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PERSONAL FINANCE |
CONTENTS
Total Instructional TimeLesson: Time Management and Health
Lesson: Finding a Job
Lesson: Budgeting and Saving
Lesson: Finding an Apartment
Lesson: Buying a Car
Lesson: Shopping
Lesson: Personal Banking
Lesson: Getting a Credit Card
Lesson: Fixing Your Credit
Lesson: Education and Advancement
Lesson: Using Online Banking
Lesson: Paying Your Taxes
Lesson: Intro to Investing
Lesson: Risk vs. Return
Lesson: Diversification
Lesson: Investing for Retirement
Lesson: Buying a Home
Lesson: Insurance
Lesson: New Career Project - Unique City Per Class
Total Instructional Time
The instructional time for PERSONAL FINANCE ranges from 13 hours (simulation exercises only) to 31 hours (simulation exercises, reading assignments , reading quizzes, and math quizzes). You can configure your course to include or exclude reading assignments (6 hours), reading quizzes (3 hours) and math quizzes (9 hours). For instructions on how to configure your course, click here to access a series of videos to help you get your classroom up and running with Virtual Business.
Prior to beginning work with PERSONAL FINANCE, students should sign in to their account at vb.KnowledgeMatters.com and go through the Tutorial.
back to topLesson: Time Management and Health
DESCRIPTION
Students will develop a schedule that helps them get to work on time, stay healthy, and further their education. By monitoring their health, students will discover a challenge related to their nutrition. They will address this issue by purchasing food and scheduling appropriate times to eat. Also, students will allocate more time for relaxation and exercise and make specific purchases to improve their time management. Finally, students will learn the importance of reliable transportation (e.g., when they find themselves running late after they have used all their bus tokens and must walk to work).
LEARNING OBJECTIVES
- Students will monitor key factors in maintaining a healthy lifestyle[MW1] .
- Students will allocate enough time for important actions.
- Students will recognize that smart purchases can improve their health.
- Students will create a schedule that enables them to achieve balance as they pursue health, work, and educational goals.
TIME
Reading: 20 minutes (optional)Reading Quiz: 10 minutes (optional)
Math Quiz: 30 minutes (optional)
Simulation Exercise: 25 minutes
PROCEDURE
Students sign in to PERSONAL FINANCE at vb.KnowledgeMatters.com.Students complete the reading assignment (optional).
Students take the reading quiz (optional).
Students take the math quiz (optional).
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: Finding a Job
DESCRIPTION
Students will locate available jobs within a simulated city and then review their resumes to assess their qualifications for the open positions. Then, students will find the jobs for which they qualify based on their experience, education, and available transportation. Next, students will apply for and take the highest-paying jobs for which they qualify. Students will view their pay stubs and compare their gross pay to their net pay. These jobs will not offer health insurance, so students will look at the cost of purchasing this on their own. Students will then look for better jobs with health insurance benefits. Students will simulate working at the first jobs as a way to gain the experience needed to get the better jobs.
LEARNING OBJECTIVES
- Students will research, assess, and compare potential job openings.
- Students will realize how experience and education qualify them for different levels of jobs.
- Students will recognize that payroll taxes and income tax deductions cause their net pay to be less than their gross pay.
TIME
Reading: 20 minutes (optional)Reading Quiz: 10 minutes (optional)
Math Quiz: 30 minutes (optional)
Simulation Exercise: 25 minutes
PROCEDURE
Students sign in to PERSONAL FINANCE at vb.KnowledgeMatters.com.Students complete the reading assignment (optional).
Students take the reading quiz (optional).
Students take the math quiz (optional).
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: Budgeting and Saving
DESCRIPTION
Students will begin by reviewing the records of their weekly gross and take-home pay to estimate their monthly income. Then, students will assess outstanding bills for the month and total them to calculate their monthly fixed expenses. Students will also calculate expected food and transportation costs for each month. Using these calculations, students will determine whether they have a monthly surplus or deficit. Students will consider a scenario in which a large medical bill results after an injury is sustained. Finally, students will open a bank account and save money to build up an emergency fund.
