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The Research Base for Glencoe Business and Personal Finance Executive Summary

The Research Base for Glencoe Business and Personal Finance Table of Contents Executive Summary Introduction to The Research Base for Business and Personal Finance. . . . . . . . . . . . . . . . . . . . . . . Page A-3

Why Study Business and Personal Finance?

Why Study Business and Personal Finance? . . . . . . . . . . . Page B-3



The Impact of Career and Technical Education . . . . . . . . Page B-6

Meeting the Requirements of the Carl D. Perkins Act with Business and Personal Finance . . . . . . . . . . . . . . Page B-8 Rigor, Relevance, and Relationships in the Business Classroom. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page B-11

Research-Based Instructional Strategies

Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page C-3



Incorporating Project-Based Learning. . . . . . . . . . . . . . . . . Page C-3



Reading and Writing in the Content Area. . . . . . . . . . . . . . Page C-6



Explicit Instruction in Comprehension Strategies. . . . Page C-8



Effective Use of Before, During, and After Reading Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page C-8



Intensive Instruction in Content-Area and Academic Vocabulary. . . . . . . . . . . . . . . . . . . . . . . . . . . . Page C-7



Integration of intensive Writing . . . . . . . . . . . . . . . . . . . Page C-7



Effective Classroom Strategies in Business and Personal Finance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page C-8



The Four-Part Lesson Plan. . . . . . . . . . . . . . . . . . . . . . . . Page C-8



Developing Higher-Order Thinking Skills. . . . . . . . . . . Page C-9



Activating Prior Knowledge. . . . . . . . . . . . . . . . . . . . . . . Page C-12



Instructional Design that Supports Student Learning. . . . Page C-12



Using Visuals in the Learning Process . . . . . . . . . . . . . Page C12



Using Authentic Examples and Scenarios for Instruction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page C-14



Learning and Practicing Essential Skills. . . . . . . . . . . . Page C-16



Incorporating Study Skills. . . . . . . . . . . . . . . . . . . . . . . . . Page C-16

Using Technology to Support Student Learning

Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page D-3



Why Use Technology? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page D-4



How Technology Impacts Student Learning . . . . . . . . . . . Page D-5



Standards for Technology Literacy . . . . . . . . . . . . . . . . . . . . Page D-7

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The Research Base for Glencoe Business and Personal Finance Table of Contents

Effective Use of Classroom Technology with Business and Personal Finance . . . . . . . . . . . . . . . . . . Page D-9



Technology Components in Business and Personal Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page D-10

Preparing the 21st Century Workforce The 21st Century Workforce. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page E-3 College and Career Readiness. . . . . . . . . . . . . . . . . . . . . . . . . Page E-4 Developing 21st Century Skills . . . . . . . . . . . . . . . . . . . . . . . . . Page E-8

Exploring Careers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page E-9



Preparing for Certifications . . . . . . . . . . . . . . . . . . . . . . . . . . Page E-11



Ethics in Business and Finance . . . . . . . . . . . . . . . . . . . . . . Page E-12

Meeting Individual Needs: Designing Instruction for a Diverse Classroom

Meeting Individual Needs with Business and Personal Finance. . . . . . . . . . . . . . . . . . . . . . . . Page F-3



Universal Access and Universal Design. . . . . . . . . . . . . . . . . Page F-4



Differentiated Instruction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page F-7



Differentiated Instruction for English Language Learners . . . . . . . . . . . . . . . . . . . . . . . . . . Page F-11

Meeting Academic and Industry Standards

Meeting the Common Core State Standards. . . . . . . . . . . Page G-2



Meeting The National Business Education Standards. . . Page G-2



Supporting National Academic Standards. . . . . . . . . . . . . Page G-3



Verifying Learning Through Assessment. . . . . . . . . . . . . . . Page G-9

Professional Development and Teacher Support

Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page H-3



Glencoe’s Professional Development Offerings. . . . . . . . . Page H-5



Tools for Effective Teaching . . . . . . . . . . . . . . . . . . . . . . . . . . Page H-6

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The Research Base for Glencoe Business and Personal Finance Executive Summary

Introduction to The Research Base for Business and Personal Finance Glencoe/McGraw-Hill is committed to developing business, career and technical curricula that meet the highest standards of excellence. Our goal is to maximize student achievement and give teachers the tools they need for effective planning, presentation, assessment, and reporting. To meet these goals, our programs are developed using the latest research in pedagogy and instruction, and built around the national academic content standards, the National Standards for Business Education, and the 21st Century Skills needed for success in college and the workplace. Glencoe is proud to contribute to efforts to increase academic rigor for Career and Technical Education (CTE) students by providing the Business and Personal Finance program as a model of excellence in business education in the 21st century.

The Research Base for Business and Personal Finance describes the foundational research, educational principles, instructional strategies, and skills and concepts that were used to develop Glencoe/McGraw-Hill’s Business and Personal Finance, and identifies the Glencoe features that utilize these research results. In this Executive Summary, you will find a brief synopsis for each of the other seven sections in The Research Base for Business and Personal Finance. For more information on any of these topics, please refer to sections B through G.

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The Research Base for Glencoe Business and Personal Finance Executive Summary

Why Study Business and Personal Finance? In recent years there has been a growing recognition of the role CTE courses can take in preparing students for the rigors of the workplace and postsecondary education. Unlike earlier, less rigorous “vocational ed” programs, today’s CTE courses are designed with the recognition that the academic knowledge and skills needed for the workforce and those needed for success in college are now virtually identical. By integrating academic skills with relevant vocational content, CTE courses can keep students engaged, motivated, and invested in their own academic achievement. Business and finance are foundational skills for students considering a wide variety of career options. Whether they are planning to pursue careers in the financial sector, start their own companies, or simply manage household expenses, the skills students will learn in this course will help them achieve their career and personal financial goals. The increasing complexity of the global financial market has made financial literacy an essential skill set for all adults.

Jobs in finance are expected to grow faster than average or much faster than average through 2018.

A sound business and finance curriculum allows teachers to guide students to increased levels of sophistication in financial and business decision making. This, in turn, helps students prepare for success in the ever-changing global economy. By providing a strong foundation for money management and decision making skills, this curriculum gives students the tools they need to make effective business and consumer decisions.

–B  ureau of Labor Statistics, Occupational Outlook Handbook 2010-2011

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The Research Base for Glencoe Business and Personal Finance Executive Summary

Research-Based Instructional Strategies In the process of developing and implementing Business and Personal Finance, Glencoe has utilized solid, research-based pedagogical practices to ensure that this curriculum effectively prepares students for success in education, career, and life. The results of Glencoe’s educational research in business and finance have been integrated into this curriculum, empowering teachers to offer their students outstanding practical learning experiences. Projects allow students to apply what they have learned to realistic scenarios, research additional topics of personal interest, and participate in extended learning opportunities that allow them to synthesize multiple skills

Project-Based Learning

Projects allow students to apply what they have learned to realistic scenarios, research additional topics of personal interest, and synthesize multiple skills.

Business and Personal Finance also incorporates project-based learning opportunities to enrich, extend, and reinforce the concepts that students are learning. Research shows that authentic, hands-on learning experiences result in higher levels of comprehension and retention of complex concepts. The Discovery Projects and Unit Projects in Business and Personal Finance offer opportunities for students to apply what they have learned to realistic scenarios, research additional topics of personal interest, and participate in extended learning opportunities that allow them to synthesize multiple skills.

Reading and Writing in the Content Area Business and Personal Finance has extensive support to develop the content area reading and writing skills necessary for success in college or in the workplace. Explicit literacy reading strategies include before, during and after strategies; intensive instruction in content area and academic vocabulary; integration of intensive writing; and explicit instruction in comprehension strategies. Integrating these literacy skills into the text and activities both reinforces critical academic skills and maximizes comprehension of content area material.

Effective Classroom Strategies The Teacher Manual uses activities and research-based instructional strategies to support effective teaching and learning. The four-part lesson plan (Focus, Teach, Assess, Close) provides an easy-to-follow model that includes activities to activate prior knowledge, develop higher-order thinking skills, and reach students with different learning styles.

Supporting Student Learning through Textbook Design Glencoe’s programs are developed using best practices in instructional design to support comprehension. The text is supported through effective use of visual elements including photos, charts, graphs and diagrams in the textbook, and multimedia elements in the Online Learning Center. Content is presented using accessible language and plenty of real-world examples. Business and Personal Finance also incorporates ample practice opportunities and study aids to help students retain new material and internalize effective study strategies.

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The Research Base for Glencoe Business and Personal Finance Executive Summary

Using Technology to Support Student Learning Using technology in the classroom can engage and motivate students, provide opportunities for individualized instruction based on learning needs, allow for more effective assessment, and provide time-saving reporting and lesson planning tools for teachers. Incorporating appropriate technology in CTE courses also gives students opportunities to practice using the programs and tools they will need to use in the workforce. The technology tools available for Business and Personal Finance through McGraw-Hill CONNECT™ and the Online Learning Center support effective teaching and learning. Tools include: • ExamView Assessment Suite • iPad® Teacher Control Center • Financial Management tools and simulations • Virtual Business simulation software • PowerPoint® slides and multimedia presentation tools for teachers • Study, practice and enrichment activities for students

Preparing the 21st Century Workforce Career readiness incorporates a rigorous academic knowledge base, job-specific career and technical skills, and 21st Century Skills.

Glencoe’s CTE programs prepare students for both college and the workplace by combining rigorous academic instruction, relevant job-related knowledge and skills, and real-world applications for technical skills. Our programs are designed to prepare students for advanced coursework or certification and help them explore career options related to their field of interest.

Business and Personal Finance also reinforces the knowledge, skills, and expertise students need to function successfully in 21st century communities and workplaces. These 21st Century Skills, as defined by the Partnership for 21st Century Skills, are consciously and systematically used throughout Glencoe’s business, career, and technology education programs.

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The Research Base for Glencoe Business and Personal Finance Executive Summary

Meeting Individual Needs: Designing for a Diverse Classroom Differentiating instruction to meet the needs of a diverse student body is a critical challenge for CTE teachers. Business and Personal Finance helps teachers meet this challenge through a variety of research-based strategies and leveled instructional techniques. All of our materials are developed according to the principles of Universal Design to be accessible and appropriate for the widest possible range of students. The Teacher Manual includes strategies for differentiating instruction for struggling readers, gifted students, students with disabilities, English Language Learners, and students with different learning styles.

Meeting Academic and Industry Standards Glencoe Business and Personal Finance reinforces both the core academic standards and the concepts defined by the National Standards for Business Education. The program fully supports the goals of the No Child Left Behind Act and the Carl D. Perkins Career and Technical Education Improvement Act of 2006.

Business and Personal Finance was developed around the National Standards for Business Education, including all eight major strands of the Personal Finance Standards and the nine NBEA Economics Standards. Business and Personal Finance uses a cross-curricular approach that also supports standards from across the curriculum: • Common Core State Standards The Common Core State Standards for reading, writing, and speaking and listening are supported and correlated throughout Business and Personal Finance. • NCTE Standards for the English Language Arts Reading, writing, speaking, and listening skills are continually reinforced throughout the program, along with the research skills needed to produce academic papers.

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The Research Base for Glencoe Business and Personal Finance Executive Summary • NCTM Standards and Principles for School Mathematics Math skills are reinforced through step-by-step instructions, ample practice opportunities, and a Math Skills handbook as students learn and practice essential financial calculations and formulas. • National Standards for Economic Education The economics strands are strongly supported throughout the text, with a two-chapter introduction to micro- and macroeconomics, special features in each chapter, and Economics Lesson Plans in the Teacher Manual. • NCSS Curriculum Standards for Social Studies Special features and cross-curricular activities and assessments help students link content they are learning to business and financial issues from around the globe. • National Science Education Standards Through special activities and assessment questions, students explore ways in which science and technology impact – and are impacted by – business and finance.

Professional Development and Teacher Support

Business and Personal Finance includes lesson plans, teacher resources, and online professional development.

Business and Personal Finance provides teachers with the tools, education, and support they need to use the program to its full potential. The Online Professional Development Suite for Integrating Academics introduces highly effective teaching strategies demonstrated by master educators. These “anywhere, anytime” online modules help support the need for ongoing, sustained professional development for educators. Glencoe programs also include teacher support materials featuring lesson plans, assessment tools, presentation materials, and other tools to support effective teaching. The Teacher Manual and materials in McGraw-Hill CONNECT™ and the Online Learning Center are built on research-based instructional strategies and designed to save teachers time in lesson planning, assessment, reporting, and individualizing instruction.

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The Research Base for Glencoe Business and Personal Finance Why Study Business and Personal Finance?

The Research Base for Glencoe Business and Personal Finance Table of Contents Why Study Business and Personal Finance?

Why Study Business and Personal Finance? . . . . . . . . . . . Page B-3



The Impact of Career and Technical Education . . . . . . . . Page B-6



Meeting the Requirements of the Carl D. Perkins Act with Business and Personal Finance . . . . . . . . . . . . . . . . . Page B-8



Rigor, Relevance, and Relationships in the Business Classroom . . . . . . . . . . . . . . . . . . . . . . . . . . . Page B-11

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The Research Base for Glencoe Business and Personal Finance Why Study Business and Personal Finance?

Why Study Business and Personal Finance? High-Growth Careers in Business and Finance • Accountant • Actuary • Auditor • Budget Analyst • Cost Estimator • Financial Analyst • Labor Relations Manager • Management Analyst • Meeting Planner • Personal Financial Advisor • Purchasing Agent

Studying business and personal finance introduces students to a world of career options as well as to consumer skills they will need to navigate the adult world. Glencoe/McGraw-Hill Business and Personal Finance balances both the personal financial knowledge and skills necessary for all students and the explicit business skills needed by students considering a career in business, finance, or entrepreneurship.

Career Opportunities in Business and Finance The Bureau of Labor Statistics projects that many of the job categories in finance will grow faster than average or much faster than average through 2018 (Bureau of Labor Statistics, 2010). For example, the rate of growth for jobs in accounting in between 2008 and 2018 is projected to be 22%, a rate much faster than the average for all listed occupations. Job opportunities for Personal Financial Advisers are projected to grow at an even faster rate— up to 30% for the same time period. The Bureau reports that the increasing complexity of modern financial instruments, along with increased globalization and economic volatility, will keep jobs in finance and accounting in high demand. Familiarity with business finance is also important for business professionals and managers outside of the traditional finance career paths. Financial acumen and the ability to read, analyze, and make business decisions based on financial documents are critical skills for product line managers, marketers, sales professionals, and others in a company who need to manage a department budget, make decisions regarding headcount, and ensure that their activities are promoting the financial goals of the company as a whole.

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The Research Base for Glencoe Business and Personal Finance Why Study Business and Personal Finance? Business finance skills are also essential for students wishing to one day start their own businesses or open franchises. Whether they plan to start high-tech ventures based on their computer coding skills, use their cooking skills to open small restaurants or bakeries, or provide freelance design services from their homes, all entrepreneurs must have a solid foundation in finance in order to be successful. With many experts predicting that entrepreneurship will become a more common career path over the next few decades (Stangler, 2009), learning basic business finance skills is a good investment for every student.

Economics Lesson Plan

CHAPTER 21 NBEA Standards

NBEA III. Economic Institutions and Incentives: Analyze the role of core economic institutions and incentives in the U.S. economy. NBEA VII. The Role Of Government: Analyze the role of government in economic systems, especially the role of government in the U.S. economy. NCEE Standards Scarcity: Productive resources are limited. Therefore, people cannot have all the goods and services they want; as a result, they must choose some things and give up others. Role of Government: There is an economic role for government in a market economy whenever the benefits of a government policy outweigh its costs. Governments often provide for national defense, address environmental concerns, define and protect property rights, and attempt to make markets more competitive. Most government policies also redistribute income. Using Cost/Benefit Analysis to Evaluate

Government Programs: Costs of government policies sometimes exceed benefits. This may occur because of incentives facing voters, government officials, and government employees, because of actions by special interest groups that can impose costs on the general public, or because social goals other than economic efficiency are being pursued.

S Scaffolded Instruction L1 List Have students list how the government uses incentives. Answers may include offering tax benefits,

including deductions and credits for individuals, no or lower taxes for companies, and tax deferrals for savers and investors. They also offer negative incentives in the form of fines when government regulations are not followed. L2 Explain Have students explain how your income is related to the government. Most income is taxed by the government to get money to pay for services and programs.

L3 Apply Have students consider and describe how government incentives might affect their income.

Responses might include that tax deductions and credits can help you keep more of your earned income; deferred taxes on retirement accounts might encourage you to put more of your income into savings rather than your take-home pay.

Visual Summary Expanding Concepts Have students create one

or more visual summaries conveying the types of incentives that affect government programs. Answers will vary. Students’ responses should show an understanding of how incentives are used to affect government programs. A sample graphic organizer is provided below.

Economics and Personal Finance In this chapter students will learn about these economic concepts in the context of personal financial planning. Remind students that many of the economic concepts have already been covered. • market economy • income

• incentives • scarcity

Use these activities to reinforce the economic concepts in this chapter.

Reinforce Vocabulary Review the economic terms with students. Ask students to write a scenario demonstrating how income, incentives, and scarcity play a part in government policies and programs. Remind students to consider the various goods and services that are provided by the government and how they are funded.

Glencoe Business and Personal Finance lets students explore career options in finance.

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Petitions from voters in favor of program

Scarcity of funds for a program (negative incentive)

Government Programs

Favors from political lobbyists for or against programs

Favors from other government officials

UNIT 7 Protecting Your Finances

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Glencoe Business and Personal Finance provides a comprehensive introduction to business finance topics including business ownership, financial planning, sources of funding, financial accounting, payroll and inventory, and pricing and costing. In addition to the coverage in the textbook, students will find resources and activities online to help them practice business finance skills and explore career options in finance.

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The Research Base for Glencoe Business and Personal Finance Why Study Business and Personal Finance? Personal Finance and Life Skills

Personal finance skills can help students navigate the consumer world.

Personal financial literacy is important for all students, regardless of their career paths. No matter whether a student plans to pursue a corporate career, become an entrepreneur, explore an artistic career path, or become a homemaker or stay-at-home parent, every student must be able to function as a consumer in our modern economy. Budgeting, debt managem consumer credit decisions are especially critical for young adults to understand. However, the 2008 Jump$tart Survey by the Coalition for Personal Financial Literacy estimates that 75% of young adults lack the financial education necessary to make good consumer decisions (Mandell, 2008) Poor financial literacy is associated with serious long-term consequences for young adults, including higher levels of debt, lower rates of saving and investing, higher rates of bankruptcy, and lower levels of accumulated wealth (Lusardi & Tufano, 2009; National Council on Economic Education [NCEE], 2005). In response to these critical issues, fortydopted the voluntary Jump$tart standards for personal financial literacy, and nine have made financial literacy standards a mandatory component of the high school curriculum. Glencoe Business and Personal Finance will prepare students to make confident choices as they enter the adult world of financial decision making. Young adults must be prepared to face many new questions and challenges as they become independent: • Building a personal budget: How much money do I need? How should I allocate my resources? • Housing decisions: Should I rent or buy? How much should I spend on housing? How can I prepare to buy my first house? • Saving and investing: How much should I save? What should I do with my savings? • Banking and credit: How does a checking account work? Should I get a credit card? How do I qualify for a loan? • Protecting financial resources: What kinds of insurance do I need? What kind of tax strategy should I use? Should I be worried about retirement?

Business and Personal Finance gives young adults the tools and skills they need to explore all of these topics and more. The hands-on, project-based approach to learning allows students to practice skills like building budgets, making a long-term investment plan, and making credit decisions in a low-stakes environment so that they will have the analytical and decision making skills they will need as they begin to make their own financial choices in the real world. The comprehensive textbook curriculum is supported by online resources and activities including the Standards & Poor’s Extension Activities, and the Money Matters Personal and Family Financial Management Simulation.

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The Research Base for Glencoe Business and Personal Finance Why Study Business and Personal Finance?

The Impact of Career and Technical Education Career and Technical Education (CTE), formerly known as Vocational Education, has long been recognized as an important pathway for success for many students. While in the past Vocational Ed programs were often a less academically rigorous alternative for students who were not planning to attend college, in recent years there has been a growing recognition that CTE programs must provide equivalent rigor. Some important societal shifts are driving this change: • Literacy levels needed for most forms of employment are now virtually identical to those needed for postsecondary education (The Conference Board, 2006). • More CTE students are attending or planning to attend two- or four-year postsecondary programs after high school, with college attendance up 32% in recent years (U.S. Department of Education, 2004).

63% of jobs will require some form of postsecondary education by 2018 –C  arnevale, Smith, and Strohl, 2010

Contemporary CTE programs are making significant contributions to the preparation of young adults for the “highly skilled, highly compensated” jobs that will drive the future economic growth of our country. The Georgetown University Center on Education and the Workforce estimates that 63% of jobs will require some form of postsecondary education by 2018 (Carnevale, Smith & Strohl, 2010), and the latest report from the Bureau of Labor Statistics anticipates that jobs requiring a two-year vocational program will have the fastest overall job growth through 2018 (Bureau of Labor Statistics, 2010). The 2005 Skills Gap Report indicated that more than 80% of employers were experiencing difficulty in finding qualified workers for skilled openings (National Association of Manufacturers, 2005). Even in the economic downturn of 2009-2010, many employers were still reporting that they could not fill critical skilled positions (Manpower, 2010). Students in CTE programs that prepare them for skilled work, certification, and advancement in two- or four-year postsecondary programs are likely to have an advantage over high school graduates without CTE training. According to the Association for Career and Technical Education (ACTE), CTE generates improvement in both academic achievement and future earnings. CTE programs significantly contribute to the preparation of American teens and adults as they evolve into a skilled workforce. The ACTE has compiled an extensive body of research that illustrates successful CTE programs and outcomes (ACTE, 2010).

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The Research Base for Glencoe Business and Personal Finance Why Study Business and Personal Finance? CTE Reduces Dropout and Absentee Rates CTE programs have been shown to increase student engagement and decrease dropout rates (Stone, 2004; Education Week, 2007). According to a 2005 National Research Center for Career and Technical Education (NRCCTE) report, a ratio of one CTE class for every two academic classes was demonstrated to minimize dropout risk. In addition, the Gates Foundation reported that 81% of students who dropped out stated that “more real world learning” might have persuaded them to remain in school (Bridgeland, 2006).

CTE Helps Students Achieve Academic Success The 2004 National Assessment of Vocational Education (NAVE) Final Report showed that vocationally focused students increased their 12th grade test scores on the National Assessment of Educational Progress (NAEP) by about 11 points in math and 8 points in reading (U.S. Department of Education, 2004). In contrast, non-CTE students increased their reading scores by only 4 points and experienced no improvement in math scores. The Southern Regional Education Board reported that students in rigorous academic and CTE programs demonstrated significantly higher achievement in math, reading, and science than non-CTE Students.

CTE Helps Students Achieve Postsecondary Success The Center on Education Policy and American Youth Policy Forum reports that CTE students now enter postsecondary education at about the same rate as all high school students (Kober and Rentner, 2000; Brand, 2008). Other studies show that CTE students report feeling more prepared for college and are more likely to enroll in dual-credit programs that lead to postsecondary degrees (Lekes et al. 2007). CTE programs that integrate strong academic coursework in addition to career-oriented courses are associated with higher levels of postsecondary enrollment and completion (Kotamroju, 2007).

CTE Students Experience Increased Earnings and Employment Outcomes Students who took four high school CTE courses earned an average of 5% to 8% more than other high school graduates (U.S. Department of Education, 2004). For students who go on to postsecondary education, the returns are even higher. Studies show that jobs within the CTE programs of study tend to have a higher rate of return in terms of expected income vs. program cost than traditional academic or liberal arts programs (Furchtgott-Roth, Jacobson & Mokher. 2009). Students who completed a community college credential or earned a four-year degree in CTE fields, such as engineering, business, and computer science, earned more than $12,000 a year more than those in low-return fields, such as fine arts, humanities, and human services, when surveyed seven years after graduation. Students in healthcare, considered a very high-return field, earned nearly $19,000 more (Furchtgott-Roth et al, 2009).

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The Research Base for Glencoe Business and Personal Finance Why Study Business and Personal Finance?

Meeting the Requirements of the Carl D. Perkins Act with Business and Personal Finance First authorized in 1984, the Carl D. Perkins Vocational and Technical Education Act was passed to increase the quality of career and technical education in the United States and improve the competitiveness of the workforce in an international economy. It remains the main source of dedicated federal funding for CTE programs and outlines the eligibility criteria for CTE programs. The Carl D. Perkins Career and Technical Education Improvement Act of 2006 maintains the U.S. Department of Education’s commitment to CTE programs, and outlines several important changes: • Increased emphasis on academic achievement for all CTE students, with a stronger focus on both integrating core academics into CTE courses and increasing the number of core academic courses taken by CTE students; • Increased connection between secondary and postsecondary education, including both an emphasis on “college readiness” for CTE students wishing to pursue higher education and increased support for dual enrollment or Tech Prep programs that offer both high school and college-level credit; and • Increased accountability for program outcomes at both the state and local levels. The 2006 Perkins Act emphasizes the importance of Programs of Study, or coordinated secondary-to-postsecondary sequences of academic and CTE courses that maintain high degrees of academic rigor, eliminate duplicative coursework, and lead to some kind of professional certification or degree. The Programs of Study are aligned to the sixteen Career Clusters identified by the State’s Career Cluster Initiative (www.careerclusters.org). Glencoe Business and Personal Finance fully supports the requirements of the 2006 Perkins Act. The content, pedagogy, and features have been specifically designed to support both the development of core academic skills and career-specific knowledge and skills, and are appropriate for students planning to pursue either postsecondary coursework or future certification. Business and Personal Finance is also highly appropriate for use in a formal CTE Program of Study in the Finance Career Cluster. For more information on how Business and Personal Finance helps prepare students for college and career success, see section five of this paper, “Preparing the 21st Century Workforce.”

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The Research Base for Glencoe Business and Personal Finance Why Study Business and Personal Finance? Supporting the Carl D. Perkins Career and Technical Education Improvement Act with Glencoe Business and Personal Finance Funding Requirement

How Business and Personal Finance Supports the Requirement

Improve the academic and technical skills of students participating in CTE programs... through the integration of coherent and rigorous content aligned with challenging academic standards and relevant career and technical education programs to ensure learning.

Business and Personal Finance is an academically rigorous curriculum that blends in-depth subject area knowledge in business and finance with core academic skills in math, reading, writing, social studies, and science. Throughout the program, students use higherorder thinking skills (compare and contrast, analyze, evaluate, predict, infer, etc.) to complete assignments and assessments. The hands-on, project-based learning opportunities require students to develop effective research, planning, and communication skills in addition to reinforcing core academic skills in math and language arts. Business and Personal Finance systematically teaches and reinforces the skills students must develop for success in college-level coursework or on the job.

Develop and implement an evaluation of the [program]... including an assessment of how the needs of special populations are being met.

Business and Personal Finance includes many opportunities for both formative and summative assessment, including the following: • Section and chapter reviews built right into the student text, with a mixture of simple recall items, questions requiring higher order thinking skills like analysis and evaluation, and application problems that combine core academic skills with subjectspecific knowledge. • The ExamView Assessment Suite, a robust electronic testing resource with assessment questions keyed to each unit and chapter. • Online assessment tools through McGraw-Hill CONNECT™, which allow teachers to monitor student progress and generate reports by student, class, or skill. These online and offline assessment resources allow teachers to easily assess student learning and to generate the kinds of reports needed for accountability purposes.

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The Research Base for Glencoe Business and Personal Finance Why Study Business and Personal Finance? Supporting the Carl D. Perkins Career and Technical Education Improvement Act with Glencoe Business and Personal Finance Funding Requirement

How Business and Personal Finance Supports the Requirement

Develop, improve, or expand the use of technology in vocational and technical education.

Business and Personal Finance incorporates appropriate technology to maximize student learning and develop the technology skills students will need in the workforce. • Assignments often require students to use appropriate spreadsheet software to generate financial documents or solve problems, and to use word processing software and presentation software to prepare reports and presentations. • Through McGraw-Hill CONNECT™ and the Online Learning Center, students can access electronic resources including a searchable online text, self-assessment and review tools, enrichment activities, and financial templates and simulations.

Provide professional development programs to teachers, counselors, and administrators that are “high quality, sustained, intensive, and focused on instruction.” The 2006 Perkins Act also emphasizes the need for professional development that explicitly helps CTE teachers to integrate academic content into technical courses.

McGraw-Hill offers a variety of professional development options to help teachers and administrators maximize the success of the program. In addition to optional in-service opportunities, Business and Personal Finance integrates continuous learning and support materials into our online support package. • The Online Professional Development for Integrating Academics consists of a series of online, anywhere/anytime professional development courses presenting instructional strategies that enable teachers to integrate challenging academic content seamlessly into their technical curriculum. • Teachers can access professional instruction through McGraw-Hill CONNECT™, including a series of mini video clips presenting key teaching strategies and mapped to chapter content throughout the book.

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The Research Base for Glencoe Business and Personal Finance Why Study Business and Personal Finance?

Rigor, Relevance, and Relationships in Business and Personal Finance

s d r a d n a St Academic Mathematics NCTM Connections Communicate their mathematical thinking coherently and clearly to peers, teachers, and others. English Language Arts NCTE 5 Use different writing process elements to communicate effectively. NCTE 7 Conduct research and gather, evaluate, and synthesize data to communicate discoveries. Science NSES E Students should develop abilities of technological design, understandings about science and technology.

The Perkins Act notes that successful CTE programs are based on “academic rigor, relevance, and relationships.” Academic research has consistently supported the use of the new “three R’s” to support optimal academic performance (McNulty & Quaglia, 2007). Business and Personal Finance is built on best practices to support teachers and administrators in building rigorous and relevant programs and developing effective relationships between students, teachers, and community partners.

Academic Rigor The Perkins Act specifically mandates that students in CTE courses must be held to the same rigorous academic standards that students in traditional courses are held to. Business and Personal Finance is a rigorous academic course that supports both in-depth knowledge of finance and development of academic skills in math, literacy, and other core academic areas. Students are challenged to use higher-order thinking skills to analyze and evaluate financial information and justify their decisions. By thoroughly and systematically integrating the academic skills that students will need to advance in business and finance, Glencoe Business and Personal Finance prepares students for the challenges ahead in college level business courses or on the job. You can learn more about the academic rigor in Business and Personal Finance in the “Meeting Academic Standards” section of this paper.

NCTM National Council of Teachers of Mathematics NCTE National Council of Teachers of English NCSS National Council for the Social Studies NSES National Science Education Standards Integrating academic skills into CTE programs helps prepare students for success on standardized testing, in postsecondary education, and on the job.

Common Core Reading Read and comprehend complex literary and informational texts independently and prociently. Speaking and Listening Present information, ndings, and supporting evidence such that listeners can follow the line of reasoning and the organization, development, and style

CTE programs can maximize success by focusing on academic rigor, relevant content, and relationships among teachers and peers.

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The Research Base for Glencoe Business and Personal Finance Why Study Business and Personal Finance? Real-World Relevance

“What is important is that students enter the global economy with the ability to apply what they learned in school to a variety of everchanging situations that they may not have been able to foresee before graduating.” -D  r. William Daggett, Achieving Academic Excellence Through Rigor and Relevance (2005)

To avoid phishing scams:

• If you are not sure that an

email is legitimate, type in the company’s Web address to access their site. Do not click on an embedded link in a suspicious email.

• If you are a victim of

a phishing scam alert your financial institution immediately and place fraud alerts on all of your credit accounts. Make sure to monitor your account statements closely.

The pedagogy behind Glencoe Business and Personal Finance was developed to help students adapt their acquired knowledge and skills to both familiar and novel situations. Features that enhance the relevance of the content are critical to helping students make this leap: • Experiential learning opportunities, including the Discovery Projects and Unit Projects, and software-based simulations like Virtual Business and the Money Matters Financial Management Simulation, help students see how what they are learning applies in real-world scenarios.

balance with a higher interest rate.

One Is Enough When you turn 21, you may start receiving applications for credit cards. Be a smart consumer and compare interest rates, annual fees, and any other fees. Decide which credit card best suits your needs and apply for that one. Make sure to shred any other applications and do not simply throw them into the trash. Concept Application Why should you get the best (or lowest) interest rate for a credit card?

• You can report suspicious

emails or calls from third parties to the Federal Trade Commission using their Web site or by phone.

Glencoe Business and Personal Finance is focused on the issues young adults will face as they enter the adult world of business and consumer decisions. By teaching both academic and career-specific skills within the context of real-world application, we ensure that students understand not only what they need to learn but also why it is important to them. Students are asked to make connections to real-life situations they are facing now, to consumer and financial decisions they will face as they leave high school, and to potential careers they may be interested in pursuing.

• Career and College Readiness and Careers that Count features help students see how the skills they are learning can help them advance • Requires fairness in the timing of card payments. Payments that are theirthan career goals. greater the minimum amount due must be applied first to the

Phishing One type of internet fraud is “phishing.” With this type of scam you receive fraudulent email messages that appear to be from your financial institution. The messages often appear to be authentic and may even include the institution’s logo. The messages usually describe a situation that requires immediate attention and contain a Web link. The link takes you to a screen that requests personal information. The people behind the scam use this information to access your accounts or steal your identity.

Many students perform better academically when the content is tied to their interests and goals (SREB, 2009). Dr. William Daggett, CEO of the International Center for Leadership in Education, created the Application Model and Rigor/ Relevance Framework, which outlines the relationship between relevance and rigor. In the course of his research, Dr. Daggett discovered that relevance is what makes rigor possible for most students (Daggett, 2005). In other words, it is easier for them to learn core educational concepts when they are taught in the context of a relevant career or technical skill or connected to a student’s personal interests.

