__ 5. ________________________________________________________False__ Homework You lost your job and have fallen behind on your bills. You now owe more money than you could possibly make in the next year. What steps you can take to get help with managing your debt? What kinds of organizations should you contact, and how can you verify the quality of those organizations? Write your response in the box below and submit it on Canvas. 121See rubric for solutions

Module 13

Virginia Council on Economic Education MODULE 13 Insurance Module topic – Based on the Module introduction, what do you think is the major theme of this module? Write your response in the box below. Lesson 1a: Types of Insurance and Risk Management Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Insurance – a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium Premium – the payment the insured (buyer) makes for an insurance policy Risk management – a strategy for protecting against the risk of loss Insurance policy –a detailed legal contract that outline the terms of insurance coverage and the amount of protection against risk or liability provided Watch it (CEE: Insurance) Check Yourself (Insurance) Write the response to the Check Yourself questions in the blanks below. 1. Accept the risk, Transfer the risk through insurance, and Take precautions 122The main theme of the module is insuranceInsurance/risk management

Virginia Council on Economic Education 2. Deductible 3. Premiums exceed payouts Check Yourself (Insurance Basics) A Write the response to the Check Yourself questions in the blanks below. 1. _____________________Claim__ 2. __________________Premium__ Check Yourself (Drag and Drop) Write the response to the Check Yourself questions in the blanks below. Step 1: Conduct research about cost of insurance and coverage amounts Step 2: Visit an insurance agent; buy policy with good coverage at a fair price Step 3: Set up monthly auto payment from bank account to avoid late fees Step 4: Submit claims if any damage occurs Step 5: Periodically review policy to try to lower his premiums Think About It What type of insurance do you currently have through your parents' policy or a policy of your own? What type of insurance do you think you will purchase in the future, based on a change in your circumstances after high school? Write your response in the box below. 123Answers will vary. Parents may have auto or health insurance for the student. Students may have or soon want auto or renters insurance.

Virginia Council on Economic Education Lesson 1b: The Role of Insurance in Financial Planning Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Deductible– the amount the insured pays before the insurer pays for a claim Watch it (FRBSL: Insurance – Protecting Yourself) Check Yourself Write the response to the Check Yourself questions in the blanks below. 1. _______________________All of these__ 2. _______________________All of these__ 3. _________________________Liability__ Check Yourself (Choosing Which Type of Insurance) Write the response to the Check Yourself questions in the blanks below. Maura: Liability and Life Jennie: Disability and Life Cedrick: Homeowner’s and Long-term care Julian: Automobile and Renter’s Check Yourself (Life insurance in financial planning) Write the response to the Check Yourself questions in the blanks below. 1. ____________False__ 124Insurance/risk management

Virginia Council on Economic Education 2. ____________False__ 3. ____________False__ 4. ____________True__ Homework Write a one-paragraph description of each of the following individuals and their circumstances. 1. A person who should purchase property insurance. 2. A person who should not purchase property insurance. Write your answer in the box below and submit it on Canvas. Lesson 2a: Basics of Auto Insurance Write the economic concept introduced by the introductory cartoon/visual in the box below. 125See rubric for answersAuto insurance

Virginia Council on Economic Education Vocabulary Write the letter of the term associated with each statement in the blank provided. A. Liabilities – drivers assume legal responsibilities B. Bodily injury liability– covers legal/medical expenses for injuries in an accident C. Property damage liability – covers damage another person’s property D. Split limits – insurance shorthand that refers to quantity of liability coverage E. Medical payment coverage – pays medical bills for injuries form a car accident F. Collision insurance – covers the costs of car repair G. No-Fault insurance – instead of getting the insurer of the at-fault driver to pay bills, a driver can ask their own insurer to pay __F__ 1. Pays for damage to a vehicle from an accident __A__ 2. The responsibilities assumed when driving a vehicle __C__ 3. Pays for damage to a fence if it is damaged in an automobile accident _B/E_ 4. Pays for hospital bills of someone injured in an automobile accident __G__ 5. Pays for damages in the event of an accident with someone without Watch it (FRBSL: Basics of Auto Insurance pt 1) Check Yourself Write the response to the Check Yourself questions in the blanks below. 1. ____________premium__ 2. ____________coverage__ 126

Virginia Council on Economic Education 3. __________compensate__ 4. __________responsible__ 5. _______________False__ Watch it (FRBSL: Basics of Auto Insurance pt 2) Check Yourself Write the response to the Check Yourself questions in the blanks below. 1. ____________True__ 2. ____________False__ 3. ____________True__ Watch it (FRBSL: What Determines the Price of Insurance?) Check Yourself Write the response to the Check Yourself questions in the blanks below. 1. ____________False__ 2. ____________True__ 3. ____________False__ Think About It What risks do you face when you drive a car without enough insurance coverage? Write your response in the box below. 127Risks include damage to vehicles, injuries to yourself or others, and property damage that may result from driving.

