Investing and Compound Interest

Finance

• Financial Responsibility
  3: Explain how goals, decision‑making, and planning affect personal financial choices and behaviors.
• Consumer Decisions and Behavior
  13. Explain the ways in which individuals are responsible for their finances and situations in which they share responsibility for other people's finances.
• Money Management
  14. Demonstrate how to set financial goals and analyze the costs and benefits of spending decisions.

  15. Describe strategies for managing income to align with financial goals.
• Investing
  24. Identify types of investments appropriate for different objectives.

  25. Evaluate types of investments to determine how they meet the objectives of a personal financial plan.

Social Studies

• 9-12 Economics - Decision-Making and Personal Finance
  SS.9-12.12.6: Assess the economic advantages of saving in a personal account and other long‐ and short‐term investment accounts.
• 9-12 Economics - Economic Systems, Models, and Markets

Social Studies - Economics

• AS.E1: A financially literate individual understands how to manage income, spending, and investment.
  HS.E1.1: Evaluate how and why people make choices to improve their economic well-being.

  HS.E1.4: Compare the cost and benefits of several types of investments.
• AS.E2: By applying economic reasoning, individuals seek to understand the decisions of people, groups, and societies.
  HS.E2.2: Analyze how incentives influence economic choices for individuals, institutions, and societies.
• AS.E3: Individuals and institutions are interdependent within market systems.
• AS.E4: The domestic economy is shaped by interactions between government, institutions, and the private sector.
• AS.E5: The interconnected global economy impacts all individuals and groups in significant and varied ways.

Financial Literacy Model Framework

• 1.0: Assess the role of money in personal finance.
  1.5: Assess the impact of interest on borrowing and investing.
• 5.0: Determine the value and risk of investments.
  5.2: Evaluate the types of investments available in the marketplace.
• 6.0: Determine financial strategies used to meet personal goals.
  6.1: Determine financial strategies used to meet long‑term financial goals.

Personal Finance

• (8) Principles of investing and building wealth, including investment alternatives to build financial security, including tax-advantaged investments such as pensions and 401(k) plans, IRAs, and stocks, bonds, mutual funds, and index funds.
• (13) Other topics that are directly and specifically relevant to personal finance.

Personal Financial Literacy

• FL.HS.5.4: Explore a diversified investment strategy that is compatible with personal financial goals.

Standards for Personal Financial Management and Financial Literacy

• Earning Income
• Spending
• Investing
• Managing Credit
• Managing Risk

Financial Literacy

• 1: Financial Planning and Decision Making
• 2: Money Management
• 3: Saving and Investing
  Students will demonstrate that personal savings and investment compound over time and contribute to meeting financial goals.

  Students will understand that individuals save money in order to achieve a goal.
• 4: Risk Protection
  Students will understand that planning for potential and unexpected risks can minimize personal loss or harm.

Financial Literacy Standards

• Earning Income
• Spending
• Saving and Investing
• Credit
• Managing Risk

Financial Literacy

• SS.912.FL.4: Identify and compare the different means and risks of saving and investing money, including the impact of inflation, and interest rates.
• SS.912.FL.6: Identify and analyze the means, types and risks of financial investing including personal and societal influences and the government’s role in regulating investments.

Personal Finance and Economics

• SSEPF2: Analyze income as a scarce resource that can be allocated effectively through budgeting.
• SSEPF3: Explain how the financial system channels funds from savers to investors.
• SSEPF4: Explain how interest rates affect various consumer decisions.

Financial Literacy Standards Fall 2025 (Draft) - Senate Concurrent Resolution No. 66

• Theme 1: Earning Income
• Theme 2: Spending
• Theme 3: Saving
• Theme 4: Investing
• Theme 5: Managing Credit
• Theme 6: Managing Risk

House Bill No. 92 - Financial Literacy Standards (2023)

• 3. Evaluate various investment options and calculate net worth

Illinois Learning Standards for Social Science

• Financial Literacy
  SS.EC.FL.3.9-12: Explain how time, interest rates, and inflation influence savings patterns over a lifetime.

