Aligning To The National Standards For Personal Financial Education

See which standards Lyfe Course aligns with within the standards for the NSPFE.
Earning Income
12-2a. Give examples of intangible job benefits. 12-2b. Describe how intangible benefits can affect a worker’s career choices and income. 12-2c. Evaluate the tradeoffs between income and non-income factors when making career or job choices.
12-7a. Investigate the federal and state tax rates applicable to different sources of income. 12-7b. Compare sales tax rates paid on different types of goods in their state and for online purchases. 12-7c. Differentiate between gross, net, and taxable income. 12-7d. Explain why some income is reported on an IRS Form W-2 and some is reported on an IRS Form 1099, and how that could affect their taxes.
12-9a. Complete IRS Form W-4. 12-9b. Explain the difference between a tax credit and a tax deduction.
12-6a. Calculate the amount of taxes a person is likely to pay when given information or data about the person’s sources of income and amount of spending. 12-6b. Identify which level(s) of government typically receive(s) the tax revenue for income taxes, payroll taxes, property taxes, and sales taxes
12-8a. Explain the difference between earned and unearned income. 12-8b. Compare the tax rates assessed on earned income, interest income, and capital gains income.
12-10c. Explain the importance of participating in employersponsored retirement plans, when available, and contributing enough to qualify for the maximum employer match.
Spending
12-1a. Identify their short-term and long-term financial goals. 12-1b. Develop a budget to allocate current income to necessary and desired spending, including estimates for both fixed and variable expenses. 12-1c. Explain methods for adjusting a budget for unexpected expenses or emergencies.
12-9a. Explain how having a system for financial record-keeping can make it easier to make financial decisions. 12-9b. Develop a system for keeping track of spending, saving, and investing.
Saving
12-6a. Explain how traditional IRAs (individual retirement accounts), Roth IRAs, and education savings accounts provide incentives for people to save. 12-6b. Compare the tax advantages of traditional and Roth IRAs
12-7a. Explain how an employer match of employee contributions to its retirement plan provides an incentive for employees to save 12-7d. Explain the benefits of saving money in a health savings account for individuals with high-deductible health plans.
Investing
12-1a. Give examples of factors that can influence a person’s risk tolerance. 12-1b. Discuss how a person’s risk tolerance influences their investment decisions
12-6a. Recommend portfolio allocation between major asset classes for a short-term goal versus a long-term goal. 12-6b. Discuss the pros and cons of investing in a diversified mutual fund versus investing in a small number of individual stocks. 12-6c. Suggest an appropriate asset allocation for a very risk averse person versus a very risk tolerant person.
12-11c. Identify the advantages and disadvantages of roboadvising and other investment-related financial technologies.
12-14a. Discuss reasons that a person might want to hire a financial professional to manage their investments or provide investment advice. 12-14b. Explain the importance of licensing, certifications, education, and experience as criteria for selecting a financial professional for investment management or advice. 12-14c. Investigate where and how to find qualified financial professionals.
12-3a. Discuss the advantages and disadvantages of investing in riskier assets. 12-3b. Investigate the long-run average rates of returns on small-company stocks, large-company stocks, corporate bonds, and Treasury bonds. 12-3c. Explain why the expected rate of return on a value stock or mutual fund is likely to be lower than that of a growth stock or mutual fund. 12-3d. Explain why bonds with longer maturities generally earn a higher return than shorter-term bonds.
12-8a. Compare tax rates paid on interest income versus shortterm and long-term capital gains. 12-8b. Describe the advantages of investing through a taxdeferred account such as an IRA or 401(k) versus a taxable account. 12-8c. Investigate the contribution limits and tax advantages of a traditional IRA versus a Roth IRA.
12-13a. Explain why investors often compare portfolio performance to a benchmark such as the S&P 500 Index. 12-13c. Discuss the advantages of investing in an exchangetraded fund (ETF) that tracks a market index rather than investing in actively managed mutual funds or individual stocks and bonds.
Credit
12-1a. Describe how credit card grace periods, methods of interest calculation, and fees affect borrowing costs.
12-6a. Identify examples of loans that may require down payments. 12-6b. Given the price of a home, estimate the amount of down payment required. 12-6c. For a specified loan amount, compare the monthly loan payment with a 10% down payment versus a 20% down payment. 12-6d. Explain how a down payment makes a borrower more attractive to a lender and motivates loan repayment by the borrower.
12-8a. Identify the main factors that are included in credit score calculations. 12-8b. Explain how a borrower’s credit score can impact their cost of credit and their ability to get credit. 12-8c. Recommend ways that a person can increase their credit score.
12-10a. Describe how failing to repay a loan can negatively impact a person’s finances and life. 12-10b. Identify sources of assistance with debt management. 12-10c. Create a plan for a person who is having difficulty repaying debt.
12-3b. Differentiate between adjustable-rate and fixed-rate mortgages.
12-7a. Identify the primary organizations that maintain and provide consumer credit reports. 12-7b. Assess the value to a potential lender of the information contained in a credit report. 12-7c. Explain how a person can get a free copy of their credit report and why this is advisable. 12-7d. Outline the process of disputing inaccurate credit report information.
12-9b. Provide examples of benefits associated with having a good credit score. 12-9c. Compare the effect of soft versus hard credit inquiries on a person’s credit score.
Managing Risk
12-2a. Identify individual characteristics that influence insurance purchase decisions. 12-2b. Recommend types of insurance needed by people with different characteristics.
12-4a. Research factors that result in lower auto insurance premiums. 12.4b. Explain why taking a safe driving course can lower a driver’s auto insurance premium. 12-4c. Discuss the pros and cons of buying an auto insurance policy with a higher deductible.
12-7a. Explain the primary types of losses covered by auto, homeowner’s, and renter’s insurance policies. 12-7b. Describe situations where someone may be liable for injuries or damages to another person or their property. 12-7c. Identify factors that influence the cost of renter’s insurance and homeowners’ insurance.
12-3a. Explain why homeowners’ insurance is required by a lender when a homeowner takes out a mortgage. 12-3b. Discuss why most states mandate auto liability coverage. 12-3c. Research the minimum auto liability insurance required in the state they live in and whether it is sufficient to cover typical auto accident financial losses.
12-5a. Discuss the advantages of obtaining health insurance coverage through an employer plan versus buying private insurance or being uninsured. 12-5b. Compare the cost of health insurance to the potential financial consequences of not having health insurance. 12-5c. Estimate the effect on different health insurance deductibles and coinsurance rates on out-of-pocket medical costs.
12-8b. Discuss the benefits and costs of purchasing life insurance on the primary earners in a household.