Virginia Council on Economic Education Lesson 2b: Weighing the Costs and Benefits of Auto Insurance Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Insurance claim– a formal request by a policyholder to an insurance company for compensation for a covered loss, for example, to get the car repaired after an accident. Watch it (FRBSL: Car Insurance – Part 1) Check Yourself Write the response to the Check Yourself questions in the blanks below. 1. Type of car, Driving record, Credit score, Age, Gender, Grades, Marital status 2. __________________True__ 3. _____________All of these__ Watch it (FRBSL: Car Insurance – Part 2) Check Yourself Write the response to the Check Yourself questions in the blanks below. 1. ______________________________________________Liability__ 2. ___________________Damage to your car from hail or lightning__ 3. ___________________________________________All of these__ 128Auto insurance

Virginia Council on Economic Education Check Yourself (Drag and Drop) Write the response to the Check Yourself questions in the blanks below. No-fault insurance – Allows drivers to assume no fault in an accident so they can ask their own insurance companies to pay the bills Medical payment coverage – Insurance coverage that pays your medical bills and those of your passengers after a car accident Bodily injury liability – Covers legal or medical expenses for injuries in an accident you caused Collision insurance – Covers the cost of repairs to damage caused by hitting or getting hit by another car Uninsured/underinsured motorist protection – Insurance coverage that lets you get your own insurance company to pay your bills if you are in an accident with a motorist who has little or no insurance Property damage liability – Covers financial losses if you damage people’s property with your car Comprehensive physical damage– Covers repairs to a car damaged by an event other than an accident with another car Split limits – Shorthand that shows your bodily injury and property damage liability coverage Homework You swerve to avoid an animal in the road and cause a car accident. •You and the driver of the other car were the only people involved in the accident. You were not injured. •You have a 50/100/50 liability insurance policy with no deductible. •You have collision insurance with a deductible of $1,000. •The other driver's bodily injury claim is $60,000 for medical expenses related to a broken leg. •The other car was valued at $25,000 and requires $7,000 in repairs. •Your car was valued at $13,000 and requires $15,000 in repairs. •The accident damaged a city light pole that will cost $1,800 to replace. 129

Virginia Council on Economic Education •Determine; 1) the total amount your liability insurance will pay for the accident, 2) the total amount your collision insurance will pay for the accident 3) the amount of additional damages you are responsible for as a result of the accident. Write your answer in the box below and submit it on Canvas. Lesson 3a: Basics of Property and Liability Insurance Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Write the type of insurance that covers each item listed in the blank provided. Property insurance – pays for major disasters—such as fires, hurricanes, or tornadoes and minor mishaps, like theft or a fallen tree Homeowners' insurance – covers physical structures and possessions in the event of an unexpected or catastrophic event, including the costs of repairing or rebuilding the house and replacing the possessions inside it. It also covers a homeowner’s liability for damages or injury to someone visiting the property Renters' insurance – pays for the loss of a renter’s personal possessions Negligence – someone is injured when someone else fails to take proper care Floater insurance – covers property that is easily movable and provides additional coverage over what normal insurance policies do not. 130See rubric for solutionRenter’s/homeowner’s insurance.

Virginia Council on Economic Education __Property___ 1. A windstorm blows the roof off the house you own. __Renter’s___ 2. A fire destroys all of the possessions in an apartment. __Floater____ 3. An accident damages your recreational vehicle (RV). Homeowner’s 4. A salesperson slips and falls, injuring them on your front steps. Check Yourself (Property Insurance) Write the response to the Check Yourself questions in the blanks below. 1. ________________________Covered__ 2. ________________________Covered__ 3. ____________________Not Covered__ 4. ________________________Covered__ Check Yourself (Drag and Drop) Write the response to the Check Yourself questions in the blanks below. Floater insurance – Special coverage for high-value personal property, such as jewelry Loss of use – When property insurance covers the costs of living elsewhere Liability – Legal responsibility to cover the costs of injuries to others or damage to the property of others Personal property – Personal possessions you keep in your house—not the house itself 131

Virginia Council on Economic Education Renter’s insurance – Insurance that covers possessions but not the dwelling Endorsement – Special coverage for catastrophic events, such as earthquakes Think About It What valuable possessions do you have and how much do you think it would cost to replace them? Write your response in the box below. Lesson 3b: Weighing the Costs and Benefits of Property Insurance Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Mortgage – legal agreement between a home buyer and a financial institution to borrow the money to purchase a house using the title to the house as security. Named perils policy – one that covers any loss that is caused by one of the covered perils named specifically in the policy. Open perils policy – one that covers damage or loss from all causes except causes that are specifically excluded in the policy. 132Answers will vary. Examples of possessions may include a car, electronics, or jewelryProperty insurance

Virginia Council on Economic Education Check Yourself (Renter’s Insurance) Write the response to the Check Yourself questions in the blanks below. 1. ____________False__ 4. ____________True__ 2. ____________False__ 5. ____________True__ 3. ____________True__ 6. ____________True__ Check Yourself (Drag and Drop) Write the response to the Check Yourself questions in the blanks below. Damage COVERED by Renters' Insurance: 1. Explosions 2. Fire 3. Lightning 4. Plumbing problems 5. Wind and hail 6. Theft 7. Riots 8. Smoke Damage NOT COVERED by Renters' Insurance: 1. Flood 2. Earthquakes 133

Virginia Council on Economic Education 3. Power failure 4. Neglect 5. Sewer back-up 6. War Check Yourself (Homeowners' Insurance) Write the answers to the Check Yourself questions in the blanks below. 1. ___________True__ 2. ___________False__ 3. ___________False__ Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. Will INCREASE the Cost of Property Insurance: 1. Older house 2. Higher liability coverage 3. Membership in certain associations 4. Replacement value Will DECREASE the Cost of Property Insurance: 1. Fire alarms 134