LEARNING OBJECTIVES
- Students will be able to distinguish gross pay, payroll deductions, and net pay from each other on a sample pay stub.
- Students will be able to estimate monthly income and expenses based on the totals of their pay stubs and bills.
- Students will be able to calculate a budget surplus or deficit.
- Students will be able to read a bank statement to determine their actual income and spending, comparing this to budgeted amounts.
- Students will recognize the steps for opening a savings account.
- Students will appreciate the importance of saving money in an emergency fund.
TIME
Reading: 20 minutes (optional)Reading Quiz: 10 minutes (optional)
Math Quiz: 30 minutes (optional)
Simulation Exercise: 30 minutes
PROCEDURE
Students sign in to PERSONAL FINANCE at vb.KnowledgeMatters.com.Students complete the reading assignment (optional).
Students take the reading quiz (optional).
Students take the math quiz (optional).
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: Finding an Apartment
DESCRIPTION
Students will find themselves taking educational classes during the day and working at night. This will present a challenge to students as they will not be able to get to class on time because they will be living some distance away. Students will then switch apartments and change their mode of transportation. An apartment search will continue until the students find the best cost option. Finally, students will explore more apartments until they find one that allows them to get to class and to work on time.
LEARNING OBJECTIVES
- Students will coordinate apartment location, transportation, and their schedules, recognizing how these factors influence each other.
- Students will compare various costs involved in finding an apartment, including related expenses such as transportation.
- Students will explore different apartments to meet their scheduling needs and accomplish their goals.
TIME
Reading: 20 minutes (optional)Reading Quiz: 10 minutes (optional)
Math Quiz: 30 minutes (optional)
Simulation Exercise: 30 minutes
PROCEDURE
Students sign in to PERSONAL FINANCE at vb.KnowledgeMatters.com.Students complete the reading assignment (optional).
Students take the reading quiz (optional).
Students take the math quiz (optional).
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: Buying a Car
DESCRIPTION
Students will compare the option of purchasing a car to taking a public bus. In the car-buying process, students will determine how much they can afford based on their personal income and expenses. Students will comparison shop for cars and determine which option is the most affordable. Leasing versus buying a car over time is explored. Students will use an automobile loan to purchase a car, secure auto insurance, buy gas, and use their car to travel to work. Finally, students will make payments on the new car loan over a period of three months.
LEARNING OBJECTIVES
- Students will assess the type of car they can afford based on their income and expenses.
- Students will compare the cost of buying a car versus the cost of leasing a car.
- Students will identify a car loan’s key elements, including the down payment, the monthly payment, and the term.
- Students will explain the importance of auto insurance, including mandatory coverage, optional coverage, and deductibles.
TIME
Reading: 20 minutes (optional)Reading Quiz: 10 minutes (optional)
Math Quiz: 30 minutes (optional)
Simulation Exercise: 30 minutes
PROCEDURE
Students sign in to PERSONAL FINANCE at vb.KnowledgeMatters.com.Students complete the reading assignment (optional).
Students take the reading quiz (optional).
Students take the math quiz (optional).
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: Shopping
DESCRIPTION
Students will learn how to shop effectively to acquire a mix of goods and services to improve their lives at the lowest possible cost. Staying within a defined budget, students will comparison shop for items to help them exercise, sleep, and relax more efficiently. Students also will look out for sales during which they can purchase goods for less.
LEARNING OBJECTIVES
- Students will identify and purchase goods that will make them more productive and improve their financial security.
- Students will comparison shop to make the most of their limited budgets.
- Students will take advantage of periodic sales to expand their purchasing power.