  SS.EC.FL.5.9-12: Evaluate risks and rates of return of diversified investments.

Personal Financial Responsibility Course and Standards

• Financial and Decision Making
  12-1.1: Demonstrate taking responsibility for personal financial decisions.

  12-1.2: Analyze financial information from a variety of reliable sources.
• Managing Credit and Debt
• Planning and Managing Money
  12-3.1: Demonstrate ability to use money management skills and strategies.

  12-3.6: Develop a personal financial plan.
• Relating Income and Careers
• Risk Management and Insurance
• Saving and Investing
  12-6.1: Explain how saving contributes to financial wellbeing.

  12-6.2: Apply strategies for creating wealth and building assets.

  12-6.3: Compare investment alternatives.

  12-6.4: Describe how to buy and sell investments.

  12-6.5: Analyze factors that affect the rate of return on investments.

Financial Literacy

• Analyze Credit and Debt Levels
• Create a Saving and Spending Plan
• Develop Financial and Career Goals
  SS.9-12.13: Develop short- and long-term financial goals. (21st century skills)
• Evaluate Savings and Long Term Investments
  SS.9-12.22: Apply investment tools to meet financial goals. (21st century skills)
• Measure Risk Management Tools

Jump$tart National Standards in 2022

• I. Earning Income
• II. Spending
• III. Saving
• IV. Investing
• V. Managing Credit

Essential Skills

• Adaptability
• Knowledge

Financial Literacy

• Decision Making & Money Management
• Saving & Investing

Financial Literacy

• Types of savings and investments.

Personal Finance

• D2: Evaluating different strategies for money and risk management.
• F1: Explaining how personal finance involves the use of economics as the basis for saving, investing and managing money.

Financial Literacy Education

• Make Informed, Financially Responsible Decisions
• Relate Careers, Education, and Income
• Plan and Manage Money
  3.A: Use money-management skills and strategies to set a financial goal and achieve it.
• Manage Credit and Debt
• Create and Build Wealth
  5.A: Develop a savings plan.

  5.B: Evaluate strategies for creating wealth and building assets.

  5.C: Critique appropriate financial services and products to specified goals.
• Manage Risks and Preserve Wealth
  6.A: Evaluate the strategies that protect income and wealth.

Personal Financial Literacy in the Massachusetts Curriculum Frameworks

• ECON: Economics Content Standards
  ECON.T3: Market structures
• PFL: Standards for Personal Financial Literacy
  PFL.T1: Earning and spending income

  PFL.T2: Saving money

  PFL.T3: Using credit and making investments

Merit Curriculum: Personal Finance

• PF1 Earning Income
• PF2 Buying Goods and Services
• PF3 Budgeting and Saving
• PF4 Using Credit
• PF5: Financial Investing
• PF6 Protecting and Insuring
• PF7 Paying Taxes

Personal Finance

• Focus Area One: Financial Psychology
• Focus Area Two: Income and Earning
• Focus Area Three: Financial Systems
• Focus Area Four: Credit and Debt Management
• Focus Area Five: Risk Management
• Focus Area Six: Budgeting and Investing
• Recurring Outcomes: Outcomes that span every focus area

Personal Finance

• 1: Personal Decision-Making
  1.2: Apply opportunity costs and trade-offs to personal decision making.

