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Descriptive Statements:
- Identify principles, steps, and skills involved in developing and maintaining a budget.
- Demonstrate knowledge of components of short- and long-term financial management plans and factors that affect money management and financial planning throughout the life cycle.
- Demonstrate knowledge of types of institutions, businesses, and agencies that provide financial services or assistance and the services they provide.
- Recognize types and characteristics of insurance, savings, investment, and retirement vehicles and the risks and benefits associated with each.
- Recognize types of credit, procedures for obtaining credit, factors that affect eligibility for credit, appropriate uses of credit, and the consequences of misuse of credit.
- Analyze the role of consumers in the U.S. economy and the interrelationship between the economic system and consumer behaviors.
Sample Item:
An individual has $15,00015,000 dollars in government student loans, $3,0003,000 dollars in credit
card debt, no savings, and a full-time job that pays $25,00025,000 dollars per year.
The individual is creating a long-term financial plan with the goal of
buying a house in ten years. The first action this individual should
take as part of this plan is to:
- create an emergency fund equal to six months' salary.
- pay off the student loans.
- pay off the credit card debt.
- get a different job with a higher salary.
Correct Response and Explanation (Show Correct ResponseHide Correct Response)
C. This question requires the examinee to demonstrate knowledge
of components of long-term financial management plans. Credit card debts
typically have high interest rates and the interest compounds over time,
increasing the cardholder's debt load. In addition, carrying a balance
on a credit card may have a negative effect on the individual's credit score.
This score is used by lenders to determine whether an individual is qualified
to receive a mortgage and what interest rate to charge. Therefore, paying off
the credit card debt would both decrease the individual's debt load and increase
his or her chances of obtaining a mortgage that he or she can afford.
Descriptive Statements:
- Recognize individual and family resources and factors that affect how they are used.
- Demonstrate knowledge of strategies for selecting, adjusting, and adapting individual and family resources to meet their wants, needs, and goals.
- Demonstrate knowledge of strategies and resources that support the management of personal, family, work, and community commitments, needs, and goals.
- Identify methods for responsible consumption and conservation of renewable and nonrenewable resources.
- Recognize methods for researching, identifying, comparing, and evaluating goods and services to support wise consumer decisions and how various factors influence consumer decision making.
- Identify legal and other considerations regarding the acquisition of transportation and housing.
- Recognize consumer fraud and deception practices.
- Demonstrate knowledge of consumer rights and responsibilities and the role of federal and state agencies, legislation, and advocacy groups in protecting consumers.
Sample Item:
Which of the following is an example of a human resource?
- the ability to manage one's time effectively
- community-based family support services
- a career path with potential for advancement
- a comprehensive health insurance policy
Correct Response and Explanation (Show Correct ResponseHide Correct Response)
A. This question requires the examinee to recognize individual
and family resources. Human resources are the abilities, skills, and
talents that individuals possess. The ability to manage one's time
effectively is an example of a human resource.
Descriptive Statements:
- Demonstrate knowledge of factors that affect the consideration, selection, and maintenance of housing and interiors.
- Demonstrate knowledge of skills and considerations involved in space planning for housing and interiors; elements and principles of design as applied to housing and interiors; and the role of design in meeting individual, family, and group needs throughout the life span.
- Recognize laws, regulations, and programs related to housing, interiors, furnishings, textiles, and apparel.
- Demonstrate knowledge of criteria considered in the selection of furnishings and equipment, including the characteristics of various furnishing materials.
- Identify characteristics of textile fibers, fabrics, and finishes and their applications for a variety of purposes.
- Demonstrate knowledge of factors influencing wardrobe planning and selection and elements and principles of design as applied to textiles and apparel.
- Demonstrate knowledge of the techniques, tools, supplies, and equipment for constructing, altering, repairing, cleaning, and maintaining apparel and household textile items and factors affecting the quality of apparel construction.
Sample Item:
A family is purchasing a new sofa for their family room. This is the main room in which the children play
with their toys and the family gathers to play games or watch movies. When selecting upholstery for this sofa,
the family's primary consideration should be the fabric's:
- finish.
- texture.
- durability.
- pattern.
Correct Response and Explanation (Show Correct ResponseHide Correct Response)
C. This question requires the examinee to identify characteristics of textile fabrics and their applications
for a variety of purposes. When selecting upholstery for a sofa that will be used frequently in a casual manner by
both children and adults, the primary concern should be the fabric's ability to withstand a significant amount of rough use.
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