JA Financial Capability 1


JA Financial Capability<sup>™</sup> 1

In JA Financial Capability 1, part of the JA High School Experience courses, is a one-semester teacher-led course in which high school students examine financial capabilities from a business perspective, focusing on banking, economics, business planning, and risk management. Volunteers engage with students through a variety of activities that includes subject matter guest speaking and coaching or advising for case study and project course work. 

 

Students will:

  • Learn the necessary concepts applicable to state and national educational standards.

  • Apply these standards-based concepts to the real world.

  • Synthesize elective concepts through cumulative, tangible deliverables (projects).

  • Analyze a business situation or principle through the use of a case study.

  • Demonstrate the skills necessary for future career pathway success.

 

Pillars of Student Success Entrepreneurship:  Financial-Literacy:  Work-Readiness: 
Program Implementation Program Grade-Level
Classroom-Based High School
Program Concepts Program Skills
Assessment of business needs, Balance sheets, Banking careers, Break even, Business banking, Business choices, Business ethics, Business loan, Capitalism, Company information, Crowdfunding, Customer life cycle, Demand, Expenses, Financial plan, Financial planning, For profit and nonprofit businesses, Funding sources, Graphs, Hard skills, Income statement, Insurance agencies, Insurance careers, Investing, Job source websites, Job trends, Law of supply and demand, Nonprofit funding, Personal banking, Pro forma, Resources, Risk, Risk management, Salaries, Scarcity, Small business pricing, Soft skills, Supply, The profit equation, Types of insurance Analyze facts, Analyze information, Analyze situations, Analyze statistics, Calculate financial information, Compare and contrast information, Complete research, Draw conclusions, Discuss information, Evaluate information, Intrepret data, Manipulate data, Participate in discussions, Present information, Perform calculations, Research information, Review data, Role play a situation, Think creatively, Think critically, Work in groups

Program Sessions

1.1 Resource Scarcity

THEME 1: ECONOMICS AND BUSINESS

1.1 Resource Scarcity

Students learn how the economic principle of resource scarcity affects businesses. Students practice allocating limited resources while still leaving room for profit.

 

Students will:

  • Describe the economic principle of scarcity.

  • Explain how scarcity affects businesses.

  • Identify three categories of resources that a business owner or manager must account for when planning business finances.

1.2 Supply and Demand

THEME 1: ECONOMICS AND BUSINESS

1.2 Supply and Demand

Supply and demand are at the basis of all business transactions. When supply of a product or service changes, the price charged to consumers will rise or fall. In the same manner, consumers can drive demand for a product. If consumer demand increases, prices may rise for a product or service.

 

Students will:

  • Define supply and demand.

  • Describe two ways a change in the supply impacts price.

  • Identify three ways changes in supply and demand affect each other.

1.3 Profit and Nonprofit Businesses

THEME 1: ECONOMICS AND BUSINESS

1.3 Profit and Nonprofit Businesses

Students learn about the purpose of a business and compare and contrast for-profit and nonprofit businesses. Students will learn how each form of business obtains revenue or funding to support their goals.

 

Students will:

  • Explain the importance of profit in a for-profit business.

  • Describe two differences and two similarities for nonprofit and for-profit businesses.

  • Identify two ways a nonprofit business can obtain funding for its mission.

1.4 Introduction: Exploring Careers

THEME 1: ECONOMICS AND BUSINESS

1.4 Introduction: Exploring Careers

Students take a guided tour through the job site Indeed.com and practice using several of its features for finding a job, learning about salaries, and reviewing companies.

 

Students will:

  • Locate and analyze information from a job website.

  • Research a career of interest on a job website.

2.1 Building a Small Business Financial Plan

THEME 2: BUSINESS PLANNING AND FINANCIAL MANAGEMENT

2.1 Building a Small Business Financial Plan

Students identify the reasons for financial planning and review the basic components of a financial plan for a small business. Students will create a break-even analysis for a business scenario.

 

Students will:

  • Explain three reasons why a small business prepares a financial plan.

  • Identify four common components of a small business financial plan.

  • Complete a break-even analysis for a sample business.

2.2 Track and Manage a Financial Plan

THEME 2: BUSINESS PLANNING AND FINANCIAL MANAGEMENT

2.2 Track and Manage a Financial Plan

Students review the basic components of a small business financial plan and then prepare a balance sheet and an income statement for a business scenario. To deepen understanding of the financial plan, students compare and contrast the timing, content, and purpose of the balance sheet and income statement.

 

Students will:

  • Manage a financial plan by creating a balance sheet and an income statement for a business scenario.

  • Compare and contrast the balance sheet and an income statement.

  • Identify methods for tracking finances.