  1.4: Recognize and analyze the consequences of a decision.
• 2: Earning and Reporting Income
• 3: Banking and Financial Institutions
• 4: Budgeting
• 5: Buying Goods and Services
• 6: Saving and Investing
  6.1: Comparing saving and investing and apply principles to make decisions regarding each. DOK2

  6.2: Analyze and apply concepts about simple and compound interest. DOK2

  6.3: Research and describe other considerations and items related to savings and investing. DOK2
• 7: Using Credit
• 8: Types of Insurance

Personal Finance

• I: Financial Decision Making
  Concept 1: Unlimited Wants and Limited Resources

  Concept 2: Choice and Decision Making
• II: Earning Income
• III: Buying Goods and Services
• IV: Saving
  Concept 2: Interest on Savings
• V: Using Credit
• VI: Protecting and Insuring
• VII: Financial Investing
  Concept 1: Investment Instruments

  Concept 2: Relationship Between Risk and Reward

Financial-Literacy Themes

• I: Earning Income
• II: Spending
• III: Saving
• IV: Investing
• V: Managing Credit
• VI: Managing Risk

Financial Literacy

• SS 2.2: Develop a plan to support short- and long-term goals.
• SS 2.3: Critique strategies used to establish, build, maintain, monitor, and control credit.
• SS 2.4: Evaluate savings, investment, and risk-management strategies to achieve financial goals.

Financial Literacy

• Financial decision-making
  SS.FL.1: Analyze the alternatives and consequences of financial decision-making in the development of financial goals.
• Savings and spending
• Credit and debt
• Insurance, investing, and risk
  SS.FL.9: Distinguish the cost and benefits of various investment strategies including securities, stocks, and bonds; with attention to compound interest and methods of buying and selling investments.
• College and career preparedness

Social Studies

• SS:EC:4: Financial Institutions and the Government
  SS:EC:4.2: Explain the components of the money supply, e.g., currency or money market accounts.
• SS:EC:6: Personal Finance
  SS:EC:6.1: Compare the risk, rate of return, and liquidity of investment.

Career Readiness, Life Literacies, and Key Skills

• 9.1 Personal Financial Literacy
  9.1.12.FI: Financial Institutions

  9.1.12.PB: Planning and Budgeting

  9.1.12.RM: Risk Management and Insurance

Economics/Personal Financial Literacy

• 5. Economic Decision Making
• 7. Economic Systems and Models
• 8. Money and Markets
• 9. Global Economy
• 10. Personal Financial Literacy
  9-12.Econ.48: Evaluate how and why individuals choose to accept risk, reduce risk, or transfer risk to others.

  9-12.Econ.57: Explain how investing may build wealth and help meet financial goals (e.g., stocks, bonds, mutual funds, retirement savings options, real estate).

Financial and Consumer Literacy

• FL.4: Savings and investments

Standards for Economics and Personal Finance

• Critical Consumerism
• Economics
• Financial Planning
  EPF.FP.1: Understand the value and planning processes associated with saving and investing.
• Income and Education
• Money and Credit Management
  EPF.MCM.1: Understand money management skills and strategies.

  EPF.MCM.3: Understand the concepts and factors that enable individuals to make informed financial decisions for effective resource planning and money management.

Personal Finance Concepts

• 15.1-21-21(1)(h): Mortgages, retirement savings, and investments

Learning Standards: Financial Literacy

• Financial Responsibility and Decision Making
  2: Financial responsibility involves life-long decision-making strategies which include consideration of alternatives and consequences.

  4: Income sources include job earnings and benefits, entrepreneurship, saving and investment earnings, government payments, grants, inheritances, etc. Workers can experience dramatic income dips and spikes from month to month.
• Planning and Money Management
• Informed Consumer
• Investing
  16: Using key investing principles one can achieve the goal of increasing net worth.

  17: Investment strategies must factor in the time horizon of the investment, the degree of diversification, the investor's risk tolerance, how the assets are selected and allocated, product costs, fees, tax implications and the time value of money.
• Credit and Debt
• Risk Management and Insurance

Financial Literacy Education

Personal Financial Literacy

• PFL.5: The student will analyze the costs and benefits of saving and investing.