TIME
Reading: 20 minutes (optional)Reading Quiz: 10 minutes (optional)
Math Quiz: 30 minutes (optional)
Simulation Exercise: 45 minutes
PROCEDURE
Students sign in to PERSONAL FINANCE at vb.KnowledgeMatters.com.Students complete the reading assignment (optional).
Students take the reading quiz (optional).
Students take the math quiz (optional).
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: Personal Banking
DESCRIPTION
Students will begin by cashing checks without a checking account, recognizing this can result in high banking fees. Then, students will compare the various features of different checking accounts and pick the one that suits their needs best. Students will be able to arrange for the direct deposit of their work income into the account. Next, students will record a series of credits and debits in their check registers. Finally, students will balance their checkbook against a bank statement and identify outstanding checks not yet recorded.
LEARNING OBJECTIVES
- Students will recognize the high cost of cashing checks without a checking account.
- Students will correctly enter deposits (credits) in a check register.
- Students will correctly enter expenditures (debits) in a check register.
- Students will balance a checkbook against a recent bank statement.
TIME
Reading: 20 minutes (optional)Reading Quiz: 10 minutes (optional)
Math Quiz: 30 minutes (optional)
Simulation Exercise: 45 minutes
PROCEDURE
Students sign in to PERSONAL FINANCE at vb.KnowledgeMatters.com.Students complete the reading assignment (optional).
Students take the reading quiz (optional).
Students take the math quiz (optional).
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: Getting a Credit Card
DESCRIPTION
Students will begin by reviewing credit card offers from several banks in their city and comparing interest rates, credit limits, and fees. After selecting the best offer, students will use their credit card to make a department store purchase. Students will then pay off the entire credit card bill and note the absence of finance charges and late fees. When students make more purchases, they will make the minimum payment only, which will result in significant interest charges. When students miss a payment entirely, they will see how charges and late fees cause their balance to increase quickly. Finally, students will work for a few months to pay off all of their credit card debt.
LEARNING OBJECTIVES
- Students will identify the importance of APR, credit limits, and credit card fees.
- Students will compare the terms of multiple credit card offers.
- Students will recognize the benefits of paying off a credit card bill.
- Students will see how finance charges and late fees can quickly increase the amount owed on a credit card.
TIME
Reading: 20 minutes (optional)Reading Quiz: 10 minutes (optional)
Math Quiz: 30 minutes (optional)
Simulation Exercise: 45 minutes
PROCEDURE
Students sign in to PERSONAL FINANCE at vb.KnowledgeMatters.com.Students complete the reading assignment (optional).
Students take the reading quiz (optional).
Students take the math quiz (optional).
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: Fixing Your Credit
DESCRIPTION
Students will learn how they can improve their credit scores. First, students will review a credit report and identify the issues. When attempting to purchase a car, students will experience the challenges caused by poor credit. Students will take actions to improve their credit score by paying off several overdue bills. Then, students will get a credit card, make some purchases, and pay off their credit card in full. This pattern will continue until students build a better credit score. Later in the process, students will attempt to purchase a car again, which will result in a different outcome due to improved credit.
LEARNING OBJECTIVES
- Students will review a credit report and identify potential problem areas.
- Students will recognize how poor credit impacts major purchases such as buying an automobile.
- Students will explain the importance of paying off overdue bills to improve one’s credit score.
- Students will take steps to build a good credit history by using credit responsibly.
- Students will identify the concepts of a credit score and distinguish between factors that lead to good and bad scores.
TIME
Reading: 20 minutes (optional)Reading Quiz: 10 minutes (optional)
Math Quiz: 30 minutes (optional)
Simulation Exercise: 30 minutes
PROCEDURE
Students sign in to PERSONAL FINANCE at vb.KnowledgeMatters.com.Students complete the reading assignment (optional).
Students take the reading quiz (optional).
Students take the math quiz (optional).
