Financial Literacy Skills
Unit 1: Managing Money
Objective 1: Identify trends in career
opportunities.
• What will happen to the labor force in the
near future?
– Slower growth
– More diversity
– Older
– Highest growth in service-producing industries
– Fastest growth in computer technology and health
care services
Objective 2: List sources for career
information.
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Career consultants
Counselors
Educational institutions
Employers
Internet networks and
resources
• Personal contacts
• Professional societies
and journals
• Public libraries, career
centers, guidance
offices
• Trade associations and
magazines
Objective 3: Research careers of
interest.
Objective 4: State guidelines for
pricing a job offer.
• Set your personal priorities.
• Compare the job offer to your current job or
other offers.
• Be realistic about negotiating.
• Calculate your value in advance.
Objective 5: Identify ways to earn
and save money.
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Live below your means.
Create a realistic spending plan and stick to it.
Stop impulsive buying.
Reconsider any purchase over a certain
amount.
• Purchase medical and vehicle insurance.
• Charge items only if you can afford to pay for
them now.
Objective 5: Identify ways to earn
and save money.
• Put away your credit cards.
• Never co-sign a loan or assume a joint debt
with someone who has a shaky financial
history.
• Do not make high-risk investments.
• Let your savings work for you.
• Shop for the smartest investments.
• Diversify your investments.
Objective 5: Identify ways to earn
and save money.
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Find alternatives to spending.
Earn money whenever you can.
Use your own time, ability, and talent.
It is smarter to earn interest than to pay
interest.
Objective 6: Distinguish between
fixed and variable expenses.
Fixed expenses
• Rent or mortgage
• Taxes
• Loans
• Leases
• Insurance
• Regular payments to
others
• Regular contributions
• Dues
• Regular savings
Variable expenses
• Utilities
• Charge accounts/credit
cards
• Medical bills
• Transportation
• Food
• Non-regular savings
• Other items
Objective 7: List the basic steps in a
financial plan.
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Establish your financial goals.
Estimate and total your income.
Estimate and total your expenses.
Analyze your current income and spending.
Prepare a trial financial plan.
Put your plan into action.
Evaluate your plan periodically.
Objective 8: Summarize three
methods of managing personal
finances.
• Prevention
• Preparation
• Coping with financial challenges
Objective 9: State guidelines for
using a budget.
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Determine your goals.
Estimate your income.
Estimate your expenses.
Earmark money available for expenses.
Spend money according to your budget.
Regularly compare your estimated expenses
to your actual spending.
• Evaluate your budget and revise as needed.
Objective 10
Develop a budget.
Objective 11
Analyze budgeting case studies.
Objective 12
Apply money management
principles.
Objective 13
Calculate and compare unit prices of
consumable items.
Objective 14
List items deducted by law from a
paycheck
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Social Security (FICA)
Unemployment insurance
Workers’ Compensation
Federal income tax
State and city income tax
Objective 15
List items deducted by request from
a paycheck
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Labor union dues
Group insurance plans
Savings account
Flexible spending account
Investments
Retirement plans
Objective 16
List benefits often reflected in a
paycheck.
• Health insurance
• Life insurance
• Tax sheltered
investments
• Sick leave
• Annual leave, vacation
time, or personal time
• Holiday leave or holiday
pay
• Workers’ compensation
and unemployment
compensation
• Retirement (group
pension plans)
• Profit-sharing and stock
purchase programs
Objective 17
Explain how games of chance work.
• Outcome depends on a random event.
• Unlike games of skill, you cannot increase your
odds of winning.
• Many are used in gambling, including slot
machines and lottery tickets.
• In a truly random game of chance, the player has
a fairly consistent chance of winning.
• Games of chance used in gambling are not always
truly random.
• In the long run, the casino or lottery always wins.
Objective 18
Compare the costs and benefits of
gambling.
Benefits
Costs
• Gambling creates jobs for
people who work in the
gambling industry.
• Income from gambling may
be used to benefit society.
• Gambling provides
entertainment for many
people.
• Gambling can be an
addiction.
• Gamblers can easily spend
more than they can afford
to lose.
• Gambling can increase
crime.
Objective 19
Identify types of charitable giving.
• Monetary donations
• Volunteer service
• Gifts-in-kind
Objective 20
Discuss the impact of charitable
giving.
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Tax benefits
Personal satisfaction
Creation of jobs
Reducing waste
Benefit to the community
Objective 21
Research a charitable organization.
End of Unit 1