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Mathematics Instructional Unit

Foundations for College Mathematics, Grade 11 (MBF 3C)

Personal Finance

Darcy Berry & Natalie Sardella

Foundations for College Mathematics, Grade 11 (MBF 3C)

B. Personal Finance

Overall Expectations:By the end of this course, students will:

2. compare services available from financial institutions, and solve problems involving the cost of making purchases on credit.

3. interpret information about owning and operating a vehicle, and solve problems involving the associated costs.

Specific Expectations:By the end of this course, students will:

2.1 gather, interpret, and compare information about the various savings alternatives commonly available from financial institutions (e.g., savings and chequing accounts, term investments), the related costs (e.g., cost of cheques, monthly statement fees, early withdrawal penalties, and possible ways of reducing the costs (e.g., maintaining a minimum balance in a savings account; paying a monthly flat fee for a package of services).

2.2 gather and interpret information about investment alternatives (e.g., stocks, mutual funds, real estate, GICs, savings accounts), and compare the alternatives by considering the risk and the rate of return.

3.1 gather and interpret information about the procedures and costs involved in insuring a vehicle (e.g., car, motorcycle, snowmobile) and the factors affecting insurance rates (e.g., gender, age, driving record, model of vehicle, use of vehicle), and compare the insurance costs for different categories of drivers and for different vehicles.

3.2 gather, interpret, and compare information about the procedures and costs (e.g., monthly payments, insurance, depreciation, maintenance, miscellaneous expenses) involved in buying or leasing a new vehicle or buying a used vehicle.

3.3 solve problems, using technology (e.g., calculator, spreadsheet), that involve the fixed costs (e.g., licence fee, insurance) and variable costs (e.g., maintenance, fuel) of owning and operating a vehicle.

Lesson 1: Savings Accounts

Teacher Materials Needed: Computers (class set)Internet accessNames of financial institutions cut upHatPrepared spreadsheet for comparison of savings accounts

Instructional Procedures:

Prior to the lesson: Set up a spreadsheet for the comparison of

various savings accounts from different financial institutions to be shared between students. Headings should include…

o Name of the financial institutiono Name of the savings accounto Interest rate the account payso Debit transaction fees (if any)o Other feeso Other relevant/notable features of

the account Create a polleverywhere.com survey in

regards to students’ current financial goals. Type up the names of various financial

institutions and cut these up into strips then put these strips in hat.

During lesson: Introduce the unit by discussing the

importance of saving money in order to achieve one’s financial goals.

o Using polleverywhere.com, survey the class about what best describes their current financial goals (e.g., buying a car, saving for college, etc.)

o Teacher Prompt: How much money do you require to meet your current financial goals?

Teacher Prompt: By a show of hands, how many students have a debit card?

o Do a rough scan of hands raised and provide class with a rough estimate of the percentage of students who do possess a debit

Student Activities:

Students log onto computers.

Using either their cell phone or the computer, students vote on polleverywhere.com for the option that best describes their current financial goals.

Students engage in a brief class discussion about the costs associated with their current financial goals.

Students who own a debit card raise their hands to indicate so.

card. Discuss how financial institutions pay

interest when you deposit your money into one of their accounts.

With a debit card, a person has two types of accounts – a savings and a chequing account.

o Both types of accounts accumulate interest, but relatively low interest rate with a chequing account.

Often financial institutions charge fees or service charges for providing you with certain services.

Interest rates and charges differ between different institutions.

Note that financial institutions are now also offering tax-free savings accounts often with a limit on how much can be in these accounts, but for the purposes of today’s lesson we will be focusing solely on regular savings accounts.

Open up prepared spreadsheet for the comparison of different financial institutions – share the file so that it appears on everyone’s computer.

Model to students how to find the information for a financial institution (e.g., BMO’s Premium Rate Savings Account).

o Teacher Prompt: Try and complete the first row of the spreadsheet.

o After giving the students a few minutes to complete the row, have students volunteer some of their answers, comparing differences and discussing what would be the correct answer when there are discrepancies in student responses.

o Note: When it comes to “Other fees” be specific, stating the services and the fees.

Instruct students that with their “elbow partner” they will be investigating various savings accounts – much the same way we just did as a class.

o Pairs will randomly select which financial institution they will be

Students listen to the mini lesson.

Students follow along and participate in the demonstration by finding the information required for completing the first row of the spreadsheet.

Students volunteer their findings and engage in an active class discussion about what is the most appropriate answer when responses differ.

o Students must defend their opinions.

researching by pulling a company name out of a hat.

o Teacher Prompt: Assume that your account will start with a balance of $1000. Collect the necessary information to complete the spreadsheet. Fill in the spreadsheet as you go, as this will contribute to one master document for everyone in the class to put in their notes.

While students complete their research, circulate the classroom to provide feedback and ensure that students are staying on task.

o If one pair finishes early, have them compare their findings to any other savings accounts offered by the same institution as often they have multiple accounts.

Once the entire spreadsheet is complete, ask students to discuss which financial institution they believe is the best choice first with their partner, then with another group.

Based on the information that has been discussed in their groups, have students write an individual response explaining which financial institution they would choose and why.

o Additional instructions: 1) be specific, 2) students may choose their own institution if they feel it best suits their needs, 3) responses will be collected and marked.

o Hand out rubric so students understand how they will be assessed.

In pairs, students work to research the savings account of a specific financial institution on the Internet.

Students work collaboratively to complete the spreadsheet.

Think/Pair/Share: With their partner, students discuss which institution they feel is the best option. Neighbouring pairs form a group of 4 and share their thoughts, defending their opinions.

Students individually complete their responses for the remainder of the period. They can do so on the computer or by hand.

o If students do not complete their response in class, they can finish it at home and hand it in the following class.

o Students who struggle with writing can use pictures, numbers, diagrams, etc. to help support their argument.

Lesson 2: Investment Alternatives

Teacher Materials Needed: Computers (class set)Internet access“MATHO” playing cards (one per student)Envelop with “MATHO” questionsPrepared list of “MATHO” answers overheadBingo dabbers (one per student)Chart paper & markersStudent handout – investment alternatives comparison chartComparing Financial Services Homework Activity (1/student)


Prior to the lesson: Create an “Investment Alternatives

Comparison Chart” for students to complete during jigsaw activity.

Create groups for the jigsaw activity. Prepare “MATHO” playing cards,

questions and answers.o Create a list of the answers on an

overhead.o Cut up the corresponding questions

and put these slips of paper in an envelope.

During lesson: Inform students that today you will be

playing “Interest MATHO” to practice and review how to calculate compound interest as students will need this skill in order to complete the day’s lesson successfully.

Remind students of the formula for calculating compound interest ( A = P(1+i )n ) where…

o A = the future value or accumulated amount of an investment

o P = the principal amounto i = the interest rate, in decimal

form, per interest periodo n = the number of compounded

periods

Student Activities:

Distribute “MATHO” playing cards to students.

