Course Profile Making Economic Choices, Grade 11, Workplace Preparation, Catholic
Unit 2: Economics in Your Life
Time: 22 hours
Activity 1 | Activity 2
| Activity 3 | Activity 4
One
of the most important issues in economics is the impact it will have on the
life of a student. Unit 2 examines the relevance of students in Canada’s
economic cycle and the importance of exercising their Catholic faith both as
consumers and workers in the economy.
Students
are given the opportunity to examine decisions made by consumers and workers
from the perspective of a morally conscientious individual living in Catholic
faith. The study of current events and their impact on the workplace helps
students understand the significance of exercising their Catholic values and
beliefs. Applying their knowledge of economic concepts and decision-making,
students determine potential future incomes from various employment options.
Expenses and personal budgets are created and examined for various careers and
their relative income levels. Options of credit and financing are discussed and
analysed in regards to financing a major purchase. The unit project also helps
students in their final year-end project where students present their research
on an occupation and financial plan.
|
Cluster |
Expectations |
Assessment |
Focus |
|
1 |
ESV.01,
ECV.03, ES1.01, ES1.02, ES1.03, EC3.03, CGE.1g, CGE.3d, CGE.3f, CGE.4a,
CGE.4e, CGE.4g, CGE.7j |
Knowledge/ Thinking/Inquiry Communication Application |
My Role
in the Working World ·
consumers and contributors ·
employment trends |
|
2 |
ESV.04,
ES3.01, ESV.01, DMV.01, ECV.01, ECV.02, DMV.02, EC2.01, EC2.03, ES3.03,
CGE.2B, CGE.2E, CGE.4F, CGE.4G, CGE.5B, CGE.5E, CGE.5h |
Knowledge/ Thinking/Inquiry Communication Application |
Introduction
to Budgeting: Determining
income and expenses |
|
3 |
DMV.02,
ESV.02, ESV.04, DM1.02, DM2.01, ES4.01, ES4.03, CGE.2A, CGE.4B, CGE.4C,
CGE.7i |
Knowledge/ Thinking/Inquiry Communication Application |
Introduction
to Financial Planning: Making the most of money and resources |
|
4 |
SIV.01,
DM2.01, SI1.01, CGE.4f, CGE.3d, CGE.7a, CGE.7b |
Knowledge/ Thinking/Inquiry Communication Application |
Making
a Major Purchase: Culminating Activity |
Time: 225 minutes
This activity begins by introducing the
relevance and interdependence of consumers and contributors in the Canadian
economy. This knowledge is useful when participating in the “Survival Game”.
The Survival game has students barter for consumer necessities and helps
students realize the impact they can have in the game and within the world as
consumers. Activity 1 concludes with an examination of employment trends and
opportunities so students can truly understand their “role in the working
world”.
Strand(s): Economic Stakeholders, Assessing Economic Change, Self Interest and Interdependence
Learning
Expectations
ESV.01 -
describe the economic roles that an individual plays;
ECV.03 -
identify trends in labour markets and use this information to develop an
employment plan;
ES1.01 -
identify those who compose the stakeholder groups of “consumer” (e.g.,
purchasers of goods and services and economic resources) and “contributor” (e.g.,
suppliers of labour. capital, and other resources);
ES1.02 -
identify the criteria that different stakeholders (e.g., consumers, workers,
savers, managers, owners) use to make economic decisions;
ES1.03 -
apply the criteria used to make personal economic choices (e.g., what product
to purchase, what employment to seek, what product to produce);
EC3.03 -
identify employment markets in which demand is strong and which match their
interests and abilities.
Ontario
Catholic School Graduate Expectations
CGE.1g -
understand that one’s purpose or call in life comes from God, and strives to
discern and live out this call throughout life’s journey;
CGE.2c -
presents information and ideas clearly and honestly and with sensitivity to
others;
CGE.3a -
recognizes that there is more grace in our world than sin and that hope is
essential in facing all challenges;
CGE.4a -
demonstrates a confident and positive sense of self and respect for the dignity
and welfare of others;
CGE.4e -
sets appropriate goals and priorities in school work and personal life;
CGE.4g -
examines and reflects on one’s personal values, abilities, and aspirations
influencing life’s choices and opportunities;
CGE.5d -
finds meaning, dignity, fulfillment, and vocation in work which contributes to
the common good;
CGE.7e -
witnesses Catholic social teaching by providing equality, democracy, and
solidarity for a just, peaceful and compassionate society.