Features like Reality Bytes, Common ••  Provides enhanced disclosures of card terms and conditions. TheCents, and Document Detective credit issuer must provide on yourabstract monthly statement the helpcardstudents connect concepts to real life. period of time and total interest it will take to pay off the card balance if only the minimum monthly payments are made. In • addition, The Ask Standard and the Poor’s and Extension Activities your statement must include amount text neededfeatures to pay each month to pay off the card in three years. introduce students to a highly relevant, real-world resource that is • Ensures adequate safeguards for young people. The bill limits widely respected withinand the financial prescreened offers to young consumers requires that an community. applicant under the age of 21 obtain a cosigner for the credit card. Truth in Lending and Consumer Leasing Acts If a creditor fails to disclose information as required under the Truth in Lending Act or the Consumer Leasing Act, or gives inaccurate information, you can sue for any money loss you suffer. You can also sue a creditor that does not follow rules regarding credit cards. In addition, the Truth in Lending Act and the Consumer Leasing Act permit class-action lawsuits. A class-action suit is a legal action on behalf of all of the people who have suffered the same injustice. Equal Credit Opportunity Act (ECOA) If you think that you can

prove that a creditor has discriminated against you for any reason Common Cents Answer prohibited by the ECOA, you may sue for actual damages plus The lowest interest content rate means to real-world Connecting scenarios helps students that your repayment amount will punitive damages—a payment used to punish the creditor who has see the relevance of what they are learning. be lower. violated the law—up to $10,000.

Chapter 15 Consumer Credit

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Fair Credit Opportunity Act A creditor that fails to follow the rules that apply to correcting any billing errors will automatically give up the amount owed on the item in question and any finance charges

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The Research Base for Glencoe Business and Personal Finance Why Study Business and Personal Finance? Relationships in the Classroom, Home, and Community Although rigor and relevance have been established as a foundation for learning, educators are recognizing that rigor and relevance develop most naturally when they are cultivated in the fertile ground of relationships (McNulty & Quaglia, 2007). Relationships with teachers, peers, parents, and others in their communities help students cultivate a sense of motivation and commitment to learning and provide a sense of belonging and achievement. As leading educational author Carol Ann Tomlinson states, “It is virtually impossible to make things relevant for or expect personal excellence from a student you don’t know” (Tomlinson & Germundson, 2007). While no textbook program can fulfill the need for “relationships” on its own, Business and Personal Finance includes deliberate opportunities for students to build relationships with peers, family, and community members. Business and Personal Finance helps prepare students to build relationships in the real world through support for student organizations, career activities, and community projects. Such programs promote close relationships among schools, local businesses, and student and professional organizations. • Cooperative Learning with Peers: Business and Personal Finance provides opportunities for students to work together and for teachers to support and model learning. Many of the activities and projects are appropriate for use in a Cooperative Learning environment. • Student Organizations: Student organizations such as DECA and Future Business Leaders of America sponsor annual conferences that provide students with the chance to build relationships with peers, instructors, and professionals. Many of the projects and simulations in Business and Personal Finance can be adapted and extended for use within the context of these student organizations. Student organizations, conferences, and competitions help build relationships and give students opportunities to apply what they have learned.

µ Community Partnerships: The Unit Projects will also require students to engage in their community as they conduct first-hand research. Local business leaders and community members are important resources to students as they complete these projects. Business and Personal Finance includes explicit instruction in career skills, business etiquette, and business ethics that can help students as they pursue these opportunities.

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The Research Base for Glencoe Business and Personal Finance Why Study Business and Personal Finance?

Bibliography Association for Career and Technical Education (ACTE), Partnership for 21st Century Skills, and National Association of State Directors of Career and Technical Education Consortium (2010) Up to the Challenge: The Role of Career and Technical Education and 21st Century Skills in College and Career Readiness Retrieved December 2010 from http://www.p21.org/index.php?option=com_content&task=view&id=986&Itemid=64 Brand, B. (2008) Supporting high-quality career and technical education through federal and state policy. Washington, DC: American Youth Policy Forum Bridgeland, J., DiIuliom, J., and Burke Morison, K. (2006). The silent epidemic: Perspectives of high school dropouts. A report by Civic Enterprises in association with Peter D. Hart Research Associates for the Bill and Melinda Gates Foundation. March, 2006. Seattle, WA: Bill and Melinda Gates Foundation. Bureau of Labor Statistics, 2010. Occupational Outlook Handbook, 2010-2011 Edition. Retrieved December, 2010 from http://www.bls.gov/oco Carnevale, A.P., Smith, N., & Strohl, J. (2010). Help wanted: Projections of jobs and education requirements through 2018. Washington, DC: Georgetown University Center on Education and the Workforce. Castellono, M., Stringfield, S., & Stone, J. R., Ill. (2002). Helping disadvantaged youth succeed in school: Second-year findings from a longitudinal study of CTE-based whole-school reforms. St. Paul, MN: National Research Center for Career and Technical Education The Conference Board. (2006). Are they really ready to work? Employers’ perspectives on the basic knowledge and applied skills of new entrants to the 21st century workforce. Prepared with The Partnership for 21st Century Skills, Corporate Voices for Working Families, and the Society for Human Resources Management. Retrieved December 2010 from http://www.p21.org/index.php?option=com_content&task=view&id=250&Itemid=64 Daggett, W. R. (2005). Achieving academic excellence through rigor and relevance. Rexford, NY: International Center for Leadership in Education. Education Week. (2007). Diplomas Count 2007: Ready for What? Preparing Students for College, Careers, and Life After High School. Education Week, June 2007 Furchtgott-Roth, D., Jacobson, L., & Mokher, C. (2009). Strengthening community colleges’ influence on economic mobility. Washington, DC: The Pew Charitable Trusts. Kober, N., and Rentner, D. (2000) Do You Know the Good News About American Education? Washington, D.C.: Center on Education Policy and American Youth Policy Forum, 2000. www.aypf.org/whatsnew.htm. Kotamraju, P. (2007). Researching CTE student success: A new conceptual framework. Techniques, 82(4), 49-52. Lekes, N., Bragg, D.D., Loeb, J.W., Okeksiw, C.A., Marszalek, J., Brooks-LaRaviere, M., Zhu, R., Kremidas, C.C., Akukwe, G., Lee, H., & Hood, L.K. (2007). Career and technical education pathway programs, academic performance, and the transition to college and career. MN: National Research Center for Career and Technical Education. Lusardi, A., and Tufano, P. (2009). Debt Literacy, Financial Experiences, and Overindebtedness. NBER Working Paper n. 14808. Mandell, L. (2008). The Financial Literacy of Young American Adults: Results of the 2008 National Jump$tart Survey of High School Seniors and College Students. Washington, D.C.: Jump$tart Coalition for Personal Financial Literacy. Manpower. (2010). Supply/Demand: 2010 Talent Shortage Survey Results. Retrieved November 2010 from https://candidate.manpower.com/wps/ wcm/connect/3b781500428d4a12a0b8ee4f3871948a/2010_Global_Shortage_Survey__Results_0504101+def.pdf?MOD=AJPERES McNulty, R.J. & Quaglia, R.J, Rigor, relevance and relationships, The School Administrator, September 2007 www.aasa.org/publications/saarticledetail.cfm?ItemNumber=9330 National Association of Manufacturers, 2005. The 2005 skills gap report: A survey of the American manufacturing workforce. Washington, DC: Deloitte Development LLC National Council on Economic Education (NCEE). (2005). What American Teens and Adults Know About Economics. Retrieved November, 2009 from http://207.124.141.218/WhatAmericansKnowAboutEconomics_042605-3.pdf Southern Regional Educational Board (SREB). (2009). The Next Step for Career/Technical Programs: Project Lead the Way and the Merging of Academic and Career/Technical Studies. Atlanta, GA: Southern Regional Education Board. Retrieved November 2010 from http://www.sreb.org/page/1219/project_lead_the_way.html Stangler, D. (2009) The coming entrepreneurship boom. Kansas City, MO: The Ewing Marion Kauffman Foundation Stone, J.R. & Alfred, C. (2004, April). Keeping Kids in School: The Power of CTE. Techniques: Connecting Education and Careers, Volume 79 (4) p28-30 April 2004 Tomlinson, C.A. and Germundson, A. (2007) Teaching as Jazz. Educational Leadership May 2007. Pp 28-29. Alexandria, VA: Association for Supervision and Curriculum Development U.S. Department of Education, Office of the Undersecretary, Policy and Program Studies Service. (2004). National Assessment of Vocational Education: Final Report to Congress. Washington, DC: U.S. Department of Education, Education Publications Center

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The Research Base for Glencoe Business and Personal Finance ResearchBased Instructional Strategies

The Research Base for Glencoe Business and Personal Finance Table of Contents Research-Based Instructional Strategies Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page C-3 Incorporating Project-Based Learning. . . . . . . . . . . . . . . . . . . . . Page C-3 Reading and Writing in the Content Area. . . . . . . . . . . . . . . . . . Page C-6

Explicit Instruction in Comprehension Strategies. . . . . . . Page C-8



Effective Use of Before, During, and After Reading Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page C-8



Intensive Instruction in Content-Area and Academic Vocabulary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page C-7



Integration of intensive Writing . . . . . . . . . . . . . . . . . . . . . . . Page C-x

Effective Classroom Strategies in Business and Personal Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page C-8

The Four-Part Lesson Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . Page C-8



Developing Higher-Order Thinking Skills. . . . . . . . . . . . . . . Page C-9



Activating Prior Knowledge. . . . . . . . . . . . . . . . . . . . . . . . . . . Page C-12

Instructional Design that Supports Student Learning . . . . . . . Page C-12

Using Visuals in the Learning Process. . . . . . . . . . . . . . . . . Page C12



Using Authentic Examples and Scenarios for Instruction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page C-14



Learning and Practicing Essential Skills . . . . . . . . . . . . . . . Page C-16



Incorporating Study Skills. . . . . . . . . . . . . . . . . . . . . . . . . . . . Page C-16

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The Research Base for Glencoe Business and Personal Finance Research-Based Instructional Strategies

Introduction High-Growth Careers in Business and Finance • Accountant • Actuary • Auditor • Budget Analyst • Cost Estimator • Financial Analyst • Labor Relations Manager • Management Analyst • Meeting Planner • Personal Financial Advisor • Purchasing Agent

Glencoe/McGraw-Hill Business and Personal Finance incorporates researchbased instructional strategies designed to maximize each student’s ability to comprehend, retain, and apply the new knowledge and skills that are learned in the program. These strategies integrate quality content with ample opportunity for students to explore, question, discuss, discover, and practice important skills and concepts. In this section, we’ll examine four elements of effective program design that are used within Business and Personal Finance: • Integration of project-based learning elements that promote deeper understanding of course material and prepare students for advanced, multi-disciplinary tasks they will face in work and college environments. • Effective use of content area reading and writing strategies to support both subject-area comprehension and development of academic skills. • Classroom instructional strategies in the teacher materials that maximize comprehension and skill development. • Textbook design elements in the student materials that promote student learning.

Incorporating Project-Based Learning Business and Personal Finance uses extensive project-based learning opportunities to extend, enrich, and reinforce the key concepts in the text. What do we mean by project-based learning (PBL)? The California-based Buck Institute for Education, a nonprofit research and development organization committed to the use of PBL, defines project-based learning as “a systematic teaching method that engages students in learning knowledge and skills through an extended inquiry process structured around complex, authentic questions and carefully designed products and tasks” (Buck Institute for Education, www.bie.org). What does this look like in practice? A project-based approach to learning uses student-directed, extended assignments that require a high degree of self-direction, research, and planning. Rather than waiting for a teacher to give them explicit instructions, students working in a project-based environment will have an open-ended assignment that allows them to discover their own unique solution. For example, rather than simply listening to a teacher explain the steps entrepreneurs take to start a new business, students in Business and Personal Finance may complete an extended project that allows them to develop a business plan for their own virtual business. PBL provides a number of critical benefits for students:

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The Research Base for Glencoe Business and Personal Finance Research-Based Instructional Strategies • PBL increases student motivation and engagement: Students who participate in project-based learning often become so engrossed in the process that they forget the “work” of learning. They become excited about their personal engagement in problem solving within the context of a dynamic, relevant, engaging project (Nastu, 2009). In an academic environment where many students drop out of school because they fail to see the relevance of what they are learning, a project-based approach can help keep students in school and engaged. • PBL uses higher-order thinking skills: Students in a project-based environment are engaged in a student-directed, rather than teacherdirected, activity. This requires much higher levels of planning, research, analysis, and evaluation as students discover, try, and reject different potential solutions (Strobel & van Barneveld, 2008). This self-directed approach to problem solving allows students to learn not a single correct answer but the process that business people must engage in to solve problems in the workplace. µ P  BL increases comprehension and retention of material: Project-based learning encourages a higher-level understanding of core subject knowledge as students answer questions for themselves, make connections, and analyze situations. PBL has been shown to be more effective than traditional instructional methods in increasing academic skill development and standardized test scores (Geier et al., 2008). PBL has also been demonstrated to be more effective in promoting long-term skill retention (Strobel & van Barneveld, 2008). Students working in a project-based environment internalize core skills as they apply them in a realistic scenario, rather than simply memorizing facts for a specific assessment. PBL may be especially effective for at-risk students (Mergendoller, Maxwell, & Bellisimo, 2007). • PBL develops 21st Century Skills: Project-based learning can also help students develop the 21st-Century Skills today’s employers desire. Students practice skills such as problem solving, collaboration, creativity, and critical thinking when they engage in long-term, student-led projects. Projects also require students to improve written and oral communication skills as they plan, research, organize and present their projects to their peers. Well-designed projects mimic the kinds of scenarios and assignments students will face in the workplace, particularly in the kinds of “highly skilled, highly compensated” positions that the U.S. Department of Labor believes we must prepare students to succeed in (Carnevale, Smith, & Strohl, 2010).

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Discovery Project

$

Developing a Statement of Required Start-Up Capital Key Question How can you determine the amount of start-up capital required for a new business?

Project Goal The rst step to developing a strong nancial plan is to create a statement of required start-up capital. This will require careful consideration of your proposed business, as well as a lot of research. Suppose you are opening a toy store. Begin by determining what assets are needed for your business. Once you have a list of assets, you must research the price for each to develop an estimate of the asset’s cost. Then conduct research to determine what start-up costs are required and estimate the cost for each of these. Once you have all the estimates, add them together to determine your total required start-up capital.

Ask Yourself... • • • •

How can you determine what equipment you will need? How will your business differ from your competition? Who can help you identify start-up costs? How will you determine the cost for each asset and start-up cost?

Business and Personal Finance includes two important types of projects to help students deepen their understanding of course material and develop See the Teacher Manual for the Chapter Lesson st Plan. critical thinking and 21 -Century Skills:

Each chapter begins with a Discovery Project that previews chapter material and keeps Interact Effectively with Others students engaged. Why is it important to dress professionally when conducting the research for your nancial plan?

glencoe.com Evaluate Download an assessment rubric.

Evaluation Download an assessment rubric.

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A solid nancial plan will give you a complete nancial picture

•  Discovery Projects: Each chapter begins with a Discovery Project that of your business. is directly tied to the content in the chapter. These projects provide a ASK “preview” to the new concepts that will be introduced in the chapter, presented in a real-world scenario that helps students understand the relevance of the content. Each project clearly outlines the Key Question Financial Plan and Project Goals, and provides a series of questions students should Q Since the projections in a consider nancial plan are just guesses, as they complete the project. Students can also find project why is the plan so important? Why should I bother spending Discovery Projects require students to research topics, rubrics online. time making nancial predictions that might not evaluate their findings, and present their best solutions, analyze and come true? nancial plan to or orally? to their peers. Discovery Projects can be A Aeither inis essential writing understanding what will make your business protable,relatively how completed quickly, either in an in-class session or as homework. much cash you will need to operate the business, and the These hands-on, realistic scenarios help keep students motivated and future value of the business. engaged as they read each chapter. Even though your nancial

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plan will need to be updated

it still provides you • regularly, Unit Projects: Unit Projects are extended, multi-part projects that with a solid idea of where your business should be headed. synthesize skills and knowledge from across several chapters of Writing Activity the book. Unit Projects are designed to be completed independently In addition to the projected nancial statements that make or in small groups outside of the school day, and will require research, up the nancial plan, a business owner will also need to maintain planning, and execution that may take place over several days or weeks. nancial statements showing actual transactions. Write an Unit Projects more closely mimic the experiences students will have on explanation of how you would use your nancial predictions why life and require extensive analysis, synthesis, evaluation, the job or inandreal you would need to update your nancial plan regularly. and other higher-order thinking skills, along with both written and oral presentations. Many Unit Projects also require students to interview family members, business people, or members of the community as part of their Chapter 5 research. Students will learn effective business communication and Developing a Financial Plan 119 interpersonal skills, along with interviewing techniques, as they complete these projects. 9/27/10

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5

Unit Project

Your Objective The goal of this project is to understand and practice the decisions and planning that must be done prior to purchasing a home to ensure that you get a home you are happy with and can afford.

Skills You’ll Use Success in defining goals and preparing financially for those goals depends on your skills. Some skills you might use include: Academic Skills—Reading, writing, and mathematics. 21st Century Skills—Decision making, financial literacy, communication, and interpersonal skills Technology Skills—Word processing, keyboarding, Internet research, calculator, spreadsheet, and presentation software

Standards NCTE 4 Use written language to communicate effectively. NCTE 7 Conduct research and gather, evaluate, and synthesize data to communicate discoveries. NCTE 12 Use language to accomplish individual purposes. NCTM Numbers and Operations Compute fluently and make reasonable estimates.

STEP 1

Explore Housing Options

STEP 3

As with any purchase, before you can buy a house you must decide what exactly you want. Answer the following questions to determine what your ideal house would be: • What type of home would you prefer? (e.g., condominium, single-family dwelling, etc.) • What area or neighborhood do you want to live in? • How much space do you want or need? • Do you want a yard? • Do you need a garage or covered parking? • Are there amenities that you would like to have, such as a fireplace or wood floors? Create a list of all the factors you would like to have in your ideal house. Order the items in the list by priority. How important is the location or the inclusion of a garage? Would you refuse a house without a certain factor?

STEP 2

Build Relationships

How can a good real estate agent help you with the home-buying process? Arrange an interview with a local real estate agent. Find out if your desires from Step 1 are realistic with the pricing you calculated in Step 2. If not, ask the realtor to help you revise your options. Also ask the agent how he or she would help you to find the right house and what the next steps would be once you found a house. • Have your priority list and spreadsheet available to review with the realtor. • Prepare interview questions before your meeting and have paper and pen to take notes. • Practice active listening skills. • Ask for clarification if you do not understand anything the realtor tells you. • Be respectful of the realtor’s time and thank him or her for meeting with you. • Type up your interview questions and answers in a question and answer essay.

Analyze Cost

STEP 4

Once you know what you want in a house, you need to calculate how much you can actually afford to pay. Find and use an online calculator to help you determine how much you can afford to pay for a home. For this exercise, suppose that you are earning $45,000 per year. Be sure to factor in each of the following, even though some of these costs will not be included in the online calculator: • Down payment • Closing costs • Monthly mortgage payments (including escrow and taxes) • Monthly utility bills • Repairs and maintenance You might want to speak to an adult family member or friend to get a good estimate of how much you might spend on utility bills and general repairs and maintenance. Develop a spreadsheet to show each of the costs and how much you would need on a monthly basis as well as in savings in order to purchase a home.

Develop Your Presentation

Use the Unit 5 Project Checklist to plan and create your presentation.

STEP 5

Evaluate Your Presentation

Your presentation will be evaluated based on the following: • Evaluation Rubric • Thoroughness of priority list and cost research • Mechanics—spelling and grammar of essay and presentation • Interview skills

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✔ Consider the features you want in your home and prioritize them. ✔ Analyze the cost of home ownership and determine how much you can afford to spend on a house. ✔ Meet with a realtor in your community to help explain his or her role in the home buying process.

Write ✔ List all the features you would like to see in your house. ✔ Prioritize the factors in your list. ✔ Create a spreadsheet to organize and tally all the various costs you will need to consider when buying a house. Include the monthly payments determined from an online calculator. ✔ Write a list of interview questions. ✔ Key a question and answer essay with the information gained from your interview.

Present ✔ Create an outline for your presentation. ✔ Create visuals and use technology to enhance your presentation. ✔ Speak clearly and concisely. ✔ Present your priorities and your cost evaluation and explain how they relate to one another. ✔ Share the ndings from your interview and tell how they might change your priorities. ✔ Respond to questions raised by the class.

glencoe.com Evaluate Download a rubric you can use to evaluate your project.

UNIT 5 Banking and Credit

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Project Checklist Plan

Have you ever thought about the type of home you would want to live in? Have you ever considered how much credit you would need to buy a home? What sacrifices would you be willing to make in order to own your own home? Responses to these questions can help you prepare for home ownership.

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See the Teacher Manual for the Unit Lesson Plan.

Preparing for Home Ownership

Ask Yourself...

Unit Projects synthesize knowledge and skills across several chapters and mimic scenarios students will face on the job and in real life.

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The Research Base for Glencoe Business and Personal Finance Research-Based Instructional Strategies

Reading and Writing in the Content Area Literacy skills are at the heart of successful academic learning, college readiness, and future career success. In recent decades, both reading and writing skill levels needed for basic employment have risen dramatically. In fact, the skills necessary for higher education and the skills needed for employment are now virtually identical (ACT, 2006; American Diploma Project, 2004). Studies in 2005 showed that only half of American graduating high school students possess the literacy skills needed for success in college (ACT, 2005; Achieve, 2005). Employers, meanwhile, spend over $1.6 billion annually on remediation in basic literacy and writing skills needed for the workplace (National Commission on Writing, 2005). The Reading Next report by the Alliance for Excellent Education stresses the importance of comprehension instruction for adolescents, who are usually proficient in basic decoding skills but lacking in higher-order comprehension strategies needed to understand the kind of complex texts students will face in college or the work place (Biancarosa & Snow, 2006). In addition to other classroom and structural recommendations, the report recommends that reading comprehension, vocabulary, and writing instruction should be embedded in academic content. This means that reading and writing instruction are not solely the domain of the language arts instructor. Career and Technical Education (CTE) teachers, in particular, have a golden opportunity to infuse comprehension strategies and writing instruction into subject-specific content that is highly relevant for students in the course. This has the dual benefit of increasing comprehension and retention of course material, and strengthening the literacy skills students will need for success in higher education and their careers. Effectively designed literacy strategies can be used in CTE courses in ways that do not take away time from subject-specific instruction, but rather enhance this instruction by seamlessly integrating strategies to boost course comprehension.

Business and Personal Finance systematically integrates research-based literacy instruction throughout the program: • Explicit instruction in comprehension strategies: The Reading Next report emphasizes the necessity of “direct, explicit comprehension instruction” for adolescent readers (Biancarosa & Snow, 2006). The Reading Skills Handbook, located at the beginning of the student textbook, provides explicit instruction in effective reading strategies. Students will learn how to understand text structure, read for meaning, incorporate effective comprehension strategies while they read, build vocabulary, and use effective research techniques. This valuable guide is based on the latest research in adolescent literacy and can be used by teachers to reinforce effective reading habits.

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The Research Base for Glencoe Business and Personal Finance Research-Based Instructional Strategies CHAPTER 8

Reading Guide

s tandarduse S• Effective of before, during, and after reading strategies:

Before You Read

Academic

Explicitly teaching effective before reading, during reading, and Mathematics NCTM Connections Communicate after reading their mathematical thinkingstrategies can help students internalize the practices coherently and clearly to peers, of good readers and boost reading comprehension (Pressley, 2002). teachers, and others. English Language Arts Before You Read, As You Read, After You Read and Reading Check NCTE 5 Use diff erent writing process elements to communicate features are designed to encourage students to make predictions, effectively. Academic NCTE 7 Conduct research and gather, evaluate, and synthesize ask questions, connect what they are reading to prior knowledge Mathematics data to communicate discoveries. NCTM Number and Operations Understand numbers, ways of and personal interests, analyze and evaluate information as they Science representing numbers, relationships NSES E Students should develop among numbers, and number systems. abilities of and technological design, their comprehension before moving on. read, check NCTM Number and Operations

The Essential Question Why is it important for employers to establish and maintain efficient payroll and inventory management systems?

CHAPTER 15

Reading Guide

s

Standard

Main Idea Before, During, and After Reading Strategies

Effective payroll management and inventory maintenance are integrated into the text as students read. Before Read enable businesses toYou run more profitably, manage cash flow, and consistently meet customer needs. The Essential Question What steps can you take now to start building Content Vocabulary and maintaining a strong credit rating? • point-of-sale terminals • payroll • periodic inventory system • gross earnings • specific identification method •Main salaryIdea are advantages to using consumer credit first-out if you use it correctly. • first-in, method (FIFO) •There hourly wage must protect for thefirst-out warning method signs of (LIFO) • last-in, •You overtime rate your credit and watch problems. •debt commission •Content deductions Vocabulary •• Federal credit Insurance Contributions Act (FICA) • consumer credit •• Social Security tax creditor •• Medicare taxcredit closed-end •• total grosscredit earnings open-end •• perpetual inventory system line of credit • grace period • finance charge

Graphic Organizer • net income

Before you read this rate (APR) • annual percentage chapter, create an organizer • collateral like the one shown. As you • simple interest read, use the organizer to • minimum monthly payment identify and describe the • credit rating four common methods by which employees are paid.

understandings about science and Compute uently and make technology. reasonable estimates. NCTM Connections Recognize and NCTMmathematics National Council of Teachers of apply in contexts Mathematics outside of mathematics. NCTE National Council of Teachers of English Language Arts English NCSS12 National Council for NCTE Use language to the Social Studies accomplish individual purposes. NSES National Science Education Standards Science NSES F Develop understanding of personal and community health; population growth; natural resources; environmental quality; natural and human-induced hazards; science and technology in local, national, and global challenges.

Academic Vocabulary

will see these words in your •You cosigning and on your tests. •reading bankruptcy • withheld • allowanceVocabulary Academic • stock You will see these words in your • staple and on your tests. reading • finance • title • portion • pledged • promptly • impostors • repossess • confidential Common Methods

of Employee Payment

Graphic Organizer Business and Personal Finance explicitly Before you read this chapter, create a numbered list like the one below. teaches and reinforces both content-are As you read, note six questions to ask yourself before using credit. and academic vocabulary. Questions to Ask

1. 2. See the Teacher Manual for answers. 3.

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Print this graphic organizer.

4. 5.

DiscoveryUNIT Project 3 222

6.

$

Business Finance Basics

KeySee Question the Teacher

Manual for answers.

SeeWhat the Teacher Manual the are some thingsfor employers need to know about payroll Unit Lesson Plan.before starting or taking over a business? and inventory

glencoe.com Project Goal

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Jeremy3and Cindy Cole just took over a specialized STEP Build Relationships

retail store with 3 full-time employees and 2 part-time

Develop Your Presentation

Think Creatively Use the Unit 3 Project Checklist to plan and create How can good inventory management help a business your presentation. meet its goals? How can you manage your personal

inventory at home? STEP 5 Evaluate Your Presentation glencoe.com YourEvaluation presentation will be evaluated Download da an n assessment rubric. based on the following: Evaluate Download an assessment rubric. • Evaluation Rubric • Content and organization of financial plan • Creativity and logic of pricing plan • Communication skills 0220_0221_C08_CO_894580.indd

221

Good payroll and inventory management are essential elements for the success of any business.

Project Checklist

ASK

Print thisPlan graphic organizer.

workers. aThey sell gifts imported India. Cindy Interview trusted adult in your from community whoplans to run daily operations of the brick-and-mortar owns or the manages a local business. Ask how the store, and Jeremy on getting theirto new Web site company setswill andfocus adjusts its prices ensure up and running. About four times a year, they expect to profitability. Talk about your business idea and your UNIT 5 festivals to sell their products. travel to cultural fairs and pricing plan and ask for his or her opinion as to 452 The previous owner’s payrolland and inventory records were Banking Credit whether plans forColes pricing are like realistic. done byyour hand, and the would to update the • Develop interview questions on your systems. They have come to youbased for advice. research andpayroll plans for ensuring profits. • Explain the tasks to perform each pay period. Discuss payroll mustthe record in • Take clearthe notes andinformation accuratelythey record their accounting records. responses. • Help them decide if and how they will pay overtime or • Practice active listening skills. commissions. 0452_C15_RG_894580.indd 452 • Respond politely and professionally. • Explain the types of inventory systems, and offer your • Ask for clarification if you do not understand suggestions. something. • Help them determine which inventory costing method • Encourage the professional to share by asking to use. open-ended questions. Ask Yourself... • Type a summary of your noteslikely and to thebe paid? • In what way are the employees interviewee’s responses. • Which employee taxes are the Coles responsible for paying? • Adjust plan and financial • What your benepricing ts are the Coles likely to offerplan their as staff ? • Which type of inventory system and costing method appropriate based on the information learned inis bestinterview. for their line of products? your

STEP 4

supporting details and ideas. Reading Read and comprehend complex literary and informational texts independently and prociently. Writing Write routinely over extended time frames (time for research, reection, and revision) and shorter time frames (a single sitting or a day or two) for a range of tasks, purposes, and audiences.

See the Teacher Manual for the Chapter Lesson Plan.

Explore Payroll and Inventory

✔ Select a type of business you would like to start. ✔ Explore possible sources of funding for a Social newSecurity business. and Medicarepricing methods and consider ✔ Research only 16. Why should I pay Q I am possible ways to increase or maintain Social Security and Medicare prots. taxes? Those programs may not ✔beInterview a Itrusted adult in your community around when am old enough towho collect. owns or manages a local business. A It is true that Social Security programs are projected to Write run low on funds around the

✔year Begin developing a nancial plan. 2025. Under the present ✔system, Writethe a paragraph rate of returnto onexplain the pricing plan your to these forcontributions your products or services. is lower than what you ✔programs Write an explanation of how you can control might earn. However, Congress expenses to help maintain a prot. is working to ensure that Social ✔Security List your interview will provide fundsquestions. ✔forType a retirees. summary the interviewee’s future Also,of Social Security and Medicare offer responses. many other types of benets including disability benets.

Present

✔ Create an outline Writing Activityfor your presentation. Write the title and opening ✔ Create visuals and use technology to paragraph for an article giving tips enhance your presentation. on what young workers can do ✔ Speak clearly and concisely. now to supplement Social Security ✔ Medicare. PresentUse your nancial plan and your and the journalistic technique of answering pricing plan. “who, what, when, where,your why, and how.” at ✔ Share plans toLook increase or maintain newspapers to see how articles are prots. formatted. ✔ Present the results of your interview. ✔ Answer questions posed by the class. Chapter 8 Managing Payroll and Inventory

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• Intensive instruction in content area and academic vocabulary: Vocabulary is a basic building block of reading comprehension, and effective content-area courses must explicitly teach the subjectspecific vocabulary students need to comprehend course material (Fisher & Frey, 2008). In addition, students must become familiar with academic English—the language commonly used in higher education, business, and courts of law (Coxhead, 2000; Hiebert & Lubliner, 2008). NCTM National Council of Teachers of Mathematics NCTE National Council of Teachers of Common Core Business and Personal Finance deliberately teaches and reinforces English Reading Read and comprehend NCSS National Council for the Social complex literary and informational both content-specific and academic vocabulary. Key words are Studies texts independently prociently. NSES National Science and Education Speaking and Listening Present Standards introduced at the beginning of the chapter and boldfaced when information, ndings, and supporting evidence such that listeners can they are defined follow the line of reasoning and thein the text. We revisit these words in the chapter organization, development, and style review and are appropriate to task, require purpose, and students to use them in writing as they complete audience. Speaking and Listening Adapt chapter assignments. Students’ comfort level with new vocabulary speech to a variety of contexts and Common Core tasks, demonstrating communicative increases through Reading Determine central ideas or this deliberate instruction, repetition, modeling, command of formal English when themes of or a text and analyze their indicated appropriate. and practice with development; summarize the key new vocabulary (Marzano & Pickering, 2005).

• Integration of intensive writing: Employers indicate that writing skills are critical to success in most job categories (National Commission on Writing, 2005); however, only 24% of high school students scored at or above the “proficient” level in writing on the 2007 National Assessment of Educational Progress (NAEP). Effective writing instruction must include opportunities for students to write for a variety of purposes, from informal writing to express opinions or communicate with peers, to formal papers involving research and extended explanation (Graham & Perin, 2007). Writing helps students refine and clarify their thinking, internalize new information, and apply and extend information to new scenarios and situations. Business and Personal Finance incorporates writing throughout each chapter as well as in the Discovery Projects and Unit Projects. Each chapter begins with a short, informal Writing Activity. Discovery and Unit Projects require more formal and extensive research and writing. 9/27/10

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10:35 AM

6:08 PM

Students have ample opportunity for writing throughout the program. Evaluate Download a rubric you can use to evaluate your project.

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The Research Base for Glencoe Business and Personal Finance Research-Based Instructional Strategies

Effective Classroom Strategies in Business and Personal Finance Business and Personal Finance supports effective teaching through research-based lesson plans and instructional strategies provided in the teacher materials and classroom activities.

The Four-Part Lesson Plan Effective lesson plans incorporate pre-teaching, explicit instruction and practice, assessment of learning, and reinforcement of core concepts in response to this assessment (Hunter, 1994). Glencoe Business and Personal Finance utilizes a powerful four-step teaching plan to ensure student mastery of instruction.

1. Focus: Teachers know that the first step in presenting new material is to capture student interest. Because of this, Glencoe’s authors have designed several special pre-teaching activities to engage students in the material and ensure that all students have the same background and preparation. Business and Personal Finance gives teachers an overview and Focus discussion activity for each section. Focus activities are designed to help students make connections to their own lives and interests and activate prior knowledge before reading the section.

2. Teach: This part of the lesson involves the presentation and exploration of new content. Teachers receive suggestions for discussion, reading activities, answers to questions, guided skills practice, and resource suggestion. The Business and Personal Finance: Teacher Annotated Edition offers a teaching plan that provides maximum flexibility in meeting student needs. Leveled lesson plans help students move from simple tasks like listing and identifying (L1 activities) to describing and explaining (L2 activities) to applying knowledge (L3 activities). Universal Access activities offer a variety of strategies designed to reach all learners. Critical Thinking activities help students apply learning in more complex ways.