Virginia Council on Economic Education 2. Higher deductible 3. Building home and auto policies 4. Burglar alarms 5. Deadbolt locks Homework Imagine 5 different events that would cause losses covered by renter's insurance. Write a one-sentence description of each event and a description and estimate of the amount of losses that would result from the event. Write your response in the box below and submit on Canvas. Lesson 4a: Basics of Health Insurance Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Health insurance – a type of insurance that pays a portion of a person’s medical expenses. 135See rubric for solutionsHealth insurance

Virginia Council on Economic Education Long-term disability (LTD) insurance – protects an employee from loss of income in the event that he or she is unable to work for a long time due to illness, injury, or accident. Watch it (MRUniversity: Asymmetric Information)Check Yourself Write the answers to the Check Yourself questions in the blanks below. 1. ______More information about their health than insurers do__ 2. ___________________________________Propitious selection__ 3. _______________________________________All of these__ Watch it (MoneyCoach: Health Insurance 101 - The Basics) Check Yourself Write the answers to the Check Yourself questions in the blanks below. 1. ____________False__ 2. ____________False__ 3. ____________True__ 4. ____________False__ 5. ____________False__ 6. ____________True__ Check Yourself (Health Insurance Policy) Write the answers to the Check Yourself questions in the blanks below. 1. _____$20__ 2. _____$50__ 136

Virginia Council on Economic Education 3. __$1,100__ 4. __$5,000__ Watch it (MoneyCoach: Long Term Disability Insurance 101) Check Yourself Write the answers to the Check Yourself questions in the blanks below. 1. __True__ 2. __False__ 3. __False__ Think About It Why would someone who is young and healthy need to purchase health insurance? Write your response in the box below. Lesson 4b: Weighing the Costs and Benefits of Health Insurance Write the economic concept introduced by the introductory cartoon/visual in the box below. 137To help pay for medical expenses in the event of an unexpected accident, injury, or illness.Health insurance/costs and benefits/HMO

Virginia Council on Economic Education Vocabulary Write type of insurance coverage that would apply for each event listed in the blank provided. Basic Health Insurance – covers hospital care, surgery, and physicians care. Major Medical Insurance – covers hospital care above what is covered by basic health insurance (also called catastrophic care). Dental Care Insurance – covers typical dental procedures, for example checkups, cleanings, fillings, oral surgery. Vision Care Insurance – covers eye and vision care, for example, eye exams, eyeglasses, contact lenses, eye surgery. Long-Term Disability Insurance – provides income replacement if an individual experiences a long-term illness or injury. __Basic_________ 1. You visit to your doctor when you are feeling ill. __Vision________ 2. You receive an exam to determine the prescription for your lenses. __Major medical_ 3. You are hospitalized for a broken leg that requires surgery. ___Dental______ 4. You require a root canal to save your tooth. Check Yourself (Health Insurance Costs) Write the answers to the Check Yourself questions in the blanks below. 1. ____________________________________$6,000__ 2. _____________________________________150%__ 3. ________________________________All of these__ 138

Virginia Council on Economic Education Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. Dental Care Insurance: 1. Periodic teeth cleaning 2. Wisdom teeth extraction Vision Care Insurance: 1. Annual eye exam 2. Corrective eyeglass lenses Major Medical Insurance: 1. Catastrophic emergency surgery 2. Long-term hospital stay for severe illness Basic Health Insurance: 1. Annual physical exam 2. Physician care for short-term illness Watch it (MoneyCoach: How to Get Health Insurance) Check Yourself Write the answers to the Check Yourself questions in the blanks below. 1. ____________False__ 2. ____________True__ 3. ____________True__ 139

Virginia Council on Economic Education 4. ____________False__ 5. ____________False__ Homework Hussain has a basic health insurance policy with the following specifications: •$4,000 out-of-pocket maximum •10% co-insurance •$1,000 deductible •$25 primary care co-pay (in-network doctor) •$40 specialist co-pay (with referral) •How much of each of the following heath care expenses will Hussain have to pay? Assume each expense is his only medical expense during a year. 1. $250 for an annual checkup 2. $5,000 emergency room bill for treatment of an injury 3. $450 to see an orthopedic specialist with a referral from his doctor 4. $100,000 for emergency hospitalization 5. $3,000 for dental surgery Write your answer in the box below and submit it on Canvas. 140See rubric for solutions

Virginia Council on Economic Education Lesson 5a: Basics of Life Insurance Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Life insurance – helps protect a person’s dependents who would experience financial hardship in the case of their death. Beneficiaries – family members, loved ones, or other persons designated on the life insurance policy to receive payment on the insured’s death. 7/70 Method – assumes that a “typical” family would need roughly 70% of the policyholder’s income for a period of seven years after their death. 50% Method – for a person who is childless and married to someone who is healthy and will be able to continue working. Single-Parent Method – for insuring the family member who stays at home with children. Term life insurance – covers between 1 and 30 years and does not pay out benefits if the policyholder outlives the policy. Permanent life insurance – covers the policyholder’s entire lifetime and guarantees death benefits. Watch it (MoneyCoach: Life Insurance) Check Yourself (Life Insurance) Write the answers to the Check Yourself questions in the blanks below. 1. ____________True__ 4. __________False____ 2. ____________True__ 5. __________False_____ 3. ____________False__ 6. __________True_____ 141Life insurance

Virginia Council on Economic Education Watch it (Primerica: Theory of Decreasing Responsibility) Check Yourself Write the answers to the Check Yourself questions in the blanks below. 1. ______________________ 2. ______________________ 3. ______________________ Think About It Why don't most teenagers have life insurance policies? Write your response in the box below. Lesson 5b: Weighing Costs and Benefits of Life Insurance Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Write the letter of the term associated with each statement in the blank provided. 142The costs (opportunity cost of paying the premiums) exceed the benefits (life expectancy is high, likely not to have dependents or financial obligations)Life insurance/ costs and benefits

