Personal+Finance+2012-13

=Personal Finance: MoneySKILL=


 * MoneySKILL is an online course designed to teach you about important personal finance concepts such as: income, expenses, saving, investing, credit, and insurance.**


 * DETAILS**
 * **MODULES**
 * You will be required to complete 5 modules each week.
 * Modules are only open for one week. Failure to complete a module during the week results in a score of 0 for the module.
 * Each module generally takes 20–40 minutes to complete.
 * You should be able to complete each week's module in class, if you use your class time efficiently.
 * **SCORES & GRADES**
 * If you earn less than 80% on a module, you must retake it until you earn at least 80%.
 * After you have completed all the modules, you must successfully complete the //**simulation**//.
 * You are the only person who can see the information in your simulation.
 * MoneySKILL is worth a total of 100 points in your semester grade.
 * The average % score of all modules will be the % you earn for your semester grade. For example, if your average score is 90% for all modules, you will earn 90% of the 100 points, or 90 points.


 * SCHEDULE** // (Please note, these dates are based in the US, not China!) //
 * 16 MAR – 24 MAR = Modules 1–5
 * 24 MAR – 31 MAR = Modules 6–10
 * SPRING BREAK
 * 07 APR – 14 APR = Modules 11–15
 * 14 APR – 21 APR = Modules 16–20
 * 21 APR – 28 APR = Modules 21–25
 * 28 APR – 05 MAY = Modules 26–30
 * 05 MAY – 12 MAY = Modules 31–35
 * 12 MAY – 19 MAY = Module 36 + Simulation