3. Assess: Assessment throughout the learning process provides opportunities to evaluate the needs of each student. By assessing learning throughout, teachers are able to adjust activities and teaching methods to accommodate students with a variety of learning styles. The Assess section of the Teacher Annotated Edition offers a variety of evaluation and reteaching activities for a wide range of learning abilities. Teachers will find answers for all of the in-text section and chapter assessments and activities, including answers to Reading Check questions, activities like Document Detective and Go Figure, and answers for photo caption questions.

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The Research Base for Glencoe Business and Personal Finance Research-Based Instructional Strategies 4. Close: The final step of the instructional process allows students to review the material presented in the lesson. During this time, they summarize what they have learned, assess their own learning, and apply the content to their own lives. The Teacher Annotated Edition offers an activity to assist in these processes. Activities may be done with the entire class, with groups, or with individual students.

CHAPTER 14 SECTION 1

Lesson Plans and Answer Keys

Financial Services and Institutions

Section Overview In this section, students will learn about the different types of financial services and financial institutions.

FOCUS

Make It Personal Ask students why they currently use banks. List their responses on the board. Then ask students: Do you consider any of these to be essential? Students should note savings accounts, checking accounts, ATMs, and debit or credit cards.

TEACH

S Scaffolded Instruction

L1 List Have students list electronic banking services. Electronic banking services include direct deposit, check account balances, transfer funds, online or automatic payments, debit cards, and online banking. L2 Explain Ask students to explain how banks use

technology to improve or increase their services.

CHAPTER 14

ASSESS

Photo Caption Answer—Customer Service Answers

include that you can often earn interest from a savings account that you cannot from a checking account.

noxious. In addition, developing nations currently emit a high level of greenhouse gases.

Careers That Count! Answer Most companies

2. Possible response: I do not believe Americans would

require a high school diploma and some math skills. Tellers often make the first impression of the bank on customers. As the main contact, they have the best opportunity to sell additional or new bank services.

use microloans. It is fairly easy for people in the U.S. to get credit cards or cash advances.

Reading Check Answer A payday loan is when the

that the earlier in life a person starts saving, budgeting, and managing their money, the more likely they are to be successful at attaining their financial goals.

Review Key Concepts

borrowing, insurance protection, investment accounts, income tax assistance, and financial planning services.

1. For short-term needs: checking accounts and

cashier’s checks. For long-term needs: CDs and bonds, investment services, and budgeting.

Figure 2 Answer Benefits might include: convenience,

speed, ability to react quickly to issues, monitoring. Concerns: privacy, security, difficulty making deposits.

2. Life insurance companies, investment companies,

finance companies, and mortgage companies

Photo Caption Answer—ATM Safety It makes it easy

3. Problematic businesses include pawnshops, check-

cashing outlets, loan stores, and rent-to-own centers.

4. The Great Depression led to the failure of many

1. 1/23/05 to 2/24/05

banks and the creation of the FDIC.

2. Credits are amounts added to your balance.

U Universal Access

4. Check number 1045 for $2,440.00 cleared.

English Language Learners Have students work in

5. It is the total amount of the checks that cleared the

think? Why? Sample answer: I feel that debit cards can be used responsibly since they only allow you to spend money you already have. Credit cards are often viewed as “free money” and allow people to spend money they cannot afford so they should be avoided.

Higher Order Thinking

3. Debits are amounts subtracted from your balance.

that many banks offer free checking or savings accounts meaning you can cash a check for free.

21st Century Skills

bank during this period.

6. Access and Evaluate Information Answers will

vary. Students should compile information from three financial institutions and show reasoning.

your account and the check was rejected and unpaid.

Reading Check Answer Direct deposit is an automatic deposit to an employee’s designated bank account.

Mathematics 7. Checking Account Bank A interest earned =

$500.00 × 1.00% = $5.00; Bank A fees = $0.00; Bank A net interest earned = $5.00 - $0.00 = $5.00; Bank B interest earned = $500.00 × 2.75% = $13.75; Bank B fees = $0.75 × 12 months = $9.00; Bank B net interest earned = $13.75 - $9.00 = $4.75; Bank A is the better choice.

Reading Check Answer Interest rates vs. liquidity, convenience, and the minimum balance Reading Check Answer Deposit institutions include commercial banks, savings and loan associations, mutual savings banks, and credit unions. TM165

TM166

Lesson plans provide a research-based, four-part instructional plan including activities for pre-teaching, explicit instruction, assessment, and re-teaching. 165

H.O.T.

5. Answers may vary but the students should realize

6. It means that you did not have enough money in

Chapter 14 Banking

TM165_TM168_C14_895835.indd

Assessment Answer Key

SECTION 1

Reading Check Answer Savings, payment services,

Answers will vary based on the bank and the students personal habits, but should offer clear explanations for their preferences.

C Critical Thinking

consumer writes a personal check and the vendor agrees to hold it until payday, charging a fee.

Figure 1 Answer Answers will vary but might include

Document Detective Answers

responsible than using credit cards. Others feel that both should be avoided. Ask students: What do you

1. Possible answer: Kerosene is highly flammable and

borrow money to obtain extra cash.

for someone to obtain it and then access your accounts.

Judge Some people feel that using debit cards is more

Around the World Answers

Reading Check Answer You can use your savings or

L3 Apply Have students create a chart to show the

groups to research safety measures that individuals can take when using electronic banking services. Have each group create and share a poster with the tips they learn.

may vary; a representative can help you evaluate your needs and make you aware of all services.

As You Read Answer Answers will vary but might

Explanations will vary but may include that many banks use technology to build a user-friendly Web site that allows a host of online banking services, including automatic payments and online loan applications.

electronic banking services offered by their bank or any local branch. Have students evaluate the services.

Lesson Plans and Answer Keys

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CLOSE

Analyze and Apply Have students research special

programs offered to students by a local bank. What types of programs are available? How are they useful to students? Why are they offered only to students?

SECTION 2

Savings Plans and Payment Methods

Section Overview In this section, students will learn to recognize the types of savings plans offered by financial institutions.

FOCUS

Make It Personal Ask students if they are saving money for after they graduate. Ask students: How will savings be useful to those entering the workforce and those planning to continue their education? Students should recognize the benefits of having savings for future emergencies and needs.

TEACH

S Scaffolded Instruction

L1 Identify Have students list the types of savings plans available. Regular savings accounts, CDs, money

market accounts, and U.S. savings bonds.

L2 Explain Have students explain the five factors to be considered when evaluating a savings plan. Rate of

return is the percentage of increase in the value of your savings; inflation should be compared to your rate of interest; taxes may reduce the interest earned; liquidity is the ease with which you can convert your assets to cash without loss in value; and restrictions or fees may affect when interest is earned or paid.

L3 Apply Have students research savings accounts at two local banks and create a chart comparing the rate of return, tax considerations, liquidity, restrictions, and fees. Which account would they choose? Charts

will vary. Students should note all key information and conduct a side-by-side comparison to make a choice.

U Universal Access Logical Learners Have students research how Check

21 has changed the way checks are used and processed. Have students write a brief report explaining how this law benefits financial institutions and customers.

UNIT 5 Banking and Credit

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The Research Base for Glencoe Business and Personal Finance Research-Based Instructional Strategies Developing Higher-Order Thinking Skills Success in college level courses or in the contemporary workplace requires much more than simple recall of facts. No matter how well students remember these facts, the true test of academic success lies in the ability to solve problems and apply what they have learned to novel situations. This ability requires students to use skills like compare and contrast, evaluation, analysis, decision making, synthesis, and metacognition. Benjamin Bloom first developed a framework for understanding cognition and the hierarchy of cognitive function in 1956 (Bloom, 1956). Since then, Bloom’s Taxonomy has become a staple of education theory that has been refined and extended to help teachers systematically and thoughtfully engage students with activities designed to promote higher level thinking (Anderson & Krathwohl, 2001). CATEGORY

GOAL

EXPECTED STUDENT REPONSE

APROPRIATE QUESTIONS/PROMPTS

Knowledge

Identify and recall information

Define, recognize, identify, label, show, collect, understand, examine

Who... ? What... ? When... ? Where... ? How... ? Describe...

Comprehension

Organize and select facts and ideas

Translate, interpret, Retell in your explain, describe, own words... summarize, extrapolate What is the main idea of... ?

Application

Use facts, rules, and principles

Apply, solve, show, experiment, predict

How is... an example of... ? How is... related to...?

Analysis

Synthesize

Evaluation

Separate a whole into component parts

Connect, relate, differentiate, classify, arrange, check, group, distinguish, organize, categorize, detect, compare, infer

Classify... according to...

Combine ideas to form a new whole

Produce, propose, design, construct, combine, formulate, compose, plan, hypothesize

What would you predict/infer from... ?

Appraise, judge, criticize, decide

What do you think about... ? Prioritize...

Develop opinions, judgments, or decisions

How does... compare/ contrast with... ?

What might happen if you combined... with... ?

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Review Key Concepts

Mathematics

7. Earnings and Tax Carmen has her own small company. She has two salaried employees that earned $750 and $700, respectively this past 2. Explain How do employers calculate pay period. She also has two hourly employees employees’ gross earnings? that worked 43 and 45 hours, respectively this 2 and 3. Discuss Identify andSECTION describe required past pay period. Both hourly employees earn CHAPTER voluntary payroll deductions. $9.75 per hour and receive 1.5 times their REVIEW4. Describe What is the role of employers in regular hourly wage for overtime. CalculateSee the Teacher Manual for answers. assuring prompt payment to theKey government? Review Concepts Mathematics total gross earnings the pay period. How See the Teacherfor Manual for answers. 1. List What are the 5 Cs of credit? 6. Debt Payments-to-Income Ratio Seth much in total do the employees contribute in skills needed Higher-order thinking skills are precisely the for earns a Science Higher Order Thinking H.O.T. English Language Arts monthly income of $1,200. He currently carries FICA tax? How much does the company have to success in college and in the 21st century workforce. The ability 5.Addiction CompareThere and Contrast From an employer’s 2. Explain How can determine if you can 10. Shopping are people who use 12.you Managing Debt One of the services offered a balance on his credit card and makes monthly send the government for FICA tax? standpoint, what are some of the advantages afford a loan? credit cards to support a shopping addiction, which by thetoConsumer Creditdetermine Counselingthe Service think critically, relative importance of information, payments of $200. He wants to go on vacation and disadvantages of paying a salaryWhat instead Calculate Taxbetter To calculate the can lead to financial and emotional problems. is information help people make organize and synthesize information from acharge variety oftrip sources, 3. Identify are four actions youto can take to FICA but will have to the to his credit of an hourly wage? Which would you prefer to total FICA tax a company must send to the Procedure Conduct research to learn more choices and manage their debtapply responsibly. help build a good credit rating? knowledge to newthe situations, and card. If Seth charges trip, he will have to receive and why? government determine total gross about the causes of shopping addiction and the Visit the CCCS Web sitefirst to learn what the top Higher Order Thinking H.O.T. create novel solutions and products are pay an additional $120 per month in credit card earnings for a are. given paythis period and multiply by st warning21 signs, as well Skills as tips on breaking the 10 purchasing mistakes Use Century 4. Relate Suppose you applied for a car loan of debt. What is Seth’s debt payments-to-income highly prized by employers. Using higher the taxarates. Multiply this amount by two. Higher-Order Thinking addiction. information toFICA create poster that illustrates 6. Solve Problems Leigh runs$40,000 a business is denied andthat were for valid reasons. ratio before andalso aftercorrelates the vacation problems are incorporated levels of cognition tocharge? Analysis Write a brief report to share your decide the steps top 10 mistakes and Determine offers advice onpay howfor hourly growing very quickly. She must whether Starting Hint gross What would your next be toward getting Should he go on the vacation based on the 20 in the section and chapter higher levels of and findings, thoroughly explaining the symptoms Use pictures from magazines or to continue paying overtime each week to herto avoid them. employees by multiplying the wagerule? by comprehension the a car loan? assessments. percent orfor to hire another employee or and possibleemployees treatments shopping addiction. draw pictures to worked illustrate yourretention poster. hours during the period,of upnew to 40. materials. st Century Skills Calculate two. Each of Leigh’s 1521 employees earns an Multiply the wage by 1.5; multiply this figure Debt Payments-to-Income 5.community Analyze Media Federal states that anyone NCTElaw 5 Use different writing process elements to Ratio communicate NSES F Develop understanding of personal and the debt payments-toBusiness Personal Finance explicitly and systematically Glencoe hourly wage of $7.50 and works an average by and the hours worked in excess of To 40 calculate hours. effectively. health; population growth; natural resources; environmental who uses credit is now entitled to one free income ratio you must first determine the total hours of overtime a week. how Add the amounts. quality; naturalof and8human-induced hazards; science and Calculate incorporates higher level thinking skills throughout the program. credit report each year. Many companies now monthly debt payments and divide by the total technology in local, national, and challenges. much Leigh isglobal paying her current employees in Ethics advertise in an effort to get consumers to take monthly income earned. NCTM Problem Solving Solve from problemslower-level that arise in overtime. Calculate how much it would•  cost Lesson plans are leveled to move (L1) activities like listing 13.for Loan Applications you and your of$7.50/ this. Visit the Webmathematics site forSuppose one and in other contexts. Starting Hint Determine the debt paymentsMathematics Leigh to hire an additional advantage employee at andorganizations identifying to higher-level (L3) like application. business partner havetodecided toactivities expand your or more of these that offer 11. Debt Payment-To-Income Ratio friend hour. Which would be Your the most cost-effective to-income ratio before the vacation is charged business. You need a loan to help finance the obtain credit you.Chapter EvaluateReview and to •  The reports Sectionfor and Assessments questions Sarah wantssolution: to buy anhiring ice cream She earns a newshop. employee oryour continuing the credit cardincorporate by first identifying the total newaequipment you will need. YourCheck friend has glencoe.com your answers. the Web site and write brief summary why $1,500 per month current job, which she to pay in herher current employees overtime? monthly debt payments. Dividerequire this figure by at all levels of cognition.ofHigher-Order Thinking (H.O. T.) problems offered to take care than of applying for the loan. people use these services rather the monthly income earned. and apply. will continue to do after purchasing the shop. might students to compare and contrast, analyze, predict, infer, evaluate, Hereport researches local financial institutions, and requesting their own directly from the Sarah pays $350 per month in credit card debt As you thinking questions to help credit agencies. then fills out a loan application request. critical NCTM Problem Solving Solve problems that arise in and has no other loans. She will need to borrow • Economics and You features incorporate review the application, you notice that he has and in other contexts. mathematics students analyze and evaluate economic information. $30,000 in order to make the purchase. Sarah used some “creative” bookkeeping to make has asked you to cosign the loan in order to • Real-world applications such as Document Detective and the Money your business look more profitable than it is. purchase the ice cream shop. Calculate Sarah’s glencoe.com Check your answers. Matters and Family Simulator and project-based HowPersonal do you feel about whatFinancial your partner has debt payment-to-income ratio before and after done? Do you feel that this is ethical? Projects Write learning opportunities in the Discovery and Unit Projects the purchase assuming a monthly payment of a one-page between youapply and your require studentsdialogue to synthesize and what they have learned $468 for the business loan. Should you cosign partner in which you share your feelings about to realistic scenarios. the loan? Explain why or why not. the misleading information. Calculate Debt Payment-to-Income Real-World Applications Ratio To calculate the debt payment-to-income 14. Cosigning a Loan Suppose that a close friend ratio you must first determine the total monthly has asked you to cosign a loan she needs to buy a debt payments and the total monthly income new car. She has spent a lot of money on repairs earned. Divide the monthly debt payments by to her car recently and feels that she should buy the total monthly income. Chapter 8 a new one rather than repair it again. Youand would Managing Payroll Inventory 239 Starting Hint Calculate the debt payment-tolike to help if you can. However, your friend is income ratio before the ice cream shop purchase currently unemployed, and you are concerned in order to understand Sarah’s current situation. that she will not be able to repay the loan. She Determine the legal implications of cosigning 0223_0239_C08_S01_894580.indd 239 9/27/10 4:38 PM assures you that once she has the car, she will be a loan and also identify all the risks you will able to get a new job and be able to handle the assume if you decide to cosign the loan. payments. What would you do? Write a letter to your friend explaining your decision. NCTM Number and Operations Compute fluently and make

496

1. Identify What are the six steps in managing a payroll system?

The Research Base for Glencoe Business and Personal Finance Assessment Research-Based Instructional Strategies

College and Career Readiness

reasonable estimates.

Chapter 15 Consumer Credit

Students must use critical thinking to respond to real-world application problems. UNIT 5 Banking and Credit

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lend y.

CLOSE

each fees and gh, it is

ey

Analyze and Apply Have students research different

types of credit cards , including bank cards, gas cards,

and retail store cards, and chart Base the interest rates, The Research for restrictions, and payment policies to see how they are Glencoe Business and Personal Finance similar and how they differ.

Research-Based Instructional Strategies The Costs and Methods of SECTION 2

Obtaining Credit Lesson Plans and Answer Keys

is the

Section Overview

Activating Prior Knowledge

In this section, students will learn how to choose a loan stomer Service Answers

CLOSE

or credit card and how to build and protect a good n help you evaluate your When students tap into previously learned information, they are able Analyze and Apply Have students research special f allpay services. credit rating. will to learn programs offered to students by a local bank. What new, related material more effectively. Deliberate activation ts of types of programs are available? How are of theyprior usefulknowledge to certain can boost reading comprehension, increase the efor is highly flammable and students? Whybrainstorm are they offered a Make It Personal Have students a list ofonly to students? rate at which new material is learned, and allow teachers to identify eloping nations currently factors that lenders might consider when deciding and counter misperceptions prior to instruction. Strategies to promote house gases. if someone is a good or poor credit risk. Write their Savings Plans and the SECTION 2 of thoseMethodsthis type of learning include (1) prompting students to recall prior responses on the board. Then ask: Do any Payment t believe Americans would is factors seem more important than the others? easy for people in the U.S. knowledge or previous experiences, and (2) providing opportunities ore discuss Overview character traits such Section advances. Why? Students should track for students to repeat learning activities in order to reinforce the as responsibility and as well as past credit Inintegrity, this section, students will learn to recognize the that is and current types income—all of which are part of the ayday loan is history when the acquisition of new information and skills (Hardiman, of savings plans offered by financial institutions. Cs of credit. check and thefive vendor 2001). Business and Personal Finance incorporates y, charging a fee.

FOCUS

TEACH FOCUS

ant as it Make It Personal Ask students if they are saving S Scaffoldedmoney Instruction their for after they graduate. Ask students: How will ment Answer Key king an L1 Identify Have students listuseful the actions theyentering can savings be to those the workforce a checking take to help build a and goodthose creditplanning rating. Open to continue their education? and savings account, apply for a store credit card, Students should recognize the benefits of having

deliberate opportunities to activate prior knowledge. In addition to the Before, During and After Reading strategies described above, the FOCUS portion of the four-part lesson plan also provides discussion prompts designed to elicit background knowledge prior to teaching.

take out a small loan from the payments savings for bank, futuremake emergencies and needs. cking accounts and udentsneeds: CDs on time. -term and answer. es, and budgeting. Teachers are prompted to elicit background Have students explain how to protect their L2 Explain the S Scaffolded Instruction knowledge prior to providing newcredit instruction. In addition to using wisely, you credit rating. , investment companies, ncome L1 Identify Have students list the types of savings should monitor your credit reports and immediately mortgage hat he companies plans available. Regular savings accounts, CDs, money report incorrect data. clude pawnshops, checkmarket accounts, and U.S. savings bonds. s, and rent-to-own centers. L2 Explain Have students explain the five factors to to the failure of many be considered when evaluating a savings plan. Rate of the FDIC. Business andofPersonal Finance uses effective instructional design principles, return is the percentage of increase in the value your

g

TEACH

Instructional Design that Supports Student Learning

H.O.T.

e students should realize e checking or savings n cash a check for free.

formation Answers will mpile information from s and show reasoning.

k A interest earned = ; Bank A fees = $0.00; d = $5.00 - $0.00 = ned = $500.00 × 2.75% = 75 × 12 months = $9.00; d = $13.75 - $9.00 = r choice.

savings; inflation should be compared to the your rate of both in textbook and in the interest; taxes may reduce the interest earned; liquidity 9/29/10 12:40 PM engagement, and is the ease with which you can convert your assets to retention. cash without loss in value; and restrictions or fees may affect when interest is earned or paid.

online resources, to promote comprehension,

L3 Apply Have students research savings accounts at two local banks and create a chart comparing the rate of return, tax considerations, liquidity, restrictions, Visuals, such as photographs, diagrams, charts, and illustrations, play and fees. Which account would they choose? Charts

Using Visuals in the Learning Process

an important role in the learning process. When combined with verbal increase students’ chances of learning, understanding, U Universal Access and remembering new material (Lewalter, 2003). Using visuals activates multiple parts of the brain, allowing for more opportunities for reaching Logical Learners Have students research how Check 21 has changed the way checks students are used andwith processed. different learning styles and helping all students deepen Have students write a brief report explaining how this conceptual understanding (Hardiman, 2001). Charts, graphs, flowcharts, law benefits financial institutions and customers. pictures, diagrams, and animations can help students conceptualize processes and systems, understand patterns, build mental representations, and visualize both narrative and conceptual content (Mayer, 1994).

will vary. Students should note all key information and instruction, visuals conduct a side-by-side comparison to make a choice.

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The Research Base for Glencoe Business and Personal Finance Research-Based Instructional Strategies Glencoe Business and Personal Finance is presented in a visually dynamic style that will engage and inspire students. Each chapter integrates eyecatching photographs, art, charts, and tables complemented by explanatory captions to activate both visual and verbal learning modes.

4 CHAPTER

Developing a Business Plan

Discovery Project

$

Preparing a Strategic Plan

See the Teacher Manual for the Chapter Lesson Plan.

A documented business plan is necessary for any business to grow and succeed.

Key Question Why is it important to have a documented, strategic plan for any business?

ASK

Project Goal You have decided to start a party planning business to help others organize and plan events. You realize the importance of having a written business plan for your venture. Create a strategic plan for your business that includes a mission statement, company description, and product and service plan. You may want to locate some samples online to learn more about how to develop an effective strategic plan and what information is useful or necessary. Your mission statement should include both the vision and the values of your business. Be sure that your company description is detailed, explaining your business’s goals, challenges, and potential customers. Your product and service plan should outline the specic products and services you will offer to your clients, and how you will deliver them.

Business Plan

sister and If you are a business owner, your ultimate goalQisMytoolderhave a I are running very successful business successful and profitable business. In order to realizeamaking thatchildren’s objective, birthday cakes. Since we areto already doing well, you must first determine the strategic plan you will follow keep the why do we need a business plan? business growing and moving in the right direction. A Just because your business is

Business Planning Software

Visual Literacy Independent business owners work hard to make their ventures successful. How can having a business plan help increase a business’s chances of being protable?

successful now does not mean

that it will remain successful. A strategic plan is similar to a game plan you might have for your By creating a business plan, you sports team. Simply saying “We want to win!” will not bring agoals victory. can de ne clear for things like sales and protability that The coach must devise a plan that outlines how the team will achieve will help you keep your business the big win. The team must work together to apply the strategies on track. Your businessthat plan Ask Yourself... you to assess how the coach developed. Similarly, a business ownercan orhelpoperator may • Willhas you work alone or hire employees? ination may affect your needed the decorations, food, and over time. say that• Will heyou orpurchase she wants business toother succeed, butbusiness without a sound items for your client’s events? business plan, probably will not happen. The first stepWriting in writing Activitya • What goalsitwill you set for your business? There are many other • What action will goals. be needed to achieve your goals? strategic plan is steps to set advantages to having a written

There is a variety of software available to help the budding entrepreneur write a business plan. These programs, such as Business Plan Pro, help you develop a professional business plan for any size or type of business. Many of these programs also provide sample business plans that you can review for ideas.

• Who will you market your services to?

business plan in addition to

• What values are important to incorporate into your Setting Goals Businesses set both short-term and long-term keeping your goals in focus. Write business? an analysis of some of the other goals. In the business world, short-term goals are goals you expect to advantages. reach within one or two years. Long-term goals are those that may take three more years to reach. Because long-term goals require Solveor Problems What might you do if you of hadtime, two clients request your a considerable amount they may be less specific than services for events on the same evening? short-term goals. You will probably revise them as you go. glencoe.com

Goals for businesses have the same guidelines as goals you might EvaluationDownload Download assessment rubric. Evaluate anan assessment rubric. establish for your personal finances: 90

UNIT 2 Business Ownership and Planning

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Chapter 4 Developing a Business Plan

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Effective Business Plan

Strategic Plan

Each of the three basic parts of a business plan help lead and direct the other parts. They must be developed together to be effective.

Financial Plan

Photo Caption Answer Responses may include that consumers going to the large, recognizable store would be introduced to the small business adjacent to it.

Budgeting

Accounting records and reports allow business owners and managers to accurately analyze their finances and plan for the future of the business.

Investments

Inventory

Accounting Essential Functions

Cash Flow

Business, Big and Small Both large and small business can be successful and protable, even side by side. How might this location actually help the small business to succeed?

Payroll

Try It! Draw a diagram like the one shown to document the steps for successfully preparing a marketing plan. Marketing Plan 2) Identify services offered

3) Research the current pricing and advertising

4) Identify potential customers

96 UNIT 2 Business Ownership and Planning

Visual Summaries at the end of each chapter use effective graphic organizers to summarize chapter content and help visual learners understand relationships between concepts. 0114_0117_C04_CR_894580.indd

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Marketing Plan

Accurate Accounting

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Whether you own a small convenience store in the city or run a multinational corporation such as Kodak, the goals can be similar. Common objectives might include increasing sales, adding new customers, or updating equipment.

Developing a Business Plan

1) Assess the competition

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high-interest photos combined with provocative questions.

Visual Summary

CHAPTER REVIEW

• They should be realistic. • They should be specific. • They should have a clear time frame. Visual Literacy features at the beginning of each engage students • They should helpchapter you decidehelp what type of action to take. with

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0093_0105_C04_S01_894580.indd Throughout the text,96 photos and graphic images are combined with critical thinking questions to help students conceptualize the chapter content.

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The Research Base for Glencoe Business and Personal Finance Research-Based Instructional Strategies Using Authentic Examples and Scenarios for Instruction Authentic instruction provides a framework for high-quality instruction that engages students in higher-order thinking and connects the classroom to the real world (Newmann, Secada, & Wehlage, 1995). This type of instruction is aimed at producing student achievement that is meaningful and significant beyond the classroom. The use of real-world examples and scenarios promotes critical thinking by engaging students in the decision-making process and has been shown to be highly effective in increasing motivation, engagement, and achievement (Fouts and Associates, 2001). Students gain experience as they analyze information, evaluate facts, and form conclusions within the context of authentic situations.

Business and Personal Finance addresses authentic instruction and achievement throughout the program. • Unit and Discovery Projects allow students to explore realistic scenarios and relate chapter content to their own interests, experiences, and goals. • Ask Standard & Poor’s Q&A features introduce students to a real-world, widely recognized resource for financial information and advice, and addresses questions that are relevant to a young adult audience

$

• Features like Document Detective, Careers that Count, Common Cents, and Reality Bytes help students understand how the concepts they are learning are applied in the real world.

See the Teacher Manual for the Chapter Lesson Plan.

Building and maintaining a good credit rating can lead to nancial security.

your

ge

ASK

ment. Your a local business after school and on the weekends, you you will e an hourly wage, a specific amount of money paid for the employee. Most temporary and part-time jobs pay an Credit Payments soline. My brother is going to college Q such Many full-time jobs, as entry-level jobs, also pay an of these

and has three credit cards with balances totaling $5,000. He ld be having trouble paying thegoods outlet e, Sean McCormickisworks at a sporting r gas card minimum monthly payments. ernoons for $7.25 per hour. Last week he worked d be a What should I tell him? his gross earnings Awere $145a plan ($7.25 ×down 20 = $145). He needs to pay s ofalready each worked 20 ad hours thehim end of the day on these debts.by Have contact hly fees, the credit card companies an’s gross earnings vary from week to week because he affiliated and tell them that he wants amounts of time each week. to pay the debt and maintain good credit. They maycards accept or a time h cardhave or hourly employees may use time of interest only for a ack of each day. Theypayments use this information to determine few months while he nds ways each employee worked duringhisaincome pay period. to increase or cut At the end the employer checksspending. the information on time cards or

accuracy. If the information is incorrect, paychecks will Writing Activity ve cards? Th at is a problem for both employees and employers. Write a one-page

eed, what

description of specic actions the person mentioned t cards? above might take to help increase his income and cut hisemployees spending. ate and federal laws, hourly-wage generally Your descriptions should include when they work overtime, or more than 40 hours in a the actions he might take, as well overtime rate, theasamount paidof above the normal rate, an estimation the outcome, or how muchhourly money hewage. could gain mes the employee’s regular For example, sing or save.is $7.40. If she works more than ’s regular hourly wage

Pay

iven week, her overtime rate for the extra hours is × 1.5 = $11.10).

at Kelly worked more than 40 hours last week. To oss earnings, multiply her regular hourly wage by you multiply the overtime rate by the number of Chapter 15 . By adding the results of these calculations, you can Consumer Credit 451 ross earnings for the week.

Managing Cash Flow Having enough cash on hand at the right time is key when it comes to managing a growing company. The lag between the time you have to pay your suppliers and employees and the time you collect from your customers is often a problem. The solution is cash flow management. Cash flow management means delaying outlays of cash as long as possible while encouraging anyone who owes you money to pay it as quickly as possible. But how can you encourage people who owe you money to pay on time?

is an amount of money paid to an employee based on the employee’s sales. The more the employee sells, the is paid. Paying commissions to sales employees is a

When you turn 21, you may start receiving applications for credit cards. Be a smart consumer and compare interest rates, annual fees, and any other fees. Decide which credit card best suits your needs and apply for that one. Make sure to shred any other applications and do not simply throw them into the trash. Concept Application Why should you get the best (or lowest) interest rate for a credit card?

period of time and total interest it will take to pay off the card balance if only the minimum monthly payments are made. In

µ  Online available addition, yourresources statement must include the amountthrough needed to pay each month to pay off the card in three years. McGraw-Hill CONNECT™ include • Ensures adequate safeguards for young people. The bill limits prescreened offers to youngFinancial consumers and requires that an Your Personal Planner, applicant under the age of 21 obtain a cosigner for the credit card. Money Matters Personal and Family Truth in Lending and Consumer Leasing Acts If a creditor fails to disclose information as required under the Truth in Lending Act Financial Management Simulation, or the Consumer Leasing Act, or gives inaccurate information, you can sue for any money& lossPoor’s you suffer.Extension You can also sue aActivities, creditor that Standard does not follow rules regarding credit cards. In addition, the Truth and Act Financial Planner Software Activities. in Lending and the Consumer Leasing Act permit class-action lawsuits. A class-action suit is a legal action on behalf of all of the people who have suffered the same injustice.

Equal Credit Opportunity Act (ECOA) If you think that you can prove that a creditor has discriminated against you for any reason prohibited by the ECOA, you may sue for actual damages plus Common Cents features help punitive damages—a payment used to punish the creditor who has students apply what they haveviolated the law—up to $10,000. Common Cents Answer The lowest interest rate means that your repayment amount will be lower.

learned to real-life scenarios. Reality Bytes demonstrates how technology is used to help manage and plan finances.

Ask & Poor’s expert mployees might workStandard extra hours during holidayprovides sales 9/27/10 for 10:27 AM eriods. They might also work overtime to cover advice about real-world situation of es who are sickinterest or on vacation. Remember, controlling to young adults. an important aspect of good financial management.

on

One Is Enough

µ Chapter and section assessments include • Requires fairness in the timing of card payments. Payments that are Real-World Application problems that greater than the minimum amount due must be applied first to the balance with a higher interest rate. require students to apply what they • Provides enhanced disclosures of card terms and conditions. Thehave credit card issuerto must providea on realistic your monthly problem. statement the learned solve

Fair Credit Opportunity Act A creditor that fails to follow the rules that apply to correcting any billing errors will automatically give up the amount owed on the item in question and any finance charges on it, up to a combined total of $50. This is true even if the bill was correct. You may also sue for actual damages plus twice the amount of any finance charges. Fair Credit Reporting Act You may sue any credit bureau or creditor that violates the rules regarding access to your credit records or that fails to correct errors in your credit file. You are entitled to actual damages plus any punitive damages the court allows if the violation is proven to have been intentional. Consumer Credit Reporting Reform Act The Consumer Credit Reporting Reform Act of 1997 places the burden of proof for accurate credit information on the credit bureau. Under this law, the creditor must prove that disputed information is accurate. If a creditor or the

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The Research Base for Glencoe Business and Personal Finance Research-Based Instructional Strategies Learning and Practicing Essential Skills Practicing skills has long been regarded as an effective strategy to improve memory and comprehension (Pashler, Rohrer, Cepeda, & Carpenter, 2007). By practicing essential skills until they achieve mastery and automaticity, students increase their conceptual understanding and their ability to apply skills to novel situations. In addition, providing students with opportunities to practice essential skills gives students the confidence they need to participate in various forms of assessment. Research demonstrates that mastering a skill requires focused, repeated practice over time (Marzano 2010; Marzano, Pickering, & Pollock, 2001). Students will gain most from the practice sessions when worked examples are included alongside non-worked practice problems, and when they have opportunities to apply skills to several variations on the original problem (Institute of Education Sciences, 2007). Glencoe Business and Personal Finance provides numerous opportunities for students to learn and practice essential skills. In the Teach portion of the four-part lesson plan, teachers will explicitly demonstrate technical and problem-solving skills to students before giving them a chance to try themselves. As students read, they will have opportunities at the close of each section and chapter to practice these skills and apply what they have learned to new scenarios.

Business and Personal Finance also includes additional hands-on practice opportunities through special features like Discovery Projects, Go Figure, and Document Detective. Go Figure provides both worked and non-worked example problems.

Document Detective See the Teacher Manual for answers.