Virginia Council on Economic Education A. Whole life insurance – as long as the terms are met and premiums are paid, the insurer will pay the death benefit to beneficiaries when the insured dies. B. Universal life insurance (UL) – hybrid insurance that combines term life insurance with an investment savings option; builds tax-deferred savings and provides a death benefit. C. Variable life insurance – permanent life insurance coverage that provides a death benefit and a cash component. ___A___ 1. Also called “ordinary life” insurance. ___B____ 2. Policy holders take on most of the risk from this type of policy. ___C___ 3. The policy premium may increase as a result of market “ups and downs.” Check Yourself (Costs and Benefits of Life Insurance) Write the answers to the Check Yourself questions in the blanks below. 1. _____________Kim__ 2. ___________Akeno__ 3. ___________Damon__ 4. ____________Grace__ 5. ____________Kylie__ 143

Virginia Council on Economic Education Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. Cash value – the money you get back if you decide to give up a permanent life insurance policy Term life insurance – short-term life insurance policy in which benefits are paid out only if the policyholder dies Annual renewable term life insurance – policy that is renewed annually with yearly premium increases Credit life insurance – policy that pays off loan debts in the event of the policyholder's death Permanent life insurance – policy that covers a person's entire life, with guaranteed death benefits Whole life insurance – permanent life insurance policy with fixed premiums, interest rates, and cash value Universal life insurance – permanent life insurance policy with flexible premiums and interest rates Conversion option – provision that allows the policyholder to change temporary insurance into permanent insurance Return of premium – provision that repays premiums paid on temporary insurance policy if the owner outlives the policy Watch it (MoneyCoach: How to Get Life Insurance) Check Yourself Write the answers to the Check Yourself questions in the blanks below. 1. __True__ 2. __True__ 3. __True__ 144

Virginia Council on Economic Education 4. __True__ 5. __True__ 6. __True__ Homework For each of the individuals described below, identify the appropriate method for calculating the amount of life insurance they should purchase and use it to calculate that amount. 1. John is married with no children. He and his wife both work and their combined debt load is $200,000. Funeral expenses are estimated at $6,000. 2. Brenda and her husband both work and they have two children. Each earns approximately $60,000 per year. 3. Joaquin is married and has one child. Both parents work. Joaquin earns $200,000 per year, while his wife earns $50,000 per year. 4. Brandon is a recent college graduate with no spouse or dependents and no debt. He is looking for his first full-time job. 5. Connie and Maurie are married with 3 children, aged 2, 3, and 5. Maurie provides childcare for the children, while Connie works and earns $150,000 per year. Write your answer in the box below and submit it on Canvas. 145See rubric for solutions

Module 14

Virginia Council on Economic Education MODULE 14 Financial Planning Module topic – Based on the Module introduction, what do you think is the major theme of this module? Write your response in the box below. Lesson 1a: Personal Financial Goals Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Money management – organizing and controlling financial resources to achieve short- and long-term goals. Emergency fund – money set aside for unexpected expenses. Long-term financial goal – a goal that can be achieved in five years or more. Short-term financial goal – a goal that can be achieved in one year or less. Fill in the blanks with the appropriate vocabulary term. Purchasing a laptop computer by saving 10% of your earnings each week is an example of a __short-term______________ goal. Saving for a down-payment to buy a house in 5 years is an example of a __long-term__________________ goal. An __emergency fund___________ to cover unexpected expenses should be part of any money management plan. 146The main themes of the module are financial planning, budgeting, and financing educationShort- and long-term planning

Virginia Council on Economic Education Watch it (FRBSL: Money Management) Check Yourself Write the answers to the Check Yourself questions in the blanks below. 1. ____________True__ 2. ____________False__ 3. ____________True__ 4. ____________False__ 5.6. ____________True__ Watch it (U.S. Federal Reserve: Thinking Money) Check Yourself Write the answers to the Check Yourself questions in the blanks below. 1. ___Twice_________________ Watch it (CEE: Compound Interest) Check Yourself (Compound Interest) Write the answers to the Check Yourself questions in the blanks below. 1. _________________________interest__ 2. _______________________compound__ 3. ______________________level of risk__ 4. ____________________higher, longer__ Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. Short-Term Savings Goals: 1. Birthday gift for your best friend 147

Virginia Council on Economic Education 2. New set of tires for your car 3. Prom tickets 4. Spring break road trip Long-Term Savings Goals: 1. Early retirement 2. Pay off mortgage 3. Purchase a home 4. College tuition for a child Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. Mortgage – loan for purchasing a home Money Management – the process of organizing and controlling financial resources in order to achieve short- and long-term goals Compound Interest – interest earned on principal and on interest previously earned Long-term financial goal – a goal that can be achieved in five years or more Interest – the cost of borrowing and the return on savings Emergency fund – money set aside for unexpected expenses Short-term financial goal – a goal that can be achieved in one year or less 148

Virginia Council on Economic Education Think About It Choose a short-term savings goal for yourself. Create a money management plan by considering the following questions: 1. What is your goal and how much does it cost? 2. How will you save that money? 3. Will you earn the extra money or cut back on current expenses? 4. How much per month will you need to save? 5. When can you afford to buy it? Write your response in the box below. Lesson 1b: Effects of Economic Conditions and Government Policies on Financial Planning Write the economic concept introduced by the introductory cartoon/visual in the box below. 149Responses depend on the goal chosen by the student

