Alabama
9th-12th GradesState Standards
Foundational Standards
1: Incorporate safety procedures in handling, operating, and maintaining tools and machinery; handling materials; utilizing personal protective equipment; maintaining a safe work area; and handling hazardous materials and forces.
2: Demonstrate effective workplace and employability skills, including communication, awareness of diversity, positive work ethic, problem‑solving, time management, and teamwork.
3: Explore the range of careers available in the field and investigate their educational requirements, and demonstrate job‑seeking skills including resume‑writing and interviewing.
4: Advocate and practice safe, legal, responsible, and ethical use of information and technology tools specific to the industry pathway.
5: Participate in a Career and Technical Student Organization (CTSO) to increase knowledge and skills and to enhance leadership and teamwork.
6: Discuss and demonstrate ways to value diversity.
Financial Responsibility
1: Describe the nature and scope of personal finance, including how personal finance concepts fit into key life events or stages.
a: Research and share information from a variety of sources to explain the importance of personal financial planning. Examples: instructional materials, news articles, blogs from reputable sources, personal narratives,
industry publications
b: Specify how monetary and non‑monetary assets can contribute to net worth.
2: Describe personal spending behavior that contributes to building wealth.
a: Explain how charitable giving fits into a spending plan.
b: Practices that assist individuals and families to achieve and maintain financial security. Examples: determining needs and wants, creating a budget, setting goals, keeping records, developing a personal financial plan, saving, investing
3: Explain how goals, decision‑making, and planning affect personal financial choices and behaviors.
a: Create a plan to reach a specific financial goal.
b: Explain personal values that affect financial choices. Examples: desire for home ownership, work ethic, charity, civic virtue
c: Explain the advantages of designing and following a personal financial plan.
d: Compare and contrast retirement and estate planning options available to individuals and families.
4: Explain how certifications may expand employment opportunities and positively impact earnings. Examples: lifeguard training, tax preparation class, first aid training
a: Describe the opportunity costs of developing human capital by taking courses to prepare for employment in careers that are in high demand with high income potential.
5: Gather information from several sources when planning to purchase a product. Examples: manufacturers, retailers, consumer reviews, independent testing laboratories
a: Explain what information is most helpful in choosing which product to buy.
Consumer Protection
6: Outline the purposes and features of consumer protection laws, agencies, and sources of assistance, including identity protection and credit regulations.
a: Explain ways to avoid identity theft, fraud, financial scams, and schemes designed to defraud consumers.
b: Discuss the financial and emotional costs of recovering from identity theft or fraud.
c: Describe possible responses to excessive debt collection practices. Examples: payday loans, instant credit
7: Locate and share credible sources of up‑to‑date information about consumer rights and responsibilities.
a: Investigate and report on sources of assistance for resolving consumer disputes.
b: Demonstrate procedures for filing formal consumer complaints.
8: Outline steps to resolve identity theft problems as recommended by the Federal Trade Commission and financial institutions.
a: List entities that have a right to request certain personal financial data.
b: Investigate and report on consumer safeguards for mobile and online banking.
Consumer Decisions and Behavior
9: Describe factors that impact consumer purchasing decisions throughout the lifespan.
a: Explain how limitations on financial resources affect the choices people make.
b: Explain how consumers can benefit from conducting a cost‑benefit analysis before making a financial decision.
c: Analyze the influence of peer pressure and emotions on purchasing decisions. Examples: fashion, acceptance from others, desire for the latest gadget
d: Describe how scarcity relates to needs and wants.
e: Explain the impact of marketing, advertising, and sales strategies or techniques on purchasing decisions. Examples: impulse buying, delayed payment
10: Apply a decision‑making model to maximize consumer satisfaction when buying goods and services.
a: Categorize possible purchases of goods and services as wants or needs, explaining the reasoning for each decision.
b: Research and report pros and cons of e‑commerce and online auctions.
c: Analyze the value of warranties, service contracts, and risk protection for a variety of products and services. Example: research due diligence on service work
11: Demonstrate how to use comparison shopping skills to make purchasing decisions, including major purchases.
a: Compare the advantages and disadvantages of owning versus renting property or housing.
b: Research and report on various types of consumer contracts, indicating each type's advantages and disadvantages for the consumer. Examples: renting to own, lease agreements
c: Calculate cost and finance charges for major purchases. Examples: vehicles, appliances, electronics, dwellings
d: Research the projected costs for all expenses associated with major purchases, including maintenance costs. Examples: wedding, college, home, car
12: Identify factors that affect the total cost of goods and services, including sales tax, tips, coupons, discounts, and unit pricing.
a: Explain how sales and property taxes affect financial decisions. Examples: buying a car or house
13: Explain the ways in which individuals are responsible for their finances and situations in which they share responsibility for other people's finances. Examples: marriage, cosigning a loan
a: List reasons to consult with a tax advisor or financial planner.
b: Explain the value of sharing financial goals and personal finance information with a partner before combining households.
Money Management
14: Demonstrate how to set financial goals and analyze the costs and benefits of spending decisions.
a: Describe a sunk cost and situations in which losses should be accepted to avoid further loss.
b: Compose an argument supporting the concept of paying yourself first.
c: Determine the amount of savings needed for a given household.
15: Describe strategies for managing income to align with financial goals.
a: Describe the impact of career choice, education, skills, and economic conditions on income and financial stability.
