Alabama
9th-12th Grades
State Standards
Personal Finance
Foundational Standards
1Incorporate 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.
2Demonstrate effective workplace and employability skills, including communication, awareness of diversity, positive work ethic, problem‑solving, time management, and teamwork.
3Explore the range of careers available in the field and investigate their educational requirements, and demonstrate job‑seeking skills including resume‑writing and interviewing.
4Advocate and practice safe, legal, responsible, and ethical use of information and technology tools specific to the industry pathway.
5Participate in a Career and Technical Student Organization (CTSO) to increase knowledge and skills and to enhance leadership and teamwork.
6Discuss and demonstrate ways to value diversity.
Financial Responsibility
1Describe the nature and scope of personal finance, including how personal finance concepts fit into key life events or stages.
aResearch 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
bSpecify how monetary and non‑monetary assets can contribute to net worth.
2Describe personal spending behavior that contributes to building wealth.
aExplain how charitable giving fits into a spending plan.
bPractices 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
3Explain how goals, decision‑making, and planning affect personal financial choices and behaviors.
aCreate a plan to reach a specific financial goal.
bExplain personal values that affect financial choices. Examples: desire for home ownership, work ethic, charity, civic virtue
cExplain the advantages of designing and following a personal financial plan.
dCompare and contrast retirement and estate planning options available to individuals and families.
4Explain how certifications may expand employment opportunities and positively impact earnings. Examples: lifeguard training, tax preparation class, first aid training
aDescribe 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.
5Gather information from several sources when planning to purchase a product. Examples: manufacturers, retailers, consumer reviews, independent testing laboratories
aExplain what information is most helpful in choosing which product to buy.
Consumer Protection
6Outline the purposes and features of consumer protection laws, agencies, and sources of assistance, including identity protection and credit regulations.
aExplain ways to avoid identity theft, fraud, financial scams, and schemes designed to defraud consumers.
bDiscuss the financial and emotional costs of recovering from identity theft or fraud.
cDescribe possible responses to excessive debt collection practices. Examples: payday loans, instant credit
7Locate and share credible sources of up‑to‑date information about consumer rights and responsibilities.
aInvestigate and report on sources of assistance for resolving consumer disputes.
bDemonstrate procedures for filing formal consumer complaints.
8Outline steps to resolve identity theft problems as recommended by the Federal Trade Commission and financial institutions.
aList entities that have a right to request certain personal financial data.
bInvestigate and report on consumer safeguards for mobile and online banking.
Consumer Decisions and Behavior
9Describe factors that impact consumer purchasing decisions throughout the lifespan.
aExplain how limitations on financial resources affect the choices people make.
bExplain how consumers can benefit from conducting a cost‑benefit analysis before making a financial decision.
cAnalyze the influence of peer pressure and emotions on purchasing decisions. Examples: fashion, acceptance from others, desire for the latest gadget
dDescribe how scarcity relates to needs and wants.
eExplain the impact of marketing, advertising, and sales strategies or techniques on purchasing decisions. Examples: impulse buying, delayed payment
10Apply a decision‑making model to maximize consumer satisfaction when buying goods and services.
aCategorize possible purchases of goods and services as wants or needs, explaining the reasoning for each decision.
bResearch and report pros and cons of e‑commerce and online auctions.
cAnalyze the value of warranties, service contracts, and risk protection for a variety of products and services. Example: research due diligence on service work
11Demonstrate how to use comparison shopping skills to make purchasing decisions, including major purchases.
aCompare the advantages and disadvantages of owning versus renting property or housing.
bResearch and report on various types of consumer contracts, indicating each type's advantages and disadvantages for the consumer. Examples: renting to own, lease agreements
cCalculate cost and finance charges for major purchases. Examples: vehicles, appliances, electronics, dwellings
dResearch the projected costs for all expenses associated with major purchases, including maintenance costs. Examples: wedding, college, home, car
12Identify factors that affect the total cost of goods and services, including sales tax, tips, coupons, discounts, and unit pricing.
aExplain how sales and property taxes affect financial decisions. Examples: buying a car or house
13Explain 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
aList reasons to consult with a tax advisor or financial planner.
bExplain the value of sharing financial goals and personal finance information with a partner before combining households.
Money Management
14Demonstrate how to set financial goals and analyze the costs and benefits of spending decisions.
aDescribe a sunk cost and situations in which losses should be accepted to avoid further loss.
bCompose an argument supporting the concept of paying yourself first.
cDetermine the amount of savings needed for a given household.
15Describe strategies for managing income to align with financial goals.
aDescribe the impact of career choice, education, skills, and economic conditions on income and financial stability.
