Financial mathematics

Overview

Students will:

• use and interpret the terminology of wages, salary, commission, and piecework

• compare the benefits and disadvantages of each pay type

• convert between different income time periods

• calculate weekly incomes from a variety of pay types

• use, interpret and calculate earnings that incorporate penalty rates, allowances, and holiday leave loading

• use and interpret the terminology of taxation, gross income, net income, and payslips

• read and interpret payslips

• read and interpret income tax rates

• calculate tax payable from a graph

• use and interpret the terminology of budget, surplus and deficit

• research and categorise living expenses

• set up and prepare a budget to achieve a financial goal.

Extension options 

Students will:

• use and interpret the terminology of taxable income, deductions and Medicare levy

• calculate total tax payable using income tax rate table

• create a sector graph to visually represent living expenses.

Outcomes:

• MA5.1-1WM uses appropriate terminology, diagrams and symbols in mathematical contexts 

• MA5.1-2WM selects and uses appropriate strategies to solve problems 

• MA5.1-3WM provides reasoning to support conclusions that are appropriate to the context

• MA5.1-4NA solves financial problems involving earning, spending and investing money

• MA5.2-1WM selects appropriate notations and conventions to communicate mathematical ideas and solutions

• MA5.2-2WM interprets mathematical or real-life situations, systematically applying appropriate strategies to solve problems

• MA5.2-3WM constructs arguments to prove and justify results

• MA5.2-4NA solves financial problems involving compound interest

Students will:

• use and interpret the terminology of wages, salary, commission, and piecework

• compare the benefits and disadvantages of each pay type

• convert between different income time periods

Outcomes:

• MA5.1-1WM uses appropriate terminology, diagrams and symbols in mathematical contexts 

• MA5.1-2WM selects and uses appropriate strategies to solve problems 

• MA5.1-3WM provides reasoning to support conclusions that are appropriate to the context

• MA5.1-4NA solves financial problems involving earning, spending and investing money

• MA5.2-1WM selects appropriate notations and conventions to communicate mathematical ideas and solutions 

• MA5.2-2WM interprets mathematical or real-life situations, systematically applying appropriate strategies to solve problems 

• MA5.2-3WM constructs arguments to prove and justify results

Students will:

• calculate weekly incomes from a variety of pay types

• use, interpret and calculate earnings that incorporate penalty rates, allowances, and holiday leave loading.

Outcomes:

• MA5.1-1WM uses appropriate terminology, diagrams and symbols in mathematical contexts 

• MA5.1-2WM selects and uses appropriate strategies to solve problems 

• MA5.1-3WM provides reasoning to support conclusions that are appropriate to the context

• MA5.1-4NA solves financial problems involving earning, spending and investing money

• MA5.2-1WM selects appropriate notations and conventions to communicate mathematical ideas and solutions 

• MA5.2-2WM interprets mathematical or real-life situations, systematically applying appropriate strategies to solve problems 

• MA5.2-3WM constructs arguments to prove and justify results

Students will:

• use and interpret the terminology of taxation, gross income, net income, and payslips

• read and interpret payslips

• read and interpret income tax rates

• calculate tax payable from a graph.

Extension options 

• use and interpret the terminology of taxable income, deductions and Medicare levy

• calculate total tax payable using income tax rate table.

Outcomes:

• MA5.1-1WM uses appropriate terminology, diagrams and symbols in mathematical contexts 

• MA5.1-2WM selects and uses appropriate strategies to solve problems 

• MA5.1-3WM provides reasoning to support conclusions that are appropriate to the context

• MA5.1-4NA solves financial problems involving earning, spending and investing money

• MA5.2-1WM selects appropriate notations and conventions to communicate mathematical ideas and solutions

• MA5.2-2WM interprets mathematical or real-life situations, systematically applying appropriate strategies to solve problems

• MA5.2-3WM constructs arguments to prove and justify results 

Students will:

• research and categorise living expenses

• set up and prepare a budget to achieve a financial goal.

Extension options 

• create a sector graph to visually represent living expenses.

Outcomes:

• MA5.1-1WM uses appropriate terminology, diagrams and symbols in mathematical contexts 

• MA5.1-2WM selects and uses appropriate strategies to solve problems 

• MA5.1-3WM provides reasoning to support conclusions that are appropriate to the context

• MA5.1-4NA solves financial problems involving earning, spending and investing money

• MA5.2-1WM selects appropriate notations and conventions to communicate mathematical ideas and solutions

• MA5.2-2WM interprets mathematical or real-life situations, systematically applying appropriate strategies to solve problems

• MA5.2-3WM constructs arguments to prove and justify results 

5. Simple interest

Students will:

• learn to calculate simple interest

• learn to calculate time periods in simple interest problems

• practise calculating flat rate loan repayments.

Outcomes:

• MA5.1-1WM uses appropriate terminology, diagrams and symbols in mathematical contexts 

• MA5.1-2WM selects and uses appropriate strategies to solve problems 

• MA5.1-3WM provides reasoning to support conclusions that are appropriate to the context

• MA5.1-4NA solves financial problems involving earning, spending and investing money

• MA5.2-1WM selects appropriate notations and conventions to communicate mathematical ideas and solutions

• MA5.2-2WM interprets mathematical or real-life situations, systematically applying appropriate strategies to solve problems

• MA5.2-3WM constructs arguments to prove and justify results 

Students will:

• compare simple and compound interest

• learn to calculate compound interest

• practice calculating compound interest with different time periods.

Outcomes:

• MA5.1-1WM uses appropriate terminology, diagrams and symbols in mathematical contexts 

• MA5.1-2WM selects and uses appropriate strategies to solve problems 

• MA5.1-3WM provides reasoning to support conclusions that are appropriate to the context

• MA5.1-4NA solves financial problems involving earning, spending and investing money

• MA5.2-1WM selects appropriate notations and conventions to communicate mathematical ideas and solutions

• MA5.2-2WM interprets mathematical or real-life situations, systematically applying appropriate strategies to solve problems

• MA5.2-3WM constructs arguments to prove and justify results

• MA5.2-4NA solves financial problems involving compound interest

Extension activity

Teachers can go to the Financial basics website to access the ESSI Money game. This game supports students to explore the concepts of earning, saving, spending, and investing money. The teacher will need to register and setup the challenge for the class. 

Suggestions for modification of content

If you would like to access Stage 4 Financial Mathematics content and outcomes to modify and adjust work for your students, you can go to the Stage 4 Financial Mathematics resources and access the lesson on Goods and Services Tax as an alternative to lesson two Income Tax and access the lesson on Best Buys as an alternative to lesson three Budgeting.