Put the list of all possible solutions up on the overhead (leave this up on the overhead for the entire game).

Write the letters M, A, T, H and O across the top of the board (make sure these letters are big and easily seen by all students).

Draw questions out of the envelop at random one at a time, giving enough time between questions for students to be able to calculate the answer (questions relate to compound and simple interest).

o Write the question on the board under their respective heading (i.e., either M, A, T, H or O) so that students can refer back to the questions at a later point for example if they need more time to generate a solution or if they initially made a mistake and needed to redo that question.

Check the playing card of any student who yells “MATHO” to ensure that their answers match the questions until there is a winner (or winners).

Teacher Prompt: Recall that in our last class we looked at various savings accounts of different financial institutions. This is a very common strategy used by many people to save money, but this may not always be the best choice. Other savings alternatives include stocks, bonds, mutual funds, Canada Savings Bonds (CSB), Guaranteed Investment Certificates (GICs), real estate, and collectibles.

Discuss with students how when it comes to investing it is important to consider both risk and return.

Define risk and return, and ask students to copy these definitions down into their notes.

o Risk refers to the safety of the investment. Some investments are

From the list of possible answers, students select five different answers from each column (twenty-five total) then place one answer in each box of the respective column of their “MATHO” playing card e.g., an answer indicated as “M” would go in one of the five boxes in the “M” column on their playing card).

Students calculate an answer for each question as they are drawn from the envelope.

o If their solution matches one of the answers on their playing card, student marks the correct answer using the Bingo dabber (i.e. dab the square with the correct answer).

Students try and get a straight line (diagonally, horizontally or vertically) of correct answers).

o When a student manages to get a straight line of correct solutions on their playing card, they yell “MATHO” and bring their playing card to the teacher for the teacher to check.

Students listen attentively to the teacher’s brief lecture on investment alternatives.

Students copy the definitions of risk and return into their notes for future reference.

guaranteed to generate income from an investment, but there are also investments where there is a chance the investment may decrease in value.

o Return refers to how much the investment will potentially increase.

Discuss with students the fact that often investments considered “low-risk” do not produce as large a return, and vice-versa (i.e., “high-risk” investments usually have the potential to produce a much larger return).

Distribute “Investment Alternative Comparison Chart.”

As a class complete the first row for “Savings/Chequing Account”

Introduce today’s jigsaw activity.o Students will be assigned to a pre-

determined “home” group where they will be assigned one of four different investment alternatives (e.g., Stocks, Mutual Funds, GICs and Canada Savings Bonds).

o Students will use the Internet for research purposes.

o Once they have gathered the required information, students will come up with a creative way of presenting the information (e.g., can use chart paper, write a rap, draw a picture, put on a skit, etc.)

o New groups will form containing 2 students from each home group and pairs share their research with the rest of the group.

o Students complete the entire Comparison Chart.

Distribute chart paper and markers to home groups.

While students are working, circulate, providing assistance and feedback, and ensuring that students stay on task.

Students engage in class discussion to complete the first row of the Investment Alternative Comparison Chart based on the knowledge they obtained from the previous day’s lesson.

After receiving all directions, students get into their home groups and begin researching their assigned investment alternative on the Internet.

Students create a means of communicating the information they found (e.g., using the

Help students to get into their new groups (2 students from each home group).

Continue to circulate providing assistance and feedback while keeping students on task.

Distribute homework.

chart paper, writing a rap or poem, creating a skit, drawing a picture, etc.)

Students form new groups containing two members of each home group.

Students take turns sharing the information their home group found from their research.

o Students complete their Investment Alternatives Comparison Chart by listening to their peers’ presentation.

If time permits, students work on their homework.

Investment Alternatives – Comparison Chart

Type Where to Obtain it

Level of Risk (Low, Medium

or High)

Possible Rate of Return (L/M/H)

Pros Cons

Savings / Chequing Account

Guaranteed Investment Certificates (GICs) / Bonds

Stocks

Mutual Funds

Canada Savings Bond

M A T H O

M A T H O

Interest MATHO Questions & Answers (cut these out and put them in an envelope).

M A T H OM

$2000 at 5%/year, compounded

annually for 3 years= $2315.25

A$1000 at 8%/year, compounded semi-annually for 3 years

= $1265.32

T$50,000 at 12%/year

compounded quarterly for 5 years

= $90,305.56

H$750 at 6%/year,

compounded monthly for 1 year

= $796.26

OAfter 2 months,

$2000 compounded monthly worth $2020.05, i = ?

i = 5%M

$1000 at 4%/year, compounded


A$500 at 4%/year,

compounded semi-annually for 6 years

= $634.12

T$1000 at 6.5%/year,


= $1137.64

H$5000 at 9%/year,

compounded monthly for 4 years

= $7157.03

OAfter 6 months,

$500 compounded semi-annually worth

$512.50, i = ?i = 6%

M$5000 at 6%/year,

compounded annually for 5 years

= $6691.13


= $6719.58

T$900 at 6%/year,


= $1013.84

H$1000 at 3.6%/year,

compounded monthly, for 4 years

= $1154.64

OAfter 6 months,

$1000 compounded quarterly worth $1025.16, i = ?

i = 5%M

$2000 at 13.6%/year compounded


A$10,000 at 5%/year, compounded semi-

annually for 12 years= $18,087.26

T$5000 at 4%/year,


= $5414.28

H$8000 at 4.8%/year,


= $8392.56

O$3200 after 2 years invested at 6%/year,

compounded monthly. P = ?P = $2838.99

M$2000 at 6%/year,


= $2247.20

A$2000 at 4.5%/year, compounded semi-annually for 3 years

= $2151.09

T$2500 at 4.2%/year,


= $3641.22

H$1150 at 12%/year,


= $1295.85

O$5000 after 4 years invested at 6%/year,

compounded annually. P = ?P = $3960.47

M$3500 at 6.5%/year,

compounded annually for 1 year

= $3727.50

A$3000 at 9%/year

compounded semi-annually for 5 years

= $4658.91

T$3000 at 8.6%/year,


= $4590.80

H$1000 at 8.4%/year,


= $1182.24

O$2000 after 2 years, invested at 4%/year, compounded semi-

annually. P = ?P = $1847.69

M$4000 at 8%/year,


= $5441.96


= $2687.83

T$500 at 6%/year,


= $597.81

H$1000 at 4.2%/year,


= $1286.03

O$1000 after 3 years invested 4.5%/year

compounded monthly. P = ?

P = $873.94M

$5500 at 6.2%/year, compounded


A$7500 at 5.5%/year, compounded semi-annually for 2 years

= $8359.66

T$7,000 at 7.5%/year,


= $8121.55

H$3000 at 6%/year,


= $3185.03

O$10,000 after 5 years invested at 8%/year,

compounded quarterly. P = ?P = $6729.71

Choose FIVE different numbers in each column to create your MATHO card.