A Personal Financial Statement

When you apply for a loan, you must present an accurate personal financial statement so that banks and lenders can review your current financial status. They want to be sure that you have resources to pay off a loan. This form lists the following information: • Name and contact information

• Source of income

• Assets and income

• Noteholder contact information

• Liabilities and loans

OMB APPROVAL NO. 3245-0188 EXPIRATION DATE: 3/31/2008

GO FIGURE

PERSONAL FINANCIAL STATEMENT

April

20--

As of , U.S. SMALL BUSINESS ADMINISTRATION Complete this form for: (1) each proprietor, or (2) each limited partner who owns 20% or more interest and each general partner, or (3) each stockholder owning 20% or more of voting stock, or (4) any person or entity providing a guaranty on the loan. Name

Sarah Dean

Residence Address

Business Phone (

10 West Cleveland Rd. Twinsburg, OH 44218

303 ) 555-8941 303 ) 555-1527

Residence Phone (

City, State, & Zip Code

Business Name of Applicant/Borrower

Interiors by Design

ASSETS

Stocks and Bonds (Describe in Section 3)

$

Real Estate (Describe in Section 4)

$

75,000

Automobile-Present Value Other Personal Property (Describe in Section 5)

$

7,000 –

Total Section 1.

$ $ $ $ $

$

Other Assets (Describe in Section 5)

$



$

142,000

$

55,000

Accounts Payable Notes Payable to Banks and Others (Describe in Section 2) Installment Account (Auto) Mo. Payments $ Installment Account (Other) Mo. Payments $ Loan on Life Insurance Mortgages on Real Estate (Describe in Section 4) Unpaid Taxes (Describe in Section 6) Other Liabilities (Describe in Section 7) Total Liabilities Net Worth

(Omit Cents) $ $

500

$ $

– – 100,000

$

8,000

$ $ $ $

$ $ $

– 113,000 29,000 142,000

Your Turn

Simple interest, compounded annually, is a percentage of the amount borrowed. The amount borrowed is called principal. Compound interest may be computed daily, monthly, or yearly.

You just bought a used car for $3,500 from your aunt. She agreed to let you make payments for 3 years with simple interest at 6 percent. How much interest will you pay?

Formula Principal × Interest Rate × Amount of Time = Simple Interest

$

As Endorser or Co-Maker Legal Claims & Judgments Provision for Federal Income Tax Other Special Debt

Simple Interest on a Loan

EXAMPLE Janelle’s cousin agreed to lend her $1,000 to purchase a used laptop computer. She has agreed to charge only 5 percent simple interest, and Janelle has agreed to repay the loan at the end of one year. How much interest will she pay for the year? Use the formula below to help compute Janelle’s loan interest.

2,500

$

$

Total

2,500 –

Contingent Liabilities

Source of Income

Salary Net Investment Income Real Estate Income Other Income (Describe below)*

LIABILITIES

(Omit Cents)

15,000 3,000 35,000 – 3,000 4,000

Cash on hand & in Banks Savings Accounts IRA or Other Retirement Account Accounts & Notes Receivable Life Insurance-Cash Surrender Value Only (Complete Section 8)

Mathematics

$

Solution $1,000 × .05 or 5% × 1 = $50 interest

$ $

Description of Other Income in Section 1.

Go Figure Answer $630 ($3,500 × .06 × 3 = $630)

Key Points The Small Business Administration (SBA) developed a personal financialLender statementRisk Versus Interest Rate You may prefer financing that for loan applicants to complete when applying for an SBA loan. Similar to a personal requires balance a minimum down payment, a portion, or part, of the total sheet, the form details a person’s assets, liabilities, and net worth. cost of an item that is required at the time of purchase. Another

FIND

the Solutions

Review Key Concepts 1. What is the purpose of a personal financial statement? 2. What is Sarah’s net worth? 3. How was her net worth calculated?

4. 5.

Students have even more opportunities to practice their new skills through the online resources in McGraw-Hill CONNECT™. McGraw-Hill CONNECT™ allows students to complete practice assignments online and get immediate feedback as they are mastering critical concepts.

Go Figure gives students explicit worked example problems and the opportunity to practice similar problems on their own.

option is to take out a loan that features low, fixed payments with a large, final payment. Keep in mind that the lender’s goal is to minimize risk, or make sure that you pay back the loan in full. Both of these financing options can increase your cost of borrowing because What is Sarah’s salary? they create more risk for the lender. Consumers who want these types Why would the SBA want to know the names of features have to accept the trade-off of a more expensive loan. and addresses of noteholders?

To reduce lender risk and increase your chances of getting a loan at a lower interest rate, consider the following options:



Variable Interest 125 Rate A variable interest rate is based on changing rates in the banking system. This means that the interest rate you pay on your loan will vary from time to time. If you have a loan with a variable interest rate and overall interest rates rise, the 9/27/10 2:21 PM rate on your loan is adjusted accordingly. Therefore, the lender may offer you a lower beginning interest rate than you would have with a fixed-rate loan. A Secured Loan You will probably receive a lower interest rate on your loan if you pledge collateral. Collateral is a form of security to help guarantee that the creditor will be repaid. It indicates that if you lost your source of income, you could repay your loan with the collateral, such as your savings, or by selling some of your property. If you do not pay back the loan, the lender may have the legal right to take whatever you pledged, or promised, as collateral. Up-Front Cash Many lenders believe that you have a higher stake in repaying a loan if you make a large down payment. Thus, you may have a better chance of getting the other loan features you want.

Chapter 5 Developing a Financial Plan

Document Detective gives students the opportunity to practice reading and analyzing a variety of real• world financial statements.

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The Research Base for Glencoe Business and Personal Finance Research-Based Instructional Strategies Incorporating Study Skills to Support Student Learning While there are no shortcuts to learning, study strategies can help students understand, organize, remember, and apply new information presented in textbooks (Harvey & Chickie-Wolfe, 2007). With regard to textbook learning, study strategies include concept mapping, highlighting, outlining, note taking, summarizing, and underlining (Peverly, Brobst, Graham, & Shaw, 2003). CHAPTER 8

Reading Guide

Before You Read

Reading Guide

Academic

The Essential Question Why is it important for employers to establish and maintain efficient payroll and inventory management systems?

Main Idea Effective payroll management and inventory maintenance enable businesses to run more profitably, manage cash flow, and consistently meet customer needs.

Content Vocabulary • payroll • gross earnings • salary • hourly wage • overtime rate • commission • deductions • Federal Insurance Contributions Act (FICA) • Social Security tax • Medicare tax • total gross earnings • perpetual inventory system

Throughout Glencoe Business and Personal Finance, students receive tips and strategies to help them become better students. CHAPTER 9

s Standard

• point-of-sale terminals • periodic inventory system • specific identification method • first-in, first-out method (FIFO) • last-in, first-out method (LIFO)

Academic Vocabulary You will see these words in your reading and on your tests. • withheld • allowance • stock • staple

Mathematics NCTM Connections Communicate their mathematical thinking coherently and clearly to peers, teachers, and others.

• Each chapter begins with a Reading Guide that introduces an Essential Before Read that students will Question, the Main Idea for the chapter, the You standards The Essential Question What does pricing and costing have to do cover, and key academic and content vocabulary.

English Language Arts NCTE 5 Use different writing process elements to communicate effectively. NCTE 7 Conduct research and gather, evaluate, and synthesize data to communicate discoveries. Science NSES E Students should develop abilities of technological design, understandings about science and technology.

with a business’s growth and expansion?

• Chapters are organized into easy-to-digest sections with clearly outlined Main Idea Learning Objectives and Section Assessments. Effective pricing and costing are essential to every business’s

NCTM National Council of Teachers of Mathematics NCTE National Council of Teachers of English NCSS National Council for the Social Studies NSES National Science Education Standards

ability to make a profit and grow.

• As students read each chapter, Before You Read, As You Read, and • target profit Content Vocabulary After You Read features help students connect to what they read. Reading • target sales • pricing • margin of safety • product cost-plus pricing Checks allow students to check•their understanding before they move on. markup

Graphic Organizer Before you read this chapter, create an organizer like the one shown. As you read, use the organizer to identify and describe the four common methods by which employees are paid.

Common Methods of Employee Payment

See the Teacher Manual for answers.

glencoe.com

222

Print this graphic organizer.

Common Core Reading Read and comprehend complex literary and informational texts independently and prociently. Speaking and Listening Present information, ndings, and supporting evidence such that listeners can follow the line of reasoning and the organization, development, and style are appropriate to task, purpose, and audience. Speaking and Listening Adapt speech to a variety of contexts and communicative tasks, demonstrating command of formal English when indicated or appropriate.

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Academic Vocabulary

Youreview will see these in your • The Chapter Review includes a Visual Summary and a of words important reading and on your tests. chapter concepts and vocabulary before completing review exercises. • yield

UNIT 3 Business Finance Basics

Reading Guides at the beginning of each chapter preview the key vocabulary and main ideas for students before they read.

• manufacturing business • product costing • cost behavior • variable costs • direct materials • direct labor • fixed costs • contribution margin • break-even point • market penetration

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• anticipate

• correspond • The Reading Skills Handbook, located at the beginning of the Student • accommodate Edition, provides strategies to help students understand, synthesize, and remember what they have read.

• Graphic Organizers and note-taking activities in the Student Workbook enable students to organize Graphic Organizer Fixed Costs Variable Costs and remember what they Before you read this chapter, create a graphic organizer like have learned in a chapter. • Online Study Tools are available through McGraw-Hill CONNECT™ including chapter summaries, practice problems, and extension activities.

the one shown. As you read, take notes about the types of costs that are fixed, and the types of costs that are variable.

See the Teacher Manual for answers. Graphic organizers can help boost comprehension and engagement glencoe.com while Printstudents this organizer.read.

258

Standa

Academ

Mathematics NCTM Problem problems that and in other c NCTM Algebra models to repr quantitative re

English Langu NCTE 4 Use wr communicate NCTE 12 Use l accomplish in

Social Studies NCSS VII G Com systems accor rules and proc demand, supp government, b unions, saving and capital.

NCTM Nationa Mathematics

NCTE National English

NCSS National

Studies NSES National Standards

Common Core Reading Read complex litera texts independ Speaking and information, n evidence such follow the line organization, d are appropriate and audience. Speaking and speech to a va communicativ command of fo indicated or ap

UNIT 3 Business Finance Basics

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The Research Base for Glencoe Business and Personal Finance Research-Based Instructional Strategies

Bibliography Achieve, Inc. (2005). Rising to the challenge: Are high school graduates prepared for college and work? Washington, DC: Achieve, Inc. ACT. (2005). Crisis at the core: Preparing all students for college and work. Iowa City: Author. Retrieved November 2010, from http://www.act.org/ research/policymakers/reports/crisis.html ACT. (2006). Reading between the lines: What the ACT reveals about college readiness in reading. Iowa City: ACT. Retrieved November, 2010, from http://www.act.org/research/policymakers/reports/reading.html American Diploma Project. (2004). Ready or not: Creating a high school diploma that counts. Washington, DC: Achieve, Inc. Anderson, L. W., & Krathwohl, D. R., (Eds.) (2001) A taxonomy for learning, teaching, and assessing: A revision of Bloom’s taxonomy of educational objectives. Allyn & Bacon. Boston, MA: Pearson Education Group Baumann, J & Graves, M. (2010) What is Academic Vocabulary? Journal of Adolescent and Adult Literacy. 54(1) September 2010. Biancarosa, C., & Snow, C. E. (2006). Reading Next—A vision for action and research in middle and high school literacy: A report to Carnegie Corporation of New York (2nd ed.). Washington, DC: Alliance for Excellent Education. Black, P. & Wiliam, D (1998). Assessment and Classroom Learning. Assessment in Education 5(1) pp. 7-71. Bloom B. S. (1956). Taxonomy of Educational Objectives, Handbook I: The Cognitive Domain. New York: David McKay Co Inc. Buck Institute for Education. Project-based learning. Accessed December 2010 from http://www.bie.org/index.php/site/PBL/pbl_handbook_ introduction/#history Carnevale, A.P., Smith, N. & Strohl, J. (2010) Help Wanted: Projections of Jobs and Education Requirements Through 2018. Washington, DC: Georgetown University Center on Education and the Workforce Coxhead, A. (2000). A new academic word list. TESOL Quarterly, 34(2), 213–238. Fisher, D., & Frey, N. (2008). Word wise and content rich: Five essential steps to teaching academic vocabulary. Portsmouth, NH: Heinemann. Fouts and Associates. (2001). The Bill and Melinda Gates Foundation’s model school initiative year 1 evaluation. Retrieved January 2011 from http://www.gatesfoundation.org/nr/Downloads/ed/researchevaluation/SchoolsFinalReport2001.pdf Geier, R., Blumenfeld, P.C., Marx, R.W., Krajcik, J.S., Fishman, B., Soloway, E., & Clay-Chambers, J. (2008). Standardized test outcomes for students engaged in inquiry-based science curricula in the context of urban reform. Journal of Research in Science Teaching, 45(8), 922-939. Graham, S. & K. R. Harris. 2000. The role of self-regulation and transcription skills in writing and writing development. Educational Psychologist 35, no. 1: 3–12. Graham, S., & Perin, D. (2007). Writing Next: Effective strategies to improve writing of adolescents in middle and high schools – A report to Carnegie Corporation of New York. Washington, DC: Alliance for Excellent Education. Harvey, V. S., & Chickie-Wolfe, L. A. (2007). Fostering independent learning: Practical strategies to promote student success. New York: Guilford. Hardiman, M. (2001). Connecting brain research with dimensions of learning. Educational Leadership 59(3), 52–55. Hiebert, E.H., & Lubliner, S. (2008). The nature, learning, and instruction of general academic vocabulary. In A.E. Farstrup & S.J. Samuels (Eds.), What research has to say about vocabulary instruction (pp. 106–129). Newark, DE: International Reading Association. Hunter, M. (1994) Enhancing teaching. New York, NY: Macmillan Institute of Education Sciences. (2007). Organizing instruction and study to improve student learning. Washington, DC: National Center for Education Research. Lewalter, D. (2003). Cognitive strategies for learning from static and dynamic visuals. Learning & Instruction, 13(2), 177-189 Marzano, R. J. (2010) When practice makes perfect . . .sense. Educational Leadership, November 2010; p. 81-83 Marzano, R., Pickering, D., & Pollock, J. 2001. Classroom instruction that works: Research-based strategies for increasing student achievement. Alexandria, VA: Association for Supervision and Curriculum Development. Marzano, R.J., & Pickering, D.J. (2005). Building academic vocabulary: Teacher’s manual. Alexandria, VA: Association for Supervision and Curriculum Development. Mergendoller, J.R., Maxwell, N., & Bellisimo, Y. (2007). The effectiveness of problem based instruction: A comparative study of instructional methods and student characteristics. Interdisciplinary Journal of Problem-based Learning, 1(2), 49-69. Mayer, R. (1994). Visual aids to knowledge construction: Building mental representations from pictures and words. From Comprehension of Graphics. Ed. Schnotz, W. and Kuhlhavy, R.W. Amsterdam: Elsevier Science Nastu, J. (2009). Project-based learning engages students, garners results. eSchool News Special Report, January 2009. Retrieved December 2010 from http://www.eschoolnews.com/media/files/eSN-Project-Based%20Learning0109.pdf

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The Research Base for Glencoe Business and Personal Finance Research-Based Instructional Strategies National Commission on Writing. (2005) Writing: A powerful message from state government. Retrieved November, 2010 from http://www.writingcommission.org/report/html Newmann, F.M., Secada, W.G., & Wehlage, G.G. (1995). A guide to authentic instruction and assessment: vision, standards and scoring. Madison, WI: Wisconsin Center for Education Research. Pashler, H., Rohrer, D., Cepeda, N.J., & Carpenter, S. (2007). Enhancing learning and retarding forgetting: Choices and consequences. Psychonomic Bulletin & Review, 14, 187-193. Peverly, S. T., Brobst, K.E., Graham, M. & Shaw, R. (2003). College adults are not good at self-regulation, note taking, and test taking. Journal of Educational Psychology 95, 335-346. Pressley, M. (2002). Reading instruction that works: The case for balanced teaching. New York: Guilford Press. Rohrer, D., & Taylor, K. (2006). The effects of overlearning and distributed practice on the retention of mathematics knowledge. Applied Cognitive Psychology, 20, 1209-1224. Strobel, J. & van Barneveld, A. (2008). When is PBL More Effective? A Meta-synthesis of Meta-analyses Comparing PBL to Conventional Classrooms. Interdisciplinary Journal of Problem-based Learning, 3(1), 44-58. Retrieved November 2010 from http://docs.lib.purdue.edu/ijpbl/vol3/iss1/4) Walker, A. & Leary, H. (2008) A Problem Based Learning Meta Analysis: Differences Across Problem Types, Implementation Types, Disciplines, and Assessment Levels. Interdisciplinary Journal of Problem-based Learning, 3(1), 12-43. (Available at: http://docs.lib.purdue.edu/ijpbl/vol3/iss1/3)

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The Research Base for Glencoe Business and Personal Finance Using Technology to Support Student Learning

The Research Base for Glencoe Business and Personal Finance Table of Contents Using Technology to Support Student Learning

Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page D-3



Why Use Technology? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page D-4



How Technology Impacts Student Learning . . . . . . . . . . . Page D-5



Standards for Technology Literacy . . . . . . . . . . . . . . . . . . . . Page D-7



Effective Use of Classroom Technology with Business and Personal Finance . . . . . . . . . . . . . . . . . . Page D-9



Technology Components in Business and Personal Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page D-10

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Introduction Technology impacts nearly every aspect of how we work, interact, and live. Today’s generation of high school students have grown up in a world where access to computer, Internet, and communications technologies has become a fundamental necessity in order to participate in the economic and social environment of the 21st century. As these students move into the world of work and adult life, understanding how to effectively use and manage these technologies will greatly impact their quality of life. • In the work world, our economy is increasingly based on “knowledge work” that requires Internet research skills, proficiency with computer/ Internet-enabled communication technologies, and the ability to create and manipulate information using word processing programs, spreadsheet programs, databases, and design software. The job search process is also largely technology-enabled, leaving students who are not comfortable with technology at a distinct disadvantage.

Technology is both an important educational tool and a critical component of workforce readiness.

• As consumers, students will need to be able to use technology appropriately to research consumer purchasing decisions, find and order products, and connect with service providers. Consumers who are able to navigate information on the Web, sort and analyze that information appropriately, and use technology tools to help them make smart consumer decisions will be better able to manage their resources and find solutions that fit their lifestyles and budgets. • As social beings, today’s students are already navigating a dizzying array of communications and social media technologies, from sending simple messages via text or Twitter to uploading pictures from their cell phones onto their Facebook pages. Technology has become a vital part of how we make and maintain social connections in the modern world. Because students will be expected to use technology in their work, consumer, and social lives, it may seem obvious that technology should be used in school, as well. But research on the impact of technology on student learning has been mixed, with most studies showing only a “small, positive effect” on student learning “(Waxman, Connell, & Gray, 2002). But more recent studies have asked a different question – not whether technology, as a general term, impacts student learning, but how technology can be used effectively in the classroom to improve student achievement “(Lemke, Coughlin, & Reifsneider, 2009). These studies have begun to identify the specific technology applications, classroom settings, and usage models that positively impact student achievement, and point to some “best practices” that we can apply. In this section of The Research Base for Business and Personal Finance, we’ll explore what research tells us about the impact of technology on learning, and how Glencoe Business and Personal Finance leverages appropriate technology to maximize student learning and support the efforts of today’s teachers.

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The Research Base for Glencoe Business and Personal Finance Using Technology to Support Student Learning

Why Use Technology?

“While overall younger workers are ‘tech junkies,’ they lack the talent qualifications or even interest in careers centered on designing, making, repairing or applying and managing many 21st-century technologies” (Gordon, 2009).

There are many compelling reasons to integrate technology resources into teaching and learning: Technology engages today’s “Digital Natives”. Today’s students are “digital natives” (Prensky, 2001) who have spent thousands of hours playing video games, interacting with others online, accessing media, and participating in a rich and vibrant technology-assisted culture before they enter high school. Prensky and other researches believe that this media engagement has fundamentally changed the way today’s students think and learn. Effective use of classroom technology can keep students engaged and motivated in ways that traditional media cannot. The work world demands technology skills. Digital natives they may be, but employers tell us that we are overestimating students’ comfort and proficiency with basic workforce technology like spreadsheets, word processing programs, databases, and presentation software (ACTE et al, 2010). Career and technology education programs must explicitly teach these work-related technology skills. Technology education is especially critical to help level the playing field for disadvantaged students, who may have less access to technology at home. Technology can enable higher-order thinking. By automating rote tasks, technology can help students focus on higher-order skills. For example, using word processing software allows students to focus on just the pieces that need revision in a paper, spending more time in critical analysis and less time in rote copying (Coppola, 2004). Other studies have shown that once students have mastered basic calculation skills, using calculators and spreadsheet tools for these rote calculations frees up time – and brainpower – to concentrate on learning more complex mathematical concepts (Crowe and Xin, 2010). Technology helps make teachers more effective. Learning information systems, assessment software, and communication tools are freeing teachers from some of the most time consuming aspects of tracking, reporting, and lesson planning (Gordon, 2000). Technology tools can help teachers gather, track, and analyze student performance data to create individualized learning plans. Other teachers are using presentation software and multimedia resources to deliver dynamic, interactive lessons that appeal to multiple learning styles. These new technologies free up time previously spent on manual reporting and lesson creation and allow teachers to individualize instruction like never before.

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The Research Base for Glencoe Business and Personal Finance Using Technology to Support Student Learning

How Technology Impacts Student Learning Research supports the use of technology to maximize student learning. Recent studies have begun to shift the emphasis from “technology” in general to focus on how specific usage models and technology tools impact the ways students learn, retain, and understand information, and how technology shifts the way students interact with their teachers and with each other (Lemke et al., 2009; Means and Haertel, 2003). With these more nuanced measures, we can find more precise correlations between how technology is used and the impact it has on specific student outcomes and behaviors. A few positive examples: Project-Based Learning: Technology has been found to play an important role in project-based learning. A five-year study of students involved in the Challenge 2000 Multimedia Project showed that these students outperformed peers not using technology in areas including communication, teamwork, and problem solving (Penuel, Korbak, Yarnall, & Pacpaco, 2001). More recent studies have also found that technology can be a critical support for projectbased learning (Eskrootchi & Oskrochi, 2010; Hernandez-Ramos & De La Paz, 2009). Technology can make research and critical inquiry more efficient and effective, and allow students to demonstrate their learning in more creative and engaging ways. Basic Knowledge and Skills: Studies show that computers can have a positive impact on learning basic knowledge and skills. Highest gains are seen when students use computer programs that give immediate feedback and response to students as they work, and respond to student learning needs (Ringstaff and Kelley, 2002). These additional opportunities for practice with immediate feedback can help students master basic skills and allow for more individualized instruction. Higher-Order Thinking Skills: Research on computer use indicates that application software, such as word processing and design software, presentation software, and spreadsheets and graphing tools, can also support higher-order thinking skills (Ringstaff and Kelley, 2002). Becker points to uses of technology that enable “preparing presentations to a critical audience, integrating different perspectives into a report or multimedia presentation, or examine contrary assumptions using a spreadsheet model.” (Becker, 2000, p. 10) Technology facilitates this kind of learning by making rote tasks like calculation and document preparation much more efficient, allowing students to focus on critical thinking applications and higher order skills.

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The Research Base for Glencoe Business and Personal Finance Using Technology to Support Student Learning Constructivist Teaching Methods: Several studies have pointed to a positive impact of technology use on teaching methods, allowing teachers to become guides and facilitators while students take more responsibility for learning (Coppola, 2004; Becker, 2000). This constructivist approach to teaching and learning has been shown in multiple studies to have positive impacts on learning outcomes, including deeper understanding of subject material, better retention, and higher levels of engagement. Technology facilitates constructivist teaching methods by giving students access to learning and practice materials for independent study, and freeing teachers from rote reporting, tracking, and lesson preparation activities.

Standards for Technology Literacy ISTE’s National Educational Technology Standards Students should be able to use technology to: • Create and innovate • Communicate and collaborate • Conduct research and use information • Think critically, solve problems, and make decisions From www.iste.org

The importance of technology literacy has been recognized by the federal government as well as several national organizations.

ISTE Standards The International Society for Technology in Education (ISTE) is a nonprofit organization supporting the use of information technology to aid in learning and teaching for students and teachers. ISTE has implemented the National Educational Technology Standards (NETS) for Students in order to provide accountability for K-12 students in the mastery of fundamental technology skills. NETS require students to demonstrate fluency in technological areas such as operations and concepts, “digital citizenship”, productivity tools, communication tools, research tools, and problem-solving and decisionmaking tools. More recently, they have also created NETS for teachers that identify best practices for leveraging technology in the classroom. The complete NETS for both students and teachers can be downloaded from their website at www.iste.org.

Partnership for 21st Century Skills The Partnership for 21st Century Skills (p21.org) identifies Information, Media, and Technology Skills as one of the critical components of their Framework for 21st Century Learning (Partnership for 21st Century Skills, 2009). They have identified three broad skill areas students should master. Information Literacy includes the ability to find, evaluate, and manage the vast amounts of information they need to be able to navigate from the web and other sources. Media Literacy includes both analyzing and interpreting media messages from a variety of sources, and creating and distributing their own ideas via a variety of media types. Information, Communications, and Technology (ICT) literacy involves the ability to select, operate, and effectively use a variety of hardware and software technologies to connect and communicate in the 21st Century. P21 also identifies ethical issues surrounding technology use. The complete Framework can be downloaded from www.p21.org.

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The Research Base for Glencoe Business and Personal Finance Using Technology to Support Student Learning No Child Left Behind The No Child Left Behind Act of 2001 (NCLB) also compels accountability by requiring states, school districts, schools, and teachers to demonstrate results with standardized testing in core subject areas such as reading, math, and science. In addition to these requirements, NCLB supports the use of classroom technology. In fact, NCLB requires that all students be technologically literate by the time they complete the eighth grade. Because of this, schools must provide direct and indirect technology instruction, and students must demonstrate proficient technological skills.

Perkins Act In addition to the NCLB Act, the U.S. Department of Education has issued the Carl D. Perkins Career and Technical Education Improvement Act, which mandates access to computers and technology in the classroom. The Perkins Act recognizes that the United States must compete in a global economy and students must be prepared with technological skills in order to succeed in today’s workforce.

Effective Use of Classroom Technology with Business and Personal Finance Glencoe Business and Personal Finance incorporates technology components that support effective teaching and learning. Researchers have identified several areas where technology can positively impact student achievement: Homework and Practice: Using technology for additional homework and targeted practice has a positive effect on student learning, especially when that technology provides immediate feedback or reinforcement “(Pitler, Hubbell, Kuhn, & Malenoski, 2007). Glencoe Business and Personal Finance includes ample opportunity for additional practice through McGraw-Hill CONNECT™, an online learning management system that allows students to access the entire text as well as interactive practice sets and activities to reinforce key concepts. Students get immediate feedback on practice sets and section review questions so they can check their understanding before moving on.

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The Research Base for Glencoe Business and Personal Finance Using Technology to Support Student Learning

Simulations can help bring abstract concepts to life.

Simulations and Real-World Applications: Technology is especially effective in career and technology education programs when it is used to simulate the applications and activities students will need to be familiar with on the job. In Business and Personal Finance, students will use real-world technology tools – including Internet research, spreadsheet and word processing software, and presentation tools – to develop budgets and financial plans, research and analyze business decisions, and prepare and deliver formal presentations. Discovery Projects and Unit Projects are designed to simulate the ways they will need to use technology on the job. And the Virtual Business® – Personal Finance simulation software from Knowledge Matters allows students to practice financial decision making and explore topics such as fixing your credit, building a budget, finding an apartment, and making investment decisions in a fun, singleor multi-player game environment. Visualization and Comprehension: Technology, particularly multimedia presentation tools, helps students with a variety of learning styles achieve a deeper understanding of course material than text alone (Lemke et al., 2009; Coppola, 2004). Glencoe Business and Personal Finance gives teachers a rich source of multimedia resources to reach visual and auditory learners, including unit opener videos through McGraw-Hill CONNECT™ and dynamic graphics and PowerPoint presentations through Presentation Plus. Assessment and Individualized Instruction: Research shows that timely feedback and recognition and individualized instruction can greatly impact student learning and motivation (Pitler et al., 2007). Online and softwarebased assessment tools in Glencoe Business and Personal Finance allow teachers to monitor student progress and respond to individual learning needs, while automating most of the time-consuming grading, tracking, and reporting functions.

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The Research Base for Glencoe Business and Personal Finance Using Technology to Support Student Learning

Technology Components in Business and Personal Finance Glencoe Business and Personal Finance includes a full suite of software and internet-based tools to help teachers maximize student learning and minimize preparation and reporting time.

McGraw-Hill CONNECT™ McGraw-Hill CONNECT™, accessible from home or school to students and teachers through glencoe.com, offers a wide variety of online resources and activities to complement Business and Personal Finance. For teachers, McGraw-Hill CONNECT™ provides: • Textbook resources, including national standards correlations, inclusion strategies, and information for teachers using activities available through McGraw-Hill CONNECT™ • Presentation materials including PowerPoint slides and images to bring lessons to life • Technology projects that help students integrate the use of technology for classroom assignments • Professional development videos and articles that address current issues and trends in business finance education • Links to national organizations with helpful business and finance resources • Additional resources, such as links to the latest business finance conferences and grants, video clips of master teachers presenting math concepts, and a link to the Glencoe E-Zine newsletter

Teachers and students will find valuable resources for planning, study, practice, assessment and enrichment through McGraw-Hill CONNECT.

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The Research Base for Glencoe Business and Personal Finance Using Technology to Support Student Learning For students, McGraw-Hill CONNECT™ offers: • Web links to extend lesson content • StudentWorks Online with Advance Tracker, an interactive online text with a grade book and reporting for the teacher • Media Library, with video, audio, and print assets to support instruction • Study-to-Go™, which provides a portable version of textbook-related materials, including eFlashcards and Self-Check Quizzes, downloadable to the student’s Palm or Pocket PC • Online Study Tools, including chapter summaries and graphic organizers • Your Personal Financial Planner and Money Matters Personal and Family Financial Management Simulation software • Financial forms and software activities for everyday personal finances • Standard and Poor’s Extension Activities, offering rich primary sources of current financial and business information • Disability Support Links, offering support and information for disabled students • Guide to the Internet Research to help students navigate the Internet and find the information they need • Additional activities, such as chapter games and puzzles, e-flashcards, WebQuests, NAF case studies, and other activities

ExamView Assessment Suite The ExamView Assessment Suite enables teachers to streamline assessment from start to finish. This easy-to-use software includes the Test Generator and Test Manager and provides an all-inclusive solution for creating, administering, and scoring exams. Thousands of test items organized by chapter and unit allow teachers to create tests for a wide variety of learning styles. Using the Test Generator, teachers can create printable tests in only a few minutes using existing questions or their own original items. They can also prepare online tests, worksheets, and study guides, which can be uploaded to WebCT and Blackboard. The ExamView Test Manager enables teachers to create class rosters, auto-score paper tests, administer and score online tests, and prepare an assortment of student and class reports.

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The Research Base for Glencoe Business and Personal Finance Using Technology to Support Student Learning Virtual Business® - Personal Finance Knowledge Matters has created a series of engaging Virtual Business simulations that allow students to practice business and financial decision making within a single- or multi-player game . Glencoe has partnered with Knowledge Matters to correlate Virtual Business® – Personal Finance to lessons in Business and Personal Finance . Students will have a chance to engage with virtual scenarios that require them to build their credit score, find and rent an apartment, build and stick to a budget, and make investment decisions within a gaming environment . Students learn naturally and have fun completing 18 standards-based lessons in personal finance and competing in multi-player games . Other business game titles from Knowledge Matters include Virtual Business® – Sports, Virtual Business® – Restaurant, Virtual Business® – Retail, and Virtual Business® – Management .

iPad® Teacher Control Center Glencoe’s new Teacher Control Center application turns an Apple iPad into a classroom command center where teachers can access, schedule, and share the online resources available from Glencoe while moving freely throughout the classroom . Teachers can quickly view lesson plans, access course resources and standards correlations, or connect remotely with their classroom computer or the Web with a few taps on the iPad touch screen . The easy-to-use calendar function lets teachers automatically distribute course material throughout the duration of the course and schedule the use of transparencies, videos, or other technology for easy retrieval during class .

The iPad Teacher Control Center allows teachers to access, schedule and share online resources through an easy touch screen application .

