Trends in the United States indicate that Americans’ financial literacy is declining. In its National Financial Capability Study, conducted every few years, the Financial Industry Regulatory Authority (FINRA) poses a five-question test that measures consumers’ knowledge about interest, compounding, inflation, diversification, and bond prices. In the latest study, only 34% of those who took the test answered at least four out of five questions correctly.
Yet making informed financial decisions is more important than ever. Take retirement planning: Once relying on pension plans to fund retirement lives, with the financial burden and decision-making for pension funds, but today, few workers get pensions some participate in 401(k) plan, which involves decisions to make about contribution levels and investment choices. Those without employer options need to actively seek out and open individual retirement accounts (IRAs) and other tax-advantaged retirement accounts.
Add to this increasing life spans (leading to longer retirements), Social Security benefits that is barely enough for basic survival, complicated health and other insurance options, more complex savings and investment instruments to select from and a plethora of choices from banks, credit unions, brokerage firms, credit card companies, and more. It is clear that financial literacy is necessary for making thoughtful and informed decisions, avoiding unnecessary levels of debt, helping family members through these complex decisions, and having adequate income in retirement.
Financial Literacy & Investment Management (IM 101) Essentials of Investments
PROGRAM DESCRIPTION:
This program was developed to introduce students to Investment Management, Introduction to Risk, Return, and the Historical Record, Students will learn the basics, covering everything from Investment Management, Risk, Return, and the Historical Record on one’s needs and lifestyle.
PREREQUISITES:
Students must have a high school diploma or equivalent. Students with math and English deficiencies will be required to take General Education Math and/or Language Arts.
GRADUATION REQUIREMENTS:
Each student must pass all subjects in the program with at least a cumulative “C” (2.0) average. Tuition and program costs must be paid in full. Students meeting these requirements will be issued a Certificate of Competency.
SUGGESTED PROGRAM SEQUENCE:
| Catalog Designation | Course Title |
|---|---|
| Sequence 1 | |
| IM 101.1 | Financial Crisis |
| IM 101.2 | How Securities are Traded |
| IM 101.3 | Investment Companies |
| Sequence 2 | |
| IM 101.4 | Introduction to Risk, Return, and the Historical Record |
| IM 101.5 | Risk Aversion and Capital Allocation to Risky Assets |
| IM 101.6 | Optimal Risky Portfolios |
| Sequence 3 | |
| IM 101.7 | Index Models |
| IM 101.8 | The Capital Asset Pricing Model |
| IM 101.9 | The Capital Asset Pricing Model 2 |
| Sequence 4 | |
| IM 101.10 | Arbitrage Pricing Theory |
| IM 101.11 | Multifactor Models |
| IM 101.12 | Efficient Marketing and Cross- Sectional Stock Returns |
| Total | |
Financial Literacy (IM 102) The 21st Century Student’s Guide to Financial Literacy
PROGRAM DESCRIPTION:
This program was developed to introduce students to Investment Management, Introduction to Portfolio Performance Evaluation, Macro and Investments and the Historical Record, Students will learn the basics, covering everything from Investment Management, Risk, Return, and the Historical Record on one’s needs and lifestyle.
PREREQUISITES:
Students must have a high school diploma or equivalent. Students with math and English deficiencies will be required to take General Education Math and/or Language Arts.
GRADUATION REQUIREMENTS:
Each student must pass all subjects in the program with at least a cumulative “C” (2.0) average. Tuition and program costs must be paid in full. Students meeting these requirements will be issued a Certificate of Competency.
SUGGESTED PROGRAM SEQUENCE:
| Catalog Designation | Course Title |
|---|---|
| Sequence 1 | |
| IM 102.1 | Behavioral Finance and Bubbles |
| IM 102.2 | Portfolio Performance Evaluation |
| IM 102.3 | Macro and Investments |
| Sequence 2 | |
| IM 102.4 | Bond Prices and Yields |
| IM 102.5 | The Term Structure of Interest Rates |
| IM 102.6 | Managing Bond Portfolios |
| Sequence 3 | |
| IM 102.7 | Managing Bond Portfolios 2 |
| IM 102.8 | Options Markets : Introduction |
| IM 102.9 | Option Valuation |
| Sequence 4 | |
| IM 102.10 | Futures Markets |
| IM 102.11 | Futures Markets 2 |
| IM 102.12 | Bank Account Understanding |
| Total |
Investment Management (IM 103) Investing QuickStart Guide
PROGRAM DESCRIPTION:
This program was developed to introduce students to Investment Management, Savings vs Investing, Managing Finances, and How to choose stock. Students will learn the basics, covering everything from Investment Management, Risk, Return, and the Historical Record on one’s needs and lifestyle.
PREREQUISITES:
Students must have a high school diploma or equivalent. Students with math and English deficiencies will be required to take General Education Math and/or Language Arts.
GRADUATION REQUIREMENTS:
Each student must pass all subjects in the program with at least a cumulative “C” (2.0) average. Tuition and program costs must be paid in full. Students meeting these requirements will be issued a Certificate of Competency.
SUGGESTED PROGRAM SEQUENCE:
| Catalog Designation | Course Title |
|---|---|
| Sequence 1 | |
| IM 103.1 | Saving vs Investing |
| IM 103.2 | Banking - Concentration on Checking Accounts |
| IM 103.3 | Functions of the Federal Reserve |
| Sequence 2 | |
| IM 103.4 | How to set and reach FINANCIAL goals (Fin Mgt) |
| IM 103.5 | Getting most of what they want, now and later (Budgeting) |
| IM 103.6 | Stock Investing |
| Sequence 3 | |
| IM 103.7 | Features of Common Stock |
| IM 103.8 | Features of Preferred Stock |
| IM 103.9 | How to Choose Stock |
| Sequence 4 | |
| IM 103.10 | Process of Buying Stock |
| IM 103.11 | Long and Short Term Investment Strategies |
| IM 103.12 | Investment Strategies |
| Total |