M A T H O

$2315.25

$1216.65

$6691.13

$5546.98

$2247.20

$3727.50

$5441.96

$7429.94

$1265.32

$634.12

$6719.58

$18,087.2

6

$2151.09

$4658.91

$2687.83

$8359.66

$90,305.5

6

$1137.64

$1013.84

$5414.28

$3641.22

$4590.80

$597.81

$8121.55

$796.26

$7157.03

$1154.64

$8392.56

$1295.85

$1282.24

$1286.03

$3185.03

5%

6%

5%

$2838.99

$3960.47

$1847.69

$873.94

$6729.71

MBF3C Name:Date:

Comparing Financial Services Homework Activity

Investment alternatives:

You will be using the website www.tdcanadatrust.com to complete this part of the assignment.

GICs:1. Read the descriptions for the different types of GIC’s and decide which would be the best

option for the following situations. Explain why. Exclude the US GIC’s and the specialty GIC’s.

a) Ralph got a $4000 bonus from work and wants to invest it somewhere, but he also wants to do some home improvements in the next few months and needs to be able to get at the money.

b) Fran is 29 and just inherited $100000. She doesn’t need the money now, and wants to invest the whole amount for her retirement.

c) Dave is saving for a trip to Europe next year. He has $1000 to invest in a GIC.

2. Determine the amount of the following investments.

a) How much would an investment of $3000 in a “wait and see GIC” be worth at the end of a 1 year term?

http://www.tdcanadatrust.com/

b) How much would a $10000 investment in a “long term deposit” be worth in 5 years?

3. In general, what is the advantage of having an investment “locked in” for a longer term?

Stocks & Bonds:

1. What is a major difference between stocks and bonds?

2. Use the internet to look up the current price for the following stocks

a) Air Canada

b) Sears

c) Microsoft

3. If you had 500 shares in each of the previous companies, how much would your investments be worth?

a)

b)

c)

4. You bought 80 shares in Calculators Inc. last month for $0.8564 each. Presently, they are worth $0.6745. a) How much money have you lost all together?

b) Would you want to sell them now? What factors would you consider?

Lesson 3: Simulation Introduction

Teacher Materials Needed: Car section from multiple newspapersScissors & staplerChart paper & markersSummative assignment outline (1 per student)Summative assignment rubric (1 per student)5 Simulation bristle boardsCut up pieces of card stock the size of $ bills (minimum 5/student)TapeWord webs of owning & operating a car (overhead and handouts)


Prior to the lesson: Collect car sections from newspapers. Prepare simulation bristle boards

o Title each board with one of the following titles (Savings Account, GIC, Stock #1, Stock #2, Stock #3).

o List the names of all students on the left side of the board. List should be vertical so that one name is on top of another with ample space between names.

Cut up card stock so that pieces are the size of a $5 bill.

Prep word webs for owning and operating a car.

During lesson: Take up the Investment Alternative

Comparison Chart from the previous class with students.o Ask students to fill in the missing

information.o Ensure that what students found is

correct, and correct any incorrect information.

Handout summative assignment package

Student Activities:

Students volunteer to complete blank squares in the Investment Alternatives Comparison Chart.

In their own notes, students fill in any missing information or change any incorrect information.

Students actively engage in a discussion about the assignment, asking questions

containing both the outline and rubric that will be used to evaluate the students’ work.o Discuss the package with students,

providing any additional details or pertinent information and answering any student questions.

As a class decide upon 3 different companies students would like to invest in as stocks.

Distribute car flyers. Circulate the class while students flip

through car flyers for their car of choice to provide any necessary assistance and keep students on task.

Distribute card stock to students and have them invest their $2000 in any of the 5 simulation options.o Students can invest any amount they

desire in any number of options but must invest all $2000 (e.g., they can invest all the money in a savings account or $1000 in a savings account, $250 in stock #1 and $750 in stock 2).

o Have students write the different amounts on the different pieces of card stock.

o Have students stick their card stock beside their name on the appropriate simulation bristle board (i.e., beside their name will be the dollar amount of their investment for that option written on the card stock).

o Explain that at any point throughout the simulation students may opt to remove money from one investment and invest it elsewhere, when applicable (i.e., GICs do not present

and seeking any additional clarification they might need about either the assignment itself or the assessment.

Students vote (by show of hands – majority rules) for what companies they would like to see represented by in the three stock options.

Flip through car flyers to find a car that catches their eye, ideally one that at the end of the simulation they would have enough money to buy (i.e., not Ferraris or Mercedes).

Once each student has found a car they like, they cut the image of the car out of the flyers and staple it to a designated area of a bulletin board.o Ultimately the bulletin board will

have a collage of all the students’ car choices.

Students weigh their options and decide upon how much money they would like to invest in the different options (i.e., savings account, GIC, stock #1, stock #2, stock #3) based on the information given on their final assignment handout (e.g., about interest rates) and the knowledge gained from the previous class’ lesson on risk vs. return of investment alternatives.

o Write down the investment amounts on their pieces of card stock.

o Tape their cards beside their name on the respective stimulation bristle boards.

this option). Have students discuss with their elbow

partner where they made their investments and why they made their decisions.

Watch the video about buying a car from GetSmarterAboutMoney.ca at the following link: http://www.getsmarteraboutmoney.ca/managing-your-money/planning/budgeting/Pages/video-buying-a-car.aspx?group=Funny%20Money&page=1

Have students brainstorm costs of owning and operating a motor vehicle.o They can use ideas from the video as

well as their own.o Have students brainstorm first in small

groups then have groups share their ideas with the class.

While students are brainstorming in their small groups, circulate the classroom and provide students with prompts to help guide and enrich group discussion as well as keep students on task.

During whole class discuss, record student answers on a big piece of chart paper at the front of the classroom.o Prompt students for anything they have

missed then add these to the list.o Use the overheads of the word webs

for owning and operating a car to consolidate class discussion.

o Distribute a copy of the word webs for students to add to their notes.

o At the end of the class, post this in the room for future reference and to acknowledge student contribution.

In pairs, students engage in a brief discussion about where and why they made their investments, ultimately looking at the risk vs. return.

Students watch the short 3 minute video from GetSmarterAboutMonday.ca about buying a car.

In small groups of 3 or 4 students brainstorm the costs of owning and operating a motor vehicle (e.g., insurance, gas, maintenance, initially buying a car, e-test, license plate sticker, license renewal, etc.)

Groups share their answers with the rest of the class in a whole class discussion.

