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Rationale for Assignment

The modern employer is constantly trying to save money to compete in the global economy. One way companies can become more globally competitive is through benefit reductions, particularly retirement benefits. Quite simply these cuts lower their fixed costs. The benefit responsibility shift from employer to employee make it imperative that employees take an active role in their personal and retirement saving and investing. “Pensions are going the way of the petticoat. Social Security is looking more rickety by the day. Our healthcare system is being held together by chewing gum and chicken wire. In today’s environment, your must be a realist and admit that you’re going to have to create your family’s financial security all by your lonesome” (Taylor, 2007, P.119)

The reality for today’s American worker is uncertainty. What is certain is a shift of benefit responsibility from employer to employee. “Workers can no longer count on company-funded retirement. (Clark, 2005, P.42) Will social security be there for me when I am ready to retire? Defined-benefit pensions are being cut by employers in favor of portable retirement vehicles (401(k)’s) that shift responsibility of your future to you, not the employer. “This is another “self serve” example of a trend that serves any sense of commitment or relationship between employer and employee while transferring all investment risks to the worker.” (Yee, 2005, P.17)

Because of the shift in benefit responsibility from employer to employee and the uncertainty of Social Security, it is critical that students receive a "financial education" at an early age that will provide the necessary knowledge for them to effectively manage their own personal and retirement savings. “The high stakes involved and the long time necessary to build a sufficient nest egg underscore the importance of early and comprehensive financial education for workers” (Tiras, 1997, P.119). It is the purpose of this WebQuest to provide students the knowledge necessary to effectively manage their own personal and retirement savings.

This WebQuest assignment meets the Michigan High School Economic Standard E4 benchmark, Personal Finance, sub area 4.1.3. (Michigan Department of Education-Social Studies High School Content Expectations, 2007, P.72). In addition this WebQuest is also a cross-curriculum assignment with additional emphasis on Michigan High School Mathematics Standard S4 benchmark, Probability Models and Probability Calculation, sub area S4.2.2. (Michigan Department of Education-Mathematics High School Content Expectations, 2007, P.19)