Students
should have completed their “Action Plan” from the Grade 10 Careers course.
Ability
to locate a specific website on the Internet (e.g., want ad sites like
Monster.com, etc.).
·
Teachers
should reserve the school’s Internet-ready computer resource room.
·
Teachers
may provide employment market trend statistics, or alternatively be able to
direct students to specific resources.
·
Teachers
should become familiar with the “Survival Game” activity as presented in
Appendix 2.1.01.
1. Teachers should direct a discussion of the
role of various economic stakeholders in our economy. Specifically, these roles
should include the following:
· consumers of goods and services, as well as economic resources
· contributors of labour, capital and other resources.
2. Teachers could use a flow diagram to show the
interdependence of consumers and producers.
3. Survivor Game: This activity requires student
teams to obtain various essential commodities through bartering with other
teams. Teachers should note that there are enough resources in the game for
most students to survive; however, due to self-interest most students will not
be able to negotiate or obtain enough resources to survive while a few groups
will obtain far more than needed to survive. This simulation activity roughly
parallels the inequitable distribution of the world’s resources. At the
conclusion of the simulation, students should be able to recognize that only
through an equitable distribution of resources will we be able to create a
just, peaceful, and compassionate society. A discussion could try to identify
how society could more equitably distribute resources. Students should also
reflect on how they personally could help to more equitably distribute economic
resources. See Appendix 2.1.01 for game instructions.
4. Employment trends and opportunities: From a
variety of information sources (Guidance Office, Canada Employment Centre,
newspaper want ads, Internet job sites, etc.), the teacher could provide, or
the student could find, what current market job trends are locally,
provincially, nationally, and internationally.
Once the popularity of various careers or jobs has been identified, students
should plot the major responsibilities of the job as well as the skills and
education required to obtain such a position. Students should also be careful
to match their interests and aptitude to the positions they have identified as
popular. This should help to ensure that students find meaning and fulfillment
in their careers. These interests/aptitudes and other personal information
found from teacher-provided questionnaires, should be added to their portfolio.
Students should then take the next logical step and develop an employment plan,
which matches their interests with their skills and attributes to the
availability of certain types of careers. This plan should take the form of a
written report which:
· locates the employment sectors with growth
· matches the skills and aptitudes of the student
· identifies the specific skills and education required to obtain such a position.
This plan should be added to
their portfolio.
As a supplement to this report, students could orally present their findings to
the class in order for others to gain a wider perspective on the employment
market. If the teacher decides to have students make oral presentations to the
class, the time allocated to this activity will have to be increased
accordingly.
|
Task/Product |
Purpose |
Assessment |
Tool |
|
Employment
Plan |
Formative |
Knowledge/Understanding |
Rubric
checklist |
|
Oral
Presentation |
Formative |
Communication |
Rubric
Appendix 2.4.1 |
|
Survival
Game |
Formative |
Communication Application |
Student
self-evaluation based on their survival in the game |
|
Survival |
Formative |
Thinking/Inquiry Communication |
Group
analysis of various strategies used in the game |
·
Consult
with the Special Education Department for recommendations about how to assist
students who require help in preparing an Employment Plan.
·
Students
with difficulty researching or communicating could be paired with students with
strengths in these areas.
·
Some
students may require an extended time frame in order to complete this
assignment.
Internet
– www.monster.com
and other employment related sites
Want ads in various local, national, and international on-line newspapers
Media
Newspaper
wants ads
Other
Guidance
Office, or Canada employment centre
Appendix
2.1.01
Introduction
This
activity is designed to force students to make decisions about the distribution
of “scarce” goods and services. Students
should recognize that self-interest often interferes with an equitable
distribution of resources among the class. This situation obviously parallels
the distribution of wealth (resources) in the “real world” as well.
The class
plays a game called “Survival” which requires students to obtain a minimum
amount of twelve different “essential goods and services (resources)”. Each of
these essential items are represented by 3 x 3 cards which bear the name of
that item and a specific point value. Students work in pairs to obtain, through
negotiation and barter with other groups, the required resources necessary for
their survival.