16Prepare a monthly budget for an individual or a family given their income, savings goals, taxes, and list of fixed and variable expenses.
aEvaluate 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
bDescribe methods of allocating resources to meet savings and investment goals.
cAnalyze how changes in life circumstances can affect a personal spending plan. Examples: job change, having a child, major illness, theft of property, automobile accident
dLocate and use technology to help with financial management. Examples: online banking, mobile banking apps, direct deposit, money transfer apps, online payments
17Gather and share information on income, benefits, and deductions.
aDistinguish between gross and net income.
bAnalyze the impact of payroll deductions and employee benefits on income. Examples: state and federal income tax, FICA, flexible benefit plans
cCalculate the monetary value of employee benefits when determining earnings.
dDescribe sources of income not derived from employment. Examples: alimony, unemployment insurance, stock dividends, government transfer payments
18Demonstrate procedures for completing and filing income tax forms, utilizing tax terminology. Examples: dependent, exemption, credit, deduction
aExplain 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
19Research and share information on credit options available to consumers. Examples: revolving, installment, open
aExplain how credit card grace periods, methods of interest calculation, and fees affect borrowing costs.
bList the types of information required on credit applications.
cCalculate the total cost of a loan.
dDifferentiate among various types of student loans and compare to alternate means of paying for post‑secondary education.
20Research and report on factors that affect creditworthiness and credit scores. Examples: payment history, credit mix, credit utilization
aList steps for obtaining a credit report from the three major reporting agencies.
bDescribe effective methods for improving credit scores.
cDescribe consequences of accumulating credit card debt and defaulting on loans, especially for young consumers.
dIdentify sources, types, and risks of loans for consumers.
eInvestigate and report on ways that a low credit score can affect a consumer's financial options.
21Apply strategies to avoid or correct debt management problems.
aExamine and report on the types of services offered by consumer credit counseling agencies.
bExplain 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
cInvestigate how student loan obligations differ from other kinds of debt.
dResearch and report on a financial institution's debt reduction services.
Saving
22Research and report on the benefits of savings.
aDistinguish between saving and investing, considering the characteristics of various methods of saving. Examples: savings account, money markets, certificates of deposit, IRAs, retirement accounts
bCalculate annual interest and annual yield on savings for various types of accounts. Examples: money market accounts, deposit savings accounts, 529 plans
cExplain reasons for maintaining an emergency savings account and methods for determining the amount needed.
23Compare certificates of deposit, money markets, and savings accounts and identify the benefits and disadvantages of each.
aGather information on the interest rates that financial institutions pay on different types of savings accounts.
bDetermine how real income, real return, real yield, and purchasing power are calculated and why they are important.
cExplain the difference between simple and compound interest and calculate interest on a given amount of savings using each method.
dGather and share information on the impact of inflation on savings.
Investing
24Identify types of investments appropriate for different objectives. Examples: short term vs. long term goals, liquidity, risks vs. reward
aDescribe factors that affect the rate of return on investments.
bDifferentiate between diversification and asset allocation.
cCompare 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.
dDescribe 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
25Evaluate types of investments to determine how they meet the objectives of a personal financial plan.
aCompare the advantages and disadvantages of buying and selling investments through various channels. Examples: direct purchase, stock options from employers, investment professionals, online brokerages
bResearch 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
26Identify warning signs of investment fraud and steps that can be taken if victimized by investment fraud.
Personal Insurance
27Describe how insurance protects against loss and mitigates financial consequences.
aExplain 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
bResearch and report on ways coverage, deductibles, and premiums are related.
cAnalyze the costs and benefits of various types of insurance.
28Compare and contrast types of property insurance and identify situations when certain types of coverage are needed. Examples: homeowner's, renter's, automobile
aGather and share information about the consequences of accidents involving uninsured or underinsured motorists.
bExplain the differences between independent insurance agencies and franchised agencies.
cDetermine the amount of coverage needed in a given situation.
Banking
29Explain the role of the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA) in protecting depositors' savings, including coverage limits.
30Explain 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
31Investigate and report on account management services provided by financial institutions. Examples: credit unions, pawn shops, payday lenders, commercial banks, online banks
aSummarize the risks and protections associated with checks, debit cards, credit cards, and online and mobile payment systems.
bCompare the features and costs of personal checking accounts offered by different financial institutions.
cCompare the features and costs of online and mobile banking and payment services offered by different financial institutions.
dCompare the cost of cashing a check with various third parties. Examples: bank or credit union, check‑cashing services, retail outlets
eIdentify ways to avoid costly fees. Examples: overdraft fees, late fees
fDiscuss the pros and cons of being unbanked.
32Demonstrate procedures for opening and managing a checking account, including writing checks; recording checks, debits, and deposits; and reconciling statements.