1. Daily Information 12/2/13 Objectives: 1.Explain the concept of risk. 2.Describe risk assessment and list four risk strategies. Warm Up: What risks do you take every day? How serious are those risks? Discuss this with the person sitting next to you. Agenda: 1.Warm up 2.Review of assignments 3.Vocab. 4.What is Risk P.P. 5.Lesson assessment activities (base group) 6.Bottom Line

2. Upcoming Assignments Friday 12/2/13 10 minute writing sample “What have you learned in this class so far?” Choice novel project review Resume project update

3. What Is Risk? Risk: the chance of injury, damage, or economic loss. May be avoidable, unpredictable, and unavoidable. Loss: a physical injury, damage to property, or disappearance of property **Could have a major impact on your life

4. Examples of Risk & Loss Driving a car (risk) o An accident may occur with another car causing personal injury and damage to the car (loss) Snow skiing (risk) o An accident may occur while skiing such as breaking your leg (loss)

5. Probability of Risk Risk does not always equal loss, you may avoid loss If you avoid loss once, this does not mean you will always do so You must weigh the risk and loss of your actions. Are they serious? Can you reduce the risk or loss? ** Business owners face additional types of risk including: economic conditions, competition, and technology

6. Consumer Risk Personal risk: loss of personal value. o Example: breaking a leg  missing fun activity Some risks result in a financial loss. o Example: driving without insurance  paying a lot of money to repair car Some risks jeopardize financial resources. o Example: getting sued for causing an injury to another  having your wages garnished to pay for judgment against you

7. Risk Management Risk assessment: identifying risks and deciding how serious they are. Use risk strategies to protect yourself against loss. o Reduce risk (change your actions) o Avoid risk (stop a certain behavior) o Transfer risk (buy insurance) o Assume risk (self-insure through savings) **Have you ever used risk management? Discuss this with the person sitting next to you.

8. Risk Assessment Risk Probability of Occurrence Seriousness Rating* Possible Consequences Losing my jobMedium10  Missed payments  Lower credit rating Getting in a car accident Unknown10  Personal injury  Lawsuit Suffering physical injury from snowboarding Medium3  Missed work time  Medical bills Having bike stolen Low2  New/used bike purchase * 1 is low risk; 5 is medium risk; 10 is high risk

9. Group Activity Within your base group, complete the following (Page 192 & 193): Key Terms Review (1-9) Check Your Understanding (10-20) Think Critically (21-26) **Everyone in the group should record the answers and have a copy for when we review as a class!

10. Daily Information 4/9 Objectives: 1.Explain the concepts of risk. 2.List the three types of risk that consumers face. 3.Describe risk assessment and list four risk strategies. Warm Up: Grab a textbook and complete the activity from yesterday. Agenda: 1.Warm up 2.Vocab., Sec. 2 3.Health Insurance P.P. 4.Lesson assessment assignment

11. Group Activity Complete the following (Page 192 & 193): Key Terms Review (1-9) Check Your Understanding (10-20) Think Critically (21-26)

12. What is Health Insurance? A plan that shares the risk of medical costs. Could be individual or group (employer) **Better coverage equals higher premiums

13. Health Insurance Terms In your own words, explain the difference between a deductable, a premium, and a co-pay. These are all costs you pay for your insurance.

14. Types of Health Coverage Fee-for-service (Unmanaged Care) You choose medical providers PPO (MANAGED CARE) Independent health care providers that work together to provide health care. Referrals not required. HMO (MANAGED CARE) Provides prepaid medical care for its members **Managed Care: network of providers

15. Health Care Types  Basic Health Care: medical, hospital, surgery  Major Medical: very serious injury or illness beyond basic coverage  Dental and Vision  Long-term care: nursing homes and assisted living Managing Costs  Deductibles and Copays: the part you pay. If lower, then insurance premium is higher  Stop-Loss Provisions: after you pay a certain amount, insurance pays 100%  Health Spending Accounts  FSA-flexible spending account  HSA- health savings account

16. Disability Insurance Provides income when you cannot work due to injury or illness (not work related). It replaces a portion or percentage of normal earnings. Short-term: 30 days Long-term: 90 days

17. Disability Insurance You are unable to work due to an injury. Your short-term disability insurance coverage provides 66% of your regular pay. If your regular annual salary is $42,000 per year, how much is your insurance providing you per month? $42,000 x.66 = $27,720 $27,720/12 = $2,310

18. Life Insurance Pays money to a beneficiary upon the death of the insured person. Temporary or Term: provides a death benefit only. Permanent: provides a death benefit and builds cash value. Group life: is available through employers. **Create a list of reasons why people may want to buy life insurance with the person sitting next to you.

