BIG IDEAS AND ESSENTIAL QUESTIONS

The premise of Understanding by Design, the “backward-design” process developed by Grant Wiggins and Jay McTighe and published by the Association for Supervision and Curriculum Development (ASCD) is to start with the end in mind and work backwards from there. In doing so, you begin by asking what you want students to be able to do in the future with this knowledge. These are the Long-Transfer Goals. From there, we explore the main principles of Big Ideas of personal finance. For each Big Idea, there are Essential Questions that allow students to probe for deeper meaning. Within the Pennsylvania Instructional Framework for Personal Finance, these are the same across all grade levels. Differentiation by grade can be found in the core concepts and competencies which are aligned to the Pennsylvania Standards. In addition, the Grade Band and Grade Level summaries can be useful.

Long-Term Transfer Goals

Transfer goals highlight the effective uses of understanding, knowledge, and skill that we seek in the long run; i.e., what we want students to be able to do when they confront new challenges — both in and outside of school. In the domain of personal finance, this means students will be able to independently use their learning to:

  1. Make decisions related to managing personal financial resources, building earning capability, protecting assets, and adapting to unexpected events.

  2. Apply sound financial decision-making principles through the many stages of life.

  3. Exhibit mindful money management behaviors that benefit themselves and their families.

Big Ideas and Essential Questions

 

Money Management

Big Idea: Money management includes setting goals and developing a plan for how to spend, save, and share financial resources.

Essential Questions:

  • How do financial goals vary across a person’s lifetime?

  • In what ways does money management impact reaching financial goals?

  • What constitutes sound financial decision making?

  • How does organized record keeping impact finances?

  • What factors impact a person’s spending plan?

 
 

Earning Income

Big Idea: Earning capability over a lifetime is maximized by career planning, education, and job choices.

Essential Questions:

  • What impacts a person’s earning potential over a lifetime?

  • How do people develop a career plan?

  • What factors do people consider when accepting a job?

 
 

Borrowing Money

Big Idea: Borrowing money has costs and benefits.

Essential Questions:

  • How do people decide when and how to use credit?

  • What rights and responsibilities do people have when borrowing money?

  • What impacts a person’s creditworthiness?

 
 

Financial Institutions

Big Idea: Financial institutions offer services for people to secure, access, and transfer their money.

Essential Questions:

  • How do people choose and use financial services?

  • In what ways do people safeguard their financial assets and information?

 
 

Risk Management

Big Idea: Risk management strategies are used to protect against potential loss.

Essential Questions:

  • Why do people choose to limit their risk?

  • How do people protect themselves from financial loss throughout their life?

  • How does insurance work?  

 
 

Saving and Investing

Big Idea: Saving and investing habits influence lifelong opportunities for financial independence.

Essential Questions:

  • Why do people choose to save and invest money?

  • In what ways do people save and invest their money?

  • Why do some investments have the potential for greater return and risk than others?