Georgia
9th-12th Grades
State Standards
Social Studies Georgia Standards of Excellence: Personal Financial Literacy
SSPFL1Evaluate various sources of income and analyze variables that affect a person's income.
SSPFL1.aAnalyze income as a scarce resource that must be allocated.
SSPFL1.bCompare different types of income including hourly wages, salary, tips, independent contractor services (Form 1099), dividends, and capital gains.
SSPFL1.cAnalyze how career choice, education, skills, and economic conditions are related to income and levels of unemployment.
SSPFL1.dDescribe how income taxes affect disposable income.
SSPFL1.eReview and complete a sample federal individual income tax form 1040EZ or 1040A.
SSPFL1.fDescribe the basic components of a pay‑stub including gross pay, net pay, and common deductions (i.e. federal and state income tax, Federal Insurance Contributions Act (FICA – which includes Social Security and Medicare), and elective deductions like insurance and tax‑deferred savings).
SSPFL2Describe how budgeting and actively reviewing finances can be used to allocate scarce income.
SSPFL2.aExplain the importance of setting short‑term, medium‑term, and long‑term savings goals.
SSPFL2.bDifferentiate between needs and wants.
SSPFL2.cAnalyze the basic components of a personal budget including income, expenses, and savings.
SSPFL2.dExplain how to reconcile a checking account, either online or on paper, including how to account for transactions that have not been posted (i.e. checks or weekend debit card transactions).
SSPFL2.eDescribe overdraft fees including why they are assessed and how to avoid them.
SSPFL2.fExplain the concept of net worth.
SSPFL3Evaluate different methods for paying for goods and services.
SSPFL3.aDescribe advantages and disadvantages of paying for goods and services with cash, checks, debit cards, credit cards, and other options.
SSPFL3.bCompare and contrast debit, credit, and prepaid cards in terms of how they work, acceptability, and the costs associated with each.
SSPFL3.cExplain how to avoid fees when using debit, credit, and pre‑paid cards.
SSPFL3.dExplain the major consumer protections related to debit, credit, and pre‑paid cards, especially if they are lost or stolen.
SSPFL4Evaluate alternatives for life after high school including college, technical school, internships, working, military, doing nothing (taking a 'gap year'), traveling, or other options.
SSPFL4.aUse a rational decision‑making model to identify the most appropriate alternative from the options in SSPFL4.
SSPFL4.bDescribe opportunity cost as it relates to the options in SSPFL4.
SSPFL4.cEvaluate costs and benefits of various ways to pay for post‑high‑school life including scholarships, employment, work‑study programs, loans, grants, savings, prior investments, and other options.
SSPFL4.dReview and complete a sample Free Application for Federal Student Aid (FAFSA) form.
SSPFL5Describe the importance of credit and having a favorable credit score.
SSPFL5.aDefine credit and interest rates.
SSPFL5.bDescribe factors that affect credit worthiness and the ability to receive favorable interest rates including character (credit score), collateral, and capacity to pay.
SSPFL5.cDescribe the basic components of a credit score including payment history, debt‑to‑income ratio, amount owed, length of credit history, types of credit used, amount of available credit, and recent credit applications.
SSPFL5.dDescribe different ways financial institutions, employers, and other parties use credit reports and credit scores.
SSPFL5.eDescribe how to access one's credit report and credit score.
SSPFL5.fAnalyze and evaluate a sample credit report.
SSPFL5.gExplain how to begin building a good credit history at an early age.
SSPFL5.hExplain causes of personal bankruptcy and describe consequences of declaring bankruptcy.
SSPFL6Analyze the purpose and functions of various financial institutions.
SSPFL6.aAnalyze services offered by different financial institutions including banks, credit unions, payday lenders, and title pawn lenders.
SSPFL6.bExplain that some financial institutions are for‑profit and others are non‑profit and how that affects the lending behavior of the institution.
SSPFL6.cCompare the benefits and drawbacks of different financial institutions including banks, credit unions, payday lenders, and title pawn lenders.
SSPFL6.dDescribe difficulties 'unbanked' people face; including lack of security, difficulties securing financial services, and increased financial cost compared to using traditional financial institutions.