 * MODULES**
 * //**Module 1: The Plans We Have For Our Lives**//
 * Whether there is a payoff to getting a college degree.
 * How decisions at one stage of your life can affect your options at other stages.
 * Why there are times in your life when it’s easier, and times when it’s harder to save money.
 * Some of the serious problems that can arise when you don’t plan your finances.
 * Why financial planning is common sense.
 * How a computer can make your financial planning easier.
 * //**Module 2: Andrew’s Simulation**//
 * That you can have it all, just not all at once.
 * How to project your future income.
 * How to project your future expenses.
 * How to read and interpret a lifetime planning graph.
 * //**Module 3: Earned Income And Skill Demand**//
 * The difference between “earned income” and “unearned income.”
 * Why earned income is important, especially for young people who haven’t built up other sources of income.
 * Why people with more education tend to earn more money.
 * How the demand for certain skills helps determine the amount you will be paid.
 * Why a shortage of people with needed skills will push salaries up.
 * //**Module 4: Earned Income and Skill Supply**//
 * Why a shortage of people with needed skills pushes salaries up.
 * Who joins unions and why.
 * How your pay relates to the state and region in which you live and the tax policies of the state.
 * //**Module 5: Property Income**//
 * What kinds of property can provide income.
 * The income that is made by owning a business.
 * The importance of opportunity cost.
 * How to determine the actual profit a business is making.
 * //**Module 6: Unearned Income from Financial Assets and Transfer Payments**//
 * What kinds of financial assets provide income.
 * What kinds of income the different types of financial assets provide.
 * Why gifts are considered transfer payments.
 * What kinds of government payments are considered transfer payments.
 * //**Module 7: The Consumer Life Cycle**//
 * Why most families go through the same life cycle stages.
 * How life cycle stages relate to periods of financial stress on the family.
 * How these life cycle stages have been impacted by changes to the traditional family that have happened in the last 25 years.
 * //**Module 8: Income Over The Life Cycle**//
 * How the six life cycle stages have predictable income patterns.
 * How to make a picture of each life cycle stage using a graph to show when major changes are likely to occur.
 * How Andrew, Maria and Joey’s lives look when examined more closely.
 * //**Module 9: Federal Income Taxes**//
 * Progressive taxes.
 * Taxable income.
 * Deductions.
 * Exemptions.
 * Tax brackets.
 * //**Module 10: Other Deductions From Pay**//
 * State and local income taxes.
 * Social security taxes.
 * Deductions for health insurance.
 * Deductions for life insurance.
 * Deductions for retirement.
 * Other deductions.
 * //**Module 11: Tracking Expenses and Budgeting**//
 * How to keep track of our expenses with an expense statement.
 * How to avoid double counting in our expense statement.
 * How to put together an income statement.
 * How to put together a budget.
 * How to stay on track with our budget. Module 12: Paying for What We Buy
 * The advantages and disadvantages of paying with cash.
 * The benefits and drawbacks of writing checks.
 * The advantages and disadvantages of using credit cards.
 * Using debit cards to pay for purchases.
 * How to pay for our purchases by using a bank bill payment system.
 * //**Module 13: Using a Checking Account**//
 * Why a checking account is called a “demand deposit” account.
 * How we can bounce a check and what happens when we do so.
 * How to write a check so that we won’t be ripped off.
 * How to endorse a check that we receive.
 * How to keep track of checks, ATM withdrawals, deposits and service charges.
 * How to balance a checkbook.
 * //**Module 14: Renting a Home**//
 * The proportion of total expenses taken up by housing for all people and those under the age of 25.
 * The factors to consider when deciding whether to rent or buy
 * The advantages of renting a home, particularly for younger adults.
 * How to understand the lease or rental agreement for a home.
 * Expenses of renting, other than the monthly rent payment.
 * //**Module 15: Owning a Home**//
 * How to calculate the monthly payment on a mortgage.
 * The difference between fixed rate and adjustable rate mortgages.
 * The implicit interest cost of equity you put into a home.
 * Property tax that is paid on homes.
 * Other costs of owning a home, including maintenance and repairs, insurance and utilities.
 * The total cost of owning a home.
 * What types of homes you can own, including single family houses, condominiums and cooperatives.
 * //**Module 16: Food and Clothing**//
 * Why the cost of food depends a lot on the level of preparation.
 * The tradeoff between the value of our time and the cost of prepared food.
 * How clothing costs differ depending on our age, climate and gender.
 * How states differ in sales tax charged on food and clothing.
 * Why sales taxes on necessities are considered to be regressive.
 * How sales tax is collected (or not collected) for online purchases.
 * //**Module 17: Buying or Leasing a Vehicle**//
 * Why Americans are so dependent on their vehicles.
 * The difference between the fixed costs of a vehicle and its variable or operating costs.
 * The major differences between buying and leasing a vehicle.
 * Calculating the monthly payments for purchasing a vehicle.
 * The monthly payments for leasing a vehicle.
 * How you can bargain for both a better price for the vehicle and a better financing deal.
 * //**Module 18: Operating a Vehicle**//
 * The purpose of liability insurance and why it is required by most states.
 * The cost of liability insurance.
 * The purpose of collision insurance and why it is optional for many vehicle owners.
 * The value of comprehensive insurance and uninsured motorist’s protection.
 * The meaning of “no-fault” insurance.
 * Factors that can increase or decrease the cost of insurance.
 * The cost of repairs and the use of warranties.
 * The total cost of owning and operating a vehicle.
 * //**Module 19: Vacation and Leisure**//
 * The number of vacation days available to most working Americans.
 * How airfares are set and the cost advantages of leisure travel.
 * How you can do your travel planning on the Internet.
 * The cost and value of human travel agents.
 * Ways of saving travel money Module 20: Investing in Physical Assets
 * Why buying an appliance is considered an investment in a consumer durable or capital.
 * How businesses evaluate investments in capital and how we can apply this technique to the household.
 * How to do a cost/benefit analysis.
 * How to calculate depreciation, interest, operating costs and expected repairs to find the annual total cost of a household durable.
 * How to evaluate the benefits of a household physical asset and compare these to the cost.
 * //**Module 21: Savings**//
 * Who saves in America and just how little we save.
 * The is the difference between short- and long-term savings goals.
 * The importance of saving money to handle emergencies when they arise.
 * Why people save money (rather than borrow it) to buy expensive items.
 * The ways in which people save: regular voluntary, consumption, and forced saving.