High School Personal Financial Education Content Standards

• HS.PFE.A: Credit and Debt
• HS.PFE.B: Banking, Investing, Saving and Repayment
  HS.PFE.B.2: Develop goals for building assets using various investment options, and identify potential risks and rewards for a given strategy.
• HS.PFE.C: Budgeting, Spending and Money Management
• HS.PFE.D: Personal Income, Taxes and Services
• HS.PFE.E: Maintaining Financial Well-being

Academic Standards for Personal Finance

• 17.1: Personal Finance Fundamentals
• 17.2: Income
• 17.3: Spending
• 17.4: Saving & Investing
• 17.5: Risk & Insurance
• 17.6: Credit

Jump$tart National Standards in 2022

• I. Earning Income
• II. Spending
• III. Saving
• IV. Investing
• V. Managing Credit
• VI. Managing Risk

Advanced Personal Finance Code: 5131

• F: Personal Financial Management
• O: Investments and Long-Term Planning

Personal Finance Code: 5141

• A: Managing Personal Finances
• G: Building Financial Security

Personal Finance

• PF 1: Analyze elements that affect personal income.
• PF 2: Implement processes involved in managing personal finances.
• PF 3: Use an informed decision-making process to manage credit and debt.
• PF 4: Evaluate savings and investment options to meet short- and long-term goals.
  PF 4.1: Explain how saving contributes to financial security.

  PF 4.2: Explain how investing builds wealth and helps meet financial goals.
• PF 5: Use appropriate and cost-effective risk management strategies.

Personal Finance

• 1: Financial Responsibility and Personal Decision Making
• 2: Education, Careers, and Income
• 3: Planning and Money Management
• 4: Credit and Debt
• 5: Risk Management
• 6: Saving and Investing
  6.1: Saving and Investing: Explain how saving and investing contribute to financial well-being, building wealth, and personal financial goals.

Essential Knowledge and Skills for Social Studies

• STRAND 4: Students will evaluate saving methods and investment strategies.

Personal Financial Literacy

• E. Being a prudent investor in the stock market and using other investment options
• H. The types of bank accounts available to consumers and the benefits of maintaining a bank account

General Financial Literacy

• STRAND 2: Students will understand the factors that influence personal financial priorities and learn how to make rational decisions.
• STRAND 3: Students will understand sources of income and the relationship between career preparation and lifetime earning power.
• STRAND 4: Students will evaluate saving methods and investment strategies.
  Discuss the pros and cons of saving.

  Discuss the risks and returns of investing.

  Understand the role of risk management in asset protection.
• STRAND 5: Students will understand principles of personal money management, including budgeting and managing accounts, and the role and impact of credit on personal finance.

Jump$tart National Standards in 2022

• I. Earning Income
• II. Spending
• III. Saving
• IV. Investing
• V. Managing Credit
• VI. Managing Risk

Economics and Personal Finance Standards of Learning

• EPF.16: The student will demonstrate knowledge of personal financial planning
• EPF.17: The student will demonstrate knowledge of investment and savings planning

State Learning Standards: Financial Education

• CD: Credit and Debt
• EI: Employment and Income
• I: Investing
  Demonstrate how to buy and sell investments.

  Evaluate investment alternatives.

  Explain how investing may build wealth and help meet financial goals.
• RM: Risk Management and Insurance
• SS: Spending and Saving

College & Career Readiness - Personal Finance

• SS.C.39: Examine financial habits that promote economic security, stability and growth.

Standards for Personal Financial Literacy

• EE: Education and Employment
  EE1: Students will compare the effect of personal income on their goals.
• FM: Financial Mindset
  FM1: Students will develop strategies to make intentional financial decisions throughout their lifespan.
• MM: Money Management
  MM1: Students will demonstrate their ability to use money management skills and strategies.

  MM2: Students will utilize financial institutions and service providers to support money management.
• SI: Saving and Investing
  SI1: Students will explore savings concepts and apply this knowledge to attain financial security.

Social Studies Content and Performance Standards

• Financial Literacy – Production, Distribution, and Consumption
  SS12.3.1: Analyze the impact of supply, demand, scarcity, prices, incentives, competition, and profits on what is produced, distributed, and consumed.

  SS12.3.4: Explain how financial and government institutions make economic decisions (e.g., banking, investment, credit, regulation, and debt).