F1. Money and Finances
Specific Expectations
Money Concepts
F1.1
describe some advantages and disadvantages of various methods of payment that can be used when dealing with multiple currencies and exchange rates
- 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)
- wire transfers
- e-Transfers
- money orders
- bank drafts
- cryptocurrency
- There are different ways to make a payment in a different currency, and there are advantages and disadvantages for each.
- Exchange rates should be considered when making a purchase that requires a conversion of funds.
Note
- An understanding of how payments can be made in other currencies extends prior knowledge of money concepts.
- Relevant and meaningful contexts help students consolidate their financial and mathematical understanding and skills.
Have students brainstorm different scenarios that would require transferring money to another country to pay for goods or services.
Have students research at least three different methods that could be used to transfer funds. Ask them to describe the advantages and disadvantages of each method and explain which method they would select and why.
Financial Management
F1.2
create a financial plan to reach a long-term financial goal, accounting for income, expenses, and tax implications
- income sources:
- hourly wage
- salary
- commission
- gratuities
- profits from investments or businesses
- interest earned from savings and investments
- expenses:
- tuition
- living expenses (e.g., rent, utilities, cable, phone)
- losses from investments or businesses
- fees
- health and dental
- entertainment
- transportation and travel
- gifts and charities
- miscellaneous
- tax implications:
- gross income versus net income
- taxable benefits
- Income and expenses have an impact on short-, medium-, and long-term financial goals.
- Income, expenses, and tax implications are important elements to consider when creating a financial plan or budget to achieve a financial goal.
Have students define the difference between gross income and net income. Have them explain the impact on financial decision-making.
Ask students to identify a long-term financial goal (e.g., purchasing an item, going to college/university, taking a trip). Have them consider how they might develop a plan to reach their goal if their net monthly income were each of the following amounts: $75, $150, and $250.
F1.3
identify different ways to maintain a balanced budget, and use appropriate tools to track all income and spending, for several different scenarios
- ways to maintain a balanced budget:
- tracking income and expenses
- monitoring the budget
- increasing sources of income
- reducing costs
- budgeting tools:
- spreadsheets
- budget templates
- apps and digital templates
- Balancing a budget requires tracking income, fixed and variable expenses, spending, and saving.
- Various tools (e.g., spreadsheets, apps) can be used to help balance budgets and adjust budgets as needed.
Note
- Social-emotional learning skills and financial management concepts and skills are concurrently developed.
Have students explain what a balanced budget is.
Have students research typical wages and salaries for different jobs in their community. Have them use a budgeting tool to create a balanced budget for someone working in a chosen job, accounting for income, basic expenses, and other factors that affect balancing the budget. Ask them to explain the decisions they made in order to balance the budget.
F1.4
determine the growth of simple and compound interest at various rates using digital tools, and explain the impact interest has on long-term financial planning
- simple interest (see graphic):
- $100 invested at 6% for a year, interest paid in three years
- compound interest (see graphic):
- $100 invested at 6% for a year, interest compounded over three years
- Simple interest and compound interest grow differently over time in various saving and borrowing scenarios.
- Online tools are available to calculate the impact of simple and compound interest over a long period of time.
Note
- Simulated scenarios provide opportunities for students to learn financial literacy concepts in relevant and real-life contexts.
Have students investigate the concepts of simple and compound interest using an online interest calculator.
Ask students to explore, using online tools, two different types of simulated scenarios for a given amount of money: saving scenarios, showing how simple or compound interest can increase the returns on an investment, and borrowing scenarios, showing how simple or compound interest can increase the balance on a loan, credit card, or line of credit.
Have students explain the impact of simple and compound interest on saving and borrowing for different long-term financial planning scenarios.
Consumer and Civic Awareness
F1.5
compare various ways for consumers to get more value for their money when spending, including taking advantage of sales and customer loyalty and incentive programs, and determine the best choice for different scenarios
- sales:
- free shipping
- special sales like "Dollar Days" or "We Pay the GST"
- loyalty and incentive programs:
- discounts – coupons, e-commerce subscriptions, member discounts
- points program – points earned based on purchases
- paid program – VIP membership
- reward program – receive a gift when a certain level of spending is achieved
- Discounts and loyalty programs are offered to consumers as a way for them to get more perceived value for their money.
- It is important to understand the advantages and disadvantages of these programs for both consumers and businesses.
Note
- Simulated scenarios provide opportunities for students to learn financial literacy concepts in relevant and real-life contexts.
Have students research the advantages of three different loyalty and incentive programs (e.g., programs owned by large companies, family-owned small businesses, local businesses, international businesses). Ask them to explain whether these programs could help them get more value for their money.
Purchasing second-hand items can be an effective way to get more value for money and reduce the environmental impacts of purchases. Have students research how to safely purchase second-hand items (e.g., consignment store, second-hand goods store for profit or a charity, community sale, online purchase from an individual) and what questions they should ask to ensure they are getting good value for their money.
F1.6
compare interest rates, annual fees, and rewards and other incentives offered by various credit card companies and consumer contracts to determine the best value and the best choice for different scenarios
- interest rates and fees may be included:
- monthly
- annually
- semi-annually
- quarterly
- consumer contracts:
- mobile phone
- music- and video-streaming services
- Internet or data plan
- When choosing any type of consumer contract, such as for credit cards or a data plan, it is important to identify the interest rates, fees, and incentives offered in order to make an informed decision.
- Before making their decision, informed consumers often compare the incentives offered by various businesses and consider the costs and benefits of these incentives for the consumers versus the costs and benefits for the businesses.
Note
- Simulated scenarios provide opportunities for students to learn financial literacy concepts in relevant and real-life contexts.
Have students research and compare interest rates, service fees, and incentives offered by three different credit cards. Have them develop a list of pros and cons for each credit card.