Students add word webs to their notes.

http://www.getsmarteraboutmoney.ca/managing-your-money/planning/budgeting/Pages/video-buying-a-car.aspx?group=Funny%20Money&page=1



Costs of Owning a Car

Insurance

Initial Purchase PriceFinancing Costs

Sales tax and GST

Scheduled maintenance

Registration and title costs

Storage

Service contracts

OTHER

Costs of Operating a Car

TiresRepairs

Gas

Tickets

Parking

Oil

OTHER

Summative Task: Buying a Vehicle Assignment

PART 1: Investment Simulation

You have decided to buy or lease a vehicle. You will consider buying a new vehicle, buying a used vehicle, and leasing the vehicle. At the moment you have $2000 to your name. This is not enough money to buy a decent car, so you decide to invest this money in order to have more money to put towards a down payment on your new car. Since you took MBF 3C, you are aware of investment alternatives, and after doing some research have narrowed it down to the following investment options:

1. President’s Choice Interest Plus Savings Account: If your daily balance is $0 - $1,000 then you get an annual rate of 0.4% If your daily balance is $1,000.01 and up then you get an annual rate of 1.5% Interest compounded daily and paid on a monthly basis No daily service fees

2. TD Canada Trust Guaranteed Investment Certificate (GIC) (Long-Term & Compound Interest):

Term of 1 year at 1.15% Term of 2 years at 1.30%

Term of 3 years at 1.40%

Term of 4 years at 1.60% Term of 5 years at 1.85%

3. Stock #1: _________________________________________ Shares currently selling at $10 / share



You must invest all of your $2000, however, where is up to you. You can invest your money in as many or as few options as you would like. For the next 5 days, our class will undergo a simulation in which rates may change, and accordingly so will your investments. For the purpose of our simulation every day will be equivalent to one year. At the beginning of every class you will be informed of any changes that have occurred at any of the above financial institutions. Everyone will then be responsible for

calculating 1) how their investments have changed and 2) how much interest they have earned to date.At any point you may opt to withdraw their money and reinvest it elsewhere. The one exception would be money invested in a GIC. This money must come to term. At the end of the 5 days, you will be responsible for calculating how much money you now have. This amount represents how much money you now have to put towards buying a car.

PART 2: Buying the VehicleNow that you have saved some more money, you are now ready to look into buying a car.

1. Select the type of vehicle (compact, mid-size, full-size/luxury, van, pick up, sports car, SUV) that would be most appropriate for you. Be realistic in your choice and provide a justification for your selection.

NOTE: You will have the opportunity to flip through car flyers during class and pick out a car. You may also choose to look online on the different dealership websites.

2. List the options you would want in your vehicle and provide a brief explanation for each.

3. When acquiring a vehicle, you can buy a new vehicle, buy a comparable used vehicle, or lease a vehicle. Research the associated costs for each of these options for your selected vehicle and determine the overall cost for each of the three options.

NOTE: You may use technology to help you with these calculations, but make sure you show the break-down of the overall cost (i.e., initial price + additional costs + taxes, etc.)

4. Choose one of the above options. Which option did you pick? Explain your decision.

5. Go to the web site www.statefarcm.com or another insurance website. Follow the links to get an insurance quote. Use the information based on the car you selected and your own personal information (as much as possible). You may pick whatever coverage you would like. Assume you are the only driver on the car. What was your quote?

NOTE: If you do not have your license, fill in the information as if you just received it.

PART 3: Considering the Expenses

6. List the monthly expenses that would need to be included in your monthly budget if you purchased/leased the vehicle.

http://www.statefarcm.com/

7. You have been presented with two financing options for the new vehicle. One company is offering 0% financing. Another company is offering $2500 discount with 5.9% financing. You may want to make use of an online loan calculator to assist with your decision. Which company would you select if you planned on financing the loan over 4 years? Explain. Show all calculations.

8. Determine the fuel consumption for your vehicle. How much would you spend annually on gas if:

a) The price of gas is $1.19/L and you travelled 20,000 km/year? 30,000 km/year? 50,000 km/year?

b) Repeat exercise a) using the current price of gas.

9. It is recommended that each vehicle follow a maintenance schedule. The maintenance schedule contains different types of services.

a) Using the schedule below, outline the maintenance schedule recommended for your vehicle. Be sure to include what is included and the costs associated with each type of service.

b) If you traveled an average of 30,000 km/year, and you purchased your vehicle new, how much would you expect to spend on maintenance in:

i. The first year of ownership?ii. The second year?

iii. The third year?

Estimated Maintenance Schedule

Based on the mileage your scenario has you driving; complete an estimated Maintenance Schedule for the first year.

Recommended Service Frequency (km)

Frequency (months)

Price

Oil Change, Lube & Filter 5000 3 $36.95Brake Inspection & Tire Rotation 10000 6 $43.95Front End Alignment 25000 12 $74.95Cooling System Flush 50000 24 $82.95Engine Tune Up 50000 30 $247.50Transmission 90000 60 $139.95Tire Replacement 100000 60 $650.00

10. All vehicles must have a license plate with a valid license plate sticker. How frequently must this be purchased? What is the cost? Where do you get it from?

11. Suppose your lease agreement allows you to rive 24,000 km/year for free. After that, you are charged $0.09 per km. If at the end of a 3 year term you ended up driving 90,000 km, how much would you owe?

Lesson 4: Car Loans

Teacher Materials Needed: Computers (class set)Internet accessClass note (1/student)Car Loan Chart Organizer (1/student and overhead)Graphical Representation of a Loan (1/student and overhead)


Prior to the lesson: Prepare “Car Loan Chart Organizer” Prepare class note

During lesson: Simulation – provide students with the

day’s changes to stocks and interest rates.o Stock #1 – $12/shareo Stock #2 – $10/shareo Stock #3 – $20/share

As a class, have students generate a list of institutions that provide car loans (e.g., car dealerships, banks, credit unions, student’s parents, etc.)

o Be open to a wide variety of responses and provide any further examples when required.

o Record answers on the board. Note that the best way to pay for a car is to

pay in cash since borrowing money ultimately adds to the cost of a car.

Handout class note on car loans and common mistakes when buying a car.

o Discuss answers with students and have students fill in the blanks on the page.

Distribute “Car Loan Chart Organizer” and the graph representing a loan payment to students.

Using the overhead of the organizer, discuss the chart and what the different sections mean.

Discuss with students the following:

Student Activities:

Students calculate changes to their investments (i.e., what their investments are now worth).

Students decide whether or not they want to move their investments (e.g., may want to sell their stocks in one company and invest in another or put that money in a savings account).

o Students take down the card from the respective simulation bristle board, cross out the number and replace it with the new number, then place the card on the new simulation bristle board.

Students brainstorm institutions that provide car loans.

Students complete the class note on car loans by filling in the blanks on the page and adding anything else they might find helpful from the discussion.

Students listen attentively to the information provided by the teacher.

Students add any additional notes to their Car Loan Chart Organizer and graph that may assist them when completing the organizer later.

o APR (annual percentage rate or equivalently interest rate) – influenced by variables such as the lender, state in which the loan is taken, term of the loan and the principal of the loan. The rate is calculated based on a person’s creditworthiness.

o Length of Loano Monthly Paymentso Total Finance Chargeo Total to be repaido Total Cost of various Loan

Use the graphical representation of the costs of paying off a loan to help reinforce the concepts discussed above.