Objectives
Students
should discover that the common good, or the survival of many, must often be
sacrificed for their own self-interest.
Students
should also develop their own negotiation skills through this bartering
process.
Students
should be able to compare the effectiveness of bartering as a medium of
exchange with their own daily experience with money.
Pre-game
Analysis (Teacher Notes)
The
class will likely experience the following when involved with this game:
Most
of the student groups will be unable to obtain the minimum amount (a card with
10 or more units) of the essential items required for survival, even though the
point system has been designed so that students will receive many cards with a
combined total value of at least 100 points of ONE resource to start the game.
The point system has been designed in order for most (not all) of the groups to
survive.
Students
may experience difficulty negotiating the transactions they require due to the
denominations on the cards. This occurs because students are reluctant to trade
a higher-value card for a lower-value card.
It
is likely that a central place for transactions will evolve in one part of the
classroom. This central place is similar to the development of a marketplace in
many societies. This could lead the teacher to a post-game discussion of the
role of trade, barter, and the central marketplace in early civilizations. The
teacher should ensure that students who might encounter difficulty are paired
with capable students.
Instructions
for the game
Each
group (team) of two students is provided with nine cards of the same product.
Each of the nine cards has the same product on it, but each card has a
different number of units. For example, one team (student A and B) receives one
card with Bread – 5 units, a second Bread card – 15 units, a third Bread card –
18 units, a fourth Bread card – 43 units, etc., up to a total of nine cards
(all with the same product but each with a different number of units).
In
order to survive, each group must obtain a minimum amount (10 units – a card
with 10 or more printed on it) of each essential item. Twelve items have been
identified as essential and therefore only those groups which obtain the
minimum amount of each item will survive. Therefore each team must trade the
cards they held at the start of the game (all the same product) for cards with
each of the other essential items they need to survive. For example, a team may
trade a Bread – 43 units card to another group for a Meat – 14 units card. Many
teams may have difficulty making a trade for mismatched amounts since they
believe it to be inherently unfair. They must continue to trade/barter until
they have obtained a minimum of 10 units for each and every one of the twelve
essential items (in which case they will “survive”) or until the designated
time period expires (in which case they will not “survive”).
A
currency does not exist and therefore all resources can only be obtained
through trade (barter).
The
denominations on each card cannot be changed in any way – ripping a card with
50 units on it does not make each half worth 25, but rather destroys the value
of the entire card.
The
minimum amount of each resource required to survive is 10 units (per team of
two students).
Each
essential item must be “produced” (held at the start of the game by two
students).
The
essential items are bread, meat, dairy products, tools, fuel, socks, shoes,
pants, shirts, coats, medical services, and fish.
For
each of the twelve essential items listed above, there are 10 cards ranging in
denomination from five through fifty. It is important for the denominations to
be different for each essential item.
Example: Bread 5,
10, 15, 18, 20, 25, 30, 30, 35, 43
Meat 5, 10, 12, 14, 15, 20, 23, 24, 25, 29
The
different denominations make it difficult for students to trade cards of the
same denominations, which in turn will have them make more decisions and
trade-offs as they negotiate for their required essential services.
Each
of the producers (two student groups) should obtain at random these 10 cards
from the teacher.
Students
are allocated 20 minutes to barter with other students. Teachers could
introduce a more stringent time frame on those with perishable products (dairy,
meat, fish, etc.) to simulate another type of impediment to trade.
Debriefing
This
“debriefing” could occur immediately at the conclusion of the Survival Game and
should focus on several themes including:
·
the
reasons why some students “survived” (obtained all required the essential
goods) while some others did not
·
the
difficulties encountered when trying to trade (barter)
·
identification
of various techniques which were effective when trading, as well as those which
were ineffective as well
·
examine
the reasons why students either traded or refused to trade in specific
instances.
The
teacher could chose to have a class discussion only, then this post-game
activity may be called a “debriefing” rather than a formal evaluation.
If the
teacher chose to have each group make a presentation to the class regarding
their strategy for survival, as well as the reasons why they were either
successful or unsuccessful. The post-game activity could take on the role of a
formal evaluation as long as the task or product being assessed was done
individually.
