Personal Financial Literacy Implications for Colorado Teachers

Colorado Academic Standards

Personal Financial LiteracyImplications

for Colorado Teachers


The Need for Personal Financial Literacy

• 55% of parents with children 16-24 voiced concern over their child’s ability to become financially independent

• 1 in 3 parents have taught their teen how to balance a checkbook, fewer (29%) explained how credit cards work


• 93% of parents worry their teen will make financial missteps

• 72% of parents acknowledge they are the primary source of PFL education

• 1 in 4 parents are not currently saving for retirement or their child’s education


• More than 2/3’s of parents feel less prepared to give financial guidance than they do talking about the “birds & bees”

• 47% of teens between 12-17 have a savings account, 12% have a checking account, and 15% have an ATM


Personal Financial Literacy-

The first approach…making it simple


Agenda• Highlights: standards revision process

• Key Features: PFL Expectations

• Deeper Look: PFL expectations

• Grounding: PFL expectations

• Other Support


How familiar are you with the PFL writing process?a. I heard something

about thatb. What is PFL?c. I am ready for

implementation


Phases of Implementation for Colorado’s Revised Academic

Standards



Research Based

Inclusive

Parameters for the standards revision process

•West Ed and CDE collaborated to gather national and international research

•Educators, citizens, higher education, business & industry•Feedback ongoing from stakeholders throughout the process

Transparent

•All could see updates, notes, and deliberations


Process for each phase

of standards revision

Fewer,

Clearer,

Higher


Financial Literacy Recommendations

Mathematics Evidence Outcomes

Economics Grade Level Expectations

Personal Financial Literacy Subcommittee

Conference Committee

Integrated into Economics and Mathematics

State Board of Education

Colorado Department of Education


What is your level of awareness of the PFL expectations?

a. I have thoroughly read through ALL of the PFL expectations and made note of implications for my district.

b. I have read the PFL expectations.c. I have skimmed the PFL expectations.d. I have not yet read the PFL expectations.




Financial Literacy Four Key Areas

Goal Setting, Careers, and Financial Responsibility

Planning, Income, Saving, and Investing

Credit

Risk Management and Insurance

Prepared Graduate Competency in Economics

Acquire the knowledge and economic reasoning skills to make sound financial decisions (PFL)


Assessing Personal Financial Literacy• Within the new Colorado assessment

system

• Within the mathematics assessment at each assessed grade level

• Details available in the future


A deeper look at the PFL expectations?


Content Area:StandardPrepared Graduates:

High School and Grade Level ExpectationsConcepts and skills students master:

Evidence Outcomes 21st Century Skills and Readiness Competencies

Students can: Inquiry Questions:

Relevance and Application:

Nature of the Discipline:

The Template


High School example

Economics Evidence Outcomes:

Analyze various lending sources, services, and financial institutionsInvestigate legal and personal responsibilities affecting lenders and borrowersMake connections between building and maintaining a credit history and its impact on lifestyle

Mathematics Evidence Outcomes:

Evaluate the costs and benefits of credit (2.6f)

Analyze various lending sources, services and financial institutions (2.6g)

Economics Expectation: Analyze the components of personal credit to manage credit and debt


Content Area: MathematicsStandard: Patterns, Functions, and Algebraic StructuresPrepared Graduate Competencies:Use critical thinking to recognize problematic aspects of situations, create mathematical models, and present and defend solutionsHigh School Expectation Concepts and skills students know include: 6. Identify essential quantitative relationships in a real-world problem, use elementary functions to develop a mathematical model, and use all available tools, including technology, to find and interpret solutions.

Evidence Outcomes 21st Century Skills and Readiness Competencies Students can:a.Represent and solve problems in various contexts using linear and quadratic functions b.Represent and solve problems in various contexts, including investment growth and depreciation, using power and exponential functionsc. Represent and solve problems involving direct and inverse variations and a combination of direct and inverse variationd.Analyze the reasonableness of a solution in its given context and compare the solution to appropriate graphical and numerical estimatese.Analyze the impact of interest rates on a personal financial plan (PFL)f.Evaluate the costs and benefits of credit (PFL)g.Analyze various lending sources, services and financial institutions (PFL)

Inquiry: What phenomena can be modeled with particular functions?Which financial applications can be modeled with exponential functions? Linear functions?How can patterns, relations, and functions be used as tools to describe and explain real-life situations? What elementary function or functions best represent(s) a given scatter plot of two-variable data? How much would today’s purchase cost tomorrow? (PFL)What is the difference between simple and compound interest and how do these relate to linear and exponential growth? (PFL)

Applying Mathematics in Society and Using Technology:Use translations of elementary functions to model real-world dataUse functions to represent population growthUse spreadsheets to calculate loan amortization and make predictions about a personal financial plan (PFL)Investigate the implications of inflation on income, budgets, savings and spending. Apply interest formulas to explore the effect of compound interest on an investment over time (PFL)Compare the costs of different ways of obtaining credit (PFL)Analyze the most cost-effective option for a large purchase (PFL)

Nature of Mathematics:Mathematicians represent concepts concretely and use multiple representations


Content Area: Social StudiesStandard: Economics

Prepared Graduates:Acquire the knowledge and economic reasoning skills to make sound financial decisions (PFL)

Grade Level Expectation: High School Concepts and skills students master:

6. The components of personal credit to manage credit and debt(PFL)

Evidence Outcomes 21st Century Skills and Readiness Competencies

Students can:a.Analyze various lending sources, services, and financial institutionsb.Investigate legal and personal responsibilities affecting lenders and borrowersc.Make connections between building and maintaining a credit history and its impact on lifestyle

Inquiry Questions: Why is it important to know the similarities and differences of revolving credit, personal loans, and mortgages?How does the law protect both borrowers and lenders?Why is a good credit history essential to the ability to purchase goods and insurance, and gain employment?When should you use revolving credit and/or personal loans?

Relevance and Application:The understanding of the components of personal credit allows for the management of credit and debt. For example, individuals can use an amortization schedule to examine how mortgages differ, check a credit history, know the uses of and meaning of a credit score, and use technology to compare costs of revolving credit and personal loans.Knowledge of the penalties that accompany bad credit, such as the inability to qualify for loans, leads to good financial planning.

Nature of Economics:Financially responsible consumers know their rights and obligations when using credit.Financially responsible consumers frequently check their own credit history to verify its accuracy and amend it when inaccurate.Financially responsible consumers make decisions that require weighing benefit against cost.


Directions

1.At your table, choose a partner

2. The table then decides which set of partners will reviewP-K1-23-45-67-8

3.Partner Discussion•What concepts & skills do you see emphasized at the grade levels?

4.Table Discussion: •Overview of what is emphasized at each grade level


Anticipated support

from CDE



URL

http://www.cde.state.co.us/action/Financial_Literacy/index.htm


What are the implications for your

work?


Multi-Dimensional Support from CDE


Crosswalk DocumentsCrosswalk Document

Standard Grade Expectation Referent District Notes Intention Implication

http://www.cde.state.co.us/cdeassess/UAS/Crosswalk/CAS_Crosswalk.html


How to Partner with CDE

Communication opportunities

Collaboration opportunities

Sharing opportunities

Professional developmentopportunities