Personal Finance Course Overview: Essential Skills for Financial Awareness

1. NEW COURSE REQUEST Business Department:Personal Finance Debbie SollEVOC 638 CE/DL 2February 19, 2008

2. Course Description This course provides an overview of basic financial concepts. This includes, but is not limited to: income, setting up a budget, bank accounts, balancing the checking account, consumer credit, buying or renting a home, medical care, career planning, preparing income tax returns, consumer installment loans. Debbie Soll, EVOC 638, CE/DL 2

3. Course Information • COURSE NUMBER: BUS 101 • COURSE TITLE: Personal Finance • DIVISION: Business • LENGTH OF SEMESTER: 9 Weeks • CREDITS: 1.5 • LECTURE/LAB: 3 hours/week/9wks Debbie Soll, EVOC 638, CE/DL 2

4. Course Objectives At the end of this course, students will be able to: • Identify components and sources of income. • Design a financial plan (Budget) for earning, spending, saving, and investing. • Explain how income taxes work; prepare a federal and state income tax return. • Open a checking account, use a checking account, and balance a checking account. • Analyze the benefits and cost of consumer credit, including installment loans (auto). • Evaluate the terms and conditions of credit cards and consumer loans. • Compare/contrast renting vs. buying home; Debbie Soll, EVOC 638, CE/DL 2

5. Course Outline • Money/Income  Taxes • Credit vs. debit cards Property tax • Checking accounts Sales tax • Finance charges on credit card  Income tax • Rent • Owning your own home • Budgeting • Income – Expenses = Savings • Wages; hourly vs. salary • Income taxes • Car insurance Debbie Soll, EVOC 638, CE/DL 2

6. Course Outline (cont) • ConsumerCredit • Installment loans • Automobile loans • Other consumer loans; retail advertised specials • Home Mortgages • How to NOT get into financial trouble • Career Choices • Education increases income • University, State University, Community College • Career and Technical Education • Pre-career Training • Internships • Work part-time while in school Debbie Soll, EVOC 638, CE/DL 2

7. Course Portfolio • Student Project • School, Job, housing • Budget, savings • Car loan, credit cards • Housing • Insurance needs Debbie Soll, EVOC 638, CE/DL 2

8. Course Costs Instructor’s Salary: 27 hours X $97 $2,619 Admin Costs + 310Cost to Business Department $2,929 Fees $ 44 ADA: + 193 Total income/student $ 237 Break-even: $2,929/237 12.4 students Debbie Soll, EVOC 638, CE/DL 2

9. Course Needs • MATERIALS NEEDS: NONE (outside of): Student purchase of textbook; use of Word and Excel in computer labs or home. • EQUIPMENT NEEDS: Overhead computer projection system with computer for instructor use in classroom; whiteboard in classroom. • TEXTBOOK:It has been difficult to find the kind of textbook I had hoped for. The course materials may be created by me if a suitable textbook is not found. (Please see possible textbook choices on handout) Debbie Soll, EVOC 638, CE/DL 2

10. Why Offer a Personal Finance Course? • Did you know that according to The Economist, • “More than 600,000 Americans filed for bankruptcy in the fourth quarter of 2005; • “Since then credit-card delinquency rates have been rising steadily”; • There is also an “aggressive use of borrowed money”? • Did you know that according to USAToday, • Nearly half of twenty somethings have stopped paying a debt, forcing lenders to "charge off" the debt and sell it to a collection agency; • or had cars repossessed; • or sought bankruptcy protection; • credit card debt under 25 year old averages $16,120 (as of August 1, 2007)? • No one is TEACHING our children how to earn, save, and spend money wisely. We must take on this challenge!