F1. Money and Finances
Specific Expectations
Money Concepts
F1.1
identify and compare exchange rates, and convert foreign currencies to Canadian dollars and vice versa
- foreign currencies:
- Australian dollar
- Brazilian real
- British pound
- Chinese yuan
- European Union euro
- Indian rupee
- Japanese yen
- Mexican peso
- Nigerian naira
- Peruvian sol
- Saudi riyal
- South African rand
- Turkish lira
- United States dollar
- Vietnamese dong
- and others relevant to students’ backgrounds and cultures
- International currencies have different values compared to Canadian currency.
- Current exchange rates can be used to convert Canadian currency into other currencies. Exchange rates can fluctuate daily.
Ask students to choose three different countries from around the world (for example, where applicable, countries of origin for students and/or their families) and find the current exchange rate for each country’s currency compared to the Canadian dollar. Discuss some reasons why currencies from other countries are valued at more or less than the Canadian dollar (e.g., economic conditions, political stability, employment rates, interest rates).
Financial Management
F1.2
identify and describe various reliable sources of information that can help with planning for and reaching a financial goal
- reliable sources of information:
- financial institutions and their websites and social media platforms
- financial encyclopedias
- business sections of newspapers
- books and magazines on personal finance
- parents or other trusted adults
- certified financial planning professionals
- governmental and non-governmental financial organizations
- Managing finances, including creating financial goals, often requires accessing information from various sources in order to make decisions. It is important to recognize which sources of information are reliable and which are not reliable.
- Gaining experience in assessing the reliability of information sources helps strengthen financial management skills.
Have a class discussion about various ways to determine what is and is not a reliable source of financial information.
Have students do research online to identify several reliable sources of information that could help them plan for and meet financial goals. Ask students to identify some reliable sources of financial planning information that are not online.
Provide a scenario and ask students to use information provided by reliable sources to make a plan for reaching a financial goal. For example, the student council would like to contribute $300 to help establish a local community garden – how can they reach the goal?
F1.3
create, track, and adjust sample budgets designed to meet longer-term financial goals for various scenarios
- creating a budget:
- types of budgets:
- individual
- family
- household
- school class
- community
- organizational
- Longer-term financial planning is a complex process with multiple steps requiring consolidation of prior knowledge and skills.
- Longer-term financial planning requires flexibility to respond to changing circumstances and the ability to make adjustments accordingly.
- Budgets include a recording of income and expenses over a period of time.
Note
- Simulated scenarios provide opportunities to learn financial literacy concepts in relevant and real-life contexts.
- Each person, family, or community may be facing a different financial situation, and some of these financial situations may be challenging or difficult. Fostering a safe, respectful, and inclusive environment in the classroom will ensure that all perspectives and opinions are valued and included when examining financial concepts.
Have students use technology, such as a spreadsheet program, to create a sample household budget. Tell students that they have a set amount of money to cover household expenses for a month. Have them create categories of expenses (e.g., rent, food, clothing, utilities, transportation, emergency funds, entertainment) and conduct research to allot an amount for each category.
F1.4
identify various societal and personal factors that may influence financial decision making, and describe the effects that each might have
- factors that may influence financial decision making:
- social media
- advertisements
- family and personal circumstances
- peer pressure
- social movements
- consumerism
- systemic oppression
- personal beliefs about environmentalism
- economic disruptions (e.g., plant closure in community, recession)
- personal health
- unforeseen circumstances such as a pandemic
- employment and income
- Many factors, including personal, familial, cultural, and societal factors, can impact financial decision making. Awareness of these factors results in more informed decisions.
- Long-term financial well-being requires careful consideration of a variety of factors.
Note
- Social-emotional learning skills and financial management concepts and skills are developed concurrently.
- Each person, family, or community may be facing a different financial situation, and some of these financial situations may be challenging or difficult. Fostering a safe, respectful, and inclusive environment in the classroom will ensure that all perspectives and opinions are valued and included when examining financial concepts.
Ask students to identify five societal factors that might affect financial decision making, then ask them to describe some positive and negative effects of these influences.
Give students the following scenario: A member of the family wants to play soccer next year in the local junior league. Identify potential familial, personal, and societal factors that may affect this goal in both positive and negative ways.
Consumer and Civic Awareness
F1.5
explain how interest rates can impact savings, investments, and the cost of borrowing to pay for goods and services over time
- considerations related to interest rates:
- the size of the interest rate (e.g., 1% versus 5%)
- the frequency with which the interest is calculated (e.g., annually, monthly, biweekly)
- the principal amount of the loan (e.g., $100 versus $1000)
- the size of the down payment or initial amount invested
- the total length of time involved (e.g., one year versus five years)
- stipulations in the agreement with the lender
- Interest rates can have an impact over time on amounts that are either invested or borrowed.
- Investing small amounts of money over the long term can potentially yield significant gains.
Have students imagine that they have $100. How much money would they have after one year if they left it in their dresser drawer? How much would they have after one year if they put it in a savings account with an annual interest rate of 5% and a monthly fee of $2? How much money would they have after one year if they put it in a savings account with an annual interest rate of 2% and no monthly fee? What impact does the interest have in each scenario? Which scenario has the best return after one year? For these scenarios, assume that the interest is paid annually.
Have students imagine that they need to borrow $100. Ask them to explain the considerations involved in taking out a loan from various sources (e.g., a bank, a friend, a family member).
F1.6
compare interest rates and fees for different accounts and loans offered by various financial institutions, and determine the best option for different scenarios
- Financial institutions offer a range of accounts and products, including loans.
- Comparing interest rates and fees associated with different accounts and products can support more informed decisions appropriate to an individual’s circumstances.
Note
- Simulated scenarios provide opportunities for students to learn financial literacy concepts in relevant and real-life contexts.
Have students determine the differences in the amount of interest that would be earned on a given amount of money deposited for one year in two different kinds of savings accounts; in a savings account versus a chequing account; or in the same type of account at three or more financial institutions.
Ask students to compare the fees associated with several different types of accounts, and have them determine how the interest and fees would affect each account’s balance after one year.
Ask students to decide which type of account (chequing or savings) they would choose and which financial institution they would choose, based on information provided to them about interest rates and fees, and explain their reasoning.