Hawaii DOE | HIDOE Seeks Feedback on Developing Financial Literacy Content Standards

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Presentation

Financial literacy, or financial capability as currently defined at the federal level, is the ability, based on knowledge, skills and access, to effectively manage financial resources. To develop this capacity, individuals must have appropriate access and an understanding of financial products, services and concepts. Financial literacy empowers people to make informed choices, avoid pitfalls, know where to seek help, and take action to improve their current and long-term financial well-being.

The Hawaii State Department of Education, Office of Curriculum and Instructional Design, is currently exploring ways to ensure
each student receives basic financial literacy before graduation from high school. Currently, efforts are focused on financial literacy education at the secondary level.

As part of this work, draft content standards were developed for a semester-long introductory high school financial literacy course designed to help students develop the ability to describe, analyze, and discuss. ” assess many financial topics that most students will experience directly in their personal and professional lives. While a one-semester course is not the only way to provide financial literacy training to students, standards are a critical step in ensuring consistent financial literacy training statewide.


Content standards
are derived from the 2017 National Standards for K-12 Personal Finance Education (pdf, pictured right) from the Jump $ tart Coalition. These standards are consistent with state and nationally recognized concepts that are important for healthy financial literacy.

The themes are aligned with the six main categories used in the national Jump $ tart standards: 1) Expenses and savings; 2) Credit and debt; 3) Employment and income; 4) Invest; 5) Risk management and insurance; and 6) Financial decision making.

The example teacher’s guide is a list of skills gleaned from the Jump $ tart references that describes what teachers can ask students to demonstrate in order to meet each content standard. The guide is not intended to be an exhaustive list; instead, the tips serve as sample statements for teachers to think about how best to help their students meet content standards.

Special thanks to Kelly Lee, Founder of the Hawaii Coalition of Jump $ tart, for lending her content expertise to this effort.

THEME 1: Spending and saving

Content standard

The student must:

Example of teacher orientation

To help students meet the content standard, the teacher can ask students to:

Content standard MD.PFL.1.1

Develop a spending and savings plan.

  • Describe ways in which people can cut spending to save more of their income.
  • Discuss the elements of a personal spending plan, including income, expected savings, and expenses.
  • Compare the pros and cons of saving for financial goals.
  • Investigate changes in personal spending behavior that contribute to wealth creation.

Content standard MD.PFL.1.2

Describe how to use the different payment methods.

  • Compare and contrast different types of local financial institutions and the services they provide.
  • Summarize the pros and cons of checks, stored value cards, debit cards, gift cards, and online and mobile payment systems.
  • Compare the costs of cashing a check with various third parties, such as a bank or credit union, check cashing services, and retail outlets.
  • Show how to plan and manage bill payments.

THEME 2: Credit and Debt

Content standard

The student must:

Example of teacher orientation

To help students meet the content standard, the teacher can ask students to:

Content standard MD.PFL.2.1

Analyze the costs and benefits of different types of credit.

  • Eexplain how debit cards differ from credit card.
  • Discuss the potential consequences of using “easy access” credit.
  • Calculate the total cost of repaying a loan at different interest rates and over different time periods.
  • Compare the cost of borrowing $ 1,000 using different consumer credit options.

Content standard MD.PFL.2.2

Summarize the rights and responsibilities of a borrower with respect to credit reports.

  • Evaluate the potential gains from a positive borrowing reputation versus the potential consequences of a bad
    borrowing reputation.
  • Explain the value of credit reports to borrowers and lenders.
  • Categorize the information in a credit report and how long it is kept.
  • Analyze how a credit score affects creditworthiness and the cost of credit.

THEME 3: Employment and income

Content standard

The student must:

Example of teacher orientation

To help students meet the content standard, the teacher can ask students to:

Content standard MD.PFL.3.1

Explore employment and career opportunities.

  • Explain the difference between a career and a job.
  • Match your skills and personal interests with various career options.
  • Compare the education and training requirements, income potential, and main duties of at least two jobs of interest.
  • Discuss how non-income factors such as childcare options, cost of living, and working conditions can influence job choice.

Content standard MD.PFL.3.2

Compare the sources of personal income and remuneration.

  • Explain the difference between a salary and a salary.
  • Calculate the future income needed to maintain a current standard of living.
  • Identify typical sources of retirement income.

THEME 4: Invest

Content standard

The student must:

Example of teacher orientation

To help students meet the content standard, the teacher can ask students to:

Content standard MD.PFL.4.1

Explain how investing can build wealth and help achieve your financial goals.

● Describe the reasons for investing.

● Devise an investment plan to accumulate money for a large expense like college education or the down payment on a car.

● Describe the importance of various sources of retirement income, including social security, employer-sponsored retirement savings plans, and personal investments.

Content standard MD.PFL.4.2

Evaluate investment alternatives.

● Explain the difference between stocks and bonds.

● Give examples of investments for current income and investments for future growth.

● Compare the benefits of taxable, tax-deferred, and tax-efficient investments for new savers, including Roth IRAs and employer-sponsored retirement vehicles.

THEME 5: Risk management and insurance

Content standard

The student must:

Example of teacher orientation

To help students meet the content standard, the teacher can ask students to:

Content standard MD.PFL.5.1

Identify common types of risk and basic risk management methods.

  • Anticipate the consequences of accepting risk with insufficient or no insurance.
  • Illustrate how to use insurance to share the risk of financial loss.
  • Discuss the factors that affect insurance premiums.

Content standard MD.PFL.5.2

Justify the reasons for using health, disability, long-term and life insurance.

  • Justify the reasons for having health insurance.
  • Compare sources of health and disability insurance coverage, including employee benefit plans.
  • Explain the purpose of long term care insurance.
TOPIC 6: Financial decision making

Content standard

The student must:

Example of teacher orientation

To help students meet the content standard, the teacher can ask students to:

Content standard MD.PFL.6.1

Recognize the responsibilities associated with personal financial decisions.

  • Analyze money management decisions that Yesyoung adults usually face it.
  • Compare the benefits of financial responsibility with the consequences of financial irresponsibility.
  • Predict how influences like current fashion trends, peer pressure, and procrastination can affect financial decisions.
  • Compare how financial responsibility is different for people with and without dependents.

Content standard MD.PFL.6.2

Make financial decisions based on criteria by systematically considering alternatives and consequences.

  • Explain how limited personal financial resources affect the choices people make.
  • Determine the cost to reach a financial goal.
  • Give examples of how decisions made today can affect future opportunities.


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