Title: Identify strategies for managing risk.
Course: Independent Living (22904-36) > Section: Managing Personal and Family Finances

Identification should include

- reasons for purchasing or not purchasing insurance
  - avoiding risk
  - minimizing risk
  - assuming risk
  - transferring the risk (e.g., examples of different insurance policies)
- types of insurance
- weighing costs and benefits of different insurance plans.

Process/Skill Questions:

Thinking

- How is financial risk avoidable?
- What are the different types of insurance offered?
- What does it mean to be over-insured? Under-insured?

Communication

- How can you determine your true financial risk when dealing with lending institutions?
- What protects consumers from making poor borrowing decisions?
- How do banks use risk assurance to attract customers?

Leadership

- How do insurance companies profit?
- Why do leaders, entrepreneurs, and business owners take risks?

Management

- What is the relationship between investment and risk?
- What are your suggestions for diversifying your investments?
- What are investments that are considered low-risk during uncertain economic times?

Teacher Resources:

- Educator Toolkit for 2011 National Financial Capability Challenge, U.S. Department of Education (https://www.ed.gov/category/keyword/educator-toolkit-2011-national-financial-capability-challenge)
- Virginia Council on Economic Education (https://vcee.org/)
- Virginia Jump$tart Coalition for Personal Financial Literacy (https://www.jumpstart.org/who-we-are/states/virginia/)