Compilation of Rules and Regulations of the State of Georgia › Department 505 - PROFESSIONAL STANDARDS COMMISSION › Chapter 505-3 - EDUCATOR PREPARATION RULES › Rule 505-3-.113 - Financial Literacy Endorsement Program

Current through Rules and Regulations filed through
			 June 27, 2024
(1)
Purpose.
This rule states field-specific content standards for
			 approving programs that prepare individuals to teach financial literacy in
			 grades 6-12 and supplements requirements in GaPSC Rule
			 505-3-.01, REQUIREMENTS AND STANDARDS
			 FOR APPROVING EDUCATOR PREPARATION PROVIDERS AND EDUCATOR PREPARATION
			 PROGRAMS.
(2)
Requirements.
(a) A
			 GaPSC-approved educator preparation provider may seek state approval to offer
			 this field as either a stand-alone endorsement program or as an endorsement
			 program embedded in a GaPSC-approved initial 6-12 preparation program or an
			 advanced (degree-only) preparation program. In addition to meeting all
			 applicable approval requirements and standards, embedded endorsement programs
			 must meet requirements specified in paragraph (e) 4. (ix) of GaPSC Rule
			 505-3-.01, REQUIREMENTS AND STANDARDS
			 FOR APPROVING EDUCATOR PREPARATION PROVIDERS AND EDUCATOR PREPARATION
			 PROGRAMS.
(b) To receive approval,
			 a GaPSC-approved educator preparation provider shall offer a preparation
			 program as described in program planning forms, catalogs, and syllabi, based on
			 the following standards adapted from the Voluntary National Content Standards
			 in Economics (2021) and Personal Finance Standards (2021) from the Council for
			 Economic Education.
1. Fundamentals of
			 Economic Decision Making.
(i) The program
			 shall prepare candidates to analyze how scarcity affects the choices of
			 individual, businesses, and governments as indicated by the following:
(I) The program shall prepare candidates who
			 can explain that scarcity is a basic, permanent condition that exists because
			 unlimited wants exceed limited productive resources;
(II) The program shall prepare candidates who
			 can compare and contrast strategies for allocating scarce resources such as by
			 price, majority rule, contests, force, sharing, lottery, authority,
			 first-come-first-served, and personal characteristics;
(III) The program shall prepare candidates
			 who can define and give examples of productive resources (i.e., factors of
			 production): natural resources (i.e., land), human resources (i.e., labor and
			 human capital), physical capital and entrepreneurship; and
(IV) The program shall prepare candidates who
			 can apply the concept of opportunity cost (the forgone next best alternative)
			 to personal choices, as well as business and government
			 decisions.
(ii) The
			 program shall prepare candidates to provide examples of how rational
			 decision-making entails comparing the marginal benefits and the marginal costs
			 of an action as indicated by the following:
(I) The program shall prepare candidates who
			 can explain that rational decisions occur when the marginal benefits of an
			 action equal or exceed the marginal costs; and
(II) The program shall prepare candidates who
			 can explain that individuals, businesses, and governments respond to positive
			 and negative incentives in predictable ways.
(iii) The program shall prepare candidates
			 who analyze how economic systems influence the choices of individuals,
			 businesses, and governments as indicated by the following:
(I) The program shall prepare candidates who
			 can analyze how command, market and mixed economic systems answer the three
			 basic economic questions (what to produce, how to produce, and for whom to
			 produce) to prioritize various social and economic goals such as freedom,
			 security, equity, growth, efficiency, price stability, full employment, and
			 sustainability; and
(II) The
			 program shall prepare candidates who can compare the roles of government in
			 different economic systems with regards to providing public goods and services,
			 redistributing income, protecting property rights, resolving market failures,
			 regulation, and providing consumer protections.
(iv) The program shall prepare candidates who
			 analyze factors that influence the standard of living of individuals and
			 nations as indicated by the following:
(I) The
			 program shall prepare candidates who can explain how investments in human
			 capital (e.g., education, job training, and healthcare) can lead to a higher
			 standard of living;
(II) The
			 program shall prepare candidates who can explain how investment in equipment
			 and technology can lead to economic growth;
(III) The program shall prepare candidates
			 who can explain how individuals, businesses, and governments benefit from
			 specialization and voluntary, non-fraudulent trade; and
(IV) The program shall prepare candidates who
			 can illustrate economic growth using a production possibilities
			 curve.
