Massachusetts
9th-12th Grades
State Standards
Personal Financial Literacy in the Massachusetts Curriculum Frameworks
HSS.ECONEconomics Content Standards
HSS.ECON.T1Scarcity and economic reasoning
HSS.ECON.T1.5Predict how interest rates act as an incentive for savers and borrowers.
HSS.ECON.T1.8Describe how clearly defined and enforced property rights are essential to a market economy.
HSS.ECON.T2Supply and Demand
HSS.ECON.T2.9Demonstrate how government wage and price controls, such as rent controls and minimum wage laws, create shortages and surpluses.
HSS.ECON.T2.11Explain how financial markets, such as the stock market, channel funds from savers to investors.
HSS.ECON.T3Market structures
HSS.ECON.T3.9Describe how the earnings of workers are determined by the market value of the product produced and workers' productivity.
HSS.ECON.T4The role of government
HSS.ECON.T4.1Explain how government responds to perceived social needs by providing public goods and services.
HSS.ECON.T4.2Describe major revenue and expenditure categories and their respective proportions of local, state, and federal budgets.
HSS.ECON.T4.5Define progressive, proportional, and regressive taxation.
HSS.ECON.T4.6Describe how the costs of government policies may exceed their benefits because social or political goals other than economic efficiency are being pursued.
HSS.ECON.T4.7Predict how changes in federal spending and taxation would affect budget deficits and surpluses and the national debt.
HSS.ECON.T4.8Define and explain fiscal and monetary policy.
HSS.ECON.T4.9Analyze how the government uses taxing and spending decisions (fiscal policy) to promote price stability, full employment, and economic growth.
HSS.ECON.T6Money and the role of financial institutions
HSS.ECON.T6.1Explain the basic functions of money (e.g., medium of exchange, store of value, unit of account).
HSS.ECON.T6.2Identify the composition of the money supply of the United States.
HSS.ECON.T6.3Explain the role of banks and other financial institutions in the economy of the United States.
HSS.ECON.T6.4Describe the organization and functions of the Federal Reserve System.
HSS.ECON.T6.5Compare and contrast credit, savings, and investment services available to the consumer from financial institutions.
HSS.ECON.T6.6Research and monitor financial investments such as stocks, bonds, and mutual funds.
HSS.PFLHigh School Standards for Personal Financial Literacy
HSS.PFL.T1Earning and spending income
HSS.PFL.T1.1Explain that people choose jobs for which they are qualified based on a variety of factors, such as job satisfaction, independence, salary, opportunities to learn and grow, benefits such as health insurance coverage, retirement plans, and location.
HSS.PFL.T1.2Explain why wages and salaries are determined by the labor market, and how changes in economic conditions (such as a recession) or the labor market (such as business shift from coal to oil or natural gas) can affect changes in a worker's income or may cause unemployment.
HSS.PFL.T1.3Analyze the impact of federal income tax rates on people of different income levels in the United States from 1950 to the present.
HSS.PFL.T1.4Describe the impact of advertising and social media on purchasing decisions; use data to research the effects of media sources on purchases of durable goods (such as cars or appliances) or more temporary goods and services (such as shoes, clothes, cosmetics, or transportation).
HSS.PFL.T1.5Give examples of ways people can pay for goods, services, or charitable donations (e.g., cash, credit or debit card, check, mobile phone payment, layaway plan, rent-to-own) and analyze the costs and benefits of each method of payment.
HSS.PFL.T2Saving money
HSS.PFL.T2.1Recognize that banks and other financial institutions are businesses that loan funds received from depositors to borrowers.
HSS.PFL.T2.2Explain the relationship between principal (the initial amount of money deposited in a bank by a person), interest (the amount earned from a bank, usually annually), and compound interest (interest earned on the principal and the interest already earned).
HSS.PFL.T2.3Explain the difference between the real interest rate of return on savings (adjusted for inflation) and the nominal interest rate.
HSS.PFL.T2.4Research and report on government policies such as individual retirement accounts and educational savings plans, analyzing their effectiveness as incentives for saving.
HSS.PFL.T2.5Analyze the effectiveness of government agencies such as the Federal Reserve System, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation and state banking departments in protecting the safety of the nation's banking system and consumer interests.
HSS.PFL.T2.6Formulate a savings or financial investment plan for a future goal (e.g., college or retirement).
HSS.PFL.T3Using credit and making investments
HSS.PFL.T3.1Recognize that a credit card purchase is a type of loan from the financial institution that issued the credit card, that financial institutions may charge a fee for credit card use, and that credit card interest rates tend to be higher than those for other types of loans.
HSS.PFL.T3.2Explain why some banks offer credit at low introductory rates that increase when a consumer makes a late payment or misses a payment.
HSS.PFL.T3.3Explain what a credit bureau does, what a credit rating is and the factors from an individual's credit history that may lead to denial of credit; explain the potential uses of credit reports and scores (e.g., in hiring or renting decisions or the setting of insurance premium rates).
HSS.PFL.T3.4Research and report on the long-term consequences for borrowers of failure to repay loans, such as negative entries in a credit report, repossession of property, garnishment of wages, the inability to obtain loans in the future, and bankruptcy.
HSS.PFL.T3.5Explain a consumer's rights for full disclosure of credit terms for a loan and for a free copy of his or her own credit report so that the consumer can verify it.
HSS.PFL.T3.6Formulate a credit plan for purchasing a major item such as a car or home, comparing different interest rates.
HSS.PFL.T3.7Explain what a financial asset is (e.g., bank deposit, stocks, bonds, mutual funds, real estate) is and explain why the worth of assets can go up or down over time.
HSS.PFL.T3.8Explain how buyers and sellers in financial markets determine the prices of financial assets and therefore influence the rate of return on those assets.
HSS.PFL.T3.9Analyze the role of diversification -- having an investment portfolio with different kinds of assets -- in lowering risk for the individual investor.
HSS.PFL.T3.10Analyze the role of the Securities and Exchange Commission in regulating financial markets.
HSS.PFL.T4Protecting and insuring assets
HSS.PFL.T4.1Explain the purpose of various types of insurance (e.g., health, disability, life, property and casualty); research the costs and coverage of a particular type of insurance from several different companies and analyze which company provides the best option for a particular type of consumer (e.g., a young family, a retiree).
HSS.PFL.T4.2Explain the problems associated with identity theft and ways to protect sensitive personal information, particularly in online transactions, email scams, and telemarketing.
Digital Literacy and Computer Science Curriculum Framework
9-12.CAS.cInterpersonal and Societal Impact
9-12.CAS.c.2Discuss the impact of computing technology on business and commerce (e.g., automated tracking of goods, automated financial transaction, e-commerce, cloud computing).
9-12.CS.dServices
9-12.CS.d.2Explain the concept of quality of service (e.g., security, availability, performance) for services providers (e.g., online storefronts that must supply secure transactions for buyer and seller).