F1. Money and Finances
Specific Expectations
Money Concepts
F1.1
describe the advantages and disadvantages of various methods of payment that can be used to purchase goods and services
- methods of payment:
- cash
- 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-Transfer
- cheque
- coupons
- rewards or points in loyalty programs
- Various methods of payment can be used when purchasing goods and services.
- Considering the advantages and disadvantages of various payment options helps consumers make informed purchasing decisions.
Provide concrete examples of various methods of payment. Ask students to identify, describe, and explain the advantages and disadvantages of paying for goods and services with various methods of payment (e.g., cash, debit card, credit card, e-Transfer, cheque, coupons, rewards or points from loyalty program).
Financial Management
F1.2
identify different types of financial goals, including earning and saving goals, and outline some key steps in achieving them
- types of financial goals:
- types of financial goals by time frame:
- immediate – achieved in one or two months
- short-term – achieved in one or two years
- long-term – achieved in more than two years
- types of goals by goal-setter:
- individual
- family
- school class
- community
- organization
- Setting financial goals, including earning and saving goals, is an important life skill.
- Key steps and considerations are involved in achieving set financial goals.
Note
- An understanding of trade-offs may be helpful when setting achievable financial goals.
- Identifying the process of setting financial goals, including considering various influencing factors, and the steps involved in achieving those goals provides a context for developing social-emotional learning skills that build the confidence and competence students need to manage their finances.
Provide students with a variety of scenarios for which they need to establish a financial goal (e.g., raising money for a community garden, planning a class trip to a sugar bush camp). Have them outline the steps they would take to reach the identified financial goal, such as seeking advice from a community member, consulting a reliable source, or learning from others’ experiences; creating a budget; developing a savings plan; considering alternative purchases based on best value; reflecting on their own experiences; and making adjustments as needed).
F1.3
identify and describe various factors that may help or interfere with reaching financial goals
- Anticipating potential barriers and considering factors that may help or interfere with reaching financial goals are part of the financial planning process.
- Achievable financial goals are based on context, research, knowledge, and an understanding of each individual situation.
Have students select a shared financial goal for their class (e.g., a fundraising goal to purchase new volleyball equipment for the local community centre). As a class, work together to create a T-chart identifying the barriers to and opportunities for reaching this financial goal. Ask students to consider tools and means (e.g., research, adjusting timelines, advocacy, involving community members) that may help to overcome some of the barriers. Invite them to reflect on their own experiences, what they learned from them, and how they might apply this learning to this new situation.
Consumer and Civic Awareness
F1.4
explain the concept of interest rates, and identify types of interest rates and fees associated with different accounts and loans offered by various banks and other financial institutions
- types of fees:
- monthly fee
- withdrawal fee
- ATM fees
- debit card transaction fees
- types of accounts:
- chequing
- savings
- investment
- types of loans:
- cash advance
- line of credit
- mortgage
- personal loan
- business loan
- automobile loan
- student loan
- There are interest rates and fees associated with financial products such as bank accounts and loans.
- Critically examining and comparing the interest rates and fees offered by different financial institutions allows consumers to make informed choices.
As a class, research financial definitions of interest, interest rate, and fees.
Provide different scenarios where students must research the best choice of accounts or loans. For example, a local business needs to set up a business account to manage its revenue and expenses. Have students review the websites of five financial institutions and the features of their savings and chequing accounts (e.g., interest rates, fees). Have them decide which account would be best for this business and explain why.
- types of resources that could be distributed:
- monetary resources
- goods
- services
- donated time
- Financial and other resources can be distributed through different means depending on the context (e.g., cultural, socio-economic, historical, technological).
- Being aware of the various ways in which financial and other resources can be distributed may provide greater flexibility in choosing an appropriate method in a given situation or context.
- Have students create a graphic organizer, like the four-square model below, for each of the following terms: trading, lending, borrowing, and donating. Have them respond to the question in the upper left-hand corner first, and then have them research answers to the remaining questions.