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The Research Base for Glencoe Business and Personal Finance Using Technology to Support Student Learning

Bibliography Association for Career and Technical Education (ACTE), Partnership for 21st Century Skills, and National Association of State Directors of Career and Technical Education Consortium (2010) Up to the Challenge: The Role of Career and Technical Education and 21st Century Skills in College and Career Readiness Retrieved December 2010 from http://www.p21.org/index.php?option=com_content&task=view&i d=986&Itemid=64 Barley, Z., Lauer, P.A., Arens, S.A., Apthorp, H.S., Englert, K.S., Snow, D. and Akiba, M. (2002) Helping At-Risk Students Meet Standards: A Synthesis of Evidence-Based Classroom Practices. Denver, CO: Mid-Continent Research for Education and Learning Becker, H.J. (2000) Findings from the Teaching, Learning, and Computing Survey: Is Larry Cuban Right? Education Policy Analysis Archives, 8 (51). Cochran, D., Conklin, J., and Modlin, S. (2007, February) A New Bloom: Transforming Learning. Learning and Leading with Technology, 34 (5) 22-35 The Conference Board (2006) Are They Really Ready to Work? Employers Perspectives on the Basic Knowledge and Applied Skills of New Entrants to the 21st Century Workforce. Prepared with The Partnership for 21st Century Skills, Corporate Voices for Working Families, and the Society for Human Resources Management. Retrieved December 2010 from http://www.p21.org/index.php?option=com_content&task=view&id=250&Itemid=64 Coppola, E.M. (2004) Powering Up: Learning to Teach with Technology. New York, NY: Teachers College Press Crowe, C.E. & Xin M. (2010) Profiling student use of calculators in the learning of high school mathematics. Evaluation & Research in Education, Sep 01, 2010; Vol. 23, No. 3, p. 171-190 Eskrootchi, R. & Oskrochi, G.R. (2010) A Study of the Efficacy of Project-based Learning Integrated with Computer based Simulation - STELLA. Journal of Educational Technology & Society, Jan 01, 2010; Vol. 13, No. 1, p. 236-245 Gordon, D.T. (Ed.). (2000) The Digital Classroom: How Technology is Changing the Way We Teach and Learn Cambridge, MA: Harvard Education Letter Gordon, E.E. (September 2009). “The Future of Jobs and Careers.” Association for Career and Technical Education: Techniques. http://www.acteonline.org/tech_sep09.future.html Hernandez-Ramos, P. & De La Paz, S. (2009) Learning History in Middle School by Designing Multimedia in a Project-Based Learning Experience. Journal of Research on Technology in Education, v42 n2 p151-173 Win 2009 International Society for Technology in Education (2007) National Educational Technology Standards for Students. Eugene, OR: ISTE.org. Retrieved November, 2010 from http://www.iste.org/standards/nets-for-students/nets-student-standards-2007.aspx LaBaron, J.F. and Collier, C. (Eds). (2001) Technology in its Place: Successful Technology Infusion in Schools. San Francisco: Jossey-Bass Lemke, C., Coughlin, E., & Reifsneider, D. (2009). Technology in Schools: What the Research Says: An Update. Culver City, CA: Cisco Systems. Prepared by Metiri Group. Means, B. and Haertel, G. (2003) Evaluating Educational Technology: Effective Research Designs for Improving Learning. New York, NY: Teachers College, Columbia University Partnership for 21st Century Skills (2009). Framework for 21st Century Learning. Retrieved November 2010 from http://www.p21.org/index.php?option=com_content&task=view&id=504&Itemid=185#guides Penuel, B., Korbak, C., Yarnall, L., Pacpaco, R. (2001) Silicon Valley Challenge 2000: Year Five Multimedia Report. San Jose, CA: Silicon Valley Network Pitler, H., Hubbell, E.R., Kuhn, M. and Malenoski, K. (2007) Using Technology with Classroom Instruction That Works. Denver, CO: Mid-Continent Research for Education and Learning. (Printed by ASCD) Prensky, M. (2001) Digital Natives, Digital Immigrants On the Horizon Volume 9 (5) October 2001. MCB University Press Ringstaff, C. and Kelley, L. (2002) The Learning Return on Our Education Technology Investment: A Review of Findings From Research San Francisco: WestEd RTEC Schrum, L. and Levin, B. (2009) Leading 21st Century Schools: Harnessing Technology for Engagement and Achievement. Thousands Oaks, CA: Corwin Waxman, H.C., Connell, M.L., and Gray, J. (2002) A Quantitative Synthesis of Recent Research on the Effects of Teaching and Learning with Technology on Student Outcomes Naperville, IL: North Central Regional Educational Laboratory

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The Research Base for Glencoe Business and Personal Finance Preparing the 21st Century Workforce

The Research Base for Glencoe Business and Personal Finance Table of Contents Preparing the 21st Century Workforce The 21st Century Workforce. . . . . . . . . . . . . . . . . . . . . . . . . . . . Page E-3 College and Career Readiness. . . . . . . . . . . . . . . . . . . . . . . . . Page E-4 Developing 21st Century Skills . . . . . . . . . . . . . . . . . . . . . . . . . Page E-8

Exploring Careers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page E-9



Preparing for Certifications . . . . . . . . . . . . . . . . . . . . . . . . . . Page E-11



Ethics in Business and Finance . . . . . . . . . . . . . . . . . . . . . . Page E-12

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The Research Base for Glencoe Business and Personal Finance Preparing the 21st Century Workforce

The 21st Century Workforce National Career Technical Education Foundation Career Clusters • Agiculture, Food and Natural Resources • Architecture and Construction • Arts, A/V Technology, and Communication • Business, Management, and Administration • Education and Training • Finance • Government and Public Administration • Health Science • Hospitality and Tourism • Human Services • Information Technology • Law, Public Safety, Corrections, and Security • Manufacturing • Marketing, Sales, and Service • Science, Technology, Engineering, and Math • Transportation, Distribution, and Logistics From www.careerclusters.org

Today’s students are entering a workforce that is substantially different than that of a generation ago (Business Roundtable, 2009; The Conference Board, 2006). Just as the agricultural economy gave way to the industrial economy in the late 18th and early 19th centuries, we have now shifted to a “knowledge-based” economy in which highly skilled services comprise a higher proportion of our GDP than hard manufactured goods (Trilling and Fadel, 2009). The jobs that are available now require, on average, a higher level of skill than entry level jobs did just ten or twenty years ago—and this trend is accelerating (Gordon, 2009; Business Roundtable, 2009). A couple of key factors are driving these trends: • Students are now competing in a global economy in which many companies are finding cheaper labor sources overseas for low-skilled jobs, such as manufacturing or telephone customer service (Gordon, 2009; The Conference Board, 2006). • Technology advances in computer science, communications, and robotics have also eliminated many lower-skilled jobs (Business Roundtable, 2009). Workers who will thrive in this economy must aspire to career options that cannot be easily outsourced or replaced by a machine. “Knowledge worker” jobs, including those in the financial services sector, require a high level of critical thinking, creativity, and judgment in addition to solid academic and technical skills (Trilling and Fadel, 2009). While not all knowledge-based jobs require a traditional four-year college degree, most will require some level of additional education, certification, or workforce training beyond the high school level. The Georgetown Center on Education and the Workforce estimates that 63% of jobs will require some form of postsecondary education by 2018 (Carnevale, Smith, & Strohl, 2010). Furthermore, students entering the workforce today must be prepared for much more mobility and much less stability than in generations past. Students graduating in 2010 can expect to hold an average of 11 different jobs over the course of their careers. Thirty percent of them will be independently employed at some point in their working lives (Business Roundtable, 2009). Successful workers will be flexible and open to lifelong learning opportunities. How can effective career and technical education help prepare students for this rapidly changing economy? The Association for Career and Technical Education, The Partnership for 21st Century Skills, and the U.S. Department of Education have all recognized the potential for well-designed CTE programs to help prepare the next generation of highly skilled workers. In this section, we’ll look at how Glencoe/McGraw-Hill Business and Personal Finance can help prepare students for success in the 21st Century workforce.

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The Research Base for Glencoe Business and Personal Finance Preparing the 21st Century Workforce

Career and College Readiness What do we mean by “college and career ready”? More and more, experts tell us that the skills students need for success in college and the skills they need for success in the workplace are one and the same (Association for Career and Technical Education (ACTE), Partnership for 21st Century Skills, and National Association of State Directors of Career & Technical Education Consortium, 2010). The Association for Career and Technical Education (ACTE) and the Partnership for 21st Century Skills emphasize that students need a combinations of knowledge and applied skills in order to succeed (ACTE, 2010).

63% of jobs will require postsecondary education by 2018. –G  eorgetown Center on Education and the Workforce

• Academic Knowledge and Skills: Both college-bound and non-college bound students need a shared base of core subject-area knowledge in Math, English Language Arts, Science, and Social Studies, including economics. They also need academic skills, including research and writing skills and applied math skills. • Employability Skills: Beyond academics, employers are looking for such applied skills as critical thinking, written and oral communications, business etiquette, and ethics. Many of these skills can and should be taught and reinforced in a CTE environment. • Technical Skills: New workers will need to have specific technical knowledge and skills for the work area that they plan to enter. In some cases, students must earn a certificate or credential to demonstrate their competence in these areas. More than 90% of high school seniors report that they expect to attend some kind of college. However, only 32% of our students are prepared for the rigors of postsecondary education (Klekotka, 2005). This means that the 68% of students who are not prepared for college are most likely not ready to enter the workforce, either. What can we do to improve students’ chances of success? ACTE and the U.S. Department of Education emphasize the critical role CTE programs can have in preparing students for both career success and higher-level coursework (ACTE et al., 2010; U.S. Department of Education, 2004). Glencoe Business and Personal Finance uses effective research-based strategies to help students rise to the challenge.

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The Research Base for Glencoe Business and Personal Finance Preparing the 21st Century Workforce Integrating Academic Skills with Career and Technical Content ACTE and other national organizations stress the importance of integrating rigorous academic content into CTE classes. The latest authorization of the Carl D. Perkins Vocational and Technical Education Act also mandates this integration. Many students perform better academically when learning experiences are authentic and linked to their career interests and goals (Southern Regional Education Board, 2009). In Business and Personal Finance, we systematically embed core academics including Math, English Language Arts, Economics, and Social Studies throughout the text. You can find additional information about how academic skills are supported in Business and Personal Finance in the Meeting Academic Standards and Research-Based Instructional Strategies portions of this paper.

See the Teacher Manual for answers.

Social Studies

English Language Arts

10. Prepaid Cards Young adults often find themselves struggling with money management. A growing trend is the use of prepaid debit cards to help teach teenagers with money management. A prepaid debit card is generally linked to a parent’s checking or savings account. It allows a preset amount of money to be spent and allows the parents to track where the money is being spent. This can then lead to financial discussions between the parent and teen about money management. Conduct additional research as necessary, and write a one-page report with your opinion on whether using prepaid debit cards is a good way to help teenagers learn money management.

12. Banking Services Many banks and credit unions now offer financial planning services. Choose a local bank and conduct research to determine what financial planning services that bank offers. These might include oneon-one consultations to help you develop a budget strategy, insurance services, or advice for building a personal business. Create a flyer that lists and briefly describes each service. Which of the services offered do you think you could take advantage of now? Which might you use in the future? Which ones do you not think would benefit you? Why? Write a paragraph summarizing your answers to these questions.

NCSS IV D Individual Development & Identity Apply concepts, methods, and theories about the study of human growth and development, such as physical endowment, learning, motivation, behavior, perception, and personality.

Mathematics 11. Interest Earned Sam made $1,300 from his summer internship. He wants to deposit the money into a savings account but is not sure which savings account to open. His first choice earns 2.5 percent annual interest, compounded quarterly while the second choice earns 2.75 percent annual interest, compounded bimonthly. Which account will earn Sam more money in interest after one year? What is the annual percentage yield on each account? Calculate Interest Earned To calculate the annual percentage yield on a savings account with monthly compounding you must determine the total interest earned for the year and divide this amount by the original deposit. Starting Hint To calculate the interest earned per period on an account that compounds interest bi-monthly, multiply the deposit by the annual interest rate and divide by 6. NCTM Problem Solving Solve problems that arise in mathematics and in other contexts.

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• M  ath: Throughout the program, we emphasize the math skills students will need to perform financial calculations and understand financial documents. Examples and step-by-step instructions give students plenty of scaffolding for success with each new concept. The Go Figure features provide opportunities for students to practice and check their understanding. The Math Skills Builder appendix provides a review of fundamental math skills. Students will find additional examples and practice problems in the Student Activity Workbook and in the Online Learning Center through McGraw-Hill CONNECT™.

College and Career Readiness

CHAPTER REVIEW

NCTE 8 Use information resources to gather information and create and communicate knowledge.

Economics 13. Subjective Value All goods and services have value. How much any item or service is worth will vary based on factors such as geography, time of year, and intrinsic value to the consumer. For example, fruit costs vary depending on whether it is in season. And a comic book’s value will depend a great deal on how important it is to a collector. Conduct research to find a collectible which recently sold for a large amount of money. Why do you think it sold for so much? If you had that amount of money available, would you have been willing to spend it on that item?

• English Language Arts: Business and Personal Finance reinforces the critical reading, writing, speaking, and listening skills students will need for success both on the job and in higher-level coursework. Writing activities are incorporated with each chapter opener and in all of the chapter and unit projects. Projects also require students to prepare and deliver formal presentations and perform academic research.

Real-World Applications 14. Managing Money Many financial institutions are offering more technology-based services to help consumers manage their money. Suppose your friend Edward just started a new job. He wants to maintain both a checking and savings account so that he can have cash to spend now and start saving for college. Prepare a recommendation for Edward of the online tools that you would suggest he use to help set and attain his short-, intermediate, and long-term goals.

UNIT 5 Banking and Credit

Business and Personal Finance integrates rigorous academic content throughout the program. 0446_0449_C14_CR_894580.indd

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• Social Studies: Special features like Around the World, Databytes, and Social Studies assessment questions at the end of each chapter help students understand how geography and culture impact and are impacted by finance.

• Economics: Two complete chapters on economics, Economics and You features in every chapter and each unit opener, and Economics Lesson Plans for each chapter in the Teacher Manual, help students understand how economic principles drive business and consumer financial decision making.

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The Research Base for Glencoe Business and Personal Finance Preparing the 21st Century Workforce CHAPTER Chapter Review and Assessment REVIEW These academic skills are reinforced in the chapter reviews and assessments.

Topics in Glencoe Business Chapter Summaryand Personal Finance . of financial services are • The three primary types savings; payment services; and borrowing.

• Economics and the

• Commercial banks, Economy savings and loan associations, Global mutual savings banks, and credit unions are • B usinessthat Ownership financial institutions accept secure deposits and provide transfer and lending services.

• Developing a

plan, look at its features, such as its rate of return compared with inflation, tax considerations, companies accept customers’ funds, provide liquidity, to andcore restrictions and fees. •  D eveloping a In addition academic skills, both college and the workforce require financial security for dependents, and invest and Financial Plan higher-order thinking like analysis, critical thinking, research, and manage funds. • Regular, activity, andskills interest-earning are the three categories of checking accounts. Some of evaluation. These skills are emphasized throughout the program, both Finance• companies Sourcesand of mortgage Fundingcompanies these require minimum balances and/or fees for offer loans. in the text and in the section and chapter assessments. Students will also • Financial Accounting transactions. Some pay interest on deposits. Bank savings plans offer the lowest interest need to demonstrate higher-order thinking as they complete the Discovery • To use a checking account, write checks carefully, • Pthe ayroll andliquidity. Inventory rates with greatest Projects and Unit Projects. Other features, such as Around the World and endorse checks you deposit, and reconcile your • Pricing, Costing, and Economics and You,bank include questions that encourage students to think checkbook against statements.

• Life insurance companies and investment Business Plan

• •

See the Teacher Manual for answers. The College and Career Readiness features at the beginning of each unit and chapter highlight the academic skills that will be covered. Each chapter • Higher intereststudents rates are available on certificates review requires to use extensive math and English Language Arts of deposit (CDs); money must be on depositto forsocial a skills, and apply what they have learned studies, economics, and specified time. even science. By integrating core academics with the business and personal • Money market accounts and U.S. Savings Bonds finance content, students have an opportunity to practice these academic are less liquid than bank savings accounts, but skillsmay in an arena that demonstrates their relevance to their future career goals. provide greater returns. To evaluate a savings

Growth • Personal Financial Vocabulary Review Planning 1. Write each of the vocabulary terms below on an index andManagement the definitions on separate • Mcard, oney index cards. Work in pairs or small groups to Consumer Purchasing match•each term to its definition. and Protection • direct deposit • rate of return • Banking and• Credit • automated teller compounding machine (ATM) • annual percentage • Housing yield (APY) • debit card • Saving and Investing • commercial bank • overdraft protection Taxloan Strategy• stop-payment order • savings•and association (S&L) • Insurance • endorsement • credit union • certificate of deposit (CD)

• money market account

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• • • • •

bank reconciliation authorization issuers quarterly alternative

Developing Higher-Order Thinking Skills

critically about an issue.

Higher Order Thinking

H.O.T.

2. Relate What is the process for maintaining a checking and savings account? How are they similar? 3. Select Jenny had $5,000 that she wanted to save for six months before using it to pay for her college tuition. Evaluate which type of savings plan would be her best option for a maximum rate of return. 4. Conclude Explain why it is important to use financial institutions that are FDIC insured. 5. Hypothesize Why do you think the Truth in Savings law was enacted? 6. Compare and contrast Research the forms and processes required for applying for a checking and savings account. How are they similar? How are they different? 7. Evaluate Why might credit unions offer lower fees and loan rates than a commercial bank? 8. Assess What should you know when choosing a financial institution? Why is it important? 9. Defend Why do you think electronic services, such as the Check 21 act, may be beneficial? Students must use higher-order thinking skills like analysis, 14 and evaluation, inference, and prediction bothChapter in college Banking 447 on the job.

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The Research Base for Glencoe Business and Personal Finance Preparing the 21st Century Workforce

Reinforcing Job Skills Job skills, including “soft skills” such as professionalism, accountability, and ethical thinking, need to be explicitly taught and reinforced (The Conference Board, 2006). Where appropriate, Business and Personal Finance stresses these job-related skills throughout the text. Projects that require students to interact with or interview business people or members of the community as part of their research process give students hands-on experience in interacting in a professional environment.

Preparing Students for Business and Personal Finance Careers CTE programs must also provide the subject- and industry-specific knowledge and skills students will need for their specific career track. Glencoe Business and Personal Finance is a comprehensive, rigorous course that introduces students to all of the fundamental concepts in finance. As they learn, students will have plenty of opportunity for hands-on practice in interpreting financial documents and performing financial calculations through both in-text and online activities. • Document Detective features allow students to analyze examples of real documents such as income statements, paycheck stubs, W-2s, balance sheets, and mutual fund statements. • Chapter Reviews integrate realistic applications of business and finance skills, and give students plenty of practice in financial calculations. • Discovery Projects and Unit Projects require students to apply finance skills to a real-world scenario. • Online activities and scenarios in Your Financial Portfolio and the Money Matters Personal and Family Financial Planner provide opportunities to practice skills using real-world financial tools.

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• specific identification method • salary • first-in, first-out method (FIFO) • hourly wage • last-in, first-out method (LIFO) • overtime rate • commission • deductions Academic Vocabulary • Federal Insurance Contributions You will see these words in your st Preparing the 21 Century Workforce Act (FICA) reading and on your tests. • Social Security tax • withheld • Medicare tax • allowance • total gross earnings • stock st • perpetual inventory system • staple

The Research Base for Glencoe Business and Personal Finance

understandings about science and technology. NCTM National Council of Teachers of Mathematics NCTE National Council of Teachers of English NCSS National Council for the Social Studies NSES National Science Education Standards

Developing 21 Century Skills

In 2002 the Partnership for 21st Century Skills (P21) was founded to ensure that students Graphic Organizer acquire the knowledge, skills, and expertise Before you read this they need to function successfully in 21st chapter, create an organizer century communities and workplaces. like the one shown. As you To accomplish this goal, P21 created the read, use the organizer to Framework for 21st Century Learning. This identify and describe the Common Methods framework fosters a practical synthesis of four common methods by of Employee learning and innovation skills; information, which employees are paid. Payment media, and technology skills; and life and career skills. P21 has created a complete array of standards as well as guidelines for assessments, curriculum, instruction, professional development, and learning environments to provide a support system See the Teacher Manual for answers. to ensure that students successfully master these skills. The complete framework can glencoe.com Print this graphic organizer. be downloaded from The Partnership for 21st Century Skills at http://www.p21.org.

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UNIT 3 Business Finance Basics

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Glencoe Business and Personal Finance has systematically infused these skills throughout the text to help prepare students for the demands of high-skills, high-wage occupations.

Common Core Reading Read and comprehend complex literary and informational texts independently and prociently. Speaking and Listening Present information, ndings, and supporting evidence such that listeners can follow the line of reasoning and the organization, development, and style are appropriate to task, purpose, and audience. Speaking and Listening Adapt speech to a variety of contexts and communicative tasks, demonstrating command of formal English when indicated or appropriate. Career and College Readiness Skills in Business and Personal Finance are built around the Framework for 21st Century Learning.

Learning and Innovation Skills 21st Century Skills emphasize creativity, critical thinking, problem solving, and communications skills (Partnership for 21st Century Skills, 2009). Business and Personal Finance embeds these skills into the Discovery Projects at the beginning of each chapter and in the chapter review and assessment activities at the end. Skills like Making Judgments and Decisions, Effective Reasoning, and Problem Solving are systematically emphasized throughout the program.

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Information, Media, and Technology Skills Most jobs now require extensive information management and technology skills (The Conference Board, 2006; Casner-Lotto, Rosenblum, & Wright, 2009), including the ability to research and analyze sources online, use and create information in a variety of media types, and utilize common business productivity tools such as word documents, spreadsheets, databases, and presentation software (Partnership for 21st Century Skills, 2009). The projects in Glencoe Business and Personal Finance are designed to support growth in these skills. For more information on how Business and Personal Finance supports technology literacy, see the Using Technology to Support Student Learning section of this paper.

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The Research Base for Glencoe Business and Personal Finance Preparing the 21st Century Workforce Life and Career Skills

Careers in Business and Personal Finance • Budget Analyst • Legislative Assistant • General Contractor • Bookkeeper • Controller • Commercial Loan Officer • CTE Teacher • Purchasing Agent • Chief Financial Officer • Personal Banker • Certified Financial Planner • Credit Analyst • Real Estate Agent • Stockbroker

Life and Career Skills include interpersonal skills and cooperative teamwork, time and project management, leadership skills, and self-directed learning (Partnership for 21st Century Skills, 2009). The Unit Projects in Business and Personal Finance, which require both independent and cooperative learning, research, and oral and written communication skills, allow students to practice the kind of extended, self-directed projects they will be expected to pursue in both college and the work world.

Exploring Careers One of the best ways to demonstrate relevance for students is to let them see connections between what they are learning and potential career paths that may interest them (Daggett, 2005; Bridgeland, DiIuliom, & Morison, 2006). Exploring career options in high school is linked to higher rates of high school graduation, higher completion rates for core academic subjects, and higher rates of advancement to postsecondary education, particularly for at-risk students (Kemple, 2008). The 2006 Perkins Act emphasizes the importance of Programs of Study, or coordinated secondary-to-postsecondary sequences of academic and CTE courses aligned to the sixteen career clusters identified by the States’ Career Clusters Initiative (SCCI) (States Career Cluster Initiative, 2010). Glencoe Business and Personal Finance deliberately and explicitly incorporates career exploration and planning into the curriculum to get students thinking about their next steps. For more information on how Business and Personal Finance supports the Perkins Act, see section B of this paper, “Why Study Business and Personal Finance?” The world of finance opens up a wide variety of potential careers for students, from consumer credit counseling to retail purchasing to entrepreneurship (Bureau of Labor Statistics, 2010). Glencoe EXPLORE CAREERS Business and Personal Finance helps students explore the myriad Visit the Web site of the U.S. Department of Labor’s Bureau options available to them. of Labor Statistics and obtain

Careers That Count! Sandra Murakami • Credit Analyst After I graduated with a bachelor’s degree in accounting, I accepted a credit analyst position for a global organization. As a credit analyst, my job is to consider a company’s credit by evaluating financial statements, company statistics, and its managers. With the help of computer programs, I evaluate corporate records and recommend payment plans based on earnings, savings data, payment history, and purchase activity. I help make decisions about the worthiness of corporate customers and credit risk, and then set credit lines. I also advise whether or not to extend credit to a company. My job involves substantial critical thinking, judgment, and decision making—I have to consider the relative costs and benefits of potential actions to ensure that I choose the most appropriate one. Although many employers prefer applicants with a bachelor’s degree or with some coursework in credit and loans, some credit analysts can start a career with a high school diploma and learn while on the job.

information about a career as a credit analyst.

In1. Careers That Count!, students will explore a variety of career options. Why are communication skills, both verbal and Each chapter features a career related to the chapter content. These written, so important for someone in this position? features introduce students to real people working in finance, who explain 2. What type of work experience would benefit in their own words what they do on a day-to-day basis and what kinds of someone interested in becoming a credit analyst? skills they need on the job.

Careers That Count introduces studentsCareer to Path The Skills Education Time-management, High school Credit analysts, a variety of careers in business and finance. accounting, judgment, diploma in some sometimes called risk

CAREER FACTS

investigative, analytical, communication, some foreign language, and interpersonal skills

cases, but a bachelor’s degree in accounting, nance, or related eld is preferred

Career Facts give a quick snapshot of the skills and education required glencoe.com Activity Download a Career related career paths that the job may open up. and the potential analysts or underwriters, Exploration Activity. can become securities underwriters, • Job Skills stockbrokers, nancial analysts, or investment advisors.

Consumer Credit Protection Laws If you have a particular problem with a bank in connection with any of the consumer credit protection laws, you can get advice and help from the Federal Reserve System. You do not need to have an account at the bank to file a complaint. You may also take legal action against a creditor. If you decide to file a lawsuit, you should be aware of the various consumer credit protection laws described below. Credit Card Act In 2009 the United States Congress passed The Credit Card Accountability and Responsibility and Disclosure Act. The bill established fair and clear practices for extending credit to

• Educational Requirements It is essential that a credit analyst • Career Paths understand the information Careers That Count! Answer

he or she is analyzing, as well as effectively communicate recommendations to managers and clients.

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The Research Base for Glencoe Business and Personal Finance Preparing the 21st Century Workforce Explore Careers activities, along with associated Career Exploration worksheets found in the Online Learning Center, require students to do research to deepen their understanding of the featured career. By the time they finish the Business and Personal Finance course, students will be exposed to a wide range of career options, representing all levels of educational and certification requirements. Exploring these careers will allow students to start planning a career path and determine what kind of postsecondary education they will need to pursue (Kalchik & Oertle, 2010). In addition to exposing students to career options, Business and Personal Finance also includes an entire chapter on career planning. In Chapter 11, students will consider many facets of the career planning process: • Balancing interests, values, and financial goals in choosing a career • Trends and external factors that affect the job market • Finding job opportunities and applying for a job • Creating a resume and cover letter • Interviewing skills • Evaluating job offers, including salary, benefits, and growth opportunities • Employee rights, legal issues, and ethical issues • Long-term career planning and changing careers

Business and Personal Finance students will also have opportunities to talk to and interview business people as they complete some of the Unit Projects. Unit

4

Unit Project See the Teacher Manual for the Unit Lesson Plan.

Planning for Financial and Career Success

Plan

Ask Yourself... Have you ever thought of purchasing a bicycle, buying a new car, or even buying a house in the future? Have you ever thought of a job that would be fun or might pay well? How may your selection of a job or career impact your financial goals? Responses to these questions can lead you to specific financial and career goals.

Your Objective The goal of this project is to develop financial and career goals, research a career of interest, and create a short presentation for your class on your chosen career.

Skills You’ll Use Success in defining goals and preparing financially for those goals depends on your skills. Some skills you might use include: Academic Skills – Reading, writing, and mathematics 21st Century Skills – Speaking, listening, thinking, problem solving, decision making, and interpersonal skills Technology Skills – Word processing, keyboarding, presentation software, and Internet research

Standards NCTE 4 Use written language to communicate effectively. NCTE 7 Conduct research and gather, evaluate, and synthesize data to communicate discoveries. NCTE 8 Use information resources to gather information and create and communicate knowledge.

STEP 1

Create Your Goals

STEP 3

Goals are like a road map providing both guidance and direction. Answer these questions: • What would you like to purchase in the next few months? Is there something you would like to put money toward in the next few years? • What items would you like to own in ten or twenty years? Where would you like to be financially at that time? • Is there a type of job you would like to explore for the summer? • Is there a job field you think you would be interested in after high school? • In which career field could you imagine working in ten or twenty years? • Your responses will guide the development of your financial and career goals. • Now that you have created some financial and career goals, plot them on a time line.

STEP 2

Build Relationships

What information can you gain from someone with personal experience? Meet with a member of your community currently working in your area of interest to gather information. You may interview them or shadow them for a day to learn more about their career field. • Prepare interview questions based on your research. • Take notes and record the interview responses. • Listen attentively. • Make eye contact and respond appropriately and with interest. • Ask questions if you do not understand something. • Encourage the speaker to share with positive body language and open-ended questions. • Write a summary of the interviewee’s responses.

STEP 4

Explore Careers

Develop Your Presentation

Use the Unit 4 Project Checklist to plan and create your presentation.

What are your interests? What are you good at? How do your answers apply to particular career fields? Now explore a career in which you are interested. • To focus your list of aptitudes and interests complete an aptitude test or interest inventory. • Search for information about a career that interests you. Find out about the educational requirements, skills needed, pay range, responsibilities, and future trends. • Where can you learn the skills and knowledge necessary for your career field? Research colleges or other post-secondary institutions where training is offered in your area of interest. • Write a brief summary of your research findings and cite any sources.

STEP 5

Evaluate Your Presentation

Your presentation will be evaluated based on the following: • Evaluation Rubric • Content and organization of your information. • Mechanics – presentation and neatness. • Speaking and listening skills.

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Write ✔ List your nancial and career goals. ✔ Create a time line of your nancial and career goals. ✔ Summarize your research ndings of the career eld you chose. ✔ List your interview questions. ✔ Write a summary of the interviewee’s responses.

Business and Personal Finance provides explicit instruction in good interviewing and business etiquette skills, including making eye contact, shaking hands, and other business etiquette basics. These “soft skills” are essential to career success (The Conference Board, 2006).

Present ✔ Create an outline for your presentation. ✔ Create visuals and utilize technology to enhance your presentation. ✔ Speak clearly and concisely. ✔ Present your short-term, intermediate, and long-term nancial and career goals. ✔ Present the results of your career research. ✔ Present your time line and interview summary. ✔ Respond to questions posed by the audience.

glencoe.com

UNIT 4 Planning Personal Finances

Unit Projects allow students to explore career options in more depth.

✔ Develop short-term, intermediate, and long-term nancial goals. ✔ Research career elds in which you are interested including educational requirements, skills needed, pay range, responsibilities, and future trends. ✔ Meet with someone in your community currently working in the career eld in which you are interested.

Evaluate Download a rubric you can use to evaluate your project.

NCTE 12 Use language to accomplish individual purposes.

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• Connecting with adult mentors in the community can help students make career decisions and help them see the relevance of what they are learning (Southern Regional Education Board, 2009).

Project Checklist

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The Research Base for Glencoe Business and Personal Finance Preparing the 21st Century Workforce

Preparing for Certifications A growing number of CTE fields of study require professional certifications, which provide an objective measure of a person’s level, knowledge, and skills in a trade. For some professions, certifications are required. In most cases, certification will make a candidate more attractive to employers. It provides an indicator of both an acceptable skill level and a commitment to the profession (Business Roundtable, 2009).

Entry-Level Salaries For Graduates With and Without Certification

$30000 $25000 $20000 $15000 $10000

This professional recognition provides real benefits for young workers. The Business Roundtable reports that entry-level workers completing certification programs earn on average $26,328 per year, compared with just $15,154 per year for workers with only a high school diploma (Business Roundtable, 2009). For highly skilled workers within the financial industry, the difference of a certification can mean many thousands of dollars in extra earnings each year, and access to career options that aren’t available without certification.

$5000 $0

High School Diploma

Certified Program

(Business Roundtable 2009)

While in some cases certification provides a postsecondary path that doesn’t include a two- or four-year degree program, many fields may require both. Some students may pursue a basic certification as a “stepping stone” that allows them to hold a higher-paying job while pursuing a college degree. In finance there are multiple career paths that may require certification, in most cases in combination with college coursework (Bureau of Labor Statistics, 2010). For example, a student may choose to become a Certified Financial Planner (CFP), or earn a certification in Certified Financial Management (CFM), or even pursue an NASD Stock Broker’s License. Students will explore these career options as they navigate through the program. While financial certifications will almost certainly require advanced coursework, Glencoe Business and Personal Finance provides students with an excellent foundation on which to build toward future certification. The rigorous blend of academic content, industry-specific knowledge, and real-world skills are appropriate for students preparing for a wide variety of post-secondary options. Students planning for certification will benefit from: • Explicit test taking strategies with ample opportunities for offline and online practice • Well-designed assessments that allow students to track their progress and measure preparation for advanced coursework • Real-world activities and exercises that allow students to practice analyzing and creating a variety of financial documents, including many document types they will need to understand for certification

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The Research Base for Glencoe Business and Personal Finance Preparing the 21st Century Workforce

Ethics in Business and Finance As educators focus on preparing students for the challenges of rigorous higher education, increasingly complex career challenges, and an internationally competitive labor force, schools must align classroom challenges with those of real-world environments. Helping students learn ethical behavior is essential preparation for the business environment (Business Roundtable Institute for Corporate Ethics, 2007). Surveys of managers and employers have shown a strong link between the perceived level of integrity of management and peers and the level of engagement, motivation, and productivity of employees—demonstrating that a culture of integrity has a direct impact on a company’s bottom line (Ethics Resource Center, 2009). On a larger scale, companies build public trust and customer CHAPTER College andinCareer REVIEW loyalty by building a corporate culture based ethical Readiness practices and social See the Teacher Manual for answers. responsibility (Margolis, Walsh & Krehmeyer, 2006). Social Studies English Language Arts 10. Cultural Research Imagine you are starting a business. Choose what product or service you

12. Web Site Design Sam and Billy own a small business making and selling hand-carved

Preparing students to make decisions is not wooden about teaching will sell. Inethical order to expand your business, you charms in the shapes ofvalues. various animals. will need to sell to a broad market. As part of They began their business six months ago and Instead, thoughtful instruction enables students to clarify theirlocally. own your marketing plan, conduct research about have been selling Theyethics would like to who will buy your product or service. Consider build a larger customer base and have decided to and learn how to evaluate ethical situations (Piper, Gentile, &toParks, 1993). different cultures that might value your product build a Web site try and market their products. or service. Determine if other regions, states, or countries would provide a good market. Conduct research to find three countries or cultures that would be a good source of potential customers for you. Write a summary of your findings, including an explanation of why those three markets might purchase your product or service.

Sketch out a proposed plan for the Web site, including graphics and copy for the home page, as well as proposed links to other pages that you would recommend they include.

Business and Personal Finance uses a five-step ethical decision-making model to help students think about ethical decisions:NCTE 5 Use different writing process elements to communicate 1. Determine the ethical issue. NCSS I A Analyze and explain the ways groups, societies, and cultures address human needs and concerns.