Work through an example on the board to illustrate how to calculate the above information.

o May wish to also demonstrate, using a finance tool on a bank website (for example www.tdcanadatrust.com) the various parts of a car loan and how to the total amounts can be calculated.

Have students work through the organizer, researching three different financial institutions.

o Have them use the make and model of the car that they put on the bulletin board the previous day’s class – they can look up the APR and length of loan on the appropriate dealership’s website.

Circulate the classroom while students are working to provide assistance and feedback as well as ensure that students stay on task.

Students research three different financial institutions on the Internet and work through the organizer by finding the APR, the length of the loan and any finance charges specific to the financial institution, and by calculating the monthly payment using a loan calculator, the total amount to be repaid in interest and the total cost of the loan (the sum of the loan + finance charges + interest).

o Ultimately, when prompted, should be able to convey the fact that there are significant costs to owning a car and that different institutions offer different rates and terms for car loans. So, when looking to buy a car, students should “shop around.”

http://www.tdcanadatrust.com/

BUYING A CAR:Should I Borrow from a Car Dealer or a Bank to Buy a Car?

“Only 1.3% on selected models!”

“Lowest rates ever!”

“Zero per cent financing!”

Deals for low or even zero per cent financing on your new car sound really good right?! But are they for real? The answer…sometimes “yes,” sometimes “no.”

So what does it all actually mean?

How does low or zero per cent financing work?

We’re usually told that if something sounds too good to be true, it likely is. However, these special financing offers sometimes can truly be great deals. Manufacturers sometimes offer low rates to:

1. Help dealers sell models that are not selling.2. Gain a bigger share of the market. For instance, a car manufacturer may want to be able

to say their car is “North America’s best-selling mid-size sedan.” This is doable if they have a big enough clientele.

What do I need to watch out for?

Only about 20% of car buyers actually qualify for low financing. You must have a good credit report and a high credit score.

o Your credit report, also known as your credit profile, is a detailed record of your credit history (this is just another reason why it is so important to pay your credit card bills on time).

Sometimes the loan term is much shorter than usual. Most car loans are 4-5 years. The special deal may cover just 2 or 3 years.

o Since you have to pay back the loan faster, you’ll end up with a much higher monthly payment. The good news is you’ll pay less interest.

o BUT make sure you can meet the higher monthly payments. You often get to pick between a low financing rate and a manufacturer’s rebate. You can

apply the cash from the rebate to your down payment, so you borrow less and pay less interest over time.

o With some cars, you may get up to a few thousand dollars back, so the rebate may be a better choice.

Is dealer financing a better deal?

There are many reasons people choose dealer financing. Often, the interest rates are better than you can get from a bank. BUT…not always.

In some cases, the dealer may go to a bank to arrange financing for you. They may charge you extra for this service, so be careful. You may do better if you arrange your own financing directly with your bank.

Common Mistakes to Avoid when Buying a Car

The top six mistakes people make when borrowing to buy a car:

1. Not shopping around for the lowest rate on their loan or lease:A loan from your bank may cost you less than one from your car dealer, or it could be the other way around. Check out a few places so that you can get the best interest rate.

2. Comparing car prices instead of the cost of borrowing: You may get a better price at one car dealer for the same car, but end up paying more for the financing. The purchase price is often less important than the interest rate when it comes down to what it’s really costing you to buy that car.

3. Not getting the best rate for the whole time you borrow: Some dealers offer financing as low as zero per cent. It may look like a great deal at first, but that low rate often lasts only a few months before it goes up. Be sure to find out how much interest you’ll pay over the whole time you borrow. Compare that to other loans and make sure it’s still the best deal for you.

4. Not looking at the total cost of ownership: Loan payments are only part of the cost of owning and driving a car. What about costs for gas, repairs, insurance, licences and parking? Look closely at your budget to see if having a car is realistic.

5. Looking at the size of the monthly payment, not at how much interest you’re paying: Some people think the best deal is the lowest monthly payment. They forget to look at how long they’re borrowing the money. They could end up paying a lot more interest by the time they pay back the loan.

6. Using a credit card to pay for the down payment: Some people do this because they can’t get any other loan. Some people even try to pay the full price of the car this way! It could take years to pay back what you borrow for a car. In the meantime, you’ll throw away a lot of money on high interest payments. The interest on a credit card will usually cost twice as much as a bank loan of the same size.

CAR LOAN CHART ORGANIZER

Make and Model of Car to be Purchased: ______________

Purchase Price of Vehicle: _____________________

Compare three different financial institution’s car loan information

Amount of Loan $ _________

Financial Institution #1 Financial Institution #2 Financial Institution #3

APR (Annual Percentage Rate)

Length of Loan

Monthly Payments (including interest)

Total Finance Charge

Total to be Repaid in Interest

Total Cost of Loan

Lesson 5: New vs. Used & Buy vs. Lease

Teacher Materials Needed: Chart paperBUY, LEASE, USED, NEW signsMarkersComputers (class set)Internet access“What Would You Do If…” handout “Problems” handout (1/student)


Prior to the lesson: Prepare 4 pieces of chart paper, each

having one of the words BUY/LEASE/USED/NEW written in the middle.

Tape a sign on each of the 4 corners of the room, each having one of the same four words.

Cut out the different situations from the “What Would You Do If…” handout.

During lesson: Introduce the four different ways to obtain

a car and some new definitions: buy, lease, buy new or old.o Lease: A long-term rental

agreement. Usually for a 3 to 5 year term. At the end of the term, you either have to give the car back, or you may have the option to buy it.

o Financing: If you choose to buy a car, you can either pay for the whole thing right away, or you can make a down payment, and finance the rest through your bank, or car company. You will be making monthly payments to pay off the rest, but of course you will be paying interest.

Start the graffiti activity by splitting the class into 4 groups and assigning each group to one of the 4 chart papers spread out around the room.

Student Activities:

Listen and take notes during a mini lesson.

As a group, gather around the assigned piece of chart paper. Each student takes a marker.

On their piece of chart paper, students

Have students brainstorm ideas related to the term on their paper for 1 minute.o Once the minute is up, have groups

rotate clockwise to the next piece of chart paper. Students repeat this process until they have visited all four pieces of chart paper.

As students transition from one piece of chart paper to the next, make sure everyone stays with their group before starting the timer again for another minute. This continues 2 more times.

Have students share some of their ideas with the class. If anything important was missed, suggest it be added.

Give students tape to post their ideas on the wall, acknowledging student work and collaboration.

Have a small class discussion on where they can look for available vehicles (e.g., newspaper ads, online, used car magazines, car dealerships).

Hand out one of the cut out situations from the “What Would You Do If…” handout to each student. o Ask students to go to the corner of

the room that contains the sign that best represents their best option for obtaining a car based on their situation.

Ask students to explain the reasons behind their decisions.

Using the same groups as in the graffiti activity, provide each group with the “Problems” handout to work on collaboratively.