Virginia Council on Economic Education Watch it (FRBP: Inflation and Deflation) Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. Inflation – negatively impacts savings by eroding the purchasing power of savings over time Disinflation – prices on average increase, but at a lower rate of increase Deflation – falling prices can lead to lower wages, which leads to less spending and lower costs Watch it (FRBP: Money Supply, Price Stability) Check Yourself Write the answers to the Check Yourself questions in the blanks below. 1. ____________False__ 2. ____________False__ 3. ____________True__ 4. ____________False__ 5. ____________True__ 6. ____________False__ Homework Find a news story that shows the effects that Congress or the Federal Reserve can have on the economy. Summarize the story and explain how these actions could impact your own financial goals. Provide a citation for the 150Financial planning

Virginia Council on Economic Education source of your news story. Write your answer in the box below and submit it on Canvas. Lesson 2a: Anticipated and Unanticipated Income Write the economic concept introduced by the introductory cartoon/visual in the box below. 151See rubric for solutionsDisposable income

Virginia Council on Economic Education Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. Anticipated Income: 1. Allowance 2. Wages 3. Salary 4. Educational grants or scholarships Unanticipated Income: 1. Bonuses 2. Gifts 3. Inheritances Check Yourself (Earned and Unearned Income) Write the answers to the Check Yourself questions in the blanks below. 1. ____________$7,350__ 2. ____________$2,880__ Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. 1. ______________bonus__ 2. _________commission__ 3. _____________interest__ 4. ____________overtime__ 152

Virginia Council on Economic Education 5. ________________gifts__ 6. _______________salary__ Check Yourself (IRS Requirements for Gifts) Write the answers to the Check Yourself questions in the blanks below. 1. ____________True__ 2. ___________False__ 3. ___________False__ 4. ___________False__ 5. ____________True__ 6. ____________True__ Think About It Think back to the 8.01b Homework assignment when you identified a career that was interesting to you using the Career Search tool at studentaid.gov. Return to the website and find your chosen career. How much income would you earn in that career? Is this anticipated or unanticipated income? Write your answer in the box below. Keep track of this information. You'll use it to determine your budget in the 14.04b Homework assignment. 153Responses depend on chosen career

Virginia Council on Economic Education Lesson 2b: Anticipated and Unanticipated Expenses Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Anticipated expenses – include the regular bills paid every week, month, or year Unanticipated expenses – expenses not are not foreseen that happen at irregular intervals Label each of the following expenses as anticipated (A) or unanticipated (U). ___A___ 1. Cell phone bill ___A___ 2. Rent ___U___ 3. Car repair ___U___ 4. Urgent care medical bill Check Yourself (Anticipated expenses vs. Unanticipated expenses) Write the answers to the Check Yourself questions in the blanks below. 1. ____________False__ 4. ____________True__ 2. ____________True__ 5. ____________True__ 3. ____________False__ 6. __________False__ Check Yourself (Effects of Unanticipated Expenses) Write the answers to the Check Yourself questions in the blanks below. 154Saving and spending

Virginia Council on Economic Education 1. _______________________________Forty percent__ 2. _____________________________Twenty percent__ 3. _____________________________use a credit card__ Homework For this homework assignment, answer all of the following questions. 1. Categorize each of the items above using the following categories; a) anticipated income, b) Unanticipated income, c) Anticipated expenses, d) Unanticipated expenses 2. Identify Norman's unearned income, if any. 3. Are variable expenses anticipated or unanticipated? 4. Calculate Norman's income for the past month and expenses for the past month. 155See rubric for solutions

Virginia Council on Economic Education Lesson 3a: Net Worth Statements Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Net worth – a measure of the wealth that an individual has accumulated. Asset – possession (thing that is owned) that has economic value. Appreciating asset – possession that generally increases in value over time. Depreciating asset – possession that decreases in value over time. Restricted asset – asset that can’t be converted to cash without paying a penalty. Tangible asset – asset that has a physical form. Fixed asset – possession that is not easily sold or converted to cash. Liquid asset – money and possession that can be sold quickly for cash. Liabilities – what are owed, or debt. Write the type of asset in the blanks provided (each type is only listed once, though some assets represent more than one type). __Depreciating__ 1. A Car __Restricted____ 2. An 18 year old’s retirement account __Tangible_____ 3. Land __Appreciating__ 4. Money in a savings account __Liquid_______ 5. Money in a checking account 156Net worth

Virginia Council on Economic Education __Fixed________ 6. Antique clock Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. Fixed: 1. House 2. Rare coin 3. Fine art 4. Boat Liquid: 1. Jewelry 2. Stocks 3. Savings account 4. Car Restricted: 1. Certificate of deposit 2. Stock options 3. Retirement fund Tangible: 1. Boat 157

Virginia Council on Economic Education 2. Car 3. Fine art 4. Rare coin 5. Jewelry 6. House Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. Appreciating: 1. 100 acres in an Atlanta suburb 2. $5,000 in a certificate of deposit 3. Shares of Apple stock Depreciating: 1. 2019 Toyota RAV4 2. Xbox game console 3. Macbook Pro labtop Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. Appreciating assets – when an asset increases in value 158

