Economic Decision Making and Skills
Economic decision making relies on the analysis of data. Economists use data to explain trends and decide among economic alternatives. Individuals use data to determine the condition of their finances and to make savings and investment decisions.
2. Reading financial reports (bank statements, stock market reports, mutual fund statements) enables individuals to make and analyze decisions about personal finances.
Making decisions related to personal finances requires students to analyze financial statements and reports. Bank statements update recent transactions related to deposits and spending. Individuals can decide to make a major purchase based on available funds or adjust spending to avoid shortfalls.
Reading stock market reports, mutual fund statements, savings account summaries and CD statements enable individuals to make decisions related to investing. For example, people make decisions to take stock dividends in cash or automatically have them reinvested, or people decide to place money in a certificate of deposit based upon the interest rates and term lengths.
Understanding and reconciling check ledgers, online banking summaries and/or other types of financial reports help inform personal financial decisions. For example, people make decisions to increase savings based on average checking account balances or plan for future purchases based on a regular savings pattern.
Expectations for Learning
Demonstrate how financial reports can be used to make decisions about personal finances.