Before they begin, model how to use the TVM Solver using a concrete example.o N is the number of paymentso PV is the amount that was borrowedo PMT is the value of each paymento FV is the future value of loano P/Y is the number of payments per

write down whatever ideas come to mind relating to their topic (e.g., pros, cons, etc.) for 1 minute.

Groups move clockwise and brainstorm ideas for the next topic for another minute. Do this 2 more times.

Groups share some of their ideas with the class before taping it to the wall to use as a reference.

Students volunteer answers to the class discussion on where they should look when shopping for a vehicle.

Students decide what the best option for obtaining a car would be for their given situation and move to the corner of the room with the sign that corresponds with their choice. o They should use the information the

class brainstormed during the graffiti activity to help inform their decision.

One by one, students explain the reasons behind their choice.

Listen to explanation of how to use the TVM solver.

yearo C/Y is the number of compounding

periods per yearo PMT: END/BEGIN Set the payment

to the END of each montho Find the value of PMT

Assign one question to each group. Circulate the classroom while students

work on their problem, helping students and providing feedback as needed, and ensuring that groups stay on task.

Once a group has solved their problem, ask them to research how they should obtain their chosen car from lesson 3 (i.e. lease, buy, new, used car)

Groups find an area to work in. Students work within their groups to solve

their assigned problem.

Individual students research how they want to obtain their car online.

What Would You Do If …

You are a 30 year old business man or woman who drives around all day from client to client.

You are a college student who doesn’t have much of a down payment, and a very limited amount to spend per month.

You are an auto mechanic, who enjoys doing all of your own repairs.

You are newly married and want a sports car for now, but planning on starting a family in a few years and will need a bigger car.

You want to put in a huge new stereo system and change the paint job.

You live in Ontario, but got a 1 year job contract in BC. You need a car there, but want to sell it before you move home again.

You have your heart set on a certain high performance car. Only a few hundred are made each year, and you are very particular about which options you want.

You commute about 100km each way to work, and are terrified about your car breaking down.

Your family is interested in purchasing an extra vehicle for doing errands.

PROBLEMS

A local car dealership is offering you three options:

a) You can buy a new compact car for $17,995 + taxes. The dealership offers financing at 4.9% annual interest, compounded monthly, over four years. You have $3000 saved for a down payment and will finance the rest. What will be your monthly payment? What is the total amount paid for the vehicle?

b) You can lease the same vehicle in part a). You make a $1000 down payment and 48 monthly payments of $250. What is the total cost of leasing the vehicle? What is the average cost per month over the life of the lease?

c) You can also buy an older, used model of the same car in part a) for $7000. What is the cost of this car plus tax? What would the monthly payment be for a loan at 8% interest, compounded monthly, for 4 years?

d) Which option would you choose and why? (Answer this question individually)

Lesson 6: Fixed and Variable Costs

Teacher Materials Needed: Computers (class set)Internet access“Problems” handout (1/student)Post-it notesVehicle maintenance chart handout (1/student)Chart paper & markers


Prior to the lesson: Have the costs previously discussed by

students about owning and operating a vehicle from lesson 3 written on individual post-it notes. Have these on the board at the front of the classroom.

Label two pieces of chart paper with the titles Fixed & Variable respectively and post these at the front of the classroom next to the post-it notes.

Photocopy “Problems” handout.

During lesson: Define fixed and variable costs:

o Fixed cost: an expense that remains the same from one month to the next.

o Variable cost: an expense that varies in amount or frequency.

Have students come up one by one to move one of the post-its from the board to the chart paper with the correct label (i.e. Fixed or Variable).o Have students explain why they

chose the label they did.o If they answer incorrectly, only

correct the student after they have given their explanation so that students can learn about their misunderstandings from their mistakes.

Once the lists are completed, have the students add these lists to their notes.

Engage students in a class discussion on the impact cars have on the environment

Student Activities:

Students listen and take notes on the definitions of fixed and variable costs.

One by one, students go up to the front of the class and select one of the post-it notes from the board. o Each student decides whether what

they selected would be considered a fixed or variable cost and put it under the correct label.

o Students give a quick explanation for their choice afterwards

Students add the lists they generated to their notes.

Participate in class discussion on the impact cars have on the environment.

(e.g., fuel) In groups of 4-5, ask students to research

an alternative source of fuel and prepare a brief presentation describing their researched alternative (e.g., its benefits and disadvantages). o Once groups have selected a topic,

have them get their topic approved so there aren’t any repeats among groups. Topic choice is given on a first-come-first-serve basis.

o Provide students with some resources to help get them started.

o Some resources for students: http://www.energyquest.ca.gov/, http://www.fueleconomy.gov/, http://enviroliteracy.org/

Circulate the class while students research alternative sources of fuel, providing help and feedback, and keeping students on task.

Mark group presentations with oral presentation checkbric.

Using the same groups, have students work on the first two questions on the “Problems” handout (one at a time). o Once each group has come up with a

solution, take up these questions as a class (one at a time).

While groups work on their problems, circulate the classroom, providing help and feedback as necessary while also ensuring that groups stay on task.

Define fuel efficiency: a measure of how far a vehicle travels per unit of fuel.

Define depreciation: the amount that the value of an item decreases over time.

Circulate the class and help students as they work on the third problem.

Take up solutions as a class.

In their groups, research an alternative source of fuel online.

Prepare a brief presentation describing the alternative source, its benefits, and its disadvantages.o Students can use chart paper if they

wish to include a visual aid in their presentation.

Students present their findings.

Groups work collaboratively on the first problem. o Groups share their solutions with the

class once everyone has finished. Groups continue to work collaboratively

on the next problem, and again share solutions.

Students add definitions of fuel efficiency and depreciation to their note from the beginning of the class.

Groups work on the third problem and once again share their solutions with the class.

http://enviroliteracy.org/

http://www.fueleconomy.gov/

http://www.energyquest.ca.gov/

PROBLEMS

Problem 1: Ryan lives 45 km away from his work. He just purchased a used vehicle, a 6 year old Pontiac Vibe for $6100. Ryan had some money for the down payment, but he had to borrow $4500 to finance the rest. His licence fee is $74.00 and his insurance is $2151.00. The Vibe has a fuel rating of 7.4 L/100km, and gas prices used can be current.

a) Complete a list of the fixed costs and variable costs that Ryan will have over the next year just to drive to work. Show your work for any calculations on a separate piece of paper

Fixed Costs: Variable Costs:

Total Fixed: Total Variable:

b) Use the maintenance chart provided to calculate the overall maintenance charges

Problem 2: A Ford SUV has a 94L fuel tank and a fuel efficiency rating of 13.2L/100 km.

a) How far can the SUV travel on a full tank of gas?

b) Using a current gas price, determine the cost to fill up the tank.

c) How many litres of gas will the SUV use in order to drive 620 km?

