F. Financial Literacy · Money and Finances: Ways to Pay, Financial Goals, Interest Rates and Sharing Resources

Money and Finances: Ways to Pay, Financial Goals, Interest Rates and Sharing Resources: Unit Review

A1 F1.1 F1.2 F1.3 F1.4 F1.5About 40 minutes

Learning goals

I can compare methods of payment and find the real cost with tax, fees and interest.
I can set an earning or saving goal and plan the steps to reach it.
I can describe factors that help or get in the way of financial goals.
I can explain interest rates and compare accounts and loans using interest and fees.
I can describe trading, lending, borrowing and donating as ways to share resources.

Words to know

real cost
Price + tax + fees + interest.

financial goal
Something you want to do with money, with an amount, a deadline and a plan.

factor
Something that helps or gets in the way of a goal.

interest rate
Interest as a percent, usually per year: 3% a year means $3 for every $100.

fee
Money charged for a service, like a monthly account fee or an ATM fee.

donate
To give money, goods or time to help others without expecting anything back.

Let's review!

In this unit you compared methods of payment and found their real cost, set earning and saving goals, looked at factors that help or get in the way, learned how interest rates and fees work for accounts and loans, and explored trading, lending, borrowing and donating. This review has a few questions from every lesson. Try each one, then press Show answer to check. If a part feels tricky, go back to that lesson. All fees and rates are example amounts.

The real-cost formula with Ben's numbers: the ATM fee turned a $45.20 game into a $48.20 game.

Find 1% (divide by 100) or 10% (divide by 10) first. Every other percent is a half, a double or a few copies of those.

Ways to Pay: Advantages, Disadvantages and the Real Cost

Give one advantage and one disadvantage of a credit card.

An ATM charges $2 per use. Ana uses it once a week for a year. How much in fees?

A $40 item plus HST is split into 4 equal payments. What is each payment?

Paying with cash, a total of $16.97 becomes...?

Financial Goals: Earning and Saving

Is "earn $45 by selling crafts at a holiday market" a saving goal or an earning goal?

A game costs $70 plus HST. What full cost should you plan for?

You need $79.10, have $20 and save $8 a week. How many weeks?

Is saving for a home a short-term or long-term goal?

What Helps and What Gets in the Way of Financial Goals

Name one factor that helps and one that gets in the way of a financial goal.

A $3.50 snack (tax included) 4 times a week for 5 weeks costs...?

A price goes up from $30 to $34, plus HST. How much more do you need?

What is the cool-down rule, and why does it help?

Interest Rates and Fees: Accounts and Loans

$600 saved for one year at 3%. How much interest?

Borrow $400 at 10% for one year, paid back at the end. How much do you pay back?

Account A: 1% interest, no fee. Account B: 3% interest, $2 monthly fee. For $300 saved for a year, which ends with more?

What is the difference between a fixed and a variable rate?

Sharing Resources: Trading, Lending, Borrowing and Donating

Trading, lending, borrowing or donating? (a) A bank gives a family a mortgage. (b) You give your time at a food bank.

Renting a canoe costs $50 plus HST for a day. Buying a used one costs $400 plus HST. For a single day trip, how much does renting save?

A business matches donations 1 to 1 up to $200. A class raises $260. How much does the charity get in all?

Just for fun

Money doesn't grow on trees. But put $500 in a savings account at 3% a year and it grows $15 in a year. It's a very slow, very patient tree.

How to use this review

Do the review over two short sittings. Each section matches one lesson.
Let your child use paper and pencil and a calculator for HST on prices with cents.
For percents, use the shortcuts: 1% = divide by 100, 10% = divide by 10.
When finding "how many weeks", remind them to round up and check by multiplying.
For questions about choices (methods of payment, factors, borrowing or buying), more than one answer can be right. Ask, "Why do you think so?"
Note which section had mistakes, then revisit that lesson's examples, activity and practice.

Check your understanding

Quiz

Which method of payment can lead to interest if the bill isn't paid in full?

What is the total of a $30 item with HST?

"I will save $6 a week for 8 weeks to buy $48 snowshoes" is a:

You need $45 and save $10 a week. How many weeks?

Which is an outside factor that can get in the way of a goal?

A $9 monthly subscription costs how much in a year?

What is 2% of $400?

Which financial institution is owned by its members?

A savings account pays 2% but charges a $3 monthly fee. With $100 saved for a year, you end with:

10.

Taking a book out of the library is an example of:

For parents and teachers

Use mistakes to choose what to revisit. Each review section matches one lesson.

Forgets tax, fees or interest when finding a real cost, or rounds card totals to 5¢: revisit Ways to Pay: Advantages, Disadvantages and the Real Cost.
Mixes up saving and earning goals, forgets HST in the full cost, or rounds the number of weeks down: revisit Financial Goals: Earning and Saving.
Can't name factors, or underestimates small repeated costs: revisit What Helps and What Gets in the Way of Financial Goals and try the money detective week.
Makes percent errors (3% of $500 = $150), thinks a higher rate is always better, or ignores fees: revisit Interest Rates and Fees: Accounts and Loans.
Mixes up lending and borrowing, forgets non-money resources, or ignores the cap on a matching donation: revisit Sharing Resources: Trading, Lending, Borrowing and Donating.

A few mistakes are normal. Praise careful reasoning, especially on choice questions where more than one answer can be right.