F1. Money and Finances
Specific Expectations
Money Concepts
F1.1
identify various methods of payment that can be used to purchase goods and services
- methods of payment:
- cash
- cheque
- barter
- trade (e.g., trading cards)
- debit cards (note: age restriction)
- credit cards (note: age restriction and qualification requirements)
- electronic wallets (e.g., tapping a smart phone or watch that has apps or payment cards attached to a bank account)
- e-Transfers
- cryptocurrency
- Consumers have a choice of method of payment when purchasing goods and services.
- There is an underlying agreement between the vendor and the consumer that is finalized when a payment is made.
Note
- Depending on individual circumstances and context, as well as consumers’ and vendors’ preferences, ideas about which payment method is best in each situation will vary.
- Recognizing how people pay for goods and services helps to develop consumer awareness and an understanding of the factors that contribute to the choice of payment method.
Have students make a list of the different methods they know of that can be used to purchase or exchange goods and services.
Make a class list of the possible methods of payment people might use in particular situations and why (e.g., buying groceries: debit card – convenient; cash – helps control spending).
F1.2
estimate and calculate the cost of transactions involving multiple items priced in whole-dollar amounts, not including sales tax, and the amount of change needed when payment is made in cash, using mental math
- situations involving cash transactions:
- simulating the purchase of multiple items:
- purchasing two or more items at a school event
- purchasing multiple grocery items
- simulating the purchase of multiple items:
- estimating and calculating change for a cash transaction involving dollars:
- the purchase cost is $234, and the cash given is $250:
- estimate change: less than $20
- change required: $16
- provide customer with:
- 1 ten-dollar bill, 1 five-dollar bill, and 1 loonie, or
- 3 five-dollar bills and 1 loonie
- the purchase cost is $234, and the cash given is $250:
- Estimating and calculating the cost of cash transactions requires the application of addition, subtraction, mental math strategies, and math facts.
Note
- Real-life situations, using the cultural context of students in the class, provide opportunities to develop an understanding of the use of money.
- Providing multiple opportunities to apply mental math strategies to real-life situations will build students' ability to recall math facts, while reinforcing their knowledge and understanding of operations. These opportunities can provide meaningful contexts in which to practise mental math strategies in order to increase students' confidence and the accuracy of their calculations.
Provide a list of several items along with their cost in whole dollars (e.g., a pair of second-hand skates for $50, a T-shirt for $15, a backpack for $30), and specify a given amount of “money” available to spend (e.g., $90). Ask students to choose two or three items and use different mental math strategies to estimate the total cost and change.
Provide a list of several items along with their cost in whole dollars (e.g., using a grocery store flyer), and specify three different amounts of “money” available to spend (e.g., $55, $23, and $39). Ask students to choose two or three items priced in whole-dollar amounts to purchase, and have them use mental math to determine the total cost for the items and the change they will receive.
Financial Management
- some factors to consider about spending, saving, earning, investing, and donating:
- spending (e.g., differentiating between needs and wants)
- saving for future needs, wants, and unforeseen situations
- earning to support basic needs
- investing, which can result in a gain or a loss
- donating funds and/or time to support a cause
- Every financial decision involves a trade-off – giving up something today or in the future to gain something else.
Note
- Each person, family, or community may be facing a different financial situation, and some of these financial situations may be challenging or difficult. Having a safe, respectful, and inclusive environment will ensure that all perspectives and opinions are valued and included when examining the above financial concepts.
Discuss and make a class list of different ways people spend, save, earn, invest, and donate. During this discussion, it is important to pay attention to the local community context and how societal, political, and/or historical factors may contribute to the varied abilities to spend or save within the community. It is also relevant to include in this discussion what things students like/enjoy that money cannot buy, such as spending time with friends and family, exploring nature, creating with found objects, and so on. Borrowing, lending, and donating items such as books or sports equipment can provide access to resources without needing to spend money.
Have students identify possible factors to consider when making financial decisions (e.g., spending, saving, donating), given various scenarios.
F1.4
explain the relationship between spending and saving, and describe how spending and saving behaviours may differ from one person to another
- factors that may affect saving and spending behaviours:
- income
- expenses
- culture
- family values
- needs
- priorities
- stage of life
- lifestyle choices
- health
- personal and family circumstances
- societal factors (e.g., social inequalities)
- consideration of environmental impact of spending
- consideration of economic context that may be causing unemployment in a community or region
- Money can be used for spending, saving, or giving. It can be spent on things that are needed, wanted, or required. Saving and spending behaviours are impacted by a variety of factors, perspectives, and circumstances.
- An understanding of the relationship between spending and saving, and consideration of the possible trade-offs, may influence financial decision-making.
- Saving can be achieved by using less, sharing, reusing, recycling, upcycling, and/or caring for one’s possessions so that they do not need to be replaced.
Note
- Each person, family, or community may be facing a different financial situation, and some of these financial situations may be challenging or difficult. Having a safe, respectful, and inclusive environment will ensure that all perspectives and opinions are valued and included when examining the relationship between saving and spending.
Ask students to discuss and create a list of factors that might influence their decisions to spend and save, given different scenarios.
Consumer and Civic Awareness
F1.5
describe some ways of determining whether something is reasonably priced and therefore a good purchase
- ways to determine whether something is reasonably priced, within a particular context:
- comparing the prices and quality of similar products or services
- identifying a product or service to meet a need
- analysing ratings or consumer reviews of goods and services
- considering the impact of bias in marketing, locational pricing, social inequalities, and so on
- In order to become better-informed consumers, it is important for students to critically consider the price of the purchase they are considering, as well as different ratings, reviews, and perspectives, before making the purchase.
- The habit of thoughtfully considering and examining potential purchases helps to determine the best value for money.
Have students compare the cost of items that have different prices at different places. Consider using a scenario that involves planning to buy an item for a community or school event. Ask students to look at three different flyers (e.g., online, paper) and find that item. Have them compare the prices and discuss why they may vary. Ask them how they would decide which place to buy the item from and why.
Have students explain factors they would consider when making a purchasing decision (e.g., the quality of the materials used, cost of the brand, their prior experience with the brand [brand loyalty], whether the item is produced ethically, the environmental impact of the purchase, whether the item is available used or second-hand, where the product is produced, whether shipping costs are added to the cost of the product, celebrity endorsements that the student considers trustworthy).