Maryland
8th Grade
State Standards
Maryland Personal Financial Literacy Standards
Make Informed, Financially Responsible Decisions
1.A: A. Analyze the financial choices that people make based on available resources, needs, and wants for goods and services.
1.A.1: Predict the consequences of making financial decisions.
1.A.2: Describe opportunity cost of financial decisions made by individuals.
1.A.3: Predict the financial outcomes in an applied decision-making process.
1.A.4: Compare factors that affect personal financial decisions and actions.
1.B: B. Integrate and apply financial knowledge, attitudes, and skills to a given scenario.
1.B.1: Develop and apply financial literacy vocabulary.
1.B.2: Describe methods to achieve personal financial goals.
1.B.3: Differentiate between responsible and irresponsible financial decisions.
Relate Careers, Education, and Income
2.A: A. Acquire and apply self-knowledge in order to develop personal, learning and career goals.
2.A.1: Demonstrate behavior and decisions that reflect one's interests, likes and dislikes.
2.A.2: Identify one's abilities, strengths, skills and talents as seen by self and others and explain the significance to one's education and career plans.
2.B: B. Identify career goals and map the educational paths needed to achieve them.
2.B.1: Compare a variety of jobs within a career field.
2.B.2: Describe the benefits and trade-offs of a variety of careers including personal satisfaction.
2.B.3: Describe different sources of income.
2.C: C. Compare the costs (time, money, and effort) in pursuing a variety of identified career goals.
Plan and Manage Money
3.A: A. Use money-management skills and strategies to set a financial goal.
3.A.1: Determine the circumstances for using a spending plan.
3.A.2: Formulate and compare money-management choices that enable individuals to progress toward stated financial goals.
3.A.3: Prepare a spending plan based on personal values and goals.
3.B: B. Describe the services of financial institutions.
3.B.1: Describe the various financial products and services provided by financial institutions and determine which product best aligns to achieving a personal financial goal.
3.C: C. Explain the purposes and responsibilities related to taxation.
3.C.1: Discuss the services that are provided through tax dollars.
3.C.2: List the consequences of not complying with personal tax obligations.
3.D: D. Explain that contracts are binding agreements.
3.D.1: Explain why contracts are used.
3.D.2: Identify factors to consider when entering into a contract, such as interest rates, credit score, reputation, and/or references of involved parties.
Manage Credit and Debt
4.A: A. Explain the importance of managing debt.
4.A.1: Provide examples of good and bad debt.
4.A.2: Discuss how debt can be used to establish credit.
4.A.3: Describe the consequences of having too much debt and not meeting credit obligations, such as late fees, loan acquisition, paying higher interest rates, and bankruptcy.
4.A.4: Explain strategies used to manage credit and debt.
4.B: B. Compare credit products and services, and use numeracy skills to calculate the cost of borrowing.
4.B.1: Explain credit terminology.
4.B.2: List sources of consumer credit.
4.B.3: Explain the difference between short- and long-term loans.
4.B.4: Compare and compute application of interest and compound interest.
4.B.5: Compute the amount of interest paid over time when using credit.
4.C: C. Compare credit scores and reports.
4.C.1: Describe a credit report; explain what a credit score is and the factors affecting a credit score.
4.C.2: Identify ways to prevent credit problems.
Create and Build Wealth
5.A: A. Develop a savings plan.
5.A.1: Determine short-term savings goals.
5.A.2: List strategies to achieve goals.
5.A.3: Create a spending plan that includes strategies to accomplish savings goals.
5.B: B. Apply strategies for creating wealth and building assets.
5.B.1: Distinguish between financial practices of the banked and unbanked.
5.B.2: Explain how financial institutions protect consumers' money.
5.B.3: Apply the 'Rule of 72' to a financial decision.
5.B.4: Apply the principle of 'Pay Yourself First' to realistic scenarios.
5.C: C. Align appropriate financial services and products to specified goals.
5.C.1: Distinguish between saving and investing.
5.C.2: Differentiate between income and investment growth.
5.C.3: Identify sources of investment products, such as banks, investment companies, and financial planners.
5.C.4: Determine an investment strategy's time horizon based on a specified goal.
5.C.5: Calculate returns on investments as it relates to time horizons.
Manage Risks and Preserve Wealth
6.A: A. Evaluate the strategies that protect income and wealth.
6.A.1: Explain circumstances that impact income and wealth.
6.A.2: Strategize methods to minimize financial loss.
6.A.3: Explain how legal documents protect individuals' personal assets, such as wills and trusts.
6.B: B. Differentiate sources of consumer protection and assistance, including public institutions and private organizations (professionals, publications, and internet).
6.B.1: Examine consumer fraud and methods for protection against fraudulent activities.
6.B.2: Identify situations that put consumers in financial risk, such as sharing account information, identity theft, and co-signing on loans.
6.B.3: Distinguish between the rights and responsibilities of buyers and sellers under consumer-protection laws.
6.B.4: List actions to take to dispute a claim.
6.C: C. Examine the need for and value of various types of insurance (such as health, property, life, disability, and liability) within the life cycle.
6.C.1: Describe the need for and value of different types of insurance.
6.C.2: Identify factors to consider when determining the amount of protection needed.
6.C.3: Identify strategies to lower insurance costs.