Financial Investing Standards
Florida Standards: Financial Investing Middle School
SS.8.FL.5.1 Describe the differences among the different types of financial assets, including a wide variety of financial instruments such as bank deposits, stocks, bonds, and mutual funds. Explain that real estate and commodities are also often viewed as financial assets.
SS.8.FL.5.2 Calculate the amount of interest income received from depositing a certain amount of money in a bank account paying 1 percent per year and from owning a bond paying 5 percent per year in order to analyze that interest is received from money deposited in bank accounts as well as by owning a corporate or government bond or making a loan.
SS.8.FL.5.3 Discuss that when people buy corporate stock, they are purchasing ownership shares in a business that if the business is profitable, they will expect to receive income in the form of dividends and/or from the increase in the stock’s value, that the increase in the value of an asset (like a stock) is called a capital gain, and if the business is not profitable, investors could lose the money they have invested.
SS.8.FL.5.4 Explain that the price of a financial asset is determined by the interaction of buyers and sellers in a financial market.
SS.8.FL.5.5 Explain that the rate of return earned from investments will vary according to the amount of risk and, in general, a trade-off exists between the security of an investment and its expected rate of return.
Florida Standards: Financial Investing High School
SS.912.FL.4.13: Explain that consumers are entitled to a free copy of their credit report annually so that they can verify that no errors were made that might increase their cost of credit.
SS.912.FL.5.1:Compare the ways that federal, state, and local tax rates vary on different types of investments. Describe the taxes effect on the after-tax rate of return of an investment.
SS.912.FL.5.2:Explain how the expenses of buying, selling, and holding financial assets decrease the rate of return from an investment.
SS.912.FL.5.3:Discuss that buyers and sellers in financial markets determine prices of financial assets and therefore influence the rates of return on assets.
SS.912.FL.5.4:Explain that an investment with greater risk than another investment will commonly have a lower market price, and therefore a higher rate of return, than the other investment.
SS.912.FL.5.5:Explain that shorter-term investments will likely have lower rates of return than longer-term investments.
SS.912.FL.5.6:Describe how diversifying investments in different types of financial assets can lower investment risk.
SS.912.FL.5.7:Describe how financial markets adjust to new financial news and that prices in those markets reflect what is known about financial assets.
SS.912.FL.5.8:Discuss ways that the prices of financial assets are affected by interest rates and explain that the prices of financial assets are also affected by changes in domestic and international economic conditions, monetary policy, and fiscal policy.
SS.912.FL.5.9:Examine why investors should be aware of tendencies that people have that may result in poor choices, which may include avoiding selling assets at a loss because they weigh losses more than they weigh gains and investing in financial assets with which they are familiar, such as their own employer’s stock or domestic rather than international stocks.
SS.912.FL.5.10:Explain that people vary in their willingness to take risks because the willingness to take risks depends on factors such as personality, income, and family situation.
SS.912.FL.5.11:Describe why an economic role for a government may exist if individuals do not have complete information about the nature of alternative investments or access to competitive financial markets.
SS.912.FL.5.12:Compare the Securities and Exchange Commission (SEC), Federal Reserve, & other government agencies that regulate financial markets.
SS.8.FL.5.1 Describe the differences among the different types of financial assets, including a wide variety of financial instruments such as bank deposits, stocks, bonds, and mutual funds. Explain that real estate and commodities are also often viewed as financial assets.
SS.8.FL.5.2 Calculate the amount of interest income received from depositing a certain amount of money in a bank account paying 1 percent per year and from owning a bond paying 5 percent per year in order to analyze that interest is received from money deposited in bank accounts as well as by owning a corporate or government bond or making a loan.
SS.8.FL.5.3 Discuss that when people buy corporate stock, they are purchasing ownership shares in a business that if the business is profitable, they will expect to receive income in the form of dividends and/or from the increase in the stock’s value, that the increase in the value of an asset (like a stock) is called a capital gain, and if the business is not profitable, investors could lose the money they have invested.
SS.8.FL.5.4 Explain that the price of a financial asset is determined by the interaction of buyers and sellers in a financial market.
SS.8.FL.5.5 Explain that the rate of return earned from investments will vary according to the amount of risk and, in general, a trade-off exists between the security of an investment and its expected rate of return.
Florida Standards: Financial Investing High School
SS.912.FL.4.13: Explain that consumers are entitled to a free copy of their credit report annually so that they can verify that no errors were made that might increase their cost of credit.
SS.912.FL.5.1:Compare the ways that federal, state, and local tax rates vary on different types of investments. Describe the taxes effect on the after-tax rate of return of an investment.
SS.912.FL.5.2:Explain how the expenses of buying, selling, and holding financial assets decrease the rate of return from an investment.
SS.912.FL.5.3:Discuss that buyers and sellers in financial markets determine prices of financial assets and therefore influence the rates of return on assets.
SS.912.FL.5.4:Explain that an investment with greater risk than another investment will commonly have a lower market price, and therefore a higher rate of return, than the other investment.
SS.912.FL.5.5:Explain that shorter-term investments will likely have lower rates of return than longer-term investments.
SS.912.FL.5.6:Describe how diversifying investments in different types of financial assets can lower investment risk.
SS.912.FL.5.7:Describe how financial markets adjust to new financial news and that prices in those markets reflect what is known about financial assets.
SS.912.FL.5.8:Discuss ways that the prices of financial assets are affected by interest rates and explain that the prices of financial assets are also affected by changes in domestic and international economic conditions, monetary policy, and fiscal policy.
SS.912.FL.5.9:Examine why investors should be aware of tendencies that people have that may result in poor choices, which may include avoiding selling assets at a loss because they weigh losses more than they weigh gains and investing in financial assets with which they are familiar, such as their own employer’s stock or domestic rather than international stocks.
SS.912.FL.5.10:Explain that people vary in their willingness to take risks because the willingness to take risks depends on factors such as personality, income, and family situation.
SS.912.FL.5.11:Describe why an economic role for a government may exist if individuals do not have complete information about the nature of alternative investments or access to competitive financial markets.
SS.912.FL.5.12:Compare the Securities and Exchange Commission (SEC), Federal Reserve, & other government agencies that regulate financial markets.
Financial Freedom
Florida teachers, order free copies of Financial Freedom for your students. We have included links to websites from Ch. 10. Below, download an instructional guide for the chapter, which include teacher instructions and standards alignment.
ch10investing_for_your_future_instructor_guidelines.docx |
More Resources for Investing
Check out more resources for teaching about investing, including the links from Chapter 10 in Financial Freedom: Investing for Your Future.