Time: 330 minutes
Building
on their personal profile developed in Activity 1, students investigate the
basic concepts of budgeting. Students develop a budget using current income and
expenses. An additional budget is developed given income and expense
projections for selected workplace occupations and lifestyle choices. Students
also research the impact of inflation on their purchasing power within their
developed budgets.
Strand(s): Economic Stakeholders, Economic Decision Making,
Assessing Economic Change
Learning
Expectations
DMV.01 -
identify the economic choices that individuals, organizations, and societies must
make because resources are scarce;
DMV.02 -
demonstrate an ability to use economic knowledge and methods of inquiry to make
informed decisions;
ECV.01 -
describe the causes and consequences of change in consumer and resource
markets;
ECV.02 - explain
how changes in prices, incomes, and the cost of living, affect consumers;
EC2.01 -
describe the changes in average prices and incomes over the last decade;
EC2.02 -
demonstrate an understanding of relative purchasing power by calculating what
an hour of labour could buy in terms of goods and services at different times
in the past and what it can buy today;
EC2.03 -
identify the factors (e.g., inflation) that can affect an individual’s
purchasing power and standard of living;
ES3.01 -
identify the different ways in which individuals contribute to the economy
(e.g., as workers, entrepreneurs, savers) and how they earn income (e.g.,
wages, salaries, interest, dividends, rents, profits).
Ontario
Catholic School Graduate Expectations
CGE.2b -
read, understand and use written materials effectively;
CGE.2e -
use and integrate the Catholic faith tradition, in the critical analysis of the
arts, media, technology and information systems to enhance the quality of life;
CGE.4f -
apply effective communication, decision-making, problem-solving, time and
resource management skills;
CGE.4g -
examine and reflect on one’s personal values, abilities and aspirations
influencing life’s choices and opportunities;
CGE.5b -
think critically about the meaning and purpose of work;
CGE.5e -
respect the rights, responsibilities, and contributions of self and others;
CGE.5h -
apply skills for employability, self-employment, and entrepreneurship relative
to Christian vocation.
Schedule
two full periods in a computer lab with Internet access, if possible.
·
Students
should have completed the Career Planning course in Grade 10.
·
Students
must be able to calculate the percentage change from one value to another.
·
Students
must have the ability to effectively use the Internet to locate
economically-related sites as identified during various activities throughout
the course.
1. If Internet facilities are available, have
students access the website www.yourmoney.cba.ca. Direct them to the title,
“Budget, Budget”. From there, students can take a guided tour which covers the
following topics: “What is a Budget?, Why Budget?, Who Should Budget?, Defining
Goals and Prioritizing, Figuring out your Income, Where does your money go?”
(determining expenses), and “Keeping track of expenses”. Upon completion of the
tour, students should be ready to create their own plan. Students complete the
“Budget Reality Check” (see Appendix 2.2.1) to apply their knowledge.
Note: if Internet access is not available, provide students with hard
copies of the above tour. The information package is available in pamphlet form
from the Canadian Bankers’ Association.
2. Upon completion of the “Budget Reality
Check”, students can read “Beware of budget mishaps” and “Evaluating your
budget” under the heading, “Create Your Own Plan.”
Following this, students access their personal profile (developed in Activity
1).
Students research income levels for three workplace occupation choices that
interest them. This information can be found using the websites listed in the
resources section that follows. Students can then complete “The World of Work –
Reality Check” (see Appendix 2.2.2) for a typical month in their projected
first year of work. Students should be encouraged to consult as many sources as
possible (parents, teacher, newspaper, business enterprises, the Internet) for
their projections of expenses. At the end of each form, students are required
to list these resources. Categories for income and/or expenses can be
added/deleted upon consultation with the teacher in order to make the budget as
realistic as possible.
3. Introduce the concept of inflation by
comparing old and new prices. Distribute Appendix 2.2.3 – Inflation, and have
the students complete it. Students should identify the price of each of the
items listed in Appendix 2.2.3 in current prices. The teacher can direct
students to calculate the percent change for each of the two time periods
identified. From this exercise, the teacher should be able to:
· present the idea of a base year (in this instance 1969)
· illustrate the concept of a price index and how it is calculated
· discuss weaknesses in the concept of a price index since each item has a different level of importance to each household (e.g., a family in a large city may use public transit and therefore a large increase in the price of automobiles does not directly affect them).