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: Education and Advancement
DESCRIPTION
Students will work to advance their career by furthering their education. They will research the classes needed to secure a job as a data entry specialist. While working as a cashier, they will qualify for a student loan and enroll in the Introduction to Data Entry class. Upon completing the class, they will leave the cashier job for the new, higher-paying job. Finally, students will compare their new and old take-home pay levels and compute how long it will take to pay back the loan they took out to invest in their education.
LEARNING OBJECTIVES
- Students will review job opportunities and identify the education needed to obtain different types of roles.
- Students will recognize the importance of education in furthering their careers.
- Students will be able to describe how student loans work.
- Students will assess the cost of specific courses and calculate the time needed to pay back an education loan.
TIME
Reading: 20 minutes (optional)Reading Quiz: 10 minutes (optional)
Math Quiz: 30 minutes (optional)
Simulation Exercise: 30 minutes
PROCEDURE
Students sign in to PERSONAL FINANCE at vb.KnowledgeMatters.com.Students complete the reading assignment (optional).
Students take the reading quiz (optional).
Students take the math quiz (optional).
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: Using Online Banking
DESCRIPTION
Students will learn to use convenient features of online banking effectively. First, students will purchase a computer and get internet access. Then, students will access a simulated online bank account and check their balance. Next, students will set up online payments for recurring monthly bills, reducing their manual workloads. Students will check their bank statements to confirm that payments are processing correctly. Finally, students will use online banking to transfer money from their checking account to their savings account to reach a target savings goal.
LEARNING OBJECTIVES
- Students will recognize how online banking helps manage finances effectively and efficiently.
- Students will check bank account balances.
- Students will set up and monitor recurring bill payments.
- Students will describe how to transfer money between bank accounts.
TIME
Reading: 20 minutes (optional)Reading Quiz: 10 minutes (optional)
Math Quiz: 30 minutes (optional)
Simulation Exercise: 30 minutes
PROCEDURE
Students sign in to PERSONAL FINANCE at vb.KnowledgeMatters.com.Students complete the reading assignment (optional).
Students take the reading quiz (optional).
Students take the math quiz (optional).
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: Paying Your Taxes
DESCRIPTION
Students will gather information for their tax return and complete a 1040EZ form. Two different W-2 statements for two jobs will be reviewed with a focus on total wages and federal income tax withheld. Students will then review a 1099-INT and record interest earned from a bank account. Information will then be entered on the correct lines of the 1040EZ tax return form. Using a tax table, students will find their tax owed and compute their refund. The refund will then be received and deposited into their bank account.
LEARNING OBJECTIVES
- Students will review and identify key information on a W-2 wage and tax statement.
- Students will read and identify key information on a 1099-INT interest statement.
- Students will accurately complete a 1040EZ form.
- Students will reference a tax table to compute their tax owed.
- Students will perform computations to determine whether they owe tax or are eligible for a tax refund.
TIME
Reading: 20 minutes (optional)Reading Quiz: 10 minutes (optional)
Math Quiz: 30 minutes (optional)
Simulation Exercise: 45 minutes
PROCEDURE
Students sign in to PERSONAL FINANCE at vb.KnowledgeMatters.com.Students complete the reading assignment (optional).
Students take the reading quiz (optional).
Students take the math quiz (optional).
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: Intro to Investing
DESCRIPTION
Students will start their exploration of investing by allocating funds to a savings account and then a money market fund. Students will identify the banking options with the best interest rate on FDIC-insured savings deposits. Next, students will invest $1,000 for a year and determine the return on their investment. Students will then locate a money market mutual fund with a higher yield but a front-end load. The investment will be made, and the annual total return will be identified. Then, students will invest in a money market fund with a higher yield but no load. For the final investment, students will search for a money market fund with an even higher yield, no loads, and a lower expense ratio.
LEARNING OBJECTIVES
- Students will be able to describe how to invest in FDIC-insured savings accounts.
- Students will compare different types of money market funds.
- Students will identify key investing terms: yield, loads, and expense ratio.