2. Identify the actions Mathematics for handling the situation. 11. Inventory Penny’s toy store requires 3-weeks

worth of merchandise on hand. 2-weeks are on 3. Identify the people affected by1-week theis situation. the shelves while in the warehouse. They have a system in place where an order is

processed once the totalthe merchandise on hand 4. Analyze how the situation affects people reaches a level of 2-weeks. At this point, 2-weeks of merchandise is ordered which typically takes involved. 1 week to arrive at the store. If Penny’s toy store currently has 2-weeks of merchandise on hand,

in 1 week, howto many cases of product should 5. Decide which of the actions take. the store have on hand? Assume 1-week of merchandise is equivalent to 100 cases.

effectively.

Ethics 13. Whistleblowing Many businesses have a code of ethics, many of which include a section on “whistleblowing.” Companies want employees to feel that if they witness inappropriate behavior, they can report it without fear of retaliation. The guidelines may encourage you to speak with your supervisor but also offer guidance if the situation is not resolved or you are uncomfortable speaking to your supervisor. Suppose that you have a good working relationship with your supervisor but witnessed him bullying your coworkers. Would you speak to him about his actions? Would you keep silent to maintain your relationship? What other actions could you take?

Real-World Applications Calculate Inventory Levels Calculate Business and Personal Finance includes ethics 14. Evaluating Expenses Imagine that you and ais an Ethical decision making the expected level of merchandise on hand partner have decided to start a business selling important part of preparing by first determiningreview the current level on questions in many of the chapter customized t-shirts. Follow your teacher’s hand. Adjust this amount by any merchandise instructions to form intofor pairs.the With workplace. your partner, students depletion as wellreal-world as purchases. activities. These questions offer consider the assets and inventory you would need to start your business. Once you have developed Starting Hint First identify the current level situations posing ethicalof merchandise challenges and provides your list of assets and inventory, research cost on hand. Subtract 1-week of estimates for each item. Are there any expenses merchandise from the current amount in order a stimulus for lively classroom also have the that you could put off until later? For example, do to arrive at thediscussion. level of merchandise Teachers on hand you need software to manage your accounting prior to any reorders. Multiply this figure by opportunity to lead discussion in topical ethics issues. Students may or can it be done manually? Could you buy the 100 to arrive at the number of cases. t-shirts as orders are placed or would you need NCTM Number and Operations Compute fluently and make engage in cooperative learning groups to discuss cases and share to have them in stock? Note which items are reasonable estimates. mandatory and revise your start-up cost estimate. ideas. Teachers can also suggest that students role-play ethical UNIT 2 situations, using their 116 own ideas inandorder Business Ownership Planning to respond to a specific situation. In addition, ethical issues offer an opportunity for students to form debate teams as a means of presenting different sides of an issue. 0114_0117_C04_CR_894580.indd

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The Research Base for Glencoe Business and Personal Finance Preparing the 21st Century Workforce

Bibliography Achieve, Inc. What is College and Career Ready? Retrieved December 2010 from www.achieve.org/files/CollegeandCareerReady.pdf Association for Career and Technical Education (ACTE), Partnership for 21st Century Skills, and National Association of State Directors of Career and Technical Education Consortium. (2010). Up to the challenge: The role of career and technical education and 21st century skills in college and career readiness. Retrieved from http://www.p21.org/index.php?option=com_content&task=view&id=986&Itemid=64 Association for Career and Technical Education (ACTE). (2010). “What is Career Ready”? Retrieved from www.acteonline.org/uploadedFiles/...and.../ Career_Readiness_Paper.pdf Bailey, T., Kienzl, G., and Marcotte, D. (2004). The Return to a Sub-Baccalaureate Education: The Effects of Schooling, Credentials, and Programs of Study on Economic Outcomes. Washington, DC: U.S. Department of Education Bottoms, G., Young, M., and Han, L. (2009) Ready for Tomorrow: Six Proven Ideas to Graduate and Prepare More Students for College and 21st Century Careers. Atlanta, GA: Southern Regional Education Board (SREB) Bridgeland, J., DiIuliom, J., &and Burke Morison, K. (2006). The silent epidemic: Perspectives of high school dropouts. A report by Civic Enterprises in association with Peter D. Hart Research Associates for the Bill and Melinda Gates Foundation. March, 2006. Seattle, WA: Bill and Melinda Gates Foundation. Bureau of Labor Statistics. (2010). Occupational Outlook Handbook, 2010-2011 Edition. Retrieved from http://www.bls.gov/oco Business Roundtable. (2009). Getting ahead – staying ahead: Helping America’s workforce succeed in the 21st Century. Retrieved from businessroundtable.org/.../BRT_Getting_Ahead_online_version_1.pdf Business Roundtable Institute for Corporate Ethics. (2007). Shaping tomorrow’s business leaders: Principles and practices for a model business ethics program. Retrieved from www.corporate-ethics.org/pdf/mbep.pdf Casner-Lotto, J., Rosenblum, E., & Wright, M. (2009). The ill-prepared U.S. workforce: exploring the challenges of employer-provided workforce readiness training. The Conference Board, Corporate Voices for Working Families, American Society for Training and Development, Society for Human Resource Management. Retrieved from http://store.astd.org/Default.aspx?tabid=167&ProductId=20397 Carnevale, A.P., Smith, N., & Strohl, J. (2010). Help wanted: Projections of jobs and education requirements through 2018. Washington, DC: Georgetown University Center on Education and the Workforce. Center for Labor Market Studies (2009) Left Behind in America: The Nation’s Dropout Crisis. Retrieved November 2010 from http://www.clms.neu. edu/publication/ The Conference Board. (2006). Are they really ready to work? Employers’ perspectives on the basic knowledge and applied skills of new entrants to the 21st Century workforce. Prepared with The Partnership for 21st Century Skills, Corporate Voices for Working Families, and the Society for Human Resources Management. Retrieved from http://www.p21.org/index.php?option=com_content&task=view&id=250&Itemid=64 Daggett, W. R. (2005). Achieving academic excellence through rigor and relevance. Rexford, NY: International Center for Leadership in Education. Ethics Resource Center. (2009). Ethics and employee engagement. Arlington, VA: Ethics Resource Center. Gordon, E.E. (September 2009). “The Future of Jobs and Careers.” Association for Career and Technical Education: Techniques. Retrieved from http://www.acteonline.org/tech_sep09.future.html Institute for a Competitive Workforce (2008). The Skills Imperative: How Career and Technical Education Can Solve the U.S. Talent Shortage. Washington, DC: U.S. Chamber of Commerce Kalchik, S., & Oertle, K. (2010). The integral role of career development in supporting programs of study and career pathways. Transition Highlights. May 2010, Issue 1. Office of Community College Research and Leadership Kemp, S. E. (2006). Dropout policies and trends for students with and without disabilities. Adolescence, 41, 235–250. Kemple, J.J. (2008). Career academies: Long-term impacts on labor market outcomes, educational attainment, and transitions to adulthood. New York, NY: MDRC. Klekotka, P. (2005). Beyond high school: Improving transition programs for postsecondary education. Policy Issues No. 18, June 2005. Washington, DC: Learning Points Associates/North Central Regional Educational Laboratory (NCREL). Margolis, M., Walsh, J., & Krehmeyer, D. (2006). Building the business case for ethics business Roundtable Institute for Corporate Ethics. Retrieved from: www.corporate-ethics.org/publications.html Partnership for 21st Century Skills. (2009). Framework for 21st Century learning. Retrieved from http://www.p21.org/index.php?option=com_conten t&task=view&id=504&Itemid=185#guides Piper, T., Gentile, M., & Parks, S.D. (1993). Can ethics be taught? Perspectives, challenges, and approaches at the Harvard Business School. Boston, MA: Harvard Business School Press. Rosenbaum, J. (2002). Beyond empty promises: Policies to improve transitions into college and jobs. Evanston, IL: Northwestern University.

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The Research Base for Glencoe Business and Personal Finance Preparing the 21st Century Workforce Southern Regional Educational Board (SREB). (2009). The next step for career/technical programs: Project Lead the Way and the merging of academic and career/technical studies. Atlanta, GA: Southern Regional Education Board. Retrieved from http://www.sreb.org/page/1219/project_lead_the_way.html States’ Career Clusers Initiative. (2010). www.careerclusters.org A project of the National Career Technical Education Foundation (NCTEF) Trilling, B., and Fadel, C. (2009). 21st Century Skills: Learning for life in our times. San Francisco, CA: John Wiley and Sons. U.S. Department of Education, Office of the Undersecretary, Policy and Program Studies Service. (2004). National assessment of vocational education: Final report to Congress. Washington, DC: U.S. Department of Education, Education Publications Center.

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The Research Base for Glencoe Business and Personal Finance Meeting Individual Needs: Designing Instruction for a Diverse Classroom

The Research Base for Glencoe Business and Personal Finance Table of Contents Meeting Individual Needs: Designing Instruction for a Diverse Classroom

Meeting Individual Needs with Business and Personal Finance. . . . . . . . . . . . . . . . . . . . . . . . Page F-3



Universal Access and Universal Design. . . . . . . . . . . . . . . . . Page F-4



Differentiated Instruction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page F-7



Differentiated Instruction for English Language Learners . . . . . . . . . . . . . . . . . . . . . . . . . . Page F-11

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The Research Base for Glencoe Business and Personal Finance Meeting Individual Needs: Designing Instruction for a Diverse Classroom

Meeting Individual Needs with Business and Personal Finance Most classrooms are composed of a wide variety of students with different learning styles, backgrounds, and ability levels. By recognizing and positively responding to diverse student backgrounds, languages, abilities, learning preferences, needs, and interests, teachers are better able to deliver instruction that creates opportunities for improved student learning, achievement, and success.

Glencoe/McGraw-Hill Business and Personal Finance is designed to CHAPTER 4 assist teachers in the challenge of meeting the needs of every student in the classroom. Of course, it is teachers who must differentiate instruction, not textbooks, and no commercial program to reach students Planclaim for Business SECTION 1 A can in the absence of effective instruction. However, every element of the As You Read A customers and program has been thoughtfully designed to help make this task easier Section Overview for teachers. A few examples: In this section, students will study the various parts of a Reading Chec

Lesson Plans and

ASSES

business plan and a financial plan.

people choose

• Student Edition: Elements like reading checks, section breaks and reviews, Figure 1 Answ graphic organizers, and vocabulary support help boost comprehension on exactly wh Make It Personal Ask students how they keep track Visualwhat you expe for all students and are especially designed for struggling readers. of their personal finances. Then ask: What are the learners will appreciate the use of graphics and between Visual Literacy similarities and differences tracking elements Document De and the Visual Summary at the close of each chapter. business finances and their personal finances? 1. The owner

FOCUS

Students may discuss that both businesses and

• Teacher Annotated Edition: The TAE includes Universal Access individuals track income and expenditures but activities 2. Excellent v the ability t businesses are more detailed in their accounting. to help teachers reach students with different learning styles.

TEACH

• Online Resources: From study guides to unit videos to simulations, McGraw-Hill CONNECT™ S includes a variety of resources to reach Scaffolded Instruction students of all abilities L1 List Have students list the four guidelines to follow specific, have a clear time when setting goals. realistic, and learning styles. U Universal Access

experience manufactur

3. He will dev

conjunction Reading procedures cover op operations evaluation Figure 1f

frame, and should help you decide what action to take Visual Learners Help students obtain samples of balance sheets at leastlistthree different businesses. Have for students the four guidelines for L2 Illustrate and expe doalong the balance differ? How Students are they settingHow goals, with ansheets example of each. 4. The accoun problem they show thethe businesses be in balance? shouldsimilar? list theDo guidelines from previous to question hourly wag U Universal Access SECTION 2 Assessment Answer Key In this ca with an example of each. Logical Learners Have students research GAAPCandCritical Thinking 5. Four years C develop a time line showing when the principles wereHave students list theincome four guidelines L3 Apply or Photo a two-ye Income Statements The statement for includes Review Key Concepts

Theatric developed and how they became established in revenue, the setting goals. Then students create a personal plus two ye cost ofhave merchandise sold, and operating 1.guidelines Budgeting, inventory, payroll, cash flow, andcostume formal United States. Time lines should show thatgoal that followsAsk thestudents: and identify action How might an income statement expenses. investments. Photo Caption accounting was invented in 1494 by a Franciscan friar, steps they would take to achievebusiness? their goal.A Students service-based differ for a service-based Figure ma1 the AICPA was founded in 1887, GAAP wasshould first business put list the would guidelines from the previous question. have cost of merchandise sold. help a Responses 2.not Accounting records and reports business keep large, recogniz into print in the early 1930s, GAAP codification was Then students should use those guidelines to create a earns and spends. Reading track of how much the business small cash business developed in 1953, and the government established personal goal and steps to reach that goal. flow FASB in 1973 to oversee accounting. 3. Investments allow a business to have money for As You Read Access Answer Lists should include any type of PhotoReading Caption U Universal future needs, such as purchasing new equipment. business that sells a product. Responses C Critical Thinking errorswil th Interpersonal Learners Divide students into groups. system or mov 4.different Investing in of human capital improves the skill of Maintaining Inventory An important part of financial Assign each group a type business. Then Figure 8 Answer Answers may include: potential After Yo workers increasing the quality and rate or work. management is activities ensuring and that you keep thehave righteach groupcreditors conduct market research for their investors; and lenders; government agencies; Economics Different kinds of soaslongana This can cost the business less in the long run What amount of product in inventory. Ask students: business, noting competition, services, customers, and teaching methods can help teachers someone interested buying a business that is for sale. household pla transacti fewer employees and less training will be needed. might you dokinds if youofrealized many ofHave one each group share their research. reach different learners.you had toopricing. revised Sampl in can technology make processes more An owner evaluatemay a business include9 AnswerInvesting model of television in stock? Responses mightFigure plan: cut down C Critical Thinking efficient andcost saveofmoney as fewersold, workers may be by comparing totals on sales, merchandise having a sale, displaying the model more prominently, expensive pur F-3 SECT needed, but more may be spent on training Many will tell you thatmoney the most grossPlanning profit, operating and net income. or improving advertising for that model. Strategic and troubleshooting. Investing goods can important factor in purchasing property is location. Ask in capital Photo Caption

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The Research Base for Glencoe Business and Personal Finance Meeting Individual Needs: Designing Instruction for a Diverse Classroom

Universal Design for Learning Universal Design for Learning (UDL) is an educational framework that guides development of instructional facilities, materials, and activities that help all learners attain success. UDL strives to provide variety in four important areas: methods of teaching and content delivery; student-to-teacher and student-topeer interactivity; demonstration of learning; and assessment and evaluation of learning. CAST (the Center for Applied Special Technology) has developed a framework for Universal Design for Learning that defines three important principles that must be met in a true UDL classroom: Multiple Means of Representation, Multiple Means of Action and Expression, and Multiple Means of Engagement (Center for Applied Special Technology, 2002). These principles can help teachers to maximize learning opportunities for students with different learning styles, abilities, backgrounds, and interests.

Multiple Means of Representation

Visual Summary

CHAPTER REVIEW

Representing information in multiple ways allows teachers to better reach students with different learning styles (Armstrong, 2008). For example, some students may need auditory instruction, others may need visual representations like charts CHAPTER Chapter Review and Assessment REVIEW and graphs, others may need Chapter Summary language-based instruction • • via text, and still others may • • benefit from a hands-on • • approach. When new information • • is presented in multiple • • modalities, all students Vocabulary Review Higher Order Thinking have an opportunity to take • • in information in a way that • • • • works for them. In practice, • • • • • a teacher may introduce • • • • • • a new concept through a • • • • • combination of oral presentation • • and visual diagrams in class, then assign a section of the textbook on the same topic for students to read (or listen to, if they are visually impaired), and then have students complete a hands-on exploration. See the Teacher Manual for answers.

Consumer Credit

Consumer credit is the use of credit for personal needs. Credit is an arrangement to receive cash, goods, or services now and to pay for them later.

Character

Earning Credit Understanding the five Cs can help you determine if a lender will give you credit.

Conditions

Closed-end credit is credit as a one-time loan that you pay back over a specified period of time in payments of equal amounts.

Capacity

Five Cs of Credit Collateral

Open-end credit is credit as a loan with a limit on the amount of money that you borrow for goods and services.

The five C’s of credit include character, capacity, capital, collateral, and conditions. Creditors use the five C’s to determine who will receive credit.

Capital

Open a checking and/or savings account

Apply for a credit card

When choosing a loan or credit card, consider factors such as length of the loan, amount of monthly payments, and interest rate.

Ways to Build Credit

Take steps now to begin building and protecting your credit rating.

1. Use these vocabulary terms in a short essay about buying a new car. credit

Make payments on time

Take out a small loan

use a secure browser

keep records of your online purchases review your monthly bank and credit card statements

Draw a diagram like this one to list the steps you can take to help protect your credit information on the Internet.

Protecting Yourself Online

read the privacy and security policies of Web sites you use keep your personal information private

never give your password to anyone do not download les sent to you by strangers

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UNIT 5 Banking and Credit

Presenting chapter summaries in both text and visual formats addresses different learning styles. 0494_0497_C15_CR_894580.indd

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Dispute billing errors in writing and pay amounts that are not in question. If your credit or identity has been stolen, contact all of your credit card companies; close and open new bank accounts; and change all PINs. Notify law enforcement agencies and credit bureaus. If purchasing online, never share your PINs, Social Security numbers, or passwords. Manage debt problems by contacting creditors and/or debt counseling services. Bankruptcy is a last resort.

H.O.T.

Building Credit

Try It!

To build and protect good credit, pay your bills and loans promptly and manage your personal finances carefully. Also, correct mistakes related to your credit bills and credit reports.

consumer credit

minimum monthly payment

creditor

credit rating

closed-end credit

cosigning

open-end credit

bankruptcy

line of credit

finance

grace period

title

finance charge

portion

net income

pledge

annual percentage rate (APR)

promptly

collateral

repossess

simple interest

confidential

impostors

2. Analyze Why might making only the minimum monthly payments on your credit cards be a warning sign of financial trouble?

3. Predict What problems might you have if you do not follow the suggested guidelines for protecting your credit information on the Internet?

4. Infer Why is it important to keep a record of your credit card numbers separate from the cards? How can this help prevent identity theft? 5. Deduce Why is it necessary to differentiate consumer credit from credit? 6. Differentiate What are the differences between capital and collateral?

7. Justify Explain the advantages of using credit cards, even if you could afford to pay cash.

8. Evaluate Would having the same Vantagescore from all three credit unions be preferable to the varying FICO scores? 9. Judge Would it be better to use a credit counseling service or declare Chapter 13 bankruptcy to enable you to make one regular monthly payment that will be distributed to your creditors to help pay down debt?

Chapter 15 Consumer Credit

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Business and Personal Finance provides teachers with the tools they need to present material in multiple ways.

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The Research Base for Glencoe Business and Personal Finance Meeting Individual Needs: Designing Instruction for a Diverse Classroom • PowerPoint Presentation slides and Unit Opener Videos present information graphically or visually to help students visualize key concepts. The text is also supported by graphics and visual information, including Visual Summaries for each chapter. • Lesson plans are specifically designed to present information in multiple ways, including Universal Access strategies to meet different learning styles including visual/spatial learners, logical learners, or interpersonal learners. • The online materials include graphic organizers, hands-on activities, and other resources that allow students to interact with new material in multiple ways.

Multiple Means of Action and Expression Students must also have multiple ways to interact with new material, practice new concepts, and demonstrate mastery of concepts. For example, allowing students to access materials both on the computer and in print allows students to choose the method of interaction that is most comfortable for them. More importantly, providing a variety of assignments that integrate oral presentation, written composition, use of graphic organizers, and creation of visual representations gives all students an opportunity to practice and demonstrate knowledge in ways that are most comfortable to them. Teachers using Business and Personal Finance can support this goal in several ways: • Utilize both text-based activities such as Go Figure and Document Detective and online resources such as the Personal and Family Financial Management Simulation and Financial Planner Software Activities when teaching students how to work with financial documents and formulas. • Make sure students have opportunities to use pencil and paper, calculators, online calculators, and spreadsheet software for financial calculations so they can find the method that works best for them. • Encourage students to use the online Graphic Organizers as they study to find the methods that work best with their own learning style. Once they have a better understanding of their own learning styles, allow them to choose the best way to review the material. • Provide variety in assignment types and in the ways students may demonstrate mastery of material. When appropriate, give students choices in how they demonstrate mastery. For example, students may present a business plan as a formal written report, or as a PowerPoint presentation with charts and graphs. The Universal Access activities in the Teacher Manual provide alternate assignments and lesson plans for students with different preferred learning styles. You can also allow students to have some choice in how they present their findings and solutions for Discovery Projects and Unit Projects.

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The Research Base for Glencoe Business and Personal Finance Meeting Individual Needs: Designing Instruction for a Diverse Classroom • Give students opportunities to work in small groups on projects or in-class assignments. Group work can be especially beneficial when it allows each student to perform different tasks to draw on their own strengths. For example, one student may create visual materials, another may lead research efforts, and a third may deliver an oral presentation.

Multiple Means of Engagement

Unit

1

Unit Project

Understanding Global Trade

Ask Yourself... Have you ever looked at product labels to see where products were made? Have you ever thought about the cost of importing products from another country? Does the origin of a product ever affect your purchasing decision? Responses to these questions can help you understand and appreciate the importance of global trade.

Your Objective The goal of this project is to develop an understanding of the role and importance of global trade in our society today.

Skills You’ll Use Success in defining goals and preparing financially for those goals depends on your skills. Some skills you might use include: Academic Skills—Reading, writing, and research 21st Century Skills—Critical thinking, decision making, speaking, listening, and role-playing Technology Skills—Word processing, keyboarding, presentation software, and Internet research

Standards NCTE 7 Conduct research and gather, evaluate, and synthesize data to communicate discoveries. NCTE 8 Use information resources to gather information and create and communicate knowledge. NCSS VII A Production, Distribution, and Consumption Explain how the scarcity of productive resources (human, capital, technological, and natural) requires the development of economic systems to make decisions about how goods and services are to be produced and distributed.

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“Multiple Means of Engagement” means presenting material in a way that is most engaging, relevant, and interesting by tapping into each student’s individual interests. When material is personally relevant, students are more motivated to learn, have better engagement with the material, and attain higher levels of comprehension and retention (Stipek, 2002).

STEP 1

Research a Product

Choose a product that you have purchased recently or are considering buying, such as an article of clothing, a game, or a media player, that was made in a foreign country. Answer these questions: • Where was the product manufactured? • Is there a similar product available that is made in the United States? • What factors affected your decision to purchase that particular product over competing brands? • How does the imported product benefit your life? Your responses will help you consider the origin of a product as well as the end use. Use your answers to create an information sheet about the product you purchased. You may choose to include a spreadsheet or chart that compares the product you purchased with a competing similar product.

STEP 2

Explore Laws

Conduct research using print and online resources to find out more about the import laws that affect the product you purchased. • Does the country that made the product have an absolute or comparative advantage for producing that product? • Is the country that manufactured the product allowed free trade or protectionism with the United States? • If protectionism applies, what tariffs or quotas are placed on the product? How might these affect the price you paid for the product? • Research the history of the product to determine if embargoes have ever been placed on it. If so, why? Write a one-page report that explains how the product you purchased was affected by global trade laws. Be sure to cite the sources of your information.

The Project-Based Learning approach used in Business and Personal Finance is particularly suited for meeting this need. Projects give students a great deal of latitude in choosing a specific topic or project plan. For example, students may need to research a product and find out where it is made, how much it costs to make, and what happens to it at each stage of the chain from raw materials to retail store. By allowing students to choose a product that they use regularly or would love to own, the assignment becomes much more relevant and interesting. Students working in groups can also be matched by common interests. For example, three students who are all interested in fashion design may be grouped together to create a marketing plan for a business that will be of interest to all of them. All students in the class will experience the same learning outcome (how to create a marketing plan), but framed by a topic that has personal meaning or interest.

UNIT 1 Economics and Personal Finance

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CHAPTER 17 The Research Base for SECTION 1 Glencoe Business and Personal Finance

Lesson Plans

Preparing for a Savings or Investment Program

Meeting Individual Needs: Designing Instruction for a Diverse Classroom

CHAPTER 8

Section Overview

AS

As Y

they com colle

Lesson Plans and Answer

In this section, students will learn how to develop financial goals, identify sources of funds, and recognize factors that affect investment choices. Care Reading Check Answer It is a list o can Managing Payroll SECTION 1 Differentiated Instruction payments due to each for a specific simu Differentiated Instruction (DI) is the key to universalCareers design. It is a planned, Thatdream Count! war, Make It Personal Ask students what they ofAnswer Good Sectiondeliberate, Overview sequential,achieving and systematic instructional technique designed to management is necessary for the bu and in their lives. Then ask students: Do you In this section, students willwith explore the payroll provide teachers multiple options for covering information and teaching how much cash is available. Continu mar think working hard is enough to meet those goals? system, how to pay employees, payroll deductions,by presenting essential for inve ideas. It provides access to curriculum a range ofadvancement. entry points, Professio Students should recognize that working hard is not and recording payroll information. becoming more important. activities, and outcomes that meet the individual needs of each student enough; they may discuss working smart as well.

FOCUS

Eight Ways  of Learning • Verbal/Linguistic • • • • • • •

Rea (Hall, Strangman, and Meyer, 2003). When educators respond positively Go Figure Answer—Gross Earning fund Logical/Mathematical to diverse student backgrounds, languages, learning preferences, needs, $416.66. ($8.25 × 40 = $330; $8.25 Make It Personal Ask interests, students how work equipped or abilities, and theymany are better to deliver effective Rea S Scaffolded Instruction $12.38 × 7 = $86.66; $330 + 86.66 Visual/Spatial How did you have worked in the past. instruction and Then createask: opportunities forkeep successful learning. than L1 Listmay Have four steps to performing hours at work? Students citestudents using list theReading Check Answer Supervisor mak Musical/Rhythmic track of your budget, have a instruction financial check-up. Effective differentiated holds all Balance accountable for the a time clock, keeping a written record of hours, using astudentsyour for a insurance, start an emergency fund,delivery and have other content, but modifies complexity of language, methods Photo Caption Answer—Incentive program, or working on the the honor system. Bodily/Kinesthetic computersame are u of cash.ability level (Tomlinson, and activities to matchsources the student’s Teachers employees2001). do not receive hourlyofwa yo Interpersonal should also be aware of the preferred learning styles of receive their students. they only the commissions whio L2 Explain Have students list and briefly explain the Howard Gardner first developed his Theory of Multiple Intelligences in 1983, S Scaffolded Instruction Lists four steps in performing a financial check-up. Intrapersonal 1 Answer The employerFigu use when he outlined ways of learning and knowing thatFigure cannot always be should include the steps from the previous question L1 List Have students list the three most common allowances you claim to determine lovew measured by traditional I.Q.an tests (Gardner,for 1983). In 1999 he further refined Naturalistic with explanation hourly wage, and each. methods of paying employees. Salary, case his theory to identify eight distinct ways of learning Go (Gardner, Since Figure 1999). Answer—FICA Deductio salary plus commission. fina L3 has Apply Have students steps×involved then, a body of research supported the uselist ofeach multiple intelligence theory .062)of+the ($550 .0145) = $42.08] in a financial check-up. Then have students create a plan as aHave way students to maximize for all students (Armstrong, L2 Explain buildlearning a chart opportunities to list Document Answers Rea Lists should for performing their ownmay financial check-up. 2008). For example, learners learn best byDetective reading from and explain the three commonverbal/linguistic methods of paying to sa thefrom steps from theneed previous item. 1.toShe makes $6.75should per the textbook, while learners may draw aStudents diagram, andhour. Charts should list visual/spatial theinclude methods the employees. befo create aof budget and that they plan for interpersonal learners may want to act outexplain a scenario withhave othera students. previous question with an explanation each. 2.other No, she makes the same rate.that insurance, emergency fund, and sources of cash L3 Apply Have students research the laws regarding Doc U isUniversal Access 3. January 11, 20— overtime, including when and who eligible in your 1. $ state. Have students write a summary their findings. Visualof Learners Divide the class into small groups and 4. $12.93 Summaries will vary. FLSA sets minimum but how interest rates are set. The have eachstandards group research 2. $ 5. $100.14 some states have additional laws. groups should use the information to create a graphic 3. A presentation to teach others the process. U Universal Access Reading Check Answer Find the cu o

FOCUS

TEACH

TEACH

rates for Social Security and Medica C Critical Intrapersonal Learners Have students write anThinking entry gross earnings bythey each rate, then4.adA for an accounting blog in whichTaking they explain Risks required Have students consider whether a payroll deductions and how theyare arerisk calculated. types of financial takers. Ask students: What Reading Check Answer Totals forin t risks are you willing to take? Answers will vary; some voluntary deductions withheld from C Critical Thinking Universal Access activities in the Teacher Manual provide alternate assignments students may say they are not willing to take any risks 5. A to reach students with different learning styles. Methods of Pay Have students with provide example of othersFigure theiranmoney while will be2willing to take Answer To explain and rein a business that would use each payment method great risks if therefrom are large possible returns. Students deductions for each pay period. Sample answer: the chapter and explain each choice. may discuss other types of risks, like failing in a Rea Figure 3 Answer a salesman might receive commission to encourage competition, as indicators of their comfort level.His gross earning the net pay was $220.76. him or her to make more sales while an assembly-line worker would probably be paid hourly wages. Reading Check Answer Employees

ASSESS

go to the bank to deposit checks; the misplacing a check; funds areF-7 usuall

amount and on time; for tax purposes; and so labor

Photo Caption Answer—User Frie

As You Read Answer So employees get paid the correct

The Research Base for Glencoe Business and Personal Finance Meeting Individual Needs: Designing Instruction for a Diverse Classroom Glencoe Business and Personal Finance offers a variety of instructional methods for all ability levels and learning styles—reading, writing, discussions, graphics, hands-on activities, and more. The Teacher Manual includes suggestions for differentiated homework assignments for students who are performing below level, at level, and above level. Teaching strategies that appear throughout the chapters have been identified by one of three codes to provide an idea of their suitability for students of varying learning styles and abilities. These codes are based on the following ability levels:

Ability Levels Ability Description L1

Strategies should be within the ability range of all students. Often full class participation is required.

L2

Strategies are for average to above-average students or for small groups. Some teacher direction is necessary.

esson Plans and Answer Keys L3 Strategies are designed for students able and willing

wn payment otal monthly × 3 years = 000 × 3 years $6,705 × 35% = % = $2,311.05; year Total tax savings 3.60 = $6,931.40; 0,000 - $15,000 e of house = Total out of pocket 931.40 - $15,000 6.60

to work independently. Minimal teacher direction L3 Apply Have students research two homesisor necessary.

apartments for rent. They should build a chart to compare the location, living space, utilities, security deposit, and rent for eachEnriched one. How doLearning the location for Gifted Students Although term and living space affect the price of the rent? Do“differentiated they affect learning” is often used in the discussion of Chartswhose will vary based on is lower than the class average, differentiated the security deposit as well? students achievement

homes researched. Research should is show thatcritical the nicer instruction equally to keep gifted students engaged, motivated, and location and larger spacechallenged will probably charge Stanford more. and Reeves, 2010). The goal of differentiation is (Manning, These places often have higher security deposits too. to make classrooms more responsive to the

needs, talents, and interests of all the students in them. Gifted Learners Have students research the laws create in L3 Apply Have students a sample of the three Reading Check Answer Inven your state regarding renting to find out the rights and Students will customers, so willwho varymaster essential stock lists for a pet supply store. Samples to becontent away from responsibilities of both tenants anddemonstrate landlords. Have but should an understanding of thechallenging enrichment when the quantity of merchan benefit from activities. them submit their findings in the form essay orona each type of list. merchandise to of bean included A pool supply shop would like Business and Personal graphic depiction. of merchandise to count durin Finance includes U Universal Access activities in Cents the Answer Ten d gifted learners C forCritical Thinking nts have restrictions Activities Common Gifted Learners Have students analyze which type of provide a higher level of Teacher Manual s. Conduct research challenge Needed RepairsforAsk students tosystem imagine that their and autonomy inventory they think would be best for a video rental Career and College Readines ou think apartments high-achieving specifically designed apartment students. needed repairs but the manager will notand a fashion boutique. Then store, a fast food restaurant, vary. Responses tals might not? to engage gifted should identif What would respond to their requests. Ask students: have students interview a local owner or manager for each and describe how these skills c students. In addition, you do? Answers will vary; may typestudents of store to findsay outthat what kind of inventory system they depending on the repair,use. they would it themselves, high achieving Were the do students’ predictions accurate? If not, why? Reading Check Answer FIFO idence or they might seek legal aid. Students may also indicate students be productsshould are perishable. C CriticaltoThinking that they would move out. encouraged use the Virtual Business® - Personal Finance simulation software, Figure Answer—Average Controlling students:Activities, How couldand other Go Standard &Merchandise Poor’s OnlineAsk Extension enrichment ($72,000 + $100,000 ÷ 2 = $8 storing andavailable displaying merchandise negatively affect resources through McGraw-Hill CONNECT™. e advantages, your inventory? If merchandise As You Read Answer Answers may include by evaluating is not stored correctly Reading Check Answer Divid it can beand damaged. Also, stores what they want in an apartment how much they can are often forced to sell sold in a given time period by display merchandise a reduced rate. afford, or students may say they would start byat looking

ey are eager to n ask: What other

U Universal Access

ASSESS

online for apartments in a certain location.

ASSESS Reading Check Answer Consider location, finances,

Go Figure Answer—Inventor F-8

1.38. ($110,000 ÷ $80,000 = 1

The Research Base for Glencoe Business and Personal Finance Meeting Individual Needs: Designing Instruction for a Diverse Classroom Strategies to Reach Struggling Learners Differentiating instruction for struggling learners is critical to ensure that all students master the core knowledge and skills in the curriculum. Researchers have identified a number of effective classroom strategies for struggling learners (Cole, 2001; Hall et al. 2003; Tomlinson, 2001): • Give students opportunities to say, hear, write, read, and act out important concepts and information. • Use games and drills to help maintain interest as students practice skills. • Use notes, outlines, and recordings to reinforce verbal instruction. • Link new concepts and skills to those previously mastered. • Give students extra time to complete assignments and assessments. • Allow students to demonstrate proficiency with alternative presentations, including oral reports, art projects, role plays, and musical presentations. • Pair students with peer helpers and provide classroom time for pair interaction.