2.
			 Personal Finance.
(i) The program shall
			 prepare candidates who analyze major life decisions using economics-based
			 decision-making skills as indicated by the following:
(I) The program shall prepare candidates who
			 can apply a rational decision-making model to evaluate the costs and benefits
			 of post-high school life choices (i.e., college, technical school, military
			 enlistment, workforce participation, or other option);
(II) The program shall prepare candidates who
			 can evaluate costs and benefits of various ways to pay for post-high school
			 life including scholarships, the HOPE scholarship, employment, work-study
			 programs, loans, grants, savings, prior investments, and other
			 options;
(III) The program shall
			 prepare candidates who can identify necessary documents needed to complete
			 forms like the FAFSA or scholarship applications;
(IV) The program shall prepare candidates who
			 can apply a rational decision-making model to evaluate other major life choices
			 like employment opportunities, renting a home vs. buying, selecting a mortgage,
			 and buying a car; and
(V) The
			 program shall prepare candidates who can describe how individual financial
			 decisions can help create generational wealth.
(ii) The program shall prepare candidates who
			 analyze income as a scarce resource that can be allocated effectively through
			 budgeting as indicated by the following:
(I)
			 The program shall prepare candidates who can compare different types of income
			 including hourly wages, salary, tips, independent contractor services (Form
			 1099), dividends, and capital gains;
(II) The program shall prepare candidates who
			 can review and complete a sample federal individual income tax form
			 1040;
(III) The program shall
			 prepare candidates who can describe the basic components of a paystub including
			 gross pay, net pay, and common deductions (i.e., federal and state income tax,
			 Federal Insurance Contributions Act (FICA which includes Social Security and
			 Medicare), and elective deductions like 401K, insurance and tax-deferred
			 savings);
(IV) The program shall
			 prepare candidates who can analyze the basic components of a personal budget
			 including income, expenses (fixed and variable), and the importance of
			 short-term and long-term savings;
(V) The program shall prepare candidates who
			 can explain how to reconcile a checking account, either online or on paper,
			 including how to account for transactions that have not been posted (i.e.,
			 checks, weekend debit card transactions, or monthly auto-pay transactions) and
			 how this helps avoid overdraft fees; and
(VI) Describe how to determine a person's net
			 worth.
(iii) The program
			 shall prepare candidates who explain how the financial system channels funds
			 from savers to investors as indicated by the following:
(I) The program shall prepare candidates who
			 can explain the roles/functions of money as a medium of exchange, store of
			 value, and unit of account/standard of value;
(II) The program shall prepare candidates who
			 can compare services offered by different financial institutions, including
			 banks, credit unions, payday lenders, and title pawn lenders;
(III) The program shall prepare candidates
			 who can compare and contrast cash, debit cards, credit cards, prepaid cards and
			 mobile payment apps in terms of how they work, acceptability, and the costs and
			 benefits associated with each;
(IV)
			 The program shall prepare candidates who can evaluate the risk and return of a
			 variety of savings and investment options, including: savings accounts,
			 certificates of deposit, retirement accounts (i.e., Roth IRA, 401K, 403b),
			 stocks, bonds, 529 accounts, and mutual funds and explain the importance of
			 diversification when investing; and
(V) The program shall prepare candidates who
			 can describe the role of speculative investments (i.e., cryptocurrency and
			 historical examples like buying on margin in the 1920's).
(iv) The program shall prepare candidates who
			 can explain how interest rates affect various consumer decisions as indicated
			 by the following:
(I) The program shall
			 prepare candidates who can compare interest rates on loans and credit cards
			 from different institutions including banks, credit unions, pay-day loan
			 facilities, and title-pawn companies;
(II) The program shall prepare candidates who
			 can define annual percentage rate and describe how different interest rates can
			 affect monthly payments on loans;
(III) The program shall prepare candidates
			 who can use an online amortization tool to show how payments on a fixed loan
			 like a mortgage are applied to interest and principal;
(IV) The program shall prepare candidates who
			 can explain the difference between simple and compound interest and the
			 difference between fixed and variable interest; and
(V) Define nominal and real returns and
			 explain how inflation affects interest-earning savings and investment
			 accounts.