Problem 3

A new mid-sized vehicle sells for $21 135. Jessica researched used cars of the same model and found the following information:

Age of Vehicle (years) Average Selling Price ($)

1 16 000

2 12 750

3 11 000

4 9 800

a) Calculate the depreciation of the vehicle during the first year, in dollars.

b) Calculate the depreciation after one year, as a percent of the new vehicle price.

c) Calculate the depreciation after four years, as a percent of the new vehicle price.

Vehicle Maintenance Chart

Regularly scheduled maintenance keeps vehicles in good working order and helps to maintain their value.

Recommended Service Frequency (km) Frequency (months) Price ($)

Oil Change, Lube & Filter 5000 3 36.95

Brake Inspection & Tire Rotation 10000 6 43.95

Front End Alignment 25000 12 74.95

Cooling System Flush 50000 24 82.95

Engine Tune Up 50000 30 247.50

Transmission 90000 60 139.95

Tire Replacement 100000 60 650.00

Lesson 7: Insurance

Teacher Materials Needed: Overheads from The City lesson plansComputers (class set)Internet accessSample insurance documents Quick Quiz (1/student)Car Insurance Organizer (1/student)


Prior to the lesson: Prepare the overheads 8-1,2,3 Print out the sample insurance documents. Photocopy the quiz. Photocopy the “Car Insurance Organizer.”

During lesson: Introduce “The City” online module on

insurance and have students read the introductory story (sections 1-5).

Engage students in a class discussion about the story they just read.

Teacher Prompts:o What is vehicle insurance for? How

does it work? Why might Zack need insurance that goes beyond basic car insurance?

o What are some other types of insurance?

o What did the characters need to know at the start of the story? What -did they learn by the end?

o What type of insurance do you think you need? Now? When you graduate?

o What information do you still need to know about insurance? Where would you go to get these answers?

Show Overhead 8-1 and 8-2. Explain in detail how insurance works and

what it covers. Show students sample insurance

documents and point out key features on

Student Activities:

Student sign-in to “The City” at http://www.themoneybelt.gc.ca/thecity-lazone/eng/login-eng.aspx

Students individually read the introductory story on “The City” website.

Participate in the discussion by answering questions, and thinking critically about their own insurance needs.

Listen attentively to mini lecture. Students read additional information in

sections 7 and 8 of the online module.

http://www.themoneybelt.gc.ca/thecity-lazone/eng/login-eng.aspx

http://www.themoneybelt.gc.ca/thecity-lazone/eng/login-eng.aspx

the different forms.o Have students investigate these

documents further by completing associated questions on the online module.

o Have a hard copy of the sample insurance documents available for students to look at as well.

Have a class discussion about other types of insurance (e.g., Collision and extended auto insurance, home, content, medical, dental, disability, and life insurance) and what each of these covers respectively.

Discuss the risks of not having insurance.

Show Overhead 8-3 and explain what constitutes insurance fraud and how to avoid it.

Give students time to finish the rest of the module.

While students work through the module, circulate the classroom providing feedback where necessary and keeping students on task.

Once students have completed the module, distribute the Quick Quiz.o Use the quiz to assess whether or not

students have learned the day’s material.

Engage students in a class discussion, brainstorming a list of the factors that affect a person’s insurance rate (e.g., age, driving violations, gender, marital status, geography, vehicle type, occupation, accident claims, credit rating, education, etc.)

Students are given the “Car Insurance Organizer” to complete individually.o Whatever doesn’t get completed in

class is to be finished individually for homework.

Circulate while students work to fill out

Students individually look at the sample insurance documents for each character and answer the questions on the bottom of section 9

Discuss other types of insurance and what each type covers respectively.

Students brainstorm the risks of not having insurance with students volunteering ideas.

Students read section 13 following the teacher’s mini lecture.

Finish the rest of the module individually o My Insurance Needs: sec. 10,11 o Buyer Beware: sec. 12o Self-Assessment: sec. 14

Complete the Quick Quiz to assess whether or not students have learned the material covered in the module.

Students contribute to the development of a list of the factors that affect a person’s insurance rate by brainstorming and volunteering answers.

Students research different car insurance companies online as they work to complete the “Car Insurance Organizer.”

the organizer, providing resources and feedback while also keeping students on task.

Car Insurance Organizer

Make and Model of your Car: _______________________________

Person #1 – is you (given your age, gender, driving record, place of residence, etc.)

Person #2 – is a 30-39 year old, member of the opposite gender, and lives in Toronto. This person has been in 1 minor accident and commutes < 30km/day to work

Be sure to include the name of the Insurance Companies you researched in your organizer.

Amount of Insurance

$ ________

Person # 1 Person # 2

Insurance Company # 1 Cost of Insurance

$_________

Cost of Insurance

$_________

Insurance Company # 2 Cost of Insurance

$_________

Cost of Insurance

$_________

Factors in Person’s Favour

UNIT#9: Personal Finance ANECDOTAL NOTES Dates: ______________________

Student #1 Student #2 Student #3 Student #4 Student #5

Student #6 Student #7 Student $8 Student #9 Student #10

Student #11 Student #12 Student #13 Student #14 Student #15

Student #16 Student #17

General Comments:

Written Response Rubric

Criteria Level 4 Level 3 Level 2 Level 1

Justification Justifies decision with clear and complete explanations

Justifies decision with slightly unclear explanations

Justifies decision with unclear or confusing explanations

Justifies decisions with incomplete or incorrect explanations

Language Conventions

Excellent sentence structure and there are no spelling or grammar errors

Good sentence structure. There are a few spelling and grammar errors

Adequate sentence structure. There are some spelling and grammar errors

Poor sentence structure. There are many spelling and grammar errors

Organization Response has a logical progression of ideas/events and is unified and complete

There is a logical progression of ideas/events and is reasonably complete.

One or more major lapses in the logical progression of ideas/events is evident.

Ideas/events are presented in a random fashion.

Summative Task Rubric

Categories/Criteria Level 4 Level 3 Level 2 Level 1ThinkingGathers, interprets, and compares information about the procedures and costs (e.g., monthly payments, insurance, maintenance, miscellaneous expenses) involved in buying or leasing a new vehicle or buying a used vehicle.

Gathers, interprets, and compares very detailed information about the procedures and costs (e.g., monthly payments, insurance, maintenance, miscellaneous expenses) involved in buying or leasing a new vehicle or buying a used vehicle.

Gathers, interprets, and compares considerable information about the procedures and costs (e.g., monthly payments, insurance, maintenance, miscellaneous expenses) involved in buying or leasing a new vehicle or buying a used vehicle.

Gathers, interprets, and compares some information about the procedures and costs (e.g., monthly payments, insurance, maintenance, miscellaneous expenses) involved in buying or leasing a new vehicle or buying a used vehicle.

Gathers, interprets, and compares limited information about the procedures and costs (e.g., monthly payments, insurance, maintenance, miscellaneous expenses) involved in buying or leasing a new vehicle or buying a used vehicle.