2.3 Financial Decision Making

THEME 2: BUSINESS PLANNING AND FINANCIAL MANAGEMENT

2.3 Financial Decision Making

Students review financial planning and create a cash flow statement for a business scenario. They apply their understanding of the cash flow statement to make business decisions.

 

Students will:

  • Create a cash flow statement for a business scenario.

  • Analyze the information in a cash flow statement to make business decisions.

2.4 Exploring Careers in Finance

THEME 2: BUSINESS PLANNING AND FINANCIAL MANAGEMENT

2.4 Exploring Careers in Finance

Students complete a brief activity related to career soft skills and then evaluate a sample career before conducting independent research on two other careers at a job website. Students use information they have gathered to complete a brief creative activity at the end of the session.

 

Students will:

  • Locate and use information gathered from a career website.

  • Identify basic career information about two of the following three careers: economist, financial controller, or nonprofit fundraiser.

  • Reflect on personal interest and fit for the researched careers.

3.1 Banking Basics

THEME 3: BANKING SERVICES

3.1 Banking Basics

Students learn about the differences between personal and business banking and then conduct research to identify some of the specific services offered to businesses.

 

Students will:

  • Compare and contrast personal banking services and small business services.

  • Explain how a business determines which bank and banking services they need.

  • Identify, describe, and evaluate three banking services offered specifically to businesses.

3.2 Financial Resources for Small Businesses

THEME 3: BANKING SERVICES

3.2 Financial Resources for Small Businesses

Students learn about the main reasons businesses need financial support and the types of financing available. They will conduct research about funding resources and evaluate the products they offer.

 

Students will:

  • Explain three reasons a business may need to seek financial support.

  • Explain the difference between debt financing and equity financing.

  • Identify three outside sources of funding for a small business.

  • Evaluate the advantages and disadvantages of each funding source.

3.3 Matching Need with Products

THEME 3: BANKING SERVICES

3.3 Matching Need with Products

Students advise a small business about the best financial resource to meet their needs.

 

Students will:

  • Match financial resources to small business needs.

  • Explain how to access and qualify for small business funding.

3.4 Exploring Careers in Banking

THEME 3: BANKING SERVICES

3.4 Exploring Careers in Banking

Students complete a brief activity related to career soft skills and then evaluate a sample career before conducting independent research on two other careers at a job website. Students use information they have gathered to complete a brief creative activity at the end of the session.

 

Students will:

  • Locate and use information gathered from a career website.

  • Identify basic career information about two of the following three careers: loan officer, bank teller, or business banking specialist.

  • Reflect on personal interest and fit for the researched careers.

4.1 Risks to Small Business

THEME 4: BUSINESS RISK MANAGEMENT

4.1 Risks to Small Business

Students learn about the basics of insurance, the types of risks faced by businesses, and strategies for managing risk. They will apply what they learn to a small business scenario.

 

Students will:

  • Define insurance and explain its purpose.

  • Explain the relationships among risk, loss, peril, and insurance.

  • Define risk management and explain five methods of managing risk.

  • Identify potential risks and management strategies for a small business.

4.2 Risk Management Products for Business

THEME 4: BUSINESS RISK MANAGEMENT

4.2 Risk Management Products for Business

Students learn about the coverage and contents of a business owner's policy as a risk management tool for businesses. They interpret the coverage and exclusions of a sample policy.

 

Students will:

  • Identify risks to small businesses that are most appropriately managed with insurance.

  • Explain the five parts of the business owner's policy (BOP).

  • Interpret a sample business owner's policy to identify examples of included and excluded events.

4.3 Business Profile: Insurance Agency

THEME 4: BUSINESS RISK MANAGEMENT

4.3 Business Profile: Insurance Agency

Students compare and contrast various aspects of an insurance agency with other small businesses and then set up a mock insurance agency.

 

Students will:

  • Compare an insurance agency to other small businesses.

  • Explain how insurance pricing and profit differ from other small businesses.

  • Research insurance agent licensing requirements.

4.4 Exploring Careers in Finance

THEME 4: BUSINESS RISK MANAGEMENT

4.4 Exploring Careers in Finance

Students complete a brief activity related to career soft skills and then evaluate a sample career before conducting independent research on two other careers at a job website. Students use information they have gathered to complete a brief creative activity at the end of the session.

 

Students will:

  • Locate and use information gathered from a career website.

  • Identify basic career information about two of the following three careers: actuary, underwriter, or claims adjuster.

  • Reflect on personal interest and fit for the researched careers.

Case Study: Analyzing and Applying Data

Students take up the challenge to collect, analyze, and use data to make a business decision for a film company wanting to create content appealing to teens.