(v) The program
			 shall prepare candidates who explain can how changes in taxation can have an
			 impact on an individual's spending and saving choices as indicated by the
			 following:
(I) The program shall prepare
			 candidates who can describe income, sales, property, capital gains, and estate
			 taxes in the U.S.; and
(II) The
			 program shall prepare candidates who can describe the difference between
			 progressive, regressive, and proportional taxes.
(vi) The program shall prepare candidates who
			 can evaluate the costs and benefits of using credit as indicated by the
			 following:
(I) The program shall prepare
			 candidates who can differentiate between and explain how to access one's credit
			 report and credit score;
(II) The
			 program shall prepare candidates who can describe the basic components of a
			 credit score including payment history, debt to income ratio, amount owed,
			 length of credit history, types of credit used, amount of available credit, and
			 recent credit applications;
(III)
			 The program shall prepare candidates who can analyze and evaluate a sample loan
			 application for credit worthiness and the ability to receive favorable interest
			 rates;
(IV) The program shall
			 prepare candidates who can explain the difference between revolving credit and
			 installment credit; and
(V) The
			 program shall prepare candidates who can explain causes of personal bankruptcy
			 and describe consequences of declaring bankruptcy.
(vii) The program shall prepare candidates
			 who can analyze how insurance and other risk-management strategies protect
			 against financial loss as indicated by the following:
(I) The program shall prepare candidates who
			 can explain why people buy insurance;
(II) The program shall prepare candidates who
			 can describe various types of insurance such as automobile, health, life (whole
			 and term), disability, renters, flood and property;
(III) The program shall prepare candidates
			 who can explain the costs and benefits associated with different types of
			 insurance, including deductibles, premiums, coverage limits shared liability,
			 and asset protection; and
(IV) The
			 program shall prepare candidates who can define insurability and explain why
			 insurance rates can vary.
(viii) The program shall prepare candidates
			 who can describe how the earnings of workers are determined in the marketplace
			 as indicated by the following:
(I) The program
			 shall prepare candidates who can identify skills that are required to be
			 successful in the workplace, including positive work ethic, punctuality, time
			 management, teamwork, and communication skills;
(II) The program shall prepare candidates who
			 can describe the impact a person's social media footprint can have on their
			 career and finances; and
(III) The
			 program shall prepare candidates who can evaluate job and career options and
			 explain the significance of investment in education, training, and skill
			 development as it relates to future earnings.
(ix) The program shall prepare candidates who
			 can explain ways consumers are protected by rules and regulations as indicated
			 by the following:
(I) The program shall
			 prepare candidates who can describe how government agencies offer protection in
			 banking, investments, borrowing, and buying goods and services;
(II) The program shall prepare candidates who
			 can compare different methods for lodging consumer complaints (e.g., Better
			 Business Bureau, online methods, and direct contact with business);
			 and
(III) The program shall prepare
			 candidates who can explain the primary purpose of important consumer
			 legislation (i.e., the Truth in Lending Act, Fair Debt Collection Practices
			 Act, Fair Credit Reporting Act, the Equal Housing Act, and the Dodd-Frank
			 Act).
(x) The program
			 shall prepare candidates who can explain sources of and protection against
			 identity theft as indicated by the following:
(I) The program shall prepare candidates who
			 can describe common ways identity theft happens including dumpster diving,
			 skimming, phishing, stealing, and data breaches;
(II) The program shall prepare candidates who
			 can describe ways to protect yourself from identity theft including shredding
			 important documents, not opening attachments to unknown emails, not revealing
			 personal information over the phone or email, using secure networks, regularly
			 monitoring your credit report, changing passwords on accounts, and carefully
			 managing social media;
(III) The
			 program shall prepare candidates who can describe steps that should be taken if
			 a person is the victim of identity theft including getting replacement credit
			 cards, freezing credit histories, alerting appropriate officials, and changing
			 passwords; and
(IV) The program
			 shall prepare candidates who can describe the basic characteristics of
			 investment scams such as Ponzi schemes, pump and dumps, and "advance fee" scams
			 and how to avoid them.
