ECON 1101: Economics of Financial Literacy

3 Credit Hours

This course explores the microeconomic and macroeconomic principles that underpin financial literacy, emphasizing the importance of informed decision-making in personal finance. In this class, students will learn how to apply economic thinking to real-world financial situations and develop the skills necessary to make sound financial decisions. Specifically, students will learn how to use economic theories and concepts to make informed decisions about budgeting, cash flow management, maximizing their earnings potential, tax planning, obtaining and using credit, saving and investments, insurance and risk management, and retirement. The course will emphasize the importance of understanding the broader economic context when developing and implementing financial plans.

Notes: This course is managed through the cooperative academic agreement known as eCore.

Course Learning Outcomes
Fundamentals of Economic Decision-Making

Analyze how scarcity affects the choices of individuals, businesses, and governments.
Give examples of how rational decision-making entails comparing the marginal benefits and the marginal costs of an action.
Analyze factors that influence the standard of living of individuals and nations.

Personal Finance

Analyze major life decisions using economics-based decision-making skills.
Analyze income as a scarce resource that can be allocated effectively through budgeting.
Explain how the financial system channels funds from savers to investors.
Explain how interest rates affect various consumer decisions.
Explain how changes in taxation can have an impact on an individual’s spending and saving choices.
Evaluate the costs and benefits of using credit.
Analyze how insurance and other risk-management strategies protect against financial loss.
Describe how the earnings of workers are determined in the marketplace.
Explain ways consumers are protected by rules and regulations.
Explain sources of and protection against identity theft.

Microeconomics

Describe how households and businesses are interdependent and interact through flows of goods, services, resources, and money.
Explain how the law of demand, the law of supply, and prices work to determine production and distribution in a market economy.

Macroeconomics

Explain the methods by which economic activity is measured.
Analyze how the government uses fiscal policy and its effects on national debt.

International

Explain the benefits of international trade and the role of trade barriers.

Additional Optional Learning Outcomes

Analyze how economic systems influence the choices of individuals, businesses, and governments
Explain the organization and role of business and analyze the four types of market structures in the U.S. economy
Explain the role and functions of the Federal Reserve System
Analyze how changes in exchange rates can have an impact on groups in the United States and in other countries.