Virginia Council on Economic Education Depreciating assets – when an asset loses value Restricted assets – things that a person owns that cannot be turned into cash without paying a penalty Tangible assets – assets that have a physical form Fixed assets – things that a person owns that are not easily sold or converted to cash Liquid assets – money in checking and savings accounts, as well as personal possessions that can be sold quickly for cash Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. Judy’s Assets: 1. Book royalties 2. Fine art 3. Value of condo Judy’s Liabilities: 1. Credit card balance 2. Home improvement loan 3. Home mortgage Steve’s Assets: 1. Audio equipment 2. Savings account 3. Truck 159

Virginia Council on Economic Education Steve’s Liabilities: 1. Loan for truck 2. Loan for audio equipment Think About It Assets like cars depreciate in value, becoming cheaper the longer you hold on to them. Research the cost of new cars and the resale prices of cars that are one, two, and five years old. You can find pricing information online at Kelley Blue Book (kbb.com) or Edmunds (edmunds.com). Why would you buy a new car when you know it will quickly lose its value? Write your response in the box below. Lesson 3b: Using a Net Worth Statement Write the economic concept introduced by the introductory cartoon/visual in the box below. 160Responses depend on students’ car choiceNet worth

Virginia Council on Economic Education Check Yourself (Drag and Drop) Write the answers to the Check Yourself questions in the blanks below. Family A Assets: 1. Car 2. House 3. Furnishings 4. Jewelry 5. College Savings Account 6. Emergency Savings Account 7. Retirement Savings Account Family A Liabilities: 1. Credit Card Debt Family B Assets: 1. Car 2. House 3. Furnishings 4. Jewelry 5. Art 6. SUV 7. Retirement Savings Account Family B Liabilities: 1. Credit Card Debt Family A Assets and Liabilities: House: $100,000 and $18,000 161

Virginia Council on Economic Education Autos: $22,000 and $0 Furniture: $25,000 and $450 Credit Cards: $0 and $59 Bank Accounts: $20,000 and $0 Retirement: $47,000 and $0 Cash: $50 and $0 Jewelry/Art: $775 and $0 Total: $214,825 and $18,509 Family B Assets and Liabilities: House: $400,000 and $350,000 Autos: $79,000 and $37,000 Furniture: $100,000 and $43,000 Credit Cards: $0 and $18,575 Bank Accounts: $1,500 and $0 Retirement: $47,000 and $0 Cash: $300 and $0 Jewelry/Art: $10,000 and $0 Total: $637,800 and $448,575 Family A Net Worth: $196,316 Family B Net Worth: $189,225 162

Virginia Council on Economic Education Write the answer to the three final check yourself questions. 1. ______________________________________________Yes__ 2. _______________A gym membership fee and a childcare fee__ 3. _______________________________A car valued at $22,000__ Watch it (The Organic Chemistry: Assets, Liabilities, and Equity) What is equity? The difference between assets and liabilities Homework Use the information provided to answer the following questions about the family's net worth: 1. Calculate the family's total assets. 2. Calculate the family's total liabilities. 3. Calculate the family's net worth, and identify whether the net worth is positive or negative. 4. List any expenses that would not fall on the balance sheet. Write your answer in the box below and submit on Canvas. 163See rubric for solutions

Virginia Council on Economic Education Lesson 4a: Parts of a Personal Budget Write the economic concept introduced by the introductory cartoon/visual in the box below. Watch it (FRBR: How Do I Plan for My Future?) Check Yourself Write the answers to the Check Yourself questions in the blanks below. 1. _________________spending__ 2. ________disposable income__ 3. ________________negative__ 4. ______________more, more__ 5. ________________tradeoffs__ 6. _______income and expenses__ Watch it (CEE: Budgeting/Money Management) Check Yourself Write the answers to the Check Yourself questions in the blanks below. 1. ____________True__ 2. ____________False__ 3. ____________True__ 164Budgeting

Virginia Council on Economic Education Check Yourself (Practicing with a Budget) Write the answers to the Check Yourself questions in the blanks below. 1. _________________________________________________$2,800.60__ 2. ____________________________________________________$3,060__ 3. ________________________Marie spends more money than she earns__ 4. _________________________Food (eating out, coffee) at $15 per week__ 5. ______________________________________________________$260__ Think About It Do you know how much money you spend? And do you know what you spend it on? For one week, keep a list of every purchase that you make or every bill that you pay. At the end of the week, consider these questions. •Were you surprised at how much you spent in a particular area (e.g. eating out, buying coffee)? •If you could change one thing about how you spent you money last week, what would it be? Write your response in the box below. 165Answers vary based on student expenditures

Virginia Council on Economic Education Lesson 4b: Creating a Personal Budget Write the economic concept introduced by the introductory cartoon/visual in the box below. Watch it (FTC: Budgeting) Check Yourself (Carlos's Expenses) Write the answers to the Check Yourself questions in the blanks below. Daily Living: 1. Starbucks coffee 2. Pet supplies Dues/Subscriptions: 1. Sports magazines 2. Gym fees Entertainment: 1. Sporting event tickets 2. Movie downloads 3. Xbox live credit Hobbies/Recreation: 1. Sports equipment Monthly Bills: 1. Credit card 166Budgeting

Virginia Council on Economic Education Personal/Grooming: 1. Clothing 2. Haircut Transportation: 1. Motorcycle insurance 2. Gas Check Yourself (Analyzing Carlos's Monthly Budget) Write the answers to the Check Yourself questions in the blanks below. 1. __________________Sporting event tickets, Credit card, and Gas__ 2. __________________Clothing, Movie downloads, and Xbox Live credit__ 3. ____Laundry, Motorcycle insurance, Pet supplies, and Starbucks coffee__ 4. ___________________________________________________$40.25__ 5. ________________________________________All of the above__ Check Yourself (Annual Budgets) Write the answers to the Check Yourself questions in the blanks below. 167