3. Microeconomics.
(i) The program shall prepare candidates who
			 can describe how households and businesses are interdependent and interact
			 through flows of goods, services, resources, and money as indicated by the
			 following:
(I) The program shall prepare
			 candidates who can explain, using a circular flow diagram, the real flow of
			 goods and services, resources, and money through the product market and the
			 resource (factor) market.
(ii) The program shall prepare candidates who
			 can explain how the law of demand, the law of supply, and prices work to
			 determine production and distribution in a market economy as indicated by the
			 following:
(I) The program shall prepare
			 candidates who can define the law of supply and the law of demand;
(II) The program shall prepare candidates who
			 can describe various determinants (shifters) of supply and demand and
			 illustrate on a graph how they can change equilibrium price and quantity;
			 and
(III) The program shall prepare
			 candidates who can explain and illustrate on a graph how prices set too high
			 (e.g., price floors) create surpluses, and prices set too low (e.g., price
			 ceilings) create shortages.
(iii) The program shall prepare candidates
			 who can explain the organization and role of business and analyze the four
			 types of market structures in the U.S. economy as indicated by the following:
(I) The program shall prepare candidates who
			 can compare and contrast three forms of business organization-sole
			 proprietorship, partnership, and corporation with regards to number of owners,
			 liability, lifespan, decision-making, and taxation; and
(II) The program shall prepare candidates who
			 can identify the basic characteristics of monopoly, oligopoly, monopolistic
			 competition, and pure (perfect) competition with regards to number of sellers,
			 barriers to entry, price control, and product
			 differentiation.
4. Macroeconomics.
(i) The program shall prepare candidates who
			 can explain the methods by which economic activity is measured as indicated by
			 the following:
(I) The program shall prepare
			 candidates who can describe key economic outcomes and how they are measured
			 including economic growth using Gross Domestic Product (GDP) and real GDP;
			 price stability using the Consumer Price Index (CPI); and full employment using
			 the unemployment rate;
(II) The
			 program shall prepare candidates who can explain the differences between
			 seasonal, structural, cyclical, and frictional unemployment; and
(III) The program shall prepare candidates
			 who can describe the stages of the business cycle and its relation to economic
			 measurement, including: peak, contraction, trough, recovery/expansion as well
			 as recession.
(ii) The
			 program shall prepare candidates who can explain the role and functions of the
			 Federal Reserve System as indicated by the following:
(I) The program shall prepare candidates who
			 can describe the organization of the Federal Reserve System (12 Districts,
			 Federal Open Market Committee [FOMC], and Board of Governors);
(II) The program shall prepare candidates who
			 can describe the Federal Reserve Bank's roles in payment processing, bank
			 supervision, and monetary policy including the dual mandate of price stability
			 and full employment; and
(III) The
			 program shall prepare candidates who can describe how the Federal Reserve uses
			 various tools of monetary policy to target the federal funds rate and how this
			 rate influences other interest rates in the economy.
(iii) The program shall prepare candidates
			 who can analyze how the government uses fiscal policy and its effects on
			 national debt as indicated by the following:
(I) The program shall prepare candidates who
			 can explain the effect on the economy of the government's taxing and spending
			 decisions in promoting price stability, full employment, and economic growth;
			 and
(II) The program shall prepare
			 candidates who can explain how government budget deficits or surpluses impact
			 national debt.
5. International.
(i) The program shall prepare candidates who
			 can explain the benefits of international trade and the role of trade barriers
			 as indicated by the following:
(I) The
			 program shall prepare candidates who can explain how nations benefit when they
			 specialize in producing goods and services in which they have a comparative
			 advantage;
(II) The program shall
			 prepare candidates who can explain how trade barriers create costs and benefits
			 to consumers and producers over time; and
(III) The program shall prepare candidates
			 who can analyze Georgia's role in the international economy (i.e., the ports of
			 Savannah and Brunswick, the Northeast inland port, the presence of
			 multinational corporations in the state, and the impact of trade on the state's
			 economy).
(ii) The
			 program shall prepare candidates who can analyze how changes in exchange rates
			 can have an impact on groups in the United States and in other countries as
			 indicated by the following:
(I) The program
			 shall prepare candidates who can describe factors that cause changes in
			 exchange rates; and
(II) Explain
			 how appreciation and depreciation of currency affects net exports and benefits
			 some groups and hurts others.