 * //**Module 22: Short-Term Saving Vehicles**//
 * The various forms of “money.”
 * The advantages and disadvantages of keeping our short-term assets in the form of money.
 * Reasons why we hold money at all
 * The types and features of savings accounts available to us.
 * The yield that is available on savings.
 * How compound interest works.
 * How to use the “Rule of 72.”
 * The benefits and drawbacks of money market accounts.
 * The advantages and disadvantages of a bank certificate of deposit.
 * //**Module 23: Long-Term, Fixed Income Assets**//
 * How inflation affects our ability to meet our long-term savings goals.
 * The relationship between risk and return on investments.
 * What fixed income assets are.
 * How liquid bonds are likely to be.
 * The safety of bonds.
 * How bond interest is taxed.
 * What types of bonds are issued by the U.S. Treasury.
 * //**Module 24: Equities**//
 * What equities are and how risky they tend to be.
 * How you calculate your return on equities to compare them with other investment opportunities.
 * Historical rates of return on equities, bonds and other widely-used investments.
 * The meaning and importance of diversification.
 * How to buy and sell stocks.
 * Types of stock brokers and the commissions they charge.
 * How, why and how much companies pay in dividends to stockholders.
 * The broad classes of stocks and how they meet our needs.
 * //**Module 25: Investing in Mutual Funds**//
 * What mutual funds are and the advantages they offer.
 * The difference between open-end and closed-end funds.
 * The cost of front end and back end loads on funds.
 * No-load funds and how some actually have loads.
 * The types of mutual funds that are available for investors.
 * Saving money through low-fee index funds and Exchange Traded Funds
 * How an investment in variable annuities can deliver mutual fund performance with some added tax benefits but also some additional fees.
 * //**Module 26: Entrepreneurship -- Investing in Your Own Business**//
 * The joys of working for ourselves.
 * The reasons why entrepreneurs often make more money and accumulate more wealth than those who do not work for themselves.
 * The non-monetary benefits of being an entrepreneur including personal creativity, being your own boss and taking credit for what you accomplish.
 * The downside of starting and running your own business including the high risk of failure, the fact that you can never truly “get away” from it and the reality that a lot of people depend on your success.
 * The investment of your time and money required to start a business.
 * //**Module 27: Cost and Benefits of Borrowing**//
 * How Americans, particularly younger Americans, use credit.
 * How the use of credit can produce a return that is greater than its cost.
 * How credit, particularly student loans, can be used to improve our incomes.
 * How we can finance household items that will produce a positive return.
 * How we can use leverage to our advantage.
 * Why people borrow for no measurable results.
 * The measures used by lenders to decide whether they will lend to us and how much they will charge. These include our character, capacity and collateral.
 * How lenders decide how much interest to charge to different borrowers.
 * //**Module 28: Secured Borrowing**//
 * The difference between a closed-end loan and an open-end loan.
 * How loans are secured.
 * What you have to fill out in a loan application and why.
 * The importance of the Truth in Lending Disclosure Statement.
 * Why you want to focus on the annual percentage rate of interest (“APR”).
 * The “add-on” method of interest and why it is higher than the APR.
 * Prepayment penalties and the Rule of 78.
 * //**Module 29: Credit Cards and Other Unsecured Borrowing**//
 * How they work as a type of open end credit which has a credit line.
 * How most general purpose cards do not have collateral but most store cards do.
 * How credit cards are useful in making transactions.
 * How credit cards are used to pay for purchases over time.
 * The different types of credit cards and their purposes.
 * Which laws protect those who use credit cards.
 * How finance charges are determined for credit card balances.
 * The ways in which credit card companies determine your balance for finance charges.
 * How to find out which balance system is used on your account.
 * How cash advances work and how much they cost.
 * How to shop for the best credit card for you.
 * //**Module 30: Your Credit Rating**//
 * The importance of your credit report.
 * What’s in your credit report.
 * How to establish a good credit record, beginning when you’re young.
 * The importance of credit scoring in the credit decision.
 * How to correct errors in your credit report.
 * How to avoid credit problems.
 * How to deal with credit difficulties if they arise.
 * How declaring bankruptcy can get you out of debt but at the cost of your possessions and your credit rating.
 * What identity theft is, what it means to you, how to prevent it and how to deal with it if it happens.
 * //**Module 31: Student Loans**//
 * The value and cost of higher education.
 * Sources of student financial aid.
 * How to apply for Federal student aid.
 * Grants (non-loans) that are widely available.
 * Subsidized and non-subsidized Federal student loans.
 * Repayment requirements for Federal student loans.
 * Private student loans.
 * //**Module 32: Identify Theft**//
 * Why people want to steal our identity.
 * How our identity may be stolen.
 * How our stolen identity may be used to hurt us.
 * What measures we can take to prevent identity theft.
 * How we can tell if our identity has been stolen.
 * What we should do to protect ourselves if we think our identity may have been stolen.
 * //**Module 33: Understanding Insurance**//
 * Property risk.
 * Liability risk.
 * Health risk.
 * Disability risk.
 * Life risk.
 * //**Module 34: Life Insurance, Wills and Disability Insurance**//
 * The purpose of life insurance.
 * How to determine the amount of life insurance we need.
 * How Social Security and our pension plans at work can provide some income to our survivors.
 * The two primary types of life insurance, term and cash value, and their advantages and disadvantages.
 * The need for and purposes of a will.
 * The need for and types of disability insurance.
 * //**Module 35: Health Insurance**//
 * Why we need health insurance.
 * How much we may have to pay for health care in the form of deductibles and co-payments.
 * There may be limits on insurance for things such as medicines and psychological counseling.
 * How the different types of health insurance plans work.
 * Why most people get group health insurance through work.
 * How some health insurance covers dental work, prescriptions and eye care.
 * The impact and timing of the new 1 national health insurance program.
 * //**Module 36: Retirement**//
 * Why you need to start planning for retirement now.
 * What the sources of retirement income are.
 * How much you can expect to get from Social Security.
 * What a defined benefit pension plan is and why these plans are becoming scarce.
 * How to save for your own retirement.
 * How a defined contribution savings plan works.
 * What 401k and profit sharing plans are.
 * The uses of an IRA.
 * How an annuity can convert retirement savings into lifetime income.
 * Retirement and inflation.