| Jump$tart is a national coalition of organizations dedicated to improving the financial literacy of kindergarten through college-age youth by providing advocacy, research, standards and educational resources. Jump$tart strives to prepare youth for life-long successful financial decision-making. Their National Standards in K–12 Personal Finance Education describe their minimum requirements for functional financial literacy. They describe what personal finance instruction should enable students to know and do.
Knowledge Statements
These statements provide guidance at three points in consumer development — the 4th, 8th and 12th grades. They are intended for:
- Publishers as they develop and revise curricula, and
- Educators as they select classroom materials and plan lessons.
Category: Financial Responsibility and Decision Making
Overall Competency: Apply reliable information and systematic decision making to personal financial decisions.
Specifically, 4th grade students should know, understand and be able to demonstrate the following concepts:
- People make choices because they have limited financial resources and cannot have everything they want.
- A first step toward reaching financial goals is to identify wants/needs and rank them in order of importance.
- Systematic decision making can help people make money choices.
- To make a decision, careful consumers compare the benefits and costs of spending alternatives.
- Information about goods and services comes from many sources.
- Every spending decision has an opportunity cost.
Category: Income and Careers
Overall Competency: Use a career plan to develop personal income potential.
Specifically, 4th grade students should know, understand and be able to demonstrate the following concepts:
- People can acquire income in several ways, including wages, salaries, and money gifts.
- Income can be earned or unearned.
- Workers can improve their ability to earn income by gaining new knowledge, skills, and experiences.
- Many workers receive employee benefits in addition to their pay.
- Entrepreneurs, who work for themselves by starting new businesses, hope to earn a profit, but accept the risk of a loss.
Category: Planning and Money Management
Overall Competency: Organize personal finances and use a budget to manage cash flow.
Specifically, 4th grade students should know, understand and be able to demonstrate the following concepts:
- A budget is a plan for using income productively, including spending, sharing, and setting money aside for future expenses.
- People pay for goods and services in different ways.
- People are required to pay taxes, for which they receive government services.
Category: Credit and Debt
Overall Competency: Maintain creditworthiness, borrow at favorable terms, and manage debt.
Specifically, 4th grade students should know, understand and be able to demonstrate the following concepts:
- Credit is a basic financial tool.
- Borrowing money to buy something usually costs more than paying cash because there is a fee for credit (interest).
- Responsible borrowers repay as promised, showing that they are worthy of getting credit in the future.
Category: Risk Management and Insurance
Overall Competency: Use appropriate and cost-effective risk management strategies.
Specifically, 4th grade students should know, understand and be able to demonstrate the following concepts:
- Risk is a part of daily life.
- People have choices for dealing with risk.
Category: Saving and Investing
Overall Competency: Implement a diversified investment strategy that is compatible with personal goals.
Specifically, 4th grade students should know, understand and be able to demonstrate the following concepts:
- People save for future financial goals.
- Every saving decision has an opportunity cost.
- Banks, savings and loan associations, and credit unions are places people can invest money and earn interest.
- Piggy banks are places to hold savings. Savings accounts and savings bonds are ways to earn money from income not spent.
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