Uses appropriate strategies for researching information.

Consistently uses appropriate tools and strategies to carry out investigations.

Frequently uses appropriate tools and strategies to carry out investigations.

Occasionally uses appropriate tools and strategies to carry out investigations.

Rarely uses appropriate tools and strategies to carry out investigations.

Knowledge & UnderstandingShows understand of calculating costs involved in purchasing, owning, and operating a vehicle.

Makes no errors or omissions in calculations.

Makes few minor errors or omissions in calculations.

Makes some minor errors or omissions in calculations.

Makes major errors or omissions in calculations.

ApplicationUses the internet or other tools to gather information that is specific to the criteria

Consistently able to use the internet or other tools to gather information that is specific to the criteria.

Usually able to use the internet or other tools to gather information that is specific to the criteria.

Occasionally able to use the internet or other tools to gather information that is specific to the criteria.

Rarely able to use the internet or other tools to gather information that is specific to the criteria.

CommunicationJustifies decision of vehicle choice with clear and complete explanations.

Justifies decision of vehicle choice with full and clear explanations.

Justifies decision of vehicle choice with slightly unclear explanations.

Justifies decision of vehicle choice with unclear or confusing explanations.

Justifies decision of vehicle choice with incomplete or incorrect explanations.

Student: ____________________________

Car Loan Chart Organizer Checkbric

The make and model of the car to be purchased is indicated.

The purchase price of the vehicle is clearly indicated.

No Yes

_____l_______________________l____

No Yes

_____l_______________________l____

The APR is calculated for three different financial institutions.

The length of the loan is indicated for three different financial institutions.

The amount of each monthly payment is indicated for three different financial institutions.

The total finance charge is indicated for three different financial institutions.

The total to be repaid in interest is indicated for three different financial institutions.

The total cost of the loan is calculated for three different financial institutions.

None One Two All

_____l_______l________l_______l_____

None One Two All

_____l_______l________l_______l_____

None One Two All

_____l_______l________l_______l_____

None One Two All

_____l_______l________l_______l____

None One Two All

_____l_______l________l_______l_____

None One Two All

_____l_______l________l_______l_____

Alternative Fuel: Oral Presentation Rating Scale

Criteria Rating Scale

Group provides a brief description of chosen alternative fuel. 1 2 3 4

Group gives at least 2 benefits of the alternative fuel source. 1 2 3 4

Group gives at least 2 disadvantages of the alternative fuel source. 1 2 3 4

Voice is clear and audible. 1 2 3 4

Student makes eye contact and maintains appropriate posture throughout presentation. 1 2 3 4

QUICK QUIZ – INSURANCE

Name: _______________________ Date: _________________________

1. Define the words:

a. Insurance: _________________________________________________________

__________________________________________________________________

b. Premium: _________________________________________________________

__________________________________________________________________

c. Deductible: ________________________________________________________

__________________________________________________________________

2. The “insured” is:a. The person who sells an insurance policy.b. The person who is protected by an insurance policy.c. The company that issues the insurance policy.d. The item that the insurance covers.

3. List four different types of insurance coverage.a.

b.

c.

d.

4. Which of the following should you do when choosing an insurance agent?a. Ask to see the agent’s license that’s issued by your province or territory.b. Choose an insurance agent with care.c. Ask other family members and/or friends who have death with insurance

companies to recommend one.d. Choose an agent you feel comfortable with.e. All of the above.

5. When people make false claims, the cost of insurance can go up for everyone because insurance premiums will be raised. (Circle the correct answer)

True False

Summary Overview of Unit

Literacy Strategies:1. Financial Literacy – covered on days 1, 2, 3, 4, 5, 6 & 72. Critical Literacy – covered on days 1, 4 & 73. Technological Literacy – covered on days 1, 2, 4, 5 & 74. Numeracy – covered on days 2, 4 & 55. Environmental Literacy – covered on day 6

Differentiated Instruction:Lesson 1: For the…

Social & auditory learner – class discussion and working in pairs. Auditory learner – a short mini lesson on chequing and savings accounts. Intrapersonal learner – quiet time provided at the end of the lesson to work on and

complete individual reflection on chosen financial institution. Tactile & visual learner – researching information on computers.

Lesson 2: For the… Tactile & kinaesthetic learner – ‘MATHO’ game. Auditory learner – a short mini lesson on investment alternatives. Social & auditory learner – class discussion and jigsaw activity. Tactile & visual learner – researching information on the internet. Kinaesthetic learner – opportunity to move when changing groups. Visual, tactile, kinaesthetic, musical, etc. learner – variety of ways in which they are able

to present their findings about a particular investment alternative.

Lesson 3: For the… Visual, kinaesthetic & tactile learner – looking through car flyers and cutting out images. Social learner – discussion in pairs. Visual learner – video clip introducing the costs of buying a car. Visual learner – owning and operating costs of a vehicle displayed in a word web.

Lesson 4: For the… Auditory learner – teacher delivers a lesson on car loans and common mistakes made

when buying a car. Visual learner – a graph representation of the costs associated with loans (i.e., extra

charges and interest). Intrapersonal learner – individually complete the “Car Loan Chart Organizer.” Tactile & visual learner – research different financial institutions on the Internet.

Lesson 5: For the…

Social & kinaesthetic learner – graffiti activity where students move from station to station in groups.

Kinaesthetic learner – four corners activity. Auditory learner – mini lesson delivered by the teacher. Logical-mathematical & social learner – working on example problems in groups. Intrapersonal learner – time to individually work on summative task. Tactile & visual learner – researching information on the Internet and using TVAs to

help solve math problems.

Lesson 6: For the… Tactile, visual, kinaesthetic & social learner – creating a word web with post-its to look

at variable vs. fixed costs of buying a car (in groups). Logical-mathematical & social learner – working through math problems in pairs. Auditory learner – lesson delivered by the teacher.

Lesson 7: For the… Tactile & visual learner –interactive module on insurance and research on the Internet. Intrapersonal learner – work independently to complete “The City” module on

insurance. Auditory learner – instruction provided by the teacher throughout the activity. Social learner – partners work together to complete “Car Insurance Organizer”.

Collaborative/Cooperative Learning Activities:Lesson 1: *Investigation of various savings accounts and completion of spreadsheet.

*Think/Pair/Share discussion on which financial institution is the best option.

Lesson 2: *Investment alternatives jigsaw activity & completion of the comparison chart.

Lesson 3: *Think/Pair/Share activity on the costs of owning and operating a car.

Lesson 4: *Brainstorming activity about the different institutions that provide car loans.

Lesson 5: *Graffiti activity looking at leasing vs. buying and new vs. used.*Problem solving activity where groups work to solve different math questions.

Lesson 6: *Post-it word web activity for distinguishing between fixed and variable costs.*Problem solving in partners.

Lesson 7: *Complete “Car Insurance Organizer” in pairs.

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