DECA+ Personal Financial Literacy Performance Indicators

Recommend insurance

for the types of risks that

young adults might face

Young adults might rent or own property and will need renters' or homeowners' insurance. Young adults might own a vehicle and need automobile insurance. Health insurance is needed if not under parent's plan. A young adult may need personal property insurance if they own expensive jewelry, artwork or other belongings.

Compare the features and costs of personal checking accounts offered by different financial institutions

Banks and credit unions offer different types of checking accounts. Features may include earning interest, no fees, no minimum balance required, no ATM fees. Costs may include fees for in-person banking, fees incurred for not keeping a daily/monthly minimum balance, mailed paper statements and various convenience fees.

Differentiate between adjustable and fixed rate mortgages

A fixed rate mortgage charges a set rate of interest that does not change throughout the life of the loan. The initial interest rate on an adjustable rate mortgage is set below the market rate and then the rate rises or lowers as time goes on.

Differentiate between the main types of automobile insurance coverage

Automobile insurance needs vary depending on location. Main types include: liability coverage that protects you if you cause damage to others, collision coverage that covers your car if you cause a collision and comprehensive coverage that is both liability and collision.

Summarize factors that affect a particular credit scoring system

Factors that affect a credit scoring system include: payment history, credit history, credit usage, total balances, credit checks and available credit.

Analyze how changes in life circumstances can affect a personal spending plan

A personal spending plan may need to be altered by a number of life changes, which may include by loss of employment or an increase in pay. The change in income will impact the amount of money one has to spend. Adding additional people to the household; including partner/spouse/children will result in spending more as needs increase. Moving may result in a higher or lower cost of living which will result in a change in personal spending.

Assess the value of discussing individual and shared financial responsibilities with a roommate before moving in

Without a discussion there is not a clear understanding of who is responsible for paying all or portions of the expenses. It cannot be assumed that all roommates understand obligations toward shared expenses such as power bills, water bills, gas, renter's insurance, cable, or security deposits. It is equally important to identify that other financial responsibilities such as personal mobile phones, credit cards, school loans and others are the responsibility of the individual and not the household.

Differentiate between gross, net and taxable income

Gross income includes all income you receive that is not explicitly exempt from taxation under the Internal Revenue Code. Taxable income is the portion of your gross income that is subject to taxation. Net income is the amount earned after taxation and other various deductions.

Give examples of employee benefits and explain why they are forms of compensation

Examples of employee benefits include various types of health insurance, life insurance, disability insurance, retirement plans, pre-tax savings accounts for health spending and childcare. These benefits all take some burden of spending off of the employee. Other employee benefits such as flexible schedules, paid time off and bereavement leave allow employees to be paid while not working in a traditional environment, while out of the office or allowing time away from working with pay.

Illustrate how the concept of the time value of money applies to retirement planning

The value of the money you have now is not the same as it will be years from now. The money put into retirement plans earlier has more time to grow than money put into retirement plans at a later stage in life.

Identify warning signs of investment fraud

Some warning signs of investment fraud include: high pressure sales tactics, promises of high profits, claims of no risk, not allowing questions, and claims that investments do not have to be registered.