- Students will recognize that returns on mutual funds can vary over time.
TIME
Reading: 20 minutes (optional)Reading Quiz: 10 minutes (optional)
Math Quiz: 30 minutes (optional)
Simulation Exercise: 45 minutes
PROCEDURE
Students sign in to PERSONAL FINANCE at vb.KnowledgeMatters.com.Students complete the reading assignment (optional).
Students take the reading quiz (optional).
Students take the math quiz (optional).
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: Risk vs. Return
DESCRIPTION
Students will investigate the relationship between risk and return when investing. First, students will invest $1,000 in a low-risk money market fund. Students will then purchase $1,000 in a stock-based mutual fund. After running the simulated time forward, the returns of the two funds will be compared. Then, students will examine the volatility of their two investments over a period of multiple months. Students will learn that, over time, the higher return fund also has the higher volatility. Finally, students will invest in a stock-based mutual fund to reach their investment goal.
LEARNING OBJECTIVES
- Students will distinguish between a money market fund, mutual fund, and a stock fund.
- Students will calculate percentage return based on the beginning and ending values of an investment.
- Students will describe the concept of volatility (risk) in an investment.
- Students will explain the relationship between risk and return in investing.
TIME
Reading: 20 minutes (optional)Reading Quiz: 10 minutes (optional)
Math Quiz: 30 minutes (optional)
Simulation Exercise: 30 minutes
PROCEDURE
Students sign in to PERSONAL FINANCE at vb.KnowledgeMatters.com.Students complete the reading assignment (optional).
Students take the reading quiz (optional).
Students take the math quiz (optional).
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: Diversification
DESCRIPTION
Students will learn how diversification can help achieve higher investment returns without adding a lot more risk. Shares of two different international stock funds will be purchased. Students will then calculate the largest monthly loss for each fund and compare this to the largest monthly loss of their total portfolio. Students will recognize that by combining funds that change independently in value, risk to their overall portfolio will be reduced. Finally, students will use this principle to make more investments to achieve a target value for their overall portfolio.
LEARNING OBJECTIVES
- Students will describe the concept of diversification in investing.
- Students will recognize how diversification can reduce risk while maintaining investment return levels.
- Students will compute risk (volatility) of individual investments versus an entire portfolio.
- Students will employ diversification methods to reach an investment goal.
TIME
Reading: 20 minutes (optional)Reading Quiz: 10 minutes (optional)
Math Quiz: 30 minutes (optional)
Simulation Exercise: 30 minutes
PROCEDURE
Students sign in to PERSONAL FINANCE at vb.KnowledgeMatters.com.Students complete the reading assignment (optional).
Students take the reading quiz (optional).
Students take the math quiz (optional).
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: Investing for Retirement
DESCRIPTION
Students will compare the after-tax returns of normal investing against the returns from tax-advantaged retirement investing. First, students will invest in a US stock fund and evaluate its return. They will also review their personal tax return and identify their refund after dividend income. Students then will invest the same amount via payroll deductions to a 401(k) plan, which includes a company match. Students will observe the higher value of the investment (due to employer matching) and that their refund is higher. This will be due to the reduction in wage income and the decrease in tax on dividends. Finally, students will increase their contributions to the 401(k) plan to achieve a future savings goal.
LEARNING OBJECTIVES
- Students will identify tax incentives to save for retirement.
- Students will describe the importance of a 401(k) plan.
- Students will describe how companies match retirement plan contributions.
- Students will recognize how tax-advantaged retirement plans can help reduce taxes paid and help their investments grow over time.
TIME
Reading: 20 minutes (optional)Reading Quiz: 10 minutes (optional)
Math Quiz: 30 minutes (optional)
Simulation Exercise: 30 minutes
PROCEDURE
Students sign in to PERSONAL FINANCE at vb.KnowledgeMatters.com.Students complete the reading assignment (optional).
Students take the reading quiz (optional).
Students take the math quiz (optional).