SSPFL7Explain how interest rates affect various consumer decisions.
SSPFL7.aExplain how actions taken by the Federal Reserve System affect interest rates.
SSPFL7.bCompare interest rates on loans and credit cards from different institutions including banks, credit unions, pay‑day loan facilities, and title‑pawn.
SSPFL7.cDefine annual percentage rate and analyze how different interest rates can affect monthly payments on loans.
SSPFL7.dExplain the difference between simple and compound interest and the difference between fixed and variable interest.
SSPFL7.eDefine nominal and real returns and explain how inflation affects savings and investment accounts earning interest.
SSPFL8Evaluate reasons for and various methods of investment.
SSPFL8.aEvaluate the risk and return of a variety of savings and investment options including savings accounts, certificates of deposit, stocks, bonds, and mutual funds.
SSPFL8.bExplain the advantages of using tax‑advantaged retirement planning including a traditional Individual Retirement Account (IRA), a Roth IRA, a myRA, and a company 401K or 403b.
SSPFL8.cDescribe the importance of diversification investing.
SSPFL8.dDescribe the differences in strategies used for long‑term investing vs. short‑term investing.
SSPFL9Describe how insurance and other risk‑management strategies protect against financial loss.
SSPFL9.aDefine insurance as an agreement where one party agrees to pay for another's damage or loss in exchange for payment.
SSPFL9.bDefine risk as it relates to various assets (i.e. your person, property, or investments).
SSPFL9.cDescribe various types of insurance including automobile, health, life (whole and term), disability, and property.
SSPFL9.dReview and describe the basic components of a sample automobile, health, and property insurance policy.
SSPFL9.eAnalyze different methods for obtaining health insurance including through an employer, private purchase, Consolidated Omnibus Budget Reconciliation Act (COBRA), and through various health insurance exchanges.
SSPFL9.fAnalyze the costs and benefits associated with different types of insurance, including co‑pays, deductibles, premiums, shared liability, and asset protection.
SSPFL9.gDefine insurability and explain why insurance rates can vary.
SSPFL10Describe how government taxing and spending decisions affect consumers.
SSPFL10.aDefine progressive, regressive, and proportional taxes.
SSPFL10.bAnalyze the purpose of different types of taxes including income, property, sales, excise, and capital gains.
SSPFL10.cExplain how an increase in sales tax affects different income groups.
SSPFL10.dDescribe government programs designed to provide assistance to low‑income individuals such as the Supplemental Nutrition Assistance Program (SNAP) (including the special program for Women, Infants, and Children (WIC)), Medicaid, State Children's Health Insurance Program (SCHIP), and public housing.
SSPFL10.eExplain how unemployment insurance is provided by federal and state governments.
SSPFL11Explain and evaluate various forms of consumer protection.
SSPFL11.aDescribe the roles of the Securities and Exchange Commission (SEC), Federal Trade Commission (FTC), National Credit Union Association (NCUA), Federal Deposit Insurance Corporation (FDIC), and the Consumer Financial Protection Bureau (CFPB) in protecting consumers.
SSPFL11.bCompare different methods for lodging consumer complaints (e.g., Better Business Bureau, usa.gov/consumer‑complaints, direct contact with business).
SSPFL11.cExplain the primary purpose of important consumer legislation including the Truth in Lending Act, Fair Debt Collection Practices Act, Fair Credit Reporting Act, and the Dodd‑Frank Act.
SSPFL12Explain sources of and protection against identity theft.
SSPFL12.aDescribe common ways identity theft happens including dumpster diving, skimming, phishing, stealing, and hacking.
SSPFL12.bAnalyze ways to protect yourself from identity theft including shredding important documents, not opening attachments to unknown emails, not revealing personal information over the phone or email, using secure networks, regularly checking your credit score, and changing passwords on accounts.
SSPFL12.cDescribe steps that should be taken if a person is the victim of identity theft including getting replacement credit cards, freezing credit histories, alerting appropriate officials, and changing passwords.
SSPFL12.dDescribe the basic characteristics of investment scams such as Ponzi schemes, pump and dumps, and 'advance fee' scams and how to avoid them.