Virginia Council on Economic Education 1. ___________________________________Cell phone service__ 2. _______________________________________Entertainment__ 3. ______________________________________Internet service__ 4. ______________________________________________$340__ 5. ___________________________________Cell phone service__ Homework Using the information about Catrina's proposed monthly budget above, answer the following questions. 1. Is Catrina budget balanced? If not, what can Catrina do to balance her budget? 2. Is Catrina following the 50, 30 and 20 spending plan in terms of savings? Explain. 3. If Catrina decides to increase savings where would you suggest that she decrease her spending? Write your answer in the box below and submit it on Canvas. 168See rubric for solutions

Virginia Council on Economic Education Lesson 5a: FAFSA Write the economic concept introduced by the introductory cartoon/visual in the box below. Watch it (FRBSL: College Choice) Check Yourself Write the answers to the Check Yourself questions in the blanks below. 1. ____________True__ 2. ____________True__ 3. ____________False__ 4. ____________True__ Watch it (FRBSL: FAFSA) Check Yourself Write the answers to the Check Yourself questions in the blanks below. 1. _______________________________a FAFSA__ 2. _________________________________June 1__ 3. _______________estimated family contribution__ 4. _____________________________award letters__ 5. ___________________________________loans__ 6. ____________________________once each year__ 169

Virginia Council on Economic Education Think About It Use FAFSA4caster (via fafsa.ed.gov) to estimate the amount of postsecondary financial aid for which you are eligible. You may need to estimate in some areas, but this will give you an idea of how financial aid decisions are made. Remember the types of financial aid the you are offered from FAFSA4caster. In the next lesson, we will discuss these sources of financial aid, which will help you as you plan for postsecondary education. Write your response in the box below. Lesson 5b: Sources of Funding for Post-Secondary Education Write the economic concept introduced by the introductory cartoon/visual in the box below. Vocabulary Grant – financial aid that doesn’t have to be repaid if obligations associated with it are met Scholarship – financial aid awarded based on academic merit, talent, or a particular area of study that does not have to be paid back 170Answers vary based on student situationCost of post-secondary education

Virginia Council on Economic Education Work-Study – financial aid earned by working part-time Loan – money borrowed to attend college or a career school Fill in the blanks below with the appropriate vocabulary term. A student __loan______________ is a type of financial aid for post-secondary education that must be repaid. Students may be awarded an academic _____scholarship__________ to attend a college that does not need to be repaid, based on their grades and test scores. Students can also help pay for college by working in a part-time job on campus as part of a ____work-study____________ program. Check Yourself (Sources of Funding for Postsecondary Education) Write the answers to the Check Yourself questions in the blanks below. 1. ______________________undergraduate and graduate students__ 2. ______________________________colleges and career schools__ 3. ________________________________do not need to be repaid__ Watch it (MoneyCoach: Student Loans) Check Yourself Write the answers to the Check Yourself questions in the blanks below. 1. ____________False__ 2. ____________True__ 3. ____________True__ 4. ___________False__ 171

Virginia Council on Economic Education 5. ___________True__ 6. ___________False__ Write the answer the questions in the blanks below. 1. _____________________________student loan refinancing__ 2. ___________________________lower, federal loan benefits__ 3. _______________________________________700, greater__ Homework For this assignment, read the document provided and answer the questions below. 1. Who are the lenders for federal student loans? For private loans? 2. What is the maximum annual amount that can be borrowed in a direct subsidized loan? 3. What is the maximum annual amount that can be borrowed in a direct unsubsidized loan? 4. What are the interest rates on the above two types of federal student loans? 5. Would a private student loan have a higher or lower interest rate than a federal student loan? Write your response in the box below and submit it on Canvas. 172

Virginia Council on Economic Education 173See rubric for solutions

End-of-course Practice Exam

Virginia Council on Economic Education Practice End-of-Course Exam Write the letter of the correct answer in the blank provided. _________ 1. Which of the following is the largest category of earned income? a. Salaries and wages b. Investment income c. Gratuities and bonuses d. Overtime pay e. Inheritances __________2. Which of the following is a result of increased investment in human capital? a. higher earnings b. reduced job security c. lower job benefits d. lower education costs e. all of these __________3. Which of the following is a voluntary payroll deduction? a. FICA Social Security taxes b. Federal income taxes c. State income taxes d. FICA Medicare taxes e. Retirement contributions __________4. Which of the following is the wage and tax statement used to calculate taxes owed? a. W-4 form b. I-9 form 174

Virginia Council on Economic Education c. 1001 form d. W-2 form e. 1090EZ form __________5. If tax rates stay the same as income falls, the tax structure is a. Flat b. Progressive c. Proportional d. Regressive e. fair __________6. If the price of a product is $10, marginal analysis says which of the following must be true in order for a consumer to purchase the product? a. MB exceeds 0 b. MB exceeds $10 c. MC exceeds $10 d. MB < MC e. MC > MB __________7. Which of the following is NOT a consumer right? a. To be informed b. To be safe c. To return any purchase d. To be heard e. All of these are consumer rights __________8. Which of the following is a typical part of an apartment lease? a. the address of the landlord b. the date when the lease begins but not when it ends 175