Business and Personal Finance uses supportive text and leveled instruction to assist students of all ability levels. Teachers can help struggling students by explicitly pointing out supportive text elements that can help maximize comprehension: • Each chapter previews the essential concepts and vocabulary students will need in a chapter Reading Guide. Students can familiarize themselves with the essential question, main ideas, and vocabulary words before reading the chapter. • Before You Read, As You Read, After You Read and Reading Check notes in the margins help reinforce the habits of good readers: making predictions, asking questions, making connections to self or prior knowledge, and checking for understanding before moving on. These margin notes help students internalize reading strategies. • Graphic organizers can help struggling students visualize relationships between concepts and organize key ideas. • The text is broken down into easily digestible sections and sub-sections. Each sub-section also has an essential question in bold red type. Reading the headers and questions will give students clues about the most important information to look for in each section as they read. Students can also preview the Section Objectives before they read, and return to these objectives at the end of each section to make sure they understand each concept before moving to the next section. • Content is supported by visual elements including pictures, graphs, and charts. Encourage students to use these visual elements and answer the questions in the captions.

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The Research Base for Glencoe Business and Personal Finance Meeting Individual Needs: Designing Instruction for a Diverse Classroom

CHAPTER 14

CHAPTER 5 SECTION 1 CHAPTER 11

Reading Guide

Lesson Plans and Answer K ASSESS

• Repetition and practice can be especially critical for struggling learners. Services SECTION 1 Financial Business and Personal Finance gives students ample practice through and Institutions

You Read resources. Answer Answers will var Lesson Plans and Answer Keys section and chapter review, assessment questions,Asand online

include that you can often earn interes The online practice problems provide immediate feedback and additional Section Overview

practice opportunities. In this section, students will learn about the different Identifying Required Capital types of financial services and financial institutions.

ASSESS

s Standard

SECTION 1

Planning Your Career

FOCUS

account that you cannot from a checki

Reading Check Answer You can use y As You Read Answer Studentsborrow may saymoney that start-up to obtain extra cash.

capital is money used to open a business and operating That Count! Answer Most co capital is the money needed to Careers keep it running. Make start-up It Personal Ask students why they currently In this section, students will discuss capital, require a high school diploma and som use banks. Listcapital. their responses Reading on the board. Then start-up costs, operating capital, and reserve Check Answer Capital is theoften money youthe willfirst impression Tellers make Do you consider any of these to ask students: They will also study projected financial statements. need to establish,beoperate, and customers. expand a business. As the main contact, they h essential? Students should note savings accounts, opportunity to sell additional or new b Reading Check Answer The first step is determining checking accounts, ATMs, and debit or credit cards. how much capital you will need. Figure 1 Answer Answers will vary bu Make It Personal Have students skim the headers in that the earlier in life a person starts sa this section to get a better idea of what is included in a College and Career Readiness Answer Answers will and managing their money, the more l S Scaffolded Instruction financial plan. Then ask: How much long would it take vary. Responses should identify positive cross-cultural be successful at attaining their financia List Have students banking services. to create a financial plan for a L1 business? Answers willlist electronic skills with examples. Electronic banking services include direct deposit, vary but should show that creating a sound financial Reading Check Answer Savings, paym Figure 1 Answer established businesses, account is balances, funds, online or Observing plan may take weeks to ensurecheck that research done. transfer Business and Personal Finance uses supportive borrowing, insurance protection, inves text elements to help maximize comprehension reading trade journals, and consulting with vendors. automatic payments, debit cards, and online banking. income tax assistance, and financial pl for struggling learners. Photo how Caption Answer—Amassing Assets Responses L2 Explain Ask students to explain banks use Figure 2 Answer Benefits might inclu S Scaffolded Instruction might include service-based businesses or businesses technology to improve or increase their services. speed, ability to react quickly to issues, that make custom items to order. L1 List Have students list the Explanations projected financial will vary but may include that many Concerns: privacy, security, difficulty m statements that must be included in financial banks use technology to build a user-friendly Web site Document Detective Answers forecasting. Projected income statements, Photo Caption Answer—ATM Safety that allows balance a host of online banking services, including 1.loan It shows the financial healthfor of someone an individual. sheets, and statements of cash automatic flow. to obtain it and then acce payments and online applications.

Section Overview Before You Read

Academic

The Essential Question What can you do to make sure the career you choose is personally satisfying and fullling?

Main Idea

Choosing and planning for the right career can help you find the job or career that meets your personal and financial goals.

Content Vocabulary

• résumé • cover letter • cafeteria-style employee benefits • pension plan • mentor

• job • career • standard of living • trends • potential earning power • aptitudes • interest inventories • demographic trends • geographic trends • service industries • internship • cooperative education • networking • informational interview

FOCUS

Academic Vocabulary

You will see these words in your reading and on your tests. • flexible • asset • wealth • fixed

Graphic Organizer

Before you read this chapter, create a concept map like the one below. As you read, take note of six sources you can use to find job opportunities.

Identifying Job Opportunities

See the Teacher Manual for answers.

glencoe.com

Print this graphic organizer.

TEACH 318

Choosing a Career

What is the difference between a job and a career?

Mathematics NCTM Number and Operations Compute uently and make reasonable estimates. NCTM Problem Solving Solve problems that arise in mathematics and in other contexts.

Some people find true satisfaction in their work, while others work just to make money. Like many people, you may decide to get a job— work that you do mainly to earn money. On the other hand, you may decide to prepare for a career. A career is a commitment to work in a field that you find interesting and fulfilling. Ensuring that your career will fulfill your personal and financial goals requires planning.

English Language Arts NCTE 5 Use different writing process elements to communicate effectively. Science NSES F Develop understanding of personal and community health; population growth; natural resources; environmental quality; natural and human-induced hazards; science and technology in local, national, and global challenges.

Career Decision Trade-Offs

Your choice of career will affect the amount of money you make, the people you meet, and how much spare time you have. Some people work just to maintain a standard of living, a measure of quality of life based on the amounts and kinds of goods and services a person can buy. They also work to pay for the hobbies and activities they enjoy. Others pursue careers that provide them with both money and personal fulfillment. They select careers that reflect their interests, values, and goals.

NCTM National Council of Teachers of Mathematics NCTE National Council of Teachers of English NCSS National Council for the Social Studies NSES National Science Education Standards

Choosing a career will involve trade-offs, or opportunity costs. Many people devote most of their time and energy to their work. As a result, their family lives and personal satisfaction may suffer. Recent trends—developments that mark changes in a particular area—indicate that some people are making career decisions, such as declining a promotion, that allow them to spend more time with their families or to enjoy their hobbies and interests.

TEACH

You may select a career that is challenging and offers you the chance to grow, even if it does not earn you a large salary. On the other hand, you may choose to work in a job that is less satisfying but offers more money. You may look for part-time work or work situations with flexible, or adjustable, hours so that you will have more time to spend with your family. You could also decide to give up the security of working for someone else to take on the challenge of running your own business.

Common Core Reading Determine central ideas or themes of a text and analyze their development; summarize the key supporting details and ideas. Writing Write informative/ explanatory texts to examine and convey complex ideas and information clearly and accurately through the effective selection, organization, and analysis of content. Speaking and Listening Present information, ndings, and supporting evidence such that listeners can follow the line of reasoning and the organization, development, and style are appropriate to task, purpose,and audience.

The more you know about your own interests, values, needs, and goals, the better you will be able to choose a career that will provide a balance between personal satisfaction and financial rewards.

UNIT 4 Planning Personal Finances

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Section Objectives

• Identify the personal issues to consider when choosing and planning your career.

• Explain how education

and training affect career advancement.

• Discuss the factors that inuence employment.

As You Read

Predict Imagine the job or career you would like to have 15 years from now. How will that job or career fulll your personal and nancial goals?

As You Read Answer Answers will vary. Financial goals may include paying for housing, bills, or a car. Personal goals may include starting a family, or travel.

Springboard Ask the students if they have thought about what careers they would like to pursue. If so, what kind of research have they done to nd out how to prepare for such careers?

Photo Caption Answer Some parents may prefer a exible schedule over a higher salary. Some may choose not to work.

Work and Life Balance

Choosing a career involves trade-offs. What other trade-offs might a parent choose to make?

Chapter 11 Finances and Career Planning

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Differentiated Instruction for English Language Learners

Differentiated instruction is important in virtually all classrooms. It is critical 2.a Sarah’s worth is $29,000. L2 Describe Have students listL3and describe the Document Detective Apply students create chart tonet show themany in Have language-diverse classrooms, where learning activities can andAnswers

projected financial statements included inbanking financial electronicshould offered bysubtracting their bank total or liabilities beservices modified and differentiated. 1.from 1/23/05 2/24/05 3. By totaltoassets. thelocal statements forecasting. Students should listany branch. from Have students evaluate the services. 2. Creditsability are amounts added to your the previous question with a description of each. Language barriers can substantially impair a ELL students’ to Answers will vary based on the bank the is students 4. Herand salary $55,000.

and offer learnclear new explanations content, as well personal comprehend habits, but should for as their ability to demonstrate 3. Debits are amounts L3 Apply Have students create a table that lists the 5. The SBA might want to contact the banks othersubtracted from their preferences. what they know and on traditional projected financial statements included in financial people to verify the information. assessments (Short1045 & for $2,440.00 c 4. Check number forecasting. Then have students note to get the Access U where Universal Fitzsimmons, 2007). Figure 2 Answer Sample answer: hidden costs useSimple up listLanguage the statements information for each. Students’ should 5. effective It is the total amount of the checks t English Learners Have students work in and teaching funds and start-up amounts are often under-estimated. from the previous question, as well as indicate how they bank during this period. groups to research safety measures that individuals can techniques can help smooth will populate each one, such as using trade associations. take when using electronic banking services. each Licenses, permits, insurance, Reading CheckHave Answer the for these students 6.way It means that you did not have enou group create and share a poster with the tips they learn. rent, remodeling, or maintenance and repair expenses. U Universal Access (Genesee, Lindholm-Leary, your account and the check was reje English Language Learners Have work in Saunders, Income & Christian, 2006). C students Critical Thinking Photo Caption Answer—Forecasting Reading Check Answer Direct deposi pairs to find visual examples ofJudge each ofSome the content statements, balance sheets, and statements of cash flow. people feel that using debit cards is more

deposit to an employee’s designated ba vocabulary terms. Where possible, pair an than English responsible using credit cards. Others feel that language learner with a more proficient speaker. Economics and for all three are the What doYou youAnswer Pros both should be avoided. Ask students: Reading Check Answer Interest rates large selection of products made available. Free trade Why? Sample answer: I feel that debit cards can convenience, and the minimum balanc Teachers can find activities for Englishthink? Language Learners in the C Critical Thinking allows businesses to buy products competitively and be used responsibly since they only allow you to spend Teacher Manual. Operating Capital It is important to have enough sell products in other countries. Workers have more job Deposit instit Reading Check Answer money you already have. Credit cards are often viewed money to run your business for the first few months or security in this example. involve competing commercial banks, savings and loan as as “free money” and allow people to spend money they The cons F-10 years before you actually open the doors. Ask students: with foreign companies that have lower operating mutual savings banks, and credit union cannot afford so they should be avoided. Why is it common to have losses when a business first costs and can charge lower prices. In those cases, U.S.

The Research Base for Glencoe Business and Personal Finance Meeting Individual Needs: Designing Instruction for a Diverse Classroom Business and Personal Finance gives teachers activity suggestions for English Language Learners (ELL) in the Universal Access hints in the lesson plans. ELL students will also benefit from the same kinds of scaffolding and support recommended in the principles of Universal Design for Learning. Other elements in Business and Personal Finance that can support English Language Learners: • Encourage students to use the graphic organizers included with each chapter. They should fill these out with vocabulary that is familiar and comfortable for them. • ELL students can preview the content area and general academic vocabulary at the beginning of each chapter, and define these words in their own terms before they begin to read. These vocabulary words are highlighted throughout the chapter. • ELL students will benefit from the pictures, diagrams, and other visual elements in the text, and the visual summaries at the end of each chapter. Encourage students to use the visual elements to help them as they read the text. • Discovery Projects and Unit Projects provide opportunities to pair students with peer helpers or place them in cooperative groups. Pairing students with native English speakers or other ELL students with more advanced language skills provides opportunities to practice oral language skills in the context of the subject they are studying. • Online activities such as the Virtual Business® - Personal Finance  simulation, the Money Matters Personal and Financial Management  Simulation, and the Financial Planner Software Activities provide opportunities for hands-on learning to support and extend written and verbal instruction. Teachers will find additional classroom instructional strategies for English Language Learners in the online professional development videos.

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Bibliography Armstrong, T. (2008). Multiple Intelligences in the Classroom. Alexandria, VA: Association for Supervision and Curriculum Development August, D. (2003). Supporting the development of English literacy in English language learners: Key issues and promising practices. Baltimore, MD: Center for Research on the Education of Students Placed At Risk. Bransford, J. D. 1979. Human cognition: Learning, understanding, and remembering. Belmont, CA: Wadsworth Publishing. Bookhart, S. M. (1999). Designing assessments to inform and improve student performance. San Francisco, CA: Jossey-Bass. Center for Applied Special Technology (2002). UDL Toolkits: Planning for All Learners (PAL). (n.d.). Retrieved November, 2010, from http://www.cast. org/teachingeverystudent/toolkits/tk_introduction.cfm?tk_id=21 Cole, R. W. (Ed), (2001). More strategies for educating everybody’s children. Alexandria, VA: Association for Supervision and Curriculum Development. Donovan,M. S., Bransford, J. D., & Pellegrino, J.W. (Eds.). (1999). How people learn: Bridging research and practice. Washington, DC: National Academy Press. (http://bob.nap. edu/books/0309065364/html/) Ellis, E. S. and Worthington, L. A., (1994). Research synthesis on effective teaching principles and the design of quality tools for educators. University of Oregon: Technical Report No. 5 National Center to Improve the Tools of Educators. Gardner, H. (1983/2003). Frames of mind. The theory of multiple intelligences. New York: Basic Books. Gardner, H. (1999). Intelligence reframed. New York: Basic Books. Genesee, F. Lindholm-Leary, K. Saunders, W. & Christian, D. (Eds.), (2006) Educating English language learners: A synthesis of research evidence. New York: Cambridge University Press. Hall, T., Strangman, N., & Meyer, A. (2003). Differentiated instruction and implications for UDL implementation. National Center on Accessing the General Curriculum. Retrieved December, 2010 from: http://www.k8accesscenter.org/training_resources/udl/diffinstruction.asp. Manning, S., Stanford, B. and Reeves, S. (2010) Valuing the Advanced Learner: Differentiating Up. The Clearing House. Volume 83 (4) 2010. Washington, DC: Heldref Publications Rose, D. (2001). Universal Design for Learning: Deriving guiding principles from networks that learn. Journal of Special Education Technology, 16(2), 66-67. Short, D., & Fitzsimmons, S. (2007). Double the work: Challenges and solutions to acquiring language and academic literacy for adolescent English language learners – A report to Carnegie Corporation of New York. Washington, DC: Alliance for Excellent Education. Stipek, D. J. (2002). Motivation to learn: Integrating theory and practice. Boston: Allyn & Bacon. Tomlinson, C.A. (2001). How to differentiate instruction in mixed-ability classrooms.(2nd Ed.) Alexandria, VA: ASCD. Willis, S. & Mann, L., (2000). Differentiating instruction: Finding manageable ways to meet individual needs. Curriculum Update: Winter, 2000. Alexandria, VA: ASCD. Retrieved November 2010 from http://www.ascd.org/ed_topics/cu2000win_willis.html

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The Research Base for Glencoe Business and Personal Finance Meeting Academic and Industry Standards

The Research Base for Glencoe Business and Personal Finance Table of Contents Meeting Academic and Industry Standards

Meeting the Common Core Standards . . . . . . . . . . . . . . . . Page G-2



Meeting The National Business Education Standards. . . Page G-2



Supporting National Academic Standards. . . . . . . . . . . . . Page G-3



Verifying Learning Through Assessment. . . . . . . . . . . . . . . Page G-9

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The Research Base for Glencoe Business and Personal Finance Meeting Academic and Industry Standards

Meeting the Common Core Standards All Glencoe/McGraw-Hill textbooks are aligned to rigorous academic standards and fully support the accountability requirements outlined in the No Child Left Behind Act. Glencoe Career and Technical Education (CTE) programs are built around both academic content standards and appropriate industry standards to prepare students for standardized tests, certifications, and career and college opportunities. Business and Personal Finance is mapped to the National Standards for Business Education as well as the nationally recognized content standards in Economics, Mathematics, English Language Arts, Social Studies, and Science. In 2010 the National Governors Association Center for Best Practices (NGA Center) and the Council of Chief State School Officers (CCSSO) released the Common Core State Standards, a set of voluntary standards in Mathematics and English Language Arts that have been widely adopted across the country. This state-led initiative identifies a common set of core knowledge and skills for each grade level that ensure that students will be ready for college or the workforce once they graduate from high school. Glencoe programs are based on rigorous, research-based standards that fully support the goals of the Common Core State Standards Initiative.

Meeting the National Standards for Business Education Every day in classrooms across the nation, business educators engage in the vital task of preparing students to become adept at making intelligent economic decisions that will benefit them personally and professionally. The National Business Education Association (NBEA) recognizes that since all students live and work in the economic world, all must have an understanding of business and economics. As a result, the NBEA has created the National Standards for Business Education. These standards encompass business, finance, and economics concepts and skill, and enable students to • understand the basics of personal finance, • utilize financial knowledge and skills to make sound business and consumer decisions, • learn the fundamentals of business processes, and • understand the economic theories that impact the expanding global marketplace.

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the Unit Lesson Plan.

In Your World Be Your Own Boss Have you ever thought about starting your own business? As an entrepreneur, you need to understand and accept the risks before you can reap the rewards. One out of two small businesses fails in the first year. However, if you have a great idea, know how to write a business plan, get funding, and work hard, you may be one of the lucky business owners who can tell a great success story.

The Research Base for Glencoe Business and Personal Finance glencoe.com

Meeting Academic and Industry Standards Video Watch the Unit 2 video to learn more about what it takes to make a success out of a small business.

An Income Statement If you own or work in a business, you will want to know if the business is profitable or not. If you are not bringing in enough income to offset your expenses, you will not make a profit. An income statement contains the following information: • Income generated • Expenses incurred • Profit or loss

General Products—Income Statement Year ending December 31, 20XX Revenue Sales Costs of goods sold Gross prot Operating Expenses Salaries Advertising Rent Utilities Maintenance Insurance Misc. Total Expenses Net Prot Taxes Net Prot

Business and Personal Finance is a rigorous course that is mapped to all eight major strands of the Personal Finance Standards as well as the nine Economics Economics and You Standards outlined in the National Standards Economic Systems and Taxes for Business Education. In addition, the activities In a command economy that has socialism as the political philosophy, taxes are high. High taxes are needed to provide the and projects in Business and Personal Finance social services that a government provides. In socialistic countries taxes pay for free education from kindergarten through college, help develop the career and workplace skills free medical care for all citizens, and for subsidies to certain industries to keep prices low for consumers. Higher taxes reduce that the NBEA and other national organizations the amount of net profit for business owners in a command economy. In a market economy, the government does not provide have identified as critical for career success, the wealth of social programs one would see in a socialized country. Therefore, taxes are not as high in market economies including higher-order thinking and problem and that encourages people to open their own businesses. Write one or more paragraphs to explain in which economic system you would rather be a citizen, taxpayer, and business owner. solving, interpersonal and communication glencoe.com skills, and technology skills.

Start-Up Costs Think about a business you would like to own. Write down a “to do” list that you would need to complete before investing any money in your venture. Does the list inspire you, or does it make you wonder if owning a small business may not be worth the See the Teacher Manual for answers. effort? Explain your answer.

Document Detective

$450,000 250,000 $200,000

$70,000 12,000 14,000 3,600 1,200 1,500 1,000

$103,300 $96,700

$48,350

Activity Download an Economics and You Worksheet Activity. $48,350

59

Key Points An income statement shows how much a company earns after it pays all its expenses, such as salaries, advertising, rent, utilities, maintenance, insurance, and other operating expenses. 0058_0059_U02_UO_894580.indd

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Supporting State and National Academic Standards

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the Solutions

Review Key Concepts 1. How is gross profit calculated? 2. What time period is covered in the statement?

4. How much did it cost this company to produce the goods it sold?

3. What percent of net profit does this company pay in taxes?

5. What could this company do to increase its profits?

Business and Personal Finance, in addition to providing excellent subject area instruction in business and finance, deliberately and consistently incorporates activities that support the development of core academic skills in English Language Arts, Mathematics, Science, Social Studies, and Economics. Glencoe’s business, career, and technology education programs are designed to reinforce academic skills as required by the Carl D. Perkins Career and Technical Education Improvement Act of 2006. The Perkins Act mandates that students in CTE programs must be held accountable to the same high academic standards as students in other programs. Teaching these academic skills within the context of a CTE course can help students see the relevance of what they are learning and boost academic skill attainment.

Chapter 7 Financial Accounting

Business and Personal Finance provides a thorough and rigorous introduction to finance, business, and economics concepts and skills. 0189_0203_C07_S01_894580.indd

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The following correlations can be found in the Teacher Edition: • National Council of Teachers of English Standards, p. TM 33 • National Council of Teachers of Mathematics Standards, p. TM 34 • National Council for Social Studies Standards, p. TM 35 • National Business Education Association, p. TM 36 • National Center of Education and the Economy Standards, p. TM 38

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The Research Base for Glencoe Business and Personal Finance Meeting Academic and Industry Standards National Standards for Economic Education Economics impacts nearly every aspect of the modern world, from politics and national policy to decisions about funding scientific research. The Council for Economic Education (CEE) first published the Voluntary National Content Standards in Economics in 1997, outlining twenty essential principles of economics that all students should understand to be considered economically literate. At the high school level, they define what high school students should know and be able to do before they graduate. Because few students take an economics class in high school, the standards were developed to help teachers incorporate economics concepts into social studies or CTE courses. An understanding of economic principles provides an important framework for understanding topics in business and finance, and is a foundational component for a comprehensive financial literacy curriculum.

Business and Personal Finance incorporates economics extensively throughout the text. The first unit, “Economics and Personal Finance,” includes two chapters that explicitly lay out essential principles students should understand before they dive into the finance curriculum. In these chapters, students will explore the following: • opportunity costs

• incentives

• scarcity

• monetary policy

• factors of production

• economic indicators

• economic systems

• business cycles

• supply and demand

• global economic issues

These topics provide an important foundation for understanding how people make business and financial decisions.

Economics and You Specialization Individuals, companies, and nations specialize in what they do best. Specialization forces all of them to trade with one another so each gets the good and services needed to satisfy their wants and needs. For example, a company that is good at making clothing will purchase the cloth, thread, buttons, and zippers from companies that make those items. When each company specializes in making specific products, production and consumption increases because each one has the know-how, materials, and machinery to do so. Some companies use just-in-time Inventory systems so suppliers are notified as soon as product reaches a certain quantity. This type of specialization improves inventory control. Nations are also interdependent upon one another due to specialization. A nation that specializes in growing coffee beans will sell them to another nation that does not have the natural resources to do so. The country that buys the coffee beans may have the machinery necessary for processing coffee beans so it sells that machinery to the coffee bean producing country.

Economics and You features in every chapter demonstrate how economic principles impact business and financial decisions.

Personal Finance Connection In some cases, employees may be responsible for keeping payroll records or managing the company’s inventory. Each employee therefore contributes to the business by specializing in what he or she does best. When you decide on your career, you will be specializing in what you do best. Critical Thinking What facets of payroll recordkeeping and inventory control could make use of specialization of labor? How would specialization improve business operations and chores at home?

You have probably bought an item in a store with this kind of system, where the associate passes an electronic gun or scanner over the bar code of the item you are buying. The scanner reads the bar code, you hear a beep, and the item’s price appears on the screen of the point-of-sale terminal. In addition, sales tax is automatically calculated when the items are entered. The sales slip you receive from the store lists the items

Comparative Advantage Before Specialization Country A Country B

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Cashews

After Specialization

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glencoe.com Activity Download an Economics and You Worksheet Activity.

Economics and You Answer Sample answer: One person may prepare the information needed for determining payroll while another prepares paychecks and another prepares reports for the government. With inventory control, one person may devise the system while another implements it, and another includes the information on

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The Research Base for Glencoe Business and Personal Finance Meeting Academic and Industry Standards

CHAPTER 15

Economics

NBEA Standards NBEA II. Economic Systems: Explain why societies

develop economic systems, identify the basic features of different economic systems, and analyze the major features of the U.S. economic system. NBEA III. Economic Institutions and Incentives: Analyze the role of core economic institutions and incentives in the U.S. economy. NCEE Standards Marginal Cost/Benefit: Effective decision

making requires comparing the additional costs of alternatives with the additional benefits. Most choices involve doing a little more or a little less of something: few choices are “all or nothing” decisions. Role of Interest Rates: Interest rates, adjusted for inflation, rise and fall to balance the amount saved with the amount borrowed, which affects the allocation of scarce resources between present and future uses. Monetary and Fiscal Policy: Federal government budgetary policy and the Federal Reserve System’s monetary policy influence the overall levels of employment, output, and prices.

Economics and Personal Finance In this chapter students will learn about these economic concepts in the context of personal financial planning. Remind students that many of the economic concepts have already been covered. • opportunity cost • incentive • money supply • inflation

Economics is integrated throughout the text. Each chapter, as well as each Unit Opener, includes an Economics and You feature that introduces an important economic concept and shows students how it relates to the chapter material and to their own lives. In addition, every chapter includes an Economics Lesson Plan in the Teacher Manual. These lessons include leveled classroom activities, key vocabulary, and a visual summary to help show how concepts are related. These Lesson Plan lesson plans are tied to both S Scaffolded Instruction CEE Economics standards L1 List Have students list some of the incentives and the National Business that credit card companies might use to attract new customers. Answers will vary but may include low Education Standards for interest rates, reward programs, or buyer insurance programs. Economics. L2 Explain Have students explain which factors they should consider when selecting a credit card. Answers

may vary but should include interest rates, membership or annual fees, credit limit, and payment terms.

L3 Apply Have students go online and find two different credit card providers. Have them compare the terms of each card and describe the main differences in the two. Which card would they choose? Why?

Responses will vary based on research. Main differences will probably include annual fees and interest rates. Preferences may also be based on rewards offered or even the look of the card.

Visual Summary Relating Concepts Have students create one or more visual summaries conveying the meaning of opportunity cost and incentives and relating both terms with using a credit card to make a purchase.

Answers will vary. Students’ responses should convey that opportunity cost is something you give up while incentive is something you get. A sample visual summary is provided below.

Use these activities to reinforce the economic concepts in this chapter.

Reinforce Vocabulary Review the economic terms with students. Ask students to write a one-page report describing the relationship each of the concepts above has with consumer credit and the use of credit cards. Discuss with students that although many people feel having a credit card is an automatic increase to their personal money supply, this is not actually the case. Using a credit card means you are merely postponing payment, not avoiding it. In fact, you often end up paying more for the purchase.

TM170

Make purchase with credit card

Earn reward points to get future cash/ product (Incentive)

Pay interest on monthly payment, making total cost of item more expensive (Opportunity Cost)

UNIT 5 Banking and Credit

Each chapter includes an Economics Lesson Plan to reinforce TM169_TM170_C15_895835.indd 170 key concepts in economics throughout the course.

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The Research Base for Glencoe Business and Personal Finance Meeting Academic and Industry Standards

NCTM Principles and Standards for School Mathematics

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The Principles and Standards for School Mathematics outline important overall characteristics of mathematics education (principles) and describe specific mathematical content that students should learn (standards).

See the Teacher Manual for answers.

Mathematics 6. Loan Cost Vladimir has recently moved into an apartment. Since this is his first time living on his own, he needs to purchase furniture for his new residence. Vladimir does not have enough cash to buy the furniture, and he is not able to use his credit card due to the low credit limit. He decides to take out a loan from a bank for $5,000. The bank charges 6.5 percent annual interest, compounded monthly. Vladimir will pay $300 per month on the loan. What will the loan balance be after 3 months?

Math skills are foundational skills for business and finance professionals. Glencoe Business and Personal Finance integrates the key attributes for effective curricula recommended by Principles and Standards for School Mathematics.

Calculate Loan Balance To calculate the balance on a loan add the interest charge for the first period to the original loan amount and subtract the monthly payment. Continue this process for the remaining periods.

he greatest temptation wever, lly the get a nicer se you oan to buy r a simple, with more t with your n.

• Calculations are introduced with step-by-step instructions and examples before students practice on their own.

Starting Hint Determine the loan balance after month 1 by first multiplying the annual interest rate by the loan amount and dividing by 12. Add the result to the original loan amount and subtract the monthly payment.

• Math application questions in the section and chapter reviews allow students to practice key math skills in the context of the business concepts they are learning.

NCTM Connections Recognize and apply mathematics in contexts outside of mathematics.

urposes.

glencoe.com

Check your answers.

Mathematics Application questions provide opportunities to practice foundational math skills for business and finance.

GO FIGURE

• The Math Skills Builder, found in the Appendix of the Student Edition, provides a concise review of math skills including using fractions, decimals, and percents; calculating averages; interpreting charts, graphs, and tables; and using and converting units of measure. This important resource helps students strengthen the math skills most critical for success in business and finance.

Mathematics

Simple Interest on a Loan

Your Turn

Simple interest, compounded annually, is a percentage of the amount borrowed. The amount borrowed is called principal. Compound interest may be computed daily, monthly, or yearly.

You just bought a used car for $3,500 from your aunt. She agreed to let you make payments for 3 years with simple interest at 6 percent. How much interest will you pay?

15 $1,000 to purchase a used EXAMPLE Janelle’s cousin agreedChapter to lend her 461 Consumer Credit laptop computer. She has agreed to charge only 5 percent simple interest, and Janelle has agreed to repay the loan at the end of one year. How much interest will she pay for the year? Use the formula below to help compute Janelle’s loan interest. 9/29/10

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Formula Principal × Interest Rate × Amount of Time = Simple Interest Solution $1,000 × .05 or 5% × 1 = $50 interest

Lender Risk Versus Interest Rate You may prefer financing that

requiresexample a minimumproblems down payment, a portion, or part, of the total in Worked and practice problems cost of an item that is required at the time of purchase. Another Go option Figure allow students to check their understanding is to take out a loan that features low, fixed payments with of financial a large, finalcalculations. payment. Keep in mind that the lender’s goal is to

Go Figure Answer $630 ($3,500 × .06 × 3 = $630)

• G  o Figure features provide worked examples and a similar practice problem to help students become more comfortable with financial calculations. • Many of the Discovery Projects, Unit Projects and other in-text activities require students to complete financial calculations within the context of a real-world scenario. • Students can find additional examples and practice problems in the online resources through McGraw-Hill CONNECT™.

minimize risk, or make sure that you pay back the loan in full. Both of these financing options can increase your cost of borrowing because they create more risk for the lender. Consumers who want these types of features have to accept the trade-off of a more expensive loan. To reduce lender risk and increase your chances of getting a loan at a lower interest rate, consider the following options:

• Variable Interest Rate A variable interest rate is based on



changing rates in the banking system. This means that the interest rate you pay on your loan will vary from time to time. If you have a loan with a variable interest rate and overall interest rates rise, the rate on your loan is adjusted accordingly. Therefore, the lender may offer you a lower beginning interest rate than you would have with a fixed-rate loan. A Secured Loan You will probably receive a lower interest rate on your loan if you pledge collateral. Collateral is a form of security

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The Research Base for Glencoe Business and Personal Finance Meeting Academic and Industry Standards

NCTE Standards for the English Language Arts Published jointly by NCTE and the International Reading Association (IRA), Standards for the English Language Arts defines the reading, writing, speaking, listening and research skills that are necessary for success in every academic pursuit. These foundational skills should be explicitly taught and reinforced throughout content-areas courses in order to maximize learning in all subject areas (Fisher, Brozo, Frey, & Ivey, 2007). The principles prescribed by the Standards for the English Language Arts are incorporated throughout Glencoe Business and Personal Finance.

College and Career Readiness

See the Teacher Manual for answers.

English Language Arts

-Sale Convenience From early c cash registers to modern, Web-based sale (POS) systems, technology has o help business owners and retailers their inventory management. It also s the speed and accuracy of sales.

re Research the development of ed point-of-sale systems.

Prepare a report that outlines the English Language Arts nefits that a business can experience by questions require dvantage of the latest POS technology.

students to apply reading, writing, tudents should developand abilities of technological research skills to derstandings about science and technology. business and finance.

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Units 100

Cost $85

Total $ 8,500

75 150 80

$93 $79 $90

$ 6,975 $11,850 $ 7,200

mpleting a physical inventory, the y determined that there are 98 units g. Calculate the cost of the ending y using the FIFO method. Calculate the nding inventory using the LIFO method.

Calculate Cost of Inventory Calculate of ending inventory by identifying ntory level at a given period of time. ne the particular method being used, multiply the units remaining by the e cost per unit.

Hint The FIFO method assumes nventory remains from the most recent s. Multiply the number of units by the price for each order to get the total cost.

blem Solving Solve problems that arise in mathematics r contexts.

12. Choosing the Right Forms Go to the official Internal Revenue Service Web site to examine the forms businesses use to report payroll information to the government. With your teacher’s permission, form small groups and select at least four forms to evaluate. Work together to figure out the information each form requires. Which forms are easy to understand? Which are more difficult to understand? How can a business owner get help with the forms? What additional information is available to business owners regarding how to pay taxes? Present your findings to the class.

• English Language Arts application questions in the chapter review are keyed to the NCTE standards. These questions require students to apply ELA skills to business and financial topics. • Discovery Projects and Unit Projects require extensive research, writing, and presentation skill development.

NCTE 7 Conduct research and gather, evaluate, and synthesize data to communicate discoveries.