19. Focus On...page 198 Read the information regarding the health care reform

20. Focus On...page 198 Health Care Reform Most Americans will have insurance by 2020. Purchasing health insurance will be mandatory. Citizens cannot be denied coverage for pre-existing conditions. Tax increases will pay for health care reform. A major omission from the reform is a control on health care costs.  Do you agree that we should have mandatory health insurance in the U.S.?

21. What Is Homeowner’s Insurance? Homeowner’s insurance: protects the policyholder from risk of loss to a home and its contents. It covers three types of risk. o Fire and other hazards (peril) o Criminal activity o Personal Liability (when others are injured on your property) **Homeowner’s insurance should cover the replacement cost which will pay to rebuild the home if it is completely destroyed.

22. What if I rent, not own?... **Buy Renter’s Insurance A renter (tenant) cannot insure the building BUT you can insure your contents. Always purchase renter’s insurance to protect against risk of loss of personal property. Just like a homeowners policy, cover things like fire, theft, and other hazards. Includes personal liability coverage for what happens inside your residence. ***May be provided by a parent or guardian while an individual is still a full time student or under the age of 18

23. Home Inventory Create a home inventory in case you need to file a claim.

24. How Does Insurance Protect Car Owners? Automobile insurance protects a car owner from losses as a result of accidents and other events. Cost depends on Model/style of car Age (and gender) Driving record of driver.

25. Types of Auto Insurance Coverage Full coverage is required if you have a car loan. It includes: o Liability o Collision o Comprehensive o Personal injury protection o Uninsured/Underinsured Motorist o Towing/Rental Car

26. Insurance Coverage Defined o Protects against… o Liability: loss as a result of injury to another person or damage to that person’s property o Collision: damage to our own vehicle if you hit another car or lose control and roll over o Comprehensive: damages to your car from causes other than collision or rolling over o Uninsured/Underinsured Motorist: damages caused by a motorist who is at fault and does not have insurance or the means to pay for your damages.

27. How Can You Reduce Auto Insurance Costs and Maximize Benefits? Reducing costs can raise your overall risk but it can help you manage your budget. Lower your costs using these strategies: choose higher deductibles change your driving habits* buy online comparison shop Maximize benefits by reviewing your policy or getting umbrella coverage (liability insurance for extraordinary losses).

28. Change your driving habits Lower premium costs Take driving training class Maintain good driving record Get good grades in school Choose a car with high safety rating Install security devices on your car Park in garage or protected area Reduce risk Drive while rested instead of when tired Keep your car properly serviced Avoid heavy traffic or bad weather Drive defensively; be aware of other drivers Avoid using cell phones, eating or other distractions

29. Daily Information 4/16 Objectives: 1.Explain the purpose of a budget. 2.Identify proper banking procedures. 3.Categorize different types of risk and insurance. Warm Up: How can you be prepared in case you need to file a claim for the loss of property due to theft or fire? Agenda: 1.Warm up 2.Crossword puzzle review 3.Mind Map 4.Bottom Line

30. Mind Map

31. Mind Map Outline Budgeting: Income, Savings, Expenses 70-20-10 strategy Net Worth Assets Liabilities Fixed expenses Financial Resources Banking Procedures: Bank Reconciliation Endorsements Demand deposit accounts Liquid Assets Savings Bond FDIC Rule of 72 Risk: Management tools Risk assessment Risk of Financial Resources Self-Insure Insurance: Life Insurance (beneficiary) Managed Care Premium/Deductible Disability Insurance Homeowners Insurance Renters Insurance Automobile Insurance (comprehensive, collision) Stop-loss provision Liability Coverage Underinsured/Uninsured Motorist