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: Buying a Home
DESCRIPTION
Students will explore home ownership by purchasing a condominium. The process will begin when they review their gross weekly income and convert it into monthly income. Students then will estimate the maximum monthly housing expenses they can afford based on 28 percent of their income. Students will include car loan payments and recalculate maximum housing expenses to keep total debt payments less than 36 percent of gross monthly income. The search for an affordable condo will lead students to apply for a mortgage. Students will explore how down payments affect private mortgage insurance (PMI) and how points affect the interest rate paid. Then, students will compare the monthly payments for a 15-year versus a 30-year mortgage and compare the total interest paid between both terms. Finally, students will purchase the condo, move in, and make mortgage payments over the first year.
LEARNING OBJECTIVES
- Students will be able to recognize how key gross income ratios determine how much housing expense a person can afford.
- Students will identify the impact of personal debt on the size of the mortgage they can secure.
- Students will describe PMI and how it relates to down payments on a home.
- Students will explain how points relate to interest rates and monthly payments.
- Students will describe the relationship between the mortgage term, monthly payments, and the total interest paid.
TIME
Reading: 20 minutes (optional)Reading Quiz: 10 minutes (optional)
Math Quiz: 30 minutes (optional)
Simulation Exercise: 30 minutes
PROCEDURE
Students sign in to PERSONAL FINANCE at vb.KnowledgeMatters.com.Students complete the reading assignment (optional).
Students take the reading quiz (optional).
Students take the math quiz (optional).
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: Insurance
DESCRIPTION
Students will learn how insurance can help them avoid serious future financial losses. First, they will experience a robbery (without being insured) and calculate their loss. Next, students will search for insurance and explore the relationships among deductibles, coverages, and premiums. Students then will purchase insurance and soon after, experience another robbery. Students will claim their loss with the insurance company and collect their money (minus the deductible). Then, students will investigate medical insurance with co-pays and deductibles. Students will receive a large medical bill but realize that most of the expenses are covered by their insurance.
LEARNING OBJECTIVES
- Students will describe the importance of insurance in protecting themselves financially.
- Students will explain the concept of a deductible and how it relates to premiums.
- Students will explain how insurance premiums vary depending on the type of coverage.
- Students will describe medical insurance and the relationship among co-pays, deductibles, and premiums.
TIME
Reading: 20 minutes (optional)Reading Quiz: 10 minutes (optional)
Math Quiz: 30 minutes (optional)
Simulation Exercise: 30 minutes
PROCEDURE
Students sign in to PERSONAL FINANCE at vb.KnowledgeMatters.com.Students complete the reading assignment (optional).
Students take the reading quiz (optional).
Students take the math quiz (optional).
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: New Career Project - Unique City Per Class
DESCRIPTION
In this project, students pull it all together to set out on their financial life. They manage their time in a healthy manner, find employment, further their education, and advance through to higher paying jobs. As they reach a target net worth, they advance to a next level where they can explore investing in money markets funds, bond funds, and stock funds. After they reach another target net worth, they can purchase a condo and explore real estate as an investment.
LEARNING OBJECTIVES
- Students will be able to manage their time to achieve a healthy prosperous balance.
- Students will be able to find employment and pay bills effectively.
- Students will know how to use banking, debit cards, and credit cards wisely.
- Students will be able to use higher education to advance their careers.
- Students will be able to use insurance to reduce financial risk.
- Students will be able to invest wisely to build wealth without taking on undue risk.
- Students will understand home ownership and opportunities in real estate investment.
TIME
Reading: 0 minutes (optional)Reading Quiz: 0 minutes (optional)
Math Quiz: 0 minutes (optional)
Simulation Exercise: 180 minutes
PROCEDURE
Students sign in to PERSONAL FINANCE at vb.KnowledgeMatters.com.Students complete the reading assignment (optional).
Students take the reading quiz (optional).
Students take the math quiz (optional).
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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