Virginia Council on Economic Education c. notice that no security deposit may be held by the landlord d. any restrictions on use of the property e. all of these __________9. Which of the following is true of a payday loan? It is a. generally for a large amount b. short-term c. a secured loan d. an inexpensive way to borrow money e. All of these ___________10. Which type of filing system has 26 different file folders? a. chronological b. annual c. tickler d. daily e. alphabetical __________11. Which of the following is a NOT a cost of buying a car? a. Car loan payments b. Fees for excess mileage c. Liability insurance d. Personal property tax e. Down payment __________12. A legal contract between a lender and a homebuyer is called a(n) a. lien b. lease c. deed d. application e. mortgage __________13. Renters generally pay for which of the following? 176

Virginia Council on Economic Education a. internet service b. electricity c. mortgage payment d. security deposit e. All of these __________14. Discretionary funds are used to purchase which of the following? a. necessities b. food and shelter c. luxuries d. utilities e. all of these __________15. Discretionary funds should first be used to a. splurge on an extravagant night out. b. save $30 per week in a savings account. c. put toward retirement savings. d. create an emergency fund. e. ay off credit cards, lowest interest rate first. __________16. You earn $1,000 working at a summer job. If you put it into an account that earns 2% interest on the principle for 2 years, how much will you have in your account? a. $1,200 b. $1,100 c. $1,040 c. $1,020 d. $1,002 __________17. The chance you take of making or losing on an investment is known as the investment’s a. payoff. b capital gains. c. risk. d. income. e. reward. __________18. What is the opportunity cost of depositing money in a savings account rather than holding cash? 177

Virginia Council on Economic Education a. the convenience of using it for purchases b. the interest earned in a savings account c. the risk of losing it d. the potential for a bank collapse e. all of these __________19. If you have $2,000 to invest at2% interest, the Rule of 72 predicts it will be doubled in how many years? a. 144 b. 72 c. 54 d. 36 e. 18 __________20. A(n) __________ guarantees a steady stream of income in retirement. a. annuity b. 401(k) c. SEP IRA d. IRA e. stock portfolio __________21. Which of the following measures a person’s credit worthiness? a. Ratings test b. Application ratio c. Premium value d. FDIC score e. FICO score ___________22. Which of the following is most likely to be considered “good debt”? a. Paying for a new video game with a credit card b. Getting an auto loan to replace your reliable car with a fancier one c. Borrowing from friends to purchase a $200 pair of sneakers d. Taking out a student loan for community college tuition e. Getting an advance on your paycheck to go on a vacation 178

Virginia Council on Economic Education __________23. Which of the following is one of the 5 C’s of credit? a. Checkbook b. Cosigner c. Cash d. Capacity e. All of these are one of the 5 C’s of credit __________24. The process used by people who can’t repay debts to creditors to seek relief is called a. repossession. b. overdraft protection. c. default. d. bankruptcy. e. foreclosure. __________25. Which of the following is NOT an example of a credit card fee? a. late bill payment fee b. card chip fee c. overlimitfee d. cash advance fee e. all of these __________26. The price paid for an insurance policy is called an insurance a. premium. b. deductible. c. claim. d. policy. e. coverage. 179

Virginia Council on Economic Education __________27. 300/300/400 car insurance will cover up to how much for property damage? a. $100,000 b. $200,000 c. $300,000 d. $400,000 e. $600,000 __________28. Automobile insurance can cover which of the following types of losses? a. Bodily injury b. Medical expenses c. Property damage d. Damage to cars e. All of these ___________29. Renter’s insurance covers which of the following? a. Apartment repair for covered damages b. Rebuilding an apartment destroyed by covered events c. Replacement of possessions in an apartment lost due to covered events d. Liability for injuries to visitors to the covered apartment e. All of these __________30. Which of the following is NOT a qualifying life event for changing health insurance coverage? a. Moving to a new state b. Getting married c. Having a baby d. Getting sick e. All of these __________31. Net worth is calculated by 180

Virginia Council on Economic Education a. dividing assets by liabilities b. adding liabilities to assets c. subtracting liabilities from assets d. subtracting assets from liabilities e. multiplying assets by liabilities __________32. Which of the following is an example of a liability? a. cash value of an insurance policy b. the money in a bank account c. a used car d. a mortgage e. the market value of a home __________33. An annual budget will do which of the following? a. make sure you cover your expenses b. help identify areas to reduce spending c. increase your annual income d. decrease you unanticipated expenses e. all of the above __________34. The estimated family contribution and the amount of financial aid available to the student is called the a. FDIC b. FASTA c. FFA d. FAFSA e. FARSA __________35. Which of the following is a type of student aid that does not need to be repaid? a. loans on an extended repayment plan b. private loans c. scholarships d. federal loans e. all of these must be repaid 181

Practice Exam Solutions

Virginia Council on Economic Education Practice Exam Solutions Check your answers to the practice test and use your incorrect answers to help identify which modules you need to review! Answer Module 1. a M8 2. a M8 3. e M8 4. d M8 5. c M8 6. b M9 7. c M9 8. d M9 9. b M9 10. e M9 11. b M10 12. e M10 13. e M10 14. c M10 15. d M10 16. c M11 17. c M11 18. a M11 19. d M11 20. a M11 21. e M12 22. d M12 182

Virginia Council on Economic Education 23. d M12 24. d M12 25. b M12 26. a M13 27. d M13 28. e M13 29. c M13 30. d M13 31. c M14 32. d M14 33. b M14 34. d M14 35. c M14 183