16: Prepare a monthly budget for an individual or a family given their income, savings goals, taxes, and list of fixed and variable expenses.
a: Evaluate the impact of taxes, government payments, and employee benefits on budgeting decisions. Examples: FICA, income taxes; SNAP, Medicaid, unemployment insurance, farm subsidies; health insurance, retirement plan contributions
b: Describe methods of allocating resources to meet savings and investment goals.
c: Analyze how changes in life circumstances can affect a personal spending plan. Examples: job change, having a child, major illness, theft of property, automobile accident
d: Locate and use technology to help with financial management. Examples: online banking, mobile banking apps, direct deposit, money transfer apps, online payments
17: Gather and share information on income, benefits, and deductions.
a: Distinguish between gross and net income.
b: Analyze the impact of payroll deductions and employee benefits on income. Examples: state and federal income tax, FICA, flexible benefit plans
c: Calculate the monetary value of employee benefits when determining earnings.
d: Describe sources of income not derived from employment. Examples: alimony, unemployment insurance, stock dividends, government transfer payments
18: Demonstrate procedures for completing and filing income tax forms, utilizing tax terminology. Examples: dependent, exemption, credit, deduction
a: Explain the requirements for filing annual tax returns and the consequences of not paying income tax. Examples: full or partial payments; penalties, federal tax lien, asset seizure, prison, passport revocation
Credit and Debt
19: Research and share information on credit options available to consumers. Examples: revolving, installment, open
a: Explain how credit card grace periods, methods of interest calculation, and fees affect borrowing costs.
b: List the types of information required on credit applications.
c: Calculate the total cost of a loan.
d: Differentiate among various types of student loans and compare to alternate means of paying for post‑secondary education.
20: Research and report on factors that affect creditworthiness and credit scores. Examples: payment history, credit mix, credit utilization
a: List steps for obtaining a credit report from the three major reporting agencies.
b: Describe effective methods for improving credit scores.
c: Describe consequences of accumulating credit card debt and defaulting on loans, especially for young consumers.
d: Identify sources, types, and risks of loans for consumers.
e: Investigate and report on ways that a low credit score can affect a consumer's financial options.
21: Apply strategies to avoid or correct debt management problems.
a: Examine and report on the types of services offered by consumer credit counseling agencies.
b: Explain the economic consequences of personal bankruptcy and the financial responsibilities associated with filing for bankruptcy under Chapters 7, 11, and 13. Examples: negative effects on assets, employability, future cost and availability of credit
c: Investigate how student loan obligations differ from other kinds of debt.
d: Research and report on a financial institution's debt reduction services.
Saving
22: Research and report on the benefits of savings.
a: Distinguish between saving and investing, considering the characteristics of various methods of saving. Examples: savings account, money markets, certificates of deposit, IRAs, retirement accounts
b: Calculate annual interest and annual yield on savings for various types of accounts. Examples: money market accounts, deposit savings accounts, 529 plans
c: Explain reasons for maintaining an emergency savings account and methods for determining the amount needed.
23: Compare certificates of deposit, money markets, and savings accounts and identify the benefits and disadvantages of each.
a: Gather information on the interest rates that financial institutions pay on different types of savings accounts.
b: Determine how real income, real return, real yield, and purchasing power are calculated and why they are important.
c: Explain the difference between simple and compound interest and calculate interest on a given amount of savings using each method.
d: Gather and share information on the impact of inflation on savings.
Investing
24: Identify types of investments appropriate for different objectives. Examples: short term vs. long term goals, liquidity, risks vs. reward
a: Describe factors that affect the rate of return on investments.
b: Differentiate between diversification and asset allocation.
c: Compare the advantages of taxable, tax‑deferred, and tax‑advantaged investments, including Roth IRAs and employer‑sponsored retirement options, and determine which are most beneficial for new savers.
d: Describe steps that will maximize long‑term investment returns and explain the advantages of each. Examples: begin investing at an early age, diversify investments, take advantage of employer matching programs
25: Evaluate types of investments to determine how they meet the objectives of a personal financial plan.
a: Compare the advantages and disadvantages of buying and selling investments through various channels. Examples: direct purchase, stock options from employers, investment professionals, online brokerages
b: Research and report on investment options, considering risks and returns and the reasons for diversification. Examples: stocks, bonds, Treasury bills, mutual funds, index funds, certificates of deposit, money market accounts
26: Identify warning signs of investment fraud and steps that can be taken if victimized by investment fraud.
Personal Insurance
27: Describe how insurance protects against loss and mitigates financial consequences.
a: Explain the various types of personal insurance and identify coverage needed at different stages of life. Examples: auto, rental, property, disability, life (whole and term), health
b: Research and report on ways coverage, deductibles, and premiums are related.
c: Analyze the costs and benefits of various types of insurance.
28: Compare and contrast types of property insurance and identify situations when certain types of coverage are needed. Examples: homeowner's, renter's, automobile
a: Gather and share information about the consequences of accidents involving uninsured or underinsured motorists.
b: Explain the differences between independent insurance agencies and franchised agencies.
c: Determine the amount of coverage needed in a given situation.
Banking
29: Explain the role of the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA) in protecting depositors' savings, including coverage limits.
30: Explain how state and federal agencies charged with regulating financial institutions protect the safety, soundness, and legal compliance of the nation's banking system. Examples: Federal Reserve System, the Office of the Comptroller of the Currency, the Consumer Financial Protection Bureau, state banking departments
31: Investigate and report on account management services provided by financial institutions. Examples: credit unions, pawn shops, payday lenders, commercial banks, online banks
a: Summarize the risks and protections associated with checks, debit cards, credit cards, and online and mobile payment systems.
b: Compare the features and costs of personal checking accounts offered by different financial institutions.
c: Compare the features and costs of online and mobile banking and payment services offered by different financial institutions.
d: Compare the cost of cashing a check with various third parties. Examples: bank or credit union, check‑cashing services, retail outlets
e: Identify ways to avoid costly fees. Examples: overdraft fees, late fees
f: Discuss the pros and cons of being unbanked.
32: Demonstrate procedures for opening and managing a checking account, including writing checks; recording checks, debits, and deposits; and reconciling statements.