Discovery Project

Ethics

Building Good Credit

13. Revealing Information When you start filling out employment and tax forms, you will need to answer questions about personal information. •  Writing Activity prompts at Examine this scenario: Cathleen completed her the beginning of each chapter online benefits package at work and printed provide plenty of formal and out the summary, which includes her current salary, on a shared printer. She got a phone informal writing opportunities. call and forgot to pick up her printout. Lauren later passed the •  printer and saw Cathleen’s Additional extension and enrichdocument, which she read. Now Lauren is ment activities available through upset because Cathleen has a higher salary. McGraw-Hill CONNECT™ also She wants to discuss this with her manager, but she does not want to reveal how she found the require research and writing. information. What should Lauren do?

Key Question

You can find additional information Real-World Applications 14. Advertising Art about The prices of merchandise meeting English Language are advertised on television, online, and in in the Researchprint ads, and areArts evenstandards painted on store-front windows. PricingBased is one ofInstructional the most important Strategies tools retailers use to promote their businesses. section of this paper, under Choose a product and then imagine that you “Reading and Writing are going to place an ad for this item. Researchin the the typical pricesContent for this product and Area.” set a reduced price for a clearance sale at the mall. Using markers, crayons, paint, cut-outs from magazines, or illustration software, create an ad displaying the product and its sale price.

$

Why is it important to monitor and protect your credit rating?

Building good cre nancial

ASK

Project Goal Imagine you are moving into your rst apartment. Your paycheck might cover rent and utilities, but you will be paying for many other things for yourself for the rst time, such as furniture, groceries, and gasoline. You decide to use credit cards to make some of these purchases and help build your credit rating. • Research the types of credit cards that would be useful for you. Is a department store card or gas card worthwhile? Would a smart card or T&E card be a better option? • Set up a spreadsheet to compare the details of each card you research, including the APR, monthly fees, minimum monthly payment, late fees, and affiliated rewards programs. • Evaluate your information to identify which card or cards would be best to suit your needs.

Ask Yourself … • • • •

How will you use your credit cards? What types of credit cards will you get? How did you determine the most cost-effective cards? Aside from allowing you to buy things you need, what advantages do credit cards offer? • What are the disadvantages of owning credit cards?

Students will have many opportunities for formal and informal writing throughout the course. Make Judgments and Decisions

How could you avoid the temptation of overusing your credit card?

s Finance Basics glencoe.com Evaluate Download an assessment rubric.

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CHAPTER REVIEW

See the Teacher Manual for answers.

English Language Arts

10. Global Community Imagine that you work as a medical billing and coding specialist for a large medical center. The center has started to outsource services, such as medical transcription, to a country where employees’ wages are much lower than in the United States. As a result, the center is in the process of streamlining its record management systems. It also has allowed the center to reduce the number of employees who work in the front and back offices. Staff members believe that more jobs will be lost over the next two years. Using print or online resources, research the trend to outsource medical services to other countries. Based on your findings, would you consider finding another job? Explain your answer.

12. Set and Achieve a Goal Review the six steps of the financial planning process. Choose a specific, short-term financial goal that a typical teen might want to achieve, such as saving for a new cell phone or paying a debt. Using the six steps, create a detailed outline that shows how the teen can achieve this goal.

NCSS IX H Global Connections Illustrate how individual behaviors and decisions connect with global systems.

Mathematics 11. Present Value Randy wants to establish an account in the future where he can withdraw $1,000 per year for 8 years. His account earns 7 percent annual interest. How much money does Randy have to deposit today in order to achieve his goal? If his account only earns 5 percent annual interest, how much does he have to deposit today? If Randy decides that he only wants to withdraw $1,000 per year for 5 years, how much does he have to deposit today if the account earns 7 percent annual interest? Calculate Present Value To calculate the present value of a series of deposits find the multiplying factor using Figure 4. Starting Hint To calculate the present value of a series of deposits first identify the appropriate present value factor from the table in Figure 4. Multiply this factor by the amount to be withdrawn. NCTM Representation Create and use representations to organize, record, and communicate mathematical ideas.

314

NCSS Curriculum Standards for Social Studies

College and Career Readiness

Social Studies

NCTE 3 Apply strategies to interpret texts.

Economics

Ireland

13. Economic Factors Inflation and interest rates are connected. Both of these economic factors Minimum Wages should be considered in your financial planning, To help prevent businesses from exploiting the workforce, most especially for long-term goals. Remember, countries have some form of minimum wage laws. Ireland is a bit inflation is the rise over time in the level of different. In fact, there is no comprehensive statutory minimum wage prices for goods and services. Inflation is in Ireland. However, some workers are protected against low wages. measured as an annual percentage rate, like Some industries establish Joint Labour Committees (JLCs) to set legally interest rates. Lower interest rates benefit binding minimum levels of pay. In order to create a JLC, there should consumers by giving them more borrowing be little or no effective collective bargaining in that industry. power. When consumers spend more, the Trade unions are sometimes able to raise wages of workers but economy grows, and inflation is the natural outcome. Inflation, therefore, can be a sign that of ability is dependent on various factors. For example, a trade union for skilled manual workers may be more capable of protecting their a healthy, growing economy. Explain why the members’ pay than a union representing unskilled workers. While there Federal Reserve would consider raising interest has been pressure from the trade union movement and other groups rates during times of economic growth. for the Irish government to introduce a national statutory minimum Real-World Applications wage, the idea has been strongly resisted by the government and 14. Opportunity Costs When T.J. graduated from employers. The trade unions argue that the current, selective system is high school, he received almost $1,600 in gifts not adequate to meet the needs of all those receiving low pay. from various family members, and he has about Critical Thinking $600 saved from the two seasons he worked as 1. Expand One group promoting a national statutory minimum wage a junior league hockey referee. His parents are urging him to put the money toward college, is the Combat Poverty Agency. Research to find out more about and his best friend thinks he should use it to this agency. What are the four general functions of this agency? get an apartment. Feeling independent and2. Relate Do you agree that governments should set minimum free, T.J. is eager to spend his money on new wages? Do these laws infringe on the rights of businesses in a free clothes, a new gaming system, and maybe somemarket economy? hockey equipment. He also needs new brakes for his car. With your teacher’s permission, work in a small group to discuss how T.J. should spend his money. Consider the various financial opportunity costs and the time value of money. As a group, present your conclusion to the class in a brief oral report.

DATABYTES Capital Dublin Population 4,250,163 Languages English, Irish Currency Euro Gross Domestic Product (GDP) $229.4 billion GDP per capita $42,200 Industry Steel, lead, zinc, silver, aluminum, barite, and gypsum mining processing; food products, brewing, textiles, clothing; chemicals, pharmaceuticals; machinery, rail transportation equipment; glass and crystal; software, tourism Agriculture Turnips, barley, potatoes, sugar beets, wheat; beef, dairy product Exports Machinery and equipment, computers, chemicals, pharmaceuticals; live animals, animal products Natural Resources Natural gas, peat, copper, lead, zinc, silver, barite, gypsum, limestone, dolomite

UNIT 4 Planning Personal Finances

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In addition, each chapter includes an Around the World feature that highlights a different country and shows how the financial or business topics in the chapter are applied around the world. These features help students understand which principles are universal, and which will vary in different countries and cultures. These features require critical thinking and additional research as students explore timely topics from around the globe. Databytes provides a quick snapshot of the key economic indicators and basic information about the country. Chapter 8 Managing Payroll and Inventory

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Around the World and Databytes introduce students to other countries and cultures.

CHAPTER REVIEW

The Curriculum Standards for Social Studies, developed by The National Council for the Social Studies (NCSS), integrate U.S. and world history, civics and government, geography, global education, and economics. Business courses provide ample opportunities to explore social studies concepts like globalization, behavioral economics, and the impact of culture, geography and resource availability on financial decision making. Business and Personal Finance uses social studies application questions, directly tied to NCSS standards, to help students understand these connections.

Around the World

See the Teacher Manual for answers.

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NSES National College and Career Readiness

Science 9. Managing Stress Good money management is not only beneficial to your financial health, but to your mental and physical health as well. Procedure A British study found that “financially incapable” people are more likely to suffer mental stress, lower reported life satisfaction, and the health problems associated with stress. The report also stated that “an ability to manage finances will lead to an improvement in psychological well-being.” Analysis Write a short paragraph describing how poor money management might negatively affect one’s health. NSES 1 Develop an understanding of science unifying concepts and processes: systems, order, and organization; evidence, models, and explanation; change, constancy, and measurement; evolution and equilibrium; and form and function.

Mathematics

10. Increasing Savings Each your school Science applications helpyear students sponsors a classistrip for its graduating see how science connected to class. The cost the trip is $925 per student. Your business andoffinance.

family has agreed to contribute $250, but you will have to save the rest on your own. You babysit for 8 hours per week for $10 per hour. Each week you have fixed expenses of $15. You also spend on average $30 per week on variable

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Science Education Standards

the Teacher Manual for answers.Standards (NSES) define the scientific principles, The NationalSee Science Education processes, and problem-solving skills necessary for scientific literacy at each 11. Saving Money Consider the reasons why you might want to save more money. What are grade level. Connections to scientific principles and discoveries are included your goals for short-term savings? Do you also have long-term savingsthroughout goals? Compile a Business list of as appropriate and Personal Finance, with the goal of reasons for including savings in your financial helping understand plan. Write students a short paragraph detailing your how science impacts—and is impacted by— short- and long-term goals and howprinciples. increasing business and financial Science application questions in the your savings can help you to meet them. Chapter Assessments are directly tied to the National Science Education NCTE 3 Apply strategies to interpret texts. Standards in order help students to connect what they are learning with Economics concepts. Students 12.scientific Supply and Demand The economic model of will also see how the scientific method is supply and that the price used to demand studystates financial andofeconomic behavior.

English Language Arts

items will balance the demand of consumers and the supply of the producers. Demand can also be affected by other factors such as availability of substitutes. The more substitutes an item has, the more demand for that item can be affected. A person may shop around for several types of cars, but may not spend the time to search for a variety of pencils. How would the demand for a specific truck model be affected if the price was set above the competition’s prices? How would the demand for a pencil be affected? Explain.

Real-World Applications

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The Research Base for Glencoe Business and Personal Finance Meeting Academic and Industry Standards

Verifying Learning Through Assessment In response to the growing demand for accountability in the classroom, educators must use multiple assessment measures to accurately gauge student performance. Assessment provides a way to measure whether or not students have mastered the standards they have been taught, and is an essential component of any standards-based curriculum. • Formative assessments are used to monitor student response to instruction on an ongoing basis so that teachers may respond to ongoing learning needs by modifying their instructional approaches (Black, Harrison, Lee, Marshall, & Williams, 2003). Formative assessments can identify gaps and misconceptions in student knowledge, pinpoint skills that need additional reinforcement, facilitate effective instructional conversations, and motivate students with timely feedback (Fisher & Frey, 2007; Shavelson, R. et al., 2008). • Summative assessments are used after instruction has taken place to evaluate student achievement and program effectiveness. Standardized tests are one form of summative assessment. Summative assessments are most effectively used in conjunction with formative and performance assessment measures as one part of a comprehensive assessment strategy (Black et al., 2003). • Performance assessments are used to provide a broader picture of student achievement through portfolios, projects, and real-world activities (Cummings, Cleborne, Maddux, & Richmond, 2008). Typical performancebased assessments may include writing assignments, oral presentation and visual presentations, and role-playing or skits. These open-ended, complex tasks require students to apply what they have learned in novel and creative ways, demonstrate mastery of multiple skills in a complex task, and combine both subject-specific and general academic skills in ways that more accurately mimic that kinds of tasks they will face in the workplace (Chen, 2006).

Assessment Opportunities in Business and Personal Finance Glencoe Business and Personal Finance offers teachers numerous strategies and activities that can be used to test students’ understanding of key concepts and skills. These may be used formatively, as part of homework assignments designed to determine what further instruction is needed, or summatively, to test skill attainment after a chapter or unit has been completed. Assessment features include the following:

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The Research Base for Glencoe Business and Personal Finance Meeting Academic and Industry Standards • ExamView® Assessment Suite: This CD-ROM enables teachers to create their own tests based on information contained in the textbook. A variety of question types—true/false, modified true/false, short answer, and multiple choice—offer flexibility in developing a multitude of tests. Answers to the questions are included. • Section and Chapter Assessments: Section and chapter assessments connect business and finance content to core academic areas and require students to demonstrate their understanding of key concepts. • H.O.T. (Higher-Order Thinking) Problems: H.O.T. problems within the section and chapter assessments help students apply and extend what they have learned during instruction. • Real-World Application Problems: These questions require students to demonstrate that they can apply the chapter content to realistic scenarios. • Interactive Chapter Tests: McGraw-Hill CONNECT™ includes self-grading tests for every chapter. Students can take these tests online and receive instant feedback. Test results may be sent directly to the teacher.

College and Career Readiness

CHAPTER REVIEW

See the Teacher Manual for answers.

Science

English Language Arts

10. Small Business Software Technology has helped make starting a small business easier. There are now software programs available for such tasks as accounting, taxes, and even business planning.

12. Starting a Business To start your business you must consider where you will obtain capital. It is not unusual for a new business owner to borrow some of their start-up and operating capital from a financial institution. There are different types of loans available. Conduct research to discover what options are available to someone wanting to start a new business. What are some of the requirements to qualify for the loans? Write a summary of the information you gather. Might you be eligible for any of these loans if you decided to open your own business?

Procedure Conduct research to learn more about the software programs available to small business owners. Analysis What types of software are available? Compare the features and prices for different titles that perform the same tasks. Develop a spreadsheet to organize the information you find.

NCTE 7 Conduct research and gather, evaluate, and synthesize data to communicate discoveries.

NSES E Develop abilities of technological design, understandings about science and technology.

Economics

Mathematics 11. Start-up Costs Use this information to answer the questions: What are total expected expenses in year 1 including all one-time start up costs? If revenues are $50,000 per year, how many years will it take to break-even? One-time start-up costs

Assets

Rent deposit

$4,000

Computer system

Legal fees

$2,000

Truck

$20,000

Permits/Licenses

$300

Furniture

$1,500

Other

$3,500

$2,500

Monthly recurring costs Insurance

$150

Rent

Phone/Utilities

$400

Truck maintenance $150

$2,500

Calculate Break-Even Calculate the break-even point by dividing the total start-up costs by the total net income to determine the number of years needed to break-even.

Chapter assessments include a variety of problem types to assess both basic understanding of chapter material and the student’s ability to apply the material to different content areas and real-world scenarios.

Starting Hint Calculate the total net income per year excluding start-up costs by first identifying the expected monthly expenses. Multiply this by 12 months to determine the expected annual expense. Subtract this from the estimated revenues in order to calculate total net income. NCTM Problem Solving Build new mathematical knowledge through problem solving.

150

13. Economic Factors Remember, projected revenues should be estimated low. Likewise, when estimating variable expenses, you should always estimate high. Fixed expenses generally remain constant. Consider though that interest rates go up after you have prepared your projected financial statements. This means that your interest payments would increase. What adjustments could you make to your already completed financial plan to accommodate the higher interest, without needing to find additional capital? Write a letter to your loan officer explaining how you would handle this.

Real-World Applications 14. Consultants Many small business owners need consultants to help deal with various business issues that arise. Research consultant services in your area. How much do these services cost? What types of services do they offer? Would they come to your business or would you have to go to them, for example would you have to take computer equipment to them for service? How quickly can they respond to issues? Is this an expense that you would include in your financial forecasting? Why or why not? Prepare a brief report to share your findings and answers with the class.

UNIT 2 Business Ownership and Planning

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grandmother, a retired nurse, has volunteered to help you with about 25 percent of your start-up costs. She has also agreed to work with you as a part-time day care The Research Base for assistant, and will collect a small salary once you start making a prot. But before you make any commitments, Glencoe Business and Personal Finance you need to do your research. Meeting Academic and Industry Standards • List the items needed to start a day care business. • List the licenses, permits, certications, and insurance required by your state. Students who study Glencoe Business and Personal Finance • Using these lists as ato guide, estimate the start-up and also receive many opportunities demonstrate knowledge operating costs. through performance-based assessment. • Identify the future needs and costs of the day care. • Open-ended questions allow students to connect concepts, Plan • Contact day care centers in your area to learn about clarify their own understanding, and formulate responses. ✔ Choose and evaluate an imported their services and fees. product that you have or might purchase. • Unit• Projects allowthe students to gather and synthesize ✔ Research trade laws affecting your chosen Determine sources of funding you willinformation consider.

Project Checklist

imported product. ✔ Interview a local salesperson to compare and contrast your product with a competitive brand. ✔ Role-play a salesperson representing your chosen product to a business owner.

and then produce visual or oral presentations that may include Ask Yourself... multimedia, graphs, charts, models, drawings, or oral reports.

• How much money do I need to get started?

• Writing Activities are brief writing events designed to capture • What will I need in to cashinand students’ understanding at addition a given moment time.inventory?

• How can I prepare for unanticipated expenses?

Write

• 2  1st Century Skill Activities are open-ended questions or mini-projects • What can I offer that other day care centers in the area that require students to demonstrate critical 21st Century workplace skills.

✔ Create an information sheet about your chosen product. ✔ Report your research ndings about global trade laws that affect your product. ✔ Type up the responses from your interview in a question and answer format. ✔ List benets of the imported product to use as speaking points in your role-play. ✔ Draw a graphic organizer to compare and contrast the imported product with a product made in the United States.

do not?

Create Media Products Using graphics and illustration software, create a yer to advertise your new day care business.

Present ✔ Create an outline for your presentation. ✔ Create visuals and use technology to enhance your presentation. ✔ Speak clearly and concisely. ✔ Share the information sheet about your chosen product. ✔ Present your ndings about global trade laws and how your product was affected by them. ✔ Present your graphic organizer comparing the imported and American-made product. ✔ Respond to questions from your classmates.

21st Century Skill activities allow students to demonstrate competence in key workplace skills through hands-on activities.

glencoe.com

• Document Detective, Go Figure, and other in-text activities Evaluate Download assessment rubric. throughout Business and an Personal Finance provide a variety of performance-based assessment opportunities. • Online resources including the Money Matters Personal Financial Management Simulation, Financial Planner Software Activities, and the Virtual Business simulation software can all be used to demonstrate proficiency with core concepts.

glencoe.com Unit Projects provide excellent opportunities for performance assessment. Evaluate Download a rubric you can use to evaluate your project.

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The Research Base for Glencoe Business and Personal Finance Meeting Academic and Industry Standards

Bibliography Black, P., Harrison, C., Lee, C., Marshall, B., and Williams, D. (2003). Assessment for learning: Putting it into practice. Maidenhead, U.K.: Open University Press. Chen, M. (2006). Time to put assessment in context. Edutopia 1–2. Retrieved from http://edutopia.org/php/print.php?id=Art_1724andtemplate=printarticle.php Cummings, R., Cleborne D., Maddux, C.D., & Richmond, A. (2008). Curriculum-embedded performance assessment in higher education: maximum efficiency and minimum disruption. Assessment & Evaluation in Higher Education, 33(6), 599–605. Fisher, D., Brozo, W., Frey, N., & Ivey, G. (2007). Content area literacy strategies for adolescents. Merrill Prentice Hall. Fisher, D., & Frey, N. (2007). Checking for understanding: Formative assessment techniques for your classroom. Alexandria, VA: Association for Supervision and Curriculum Development. Shavelson, R. et al. (2008). On the impact of curriculum-embedded formative assessment on learning: A collaboration between curriculum and assessment developers. Applied Measurement in Education, 21(4), 295-314.

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The Research Base for Glencoe Business and Personal Finance Professional Development and Teacher Support

The Research Base for Glencoe Business and Personal Finance Table of Contents Professional Development and Teacher Support

Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page H-3



Glencoe’s Professional Development Offering. . . . . . . . . . Page H-5



Tools for Effective Teaching . . . . . . . . . . . . . . . . . . . . . . . . . . Page H-6

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The Research Base for Glencoe Business and Personal Finance Professional Development and Teacher Support

Introduction “Staff development that improves the learning of all students must deepen educators’ content knowledge, provide them with research-based instructional strategies to assist students in meeting rigorous academic standards, and prepare them to use various types of classroom assessments appropriately.”. –N  ational Staff Development Council, 2001

High-quality programs are an important component of student success. Research shows, however, that the teacher is the most important piece of the student achievement puzzle (Goe & Stickler, 2008; U.S. Department of Education, 2002). Without an effective teacher, even the most exemplary textbook program will not produce much in the way of learning. That’s why the U.S. Department of Education emphasizes teacher quality as a critical component of the No Child Left Behind Act. Professional development can empower teachers to make complex decisions; to identify and solve problems; and to connect theory, practice, and student outcomes. It also should prepare teachers to offer students the learning opportunities that will enable them to meet world-class educational standards and to successfully assume adult responsibilities for citizenship and work (American Federation of Teachers, 2002). Professional development is also critical in supporting content-area knowledge for teachers. Professional development that focuses on both the teachers’ content-area knowledge and the ways students learn and understand the material have consistently demonstrated measurable effects in classroom practice and student achievement (American Educational Research Association, 2005).

Carl D. Perkins Career and Technical Education Act Improvement Act of 2006 (Perkins IV) has placed extensive emphasis on providing quality professional development for career and technology educators. The legislation mandates that professional development must be “high quality, sustained, intensive, and focused on instruction.” Perkins IV also emphasizes professional development that promotes the integration of academic and Career and Technical Education (CTE) content, a key theme of the Act. The new requirements represent a shift away from single, isolated professional development workshops or seminars to professional development activities that allow for interaction, feedback, and continuous improvement over time. The National Staff Development Council has outlined research-based standards for effective professional development, including standards for context (the environments in which teachers learn), process (the methods used to teach adult learners), and content (including both subject-specific knowledge and instruction in learning strategies) (National Staff Development Council, 2001).

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The Research Base for Glencoe Business and Personal Finance Professional Development and Teacher Support While we have learned much about what makes professional development effective, school districts often run into barriers in implementation. Meeting the goal of “ongoing, sustained” professional development is difficult given the limited staff development days available, the costs of bringing in trainers and substitutes, and the already limited outside time teachers have for planning and preparation (National Staff Development Council, 2001). CTE teachers, who may not have a large set of cohorts needing the same kind of training, may find it particularly difficult to find training options that address their specific needs. For many districts, e-learning is becoming a viable alternative (Zibit, 2010). Online professional development can offer a number of benefits for teachers and districts (Treacy, Kleiman, & Peterson, 2002): • “Anywhere, anytime” learning opportunities allow teachers to access the content at times that fit within their schedule, whether it is during the school day or in the evening. • Short, focused segments can be accessed on an as-needed basis to address issues as they come up in the classroom. For example, a teacher needing solutions to meet the needs of an ELL student can find instructional strategies that she can put to use in the classroom immediately. • Professional development can be easily integrated throughout the school year rather than offered in a one-time, up-front workshop. • Individual teachers can select the topics that are most relevant for their subject area and classroom needs. Online learning can be an excellent supplement to onsite staff development days. By integrating online professional development, districts can meet the need for the “ongoing, sustained” training that is most likely to impact classroom practice and student achievement.

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The Research Base for Glencoe Business and Personal Finance Professional Development and Teacher Support

Glencoe Professional Development Offerings Glencoe/McGraw-Hill has developed a series of online professional development options to help districts meet the need for “ongoing, sustained” professional development. These online courses, video workshops, and mini video clips can be accessed from any internet-connected computer at any time. Glencoe Online Professional Development for Integrating Academics presents a suite of online products designed to equip educators to teach and reinforce academic skills more effectively. Online Professional Development for Integrating Academics provides: • Professional Development Accredited Online Courses in reading and math • Video workshops • Differentiated instruction • ELL strategies • Implementation and leadership guides Glencoe’s Online Professional Development series allows teachers to access the content they need exactly when they need it.

The programs focus on instructional strategies to enable teachers to integrate challenging academic content seamlessly into their business, career, or technical curriculum. These teaching strategies center on the following topics: • Math • Reading • English Language Arts • Differentiated Instruction • English Language Learners Instruction Targeted professional development is correlated throughout the Teacher Annotated Edition of Business and Personal Finance. In addition, the McGraw-Hill Professional Development Mini Clip Video Library, available at glencoe.com, provides teaching strategies to strengthen academic and learning skills. The Mini Clip Video Library has been matched with chapter content throughout the textbook to help teachers integrate academics into their planning and instruction.

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The Research Base for Glencoe Business and Personal Finance Professional Development and Teacher Support

Tools for Effective Teaching Beyond formal professional development, Business and Personal Finance also includes a full range of teacher support tools to enable effective teaching and learning. CHAPTER 15

Lesson Plans and Answer Keys

3. Open a checking or savings account, or both; apply

for a local department store credit card; take out a small loan from your bank; and make payments on time.

Higher Order Thinking

H.O.T.

4. According to Figure 6, you can ask the creditor if

you can provide additional information, apply to a different creditor, or work toward improving your creditworthiness and reapply. Students may also indicate that they might apply for a smaller loan and settle for a less expensive automobile.

21st Century Skills 5. Analyze Media Answers might include that the

organizations will contact all three credit agencies so you can get all the information with one call or click. Also, for a fee, these organizations usually offer to monitor your credit score and to help protect you against identity theft or fraud.

Mathematics 6. Debt Payments-to-Income Ratio

Debt payments-to-income ratio before = $200 / $1,200 = 16.67%; Debt payments-to-income ratio after = ($200 + $120) / $1,200 = 26.67%; Based on the 20% rule, Seth should not go on vacation.

CLOSE

Analyze and Apply Have students research how credit

reports are used when determining if you should receive credit. Have students write a letter to the editor explaining whether they feel credit scoring increases or decreases fairness in getting credit.

Protecting Your Credit

SECTION 3

Section Overview In this section, students will learn how to protect themselves from fraud and identity theft.

FOCUS

Make It Personal Have students brainstorm ways in

which they can protect themselves and their credit rating. Write their answers on the board. Then ask:

Why is it important to protect your credit? Students should discuss the dangers of identity theft and the precautions one should take when using credit cards. TM174

TEACH

S Scaffolded Instruction

L1 List Have students list the steps one can take to protect their credit information on the Internet. You

should make sure you use a secure browser; keep records of all online transactions; review your monthly bank and credit card statements; read the privacy and security policies of each Web site you visit; keep your personal information private; never give out your password to anyone; and do not download files or open links sent to you by strangers.

L2 Explain Have students create flyers that show the steps for protecting your credit on the Internet, with a brief explanation of each step. Flyers should reflect the

following list: make sure you use a secure browser; keep records of all online transactions; review your monthly bank and credit card statements; read the privacy and security policies of each Web site you visit; keep your personal information private; never give out your password to anyone; and do not download files or open links sent to you by strangers. It should also provide an explanation of each step.

L3 Apply Have students build a chart showing the steps for protecting their credit on the Internet, along with a reason for each step. Then have them conduct online research to find additional steps to take to protect their identity on the Internet and add those steps and reasons to their chart. Charts should include

the steps: You should make sure you use a secure browser; keep records of all online transactions; review your monthly bank and credit card statements; read the privacy and security policies of each Web site you visit; keep your personal information private; never give out your password to anyone; and do not download files or open links sent to you by strangers. Chart should also include additional steps for protecting your identity, such as using PayPal rather than credit cards for online purchases and using credit cards that provide secure, random numbers to use as account numbers for online transactions.

U Universal Access Verbal Learners Have students write a 30-second personal service announcement (PSA) that tells people what to do if their identity has been stolen. Students should use information from the text as well as independent research. If possible, record the PSAs and play them back for the class.

UNIT 5 Banking and Credit

The four-part lesson plan reinforces effective instructional strategies for teachers. TM171_TM178_C15_895835.indd

174

The ExamView Assessment Suite assessment and reporting tools help teachers monitor student progress and individualize instruction.

The Teacher Annotated Edition includes a Teacher Manual with C Critical Thinking research-based four-part lesson Review Key Concepts plans for every section of every ASSESS chapter (Focus, Teach, Assess, and Close) which incorporates pre-teaching, explicit instruction, assessment, and reteaching Higher Order Thinking (Hunter, 1994). The lesson plans use highly effective strategies English Language Arts for leveling instruction and reaching students of different Mathematics learning styles and ability levels, including gifted learners, struggling readers, and English Language Learners (Tomlinson, 2001). The logically organized lesson plans and easy-toimplement activity suggestions reinforce effective classroom strategies and teaching techniques. The TAE also includes answers for all of the in-text activities and assessments. Predict Have students review the suggestions for

SECTION 3

Assessment Answer Key

protecting credit information on the Internet. Ask them to predict what problems might result if these guidelines are not followed. Answers will vary but

1. Be sure that your card is always returned after a

As You Read Answer Some students may say they do

2. Contact the credit bureaus, contact the creditor, and

might include fraudulent charges on your credit cards, damaging your credit rating, or identity theft.

not shop online; others will say they use only trusted sites and secure PayPal accounts.

Reading Check Answer No, notifications to a creditor

should be made in writing. While you may telephone a creditor for immediate attention, be sure to follow up in writing.

Photo Caption Answer—Charge It You should notify your creditor in writing about the questionable charge and then pay the portion of the bill that is not in question.

Reading Check Answer Indications that your personal information may have been stolen include accounts you never opened, charges for things you did not purchase, and theft of money using your ATM information. Reading Check Answer Under the Consumer Credit Protection Act, the maximum you would have to pay is $50. If you inform the credit card company before the card is used illegally, you may not have to pay anything. Reading Check Answer When you cosign a loan, you are taking responsibility for making the payments in the event your friend fails to make them. This includes paying the full amount of the debt as well as any fees and penalties. Moreover, your credit may be negatively affected. Careers That Count! Answer It is essential that a credit analyst understand the information he or she is analyzing, as well as effectively communicate recommendations to managers and clients.

purchase and keep a record of your credit card number separate from your card. You can also only use secure sites for online transactions and pay using PayPal or other secure payment method. file a police report.

3. Five consumer credit protection laws include the

Credit Card Accountability and Responsibility and Disclosure Act, the Truth in Lending and Consumer Leasing Act, the Equal Credit Opportunity Act, the Fair Credit Opportunity Act, the Fair Credit Reporting Act, and the Consumer Credit Reporting Reform Act. H.O.T.

4. Students should understand that if you dispute

information on your credit report and the credit bureau cannot prove it is accurate, then they must remove the information from your report. Prior to the law, the information would have remained on the report until you could prove it was inaccurate.

5. Write a Letter Letters will vary. A sample letter may

read: I received my credit card statement for account #0000-0000-0000-0001 on 1/31/10 and noticed a charge of $26.90 at Department Store XYA I did not make this purchase and respectfully request that the charge be removed my account.

6. Credit Card Billing Interest charge = (19.00% / 12)

× $120 = $1.90; Calculated Balance = $120 + $45 + $25 + $20 + $1.90 = $211.90; Balance variance = $225.35 - $211.90 = $13.45; There is a discrepancy of $13.45 on the statement.

Common Cents Answer The lowest interest rate

means that your repayment amount will be lower.

Figure 10 Answer Answers might include an unfair

refusal of credit, unfair and unnecessary fees, credit card provided to a minor without a cosigner, inaccurate information on a loan or credit report.

Chapter 15 Consumer Credit

9/29/10

12:40 PM TM171_TM178_C15_895835.indd

175

TM175

9/29/10

12:40 PM

The ExamView Assessment Suite is a superior electronic test bank that gives teachers customizable tests for each chapter and unit. Teachers can create online tests, quizzes, and practice activities and assign them to an entire class for comprehensive assessment or to individual students for individual instruction. The ExamView reports allow teachers to track progress by student or class, and to see standards correlations for their assessments. By making assessment and reporting easy and painless, ExamView helps teachers more effectively monitor student progress and adjust instruction to meet student needs.

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The Research Base for Glencoe Business and Personal Finance Professional Development and Teacher Support

Teachers will find a wealth of additional support materials online through McGraw-Hill CONNECT™, an online Learning Management System that harnesses the power of technology to enable more effective teaching and learning. It is an easy, effective, and reliable way for students to connect to the textbook and to homework, for teachers to manage assignments and track student progress, and for students and teachers to connect to each other. Additional resources for Business and Personal Finance available in the Online Learning Center include: • Graphic organizers • PowerPoint slides, images, and presentation materials • Financial simulation activities • Study aids and extension activities for students

PowerPoint Presentations in the Online Learning Center can be used to introduce concepts at the beginning of a chapter, reach visual learners, and create customized learning experiences for students.

The teacher support tools available for Business and Personal Finance support effective, research-based instructional practices. Combined with the online professional development options, these materials form a comprehensive support package designed to maximize student achievement.

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The Research Base for Glencoe Business and Personal Finance Professional Development and Teacher Support

Bibliography American Educational Research Association. (2005). Teaching teachers: Professional development to improve student achievement. Research Points, 3(1). American Federation of Teachers. (2002). Principles for professional development. Washington, DC: American Federation of Teachers. Garet, M.S. (2001). What makes professional development effective? Results from a national sample of teachers. American Educational Research Journal, 38(4). Goe, L. & Stickler, L. (2008). Teacher quality and student achievement: Making the most of recent research. Washington, DC: National Comprehensive Center for Teacher Quality. Hunter, M. (1994). Enhancing teaching. New York, NY: Macmillan. National Staff Development Council. (2001). eLearning for educators: Implementing the standards for staff development. Oxford, OH: National Staff Development Council. National Staff Development Council. (2001). Standards for staff development, (Rev. ed.). Oxford, OH: National Staff Development Council. Tomlinson, C.A. (2001). How to differentiate instruction in mixed-ability classrooms. (2nd Ed.). Alexandria, VA: ASCD. Treacy, B., Kleiman, G., & Peterson, K. (September, 2002). Successful Online Professional Development. Learning and Leading with Technology 30(1). International Society for Technology in Education. U.S. Department of Education. (2002). Meeting the highly qualified teachers challenge: The Secretary’s annual report on teacher quality. Washington, DC: Department of Education, Office of Postsecondary Education, Office of Policy, Planning and Innovation. Zibit, M. (2010). The peaks and valleys of online professional development. ELearn Magazine, Downloaded from http://www.elearnmag.org/subpage.cfm?section=research&article=3-1

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