Outcome #7
Financial Literacy
Embedded Files
Description
This outcome covers the following:
understanding the difference between simple and compound interest and corresponding graphs
understanding how changes to interest rates, down payments and length of borrowing time affects financial decisions
balancing and making changes to budgets
Curriculum Expectations: F1.1, F1.2, F1.3, F1.4
Emerging
Emerging
I can identify income and expenses for the purpose of a budget.
I can identify if a financial graph is appreciating or depreciating.
I can balance a budget.
Notes/Examples:
In Elishea's budget, balance the budget by adding in savings.
Developing
Developing
I can identify the growth of simple interest and compound interest (compounded annually) using tables and graphs.
I can identify the effects of simple interest vs compound interest.
I can modify a budget to reflect a certain change.
I can answer related questions to associated financial graphs of appreciation and depreciation.
Notes/Examples:
In Elishea's budget example above, make new columns and show how the following changes can affect her budget:
Change 1: Elishea gets a promotion! Her net salary increases to $3300 per month.
Change 2: Elishea trades in her car and leases a new one. Her new monthly car payment is $650. Her other transportation costs decrease to $20.
Modify her budget accordingly to allow for these changes.
Proficient
Proficient
I can identify the growth of simple Interest and compound interest (compounded annually) using equations.
I can modify budgets displayed in various ways to reflect specific changes
Notes/Examples:
Sarah invested $525 in a 4-year GIC that paid 3.4% interest per year. How much interest did Sarah make? Use an equation.
Sarah was offered a second option where she was able to reinvest the interest each year back into the GIC and earn interest on the interest. Use an equation.
Introduce budget's displayed graphically and make modifications using percentages. Justify the modifications.
Exceeding
Exceeding
I can compare the effects of changing each of the following: different interest rates, lengths of borrowing time, and amount of down payment have on the amount of interest using appropriate tools.
Notes/Examples:
Sarah has come to you for financial advice on five different investment options for her $525 (shown below), which should she choose and why?
Option 1: Invest in a 4 year GIC that pays 3.4% interest per year
Option 2: Invest in a 4 year GIC that pays 3.4% interest compounded annually.
Option 3: Invest in a 4 year GIC that pays 4.2% interest per year.
Option 4: Invest in a 6 year GIC that pays 3.4% interest per year.
Option 5: Keep $100 and invest in a 4 year GIC that pays 3.4% interest per year.
Use premade spreadsheets or desmos to show how making several changes to an investment (rate and time) or a loan (lump sum payment/down payment and rate) can effect the amount of interest.
Extending
Extending
I have thorough knowledge and skills needed to make informed financial decisions involving budget modifications and interest calculations.
Notes/Examples:
Eg. Christine earns $715.75 net every two weeks at a part-time job. Her expenses are $530 each month for rent and utilities, $260 every month for groceries, $230 every month for miscellaneous items, $80 a month for a phone and Internet package, and $35 a week for entertainment. Christine wants to save $7000 over 10 months to pay for a year of college. Can Christine meet her savings goal? Create a budget.
If so, she plans on investing her extra savings into a GIC that earns 3.2% interest per year for 5 years. How much would she have at the end of the term? Show your calculations.
If not, how much more does she need to borrow? How much will she have to repay on the loan if it earns 2.5% interest, compounded annually, for 5 years? Show your calculations.
Christine’s hours increased at her job and she is now earning an extra 30% in pay. Show how this will affect her investing or borrowing needs.
Sample Assessments
(Approaching Standard)
(Approaching Standard)
(Reaching Standard)
(Reaching Standard)
(Reaching Standard -> Extending Understanding)
(Reaching Standard -> Extending Understanding)
Lesson Ideas
This activity introduces budgeting in a simple way by using beans to represent money.
Students will decide how many beans out of their total would be allocated to different expenses.
This lesson will have students up and moving and discussing, creating and eventually balancing budgets.
Can be used as a follow up to the Bean Game.
A bunch of MIT students got $100 of free bitcoin in 2014 - some got rich, some wasted it on sushi.
In this activity students will investigate simple and compound interest through making charts.
This Thinking Classroom activity allows students to explore situations involving simple and compound interest.
This task was originally shared by Jamie Mitchell on twitter: @realJ-Mitchell
10 Warm Up Questions.
There is no right answer, but hopefully provides an opportunity to discuss some interesting financial ideas.
This activity allows students to create a budget and then make several changes and analyze the outcome.
Students work through various Parts: understanding the code, using the formulas, and using the code to look at different effects on the final amount.
The article discusses how poor credit scores can lead to high interest rates when borrowing.
This activity explores appreciation and depreciation using financial scenarios in groups and desmos.
There is a worksheet on the last two slides to consolidate their understanding.
This activity compares simple and compound interest by making connections between the table, graph and equations.
This lesson teaches students how to create a sample monthly budget. They will be presented with various scenarios that include deductions, housing expenses, and costs associated with daily or monthly living, all of which will be used to adjust the budget.
This is an open ended task where students work in pairs to design and budget a school trip. Part A is the itinerary and budget creation. Part B displays the budgets and makes modifications.
Coding Activities
In Part A of this activity students will use created code to compare the affects on interest by changing various factors. Part B is an open ended extension activity where students explore three case studies to create, analyze a budget based on the conclusions discovered in part A.
There are three options to run this activity depending on the coding skill level of students. There are options to reflect and change code, unscramble the code and also walk through the process of making code. All three options revolve around understanding simple and compound interest.
Desmos Classroom Activities
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