4. Discuss inflation, what it is, its causes,
and how it affects a person’s ability to save.
5. Have students review their budgets from
Activities 1 and 2 in consideration of
inflation.
|
Task/Product |
Purpose |
Assessment |
Tool |
|
Student
notes on guest speaker |
Formative |
Knowledge/ Communication |
Teacher
checklist |
|
Budget
– Current |
Formative |
Knowledge/ Thinking/Inquiry Application |
Checklist |
|
Inflation
Chart |
Formative |
Knowledge/ Thinking/Inquiry |
Student
self-evaluation |
|
Budget – Future |
Formative |
Knowledge/ Thinking/Inquiry Application |
Checklist |
|
Activity
Test |
Formative
or summative |
Knowledge/ Thinking/Inquiry Communication Application |
Teacher-developed |
·
Encourage
students to read all questions first and use reading partners as often as
possible.
·
Allow
gifted students to mentor students requiring assistance.
·
Teach
students to verbalize ideas prior to writing them down.
Print
There’s
something about money.
Websites
www.yourmoney.cba.ca
www.careers.org
www.hrdc-drhc.gc.ca
Appendix 2.2.1
– Budget Reality Check
Appendix
2.2.2 – The World of Work-Reality Check
Appendix
2.2.3 – Inflation
How much
money do you spend? Fill out the chart below to see exactly where your money
goes.
|
Income
(per month) |
|
|
Take-home
pay (part-time job, babysitting, etc.) |
$ |
|
Other
income (allowance, gift) |
$ |
|
Total
Income (per month) |
$ |
|
|
|
|
Expenses |
|
|
Clothes |
$ |
|
Magazines,
video/DVD rentals, books, etc. |
$ |
|
Eating out
– school lunches, dinner, coffee, etc. |
$ |
|
Entertainment
– movies, sports, games, etc. |
$ |
|
Hobbies |
$ |
|
Transportation
– taxis, public transportation, car |
$ |
|
Other
expenses – computer games, Internet access |
$ |
|
Total
Expenses |
$ |
|
|
|
|
Planning
to live on your own? What will it cost you to live each month? |
|
|
Rent |
$ |
|
Utilities
(heating, cooling; electricity; water) |
$ |
|
Cable/Satellite
TV |
$ |
|
Telephone
(including long distance) |
$ |
|
Groceries |
$ |
|
Total Additional
Expenses |
$ |
|
Resources
Consulted: |
|
|
Income
(per month) |
|
|
Take
home pay |
$ |
|
Other
earnings |
$ |
|
Total
Monthly Income |
$ |
|
|
|
|
Expenses
(per month) |
|
|
Rent |
$ |
|
Utilities
(heating/cooling; electricity; water) |
$ |
|
Cable/Satellite
TV |
$ |
|
Telephone
(including long distance) |
$ |
|
Groceries |
$ |
|
Tenant’s
Insurance |
$ |
|
Travel
(bus/subway) |
$ |
|
Parking,
gas, car repairs |
$ |
|
Car
Insurance |
$ |
|
Loan
payments |
$ |
|
Clothing |
$ |
|
Personal
grooming |
$ |
|
Restaurants/entertainment |
$ |
|
Newspapers/magazines/CDs/video/DVDs |
$ |
|
Other: |
$ |
|
Total
Monthly Expenses |
$ |
|
Resources
Consulted: |
|
Consumer
Prices: What’s Happened Since 1969?
|
Typical Prices |
1969 |
1980 |
Today |
% change |
% change |
|
Postage
Stamp |
$0.06 |
$0.17 |
|
|
|
|
Cup of
Coffee |
$0.20 |
$0.50 |
|
|
|
|
House
(median value) |
$19 900 |
$120 000 |
|
|
|
|
Automobile
(midsize) |
$3 466.00 |
$8 829.00 |
|
|
|
|
Man’s
Haircut |
$3.00 |
$7.00 |
|
|
|
|
Woman’s
Haircut |
$4.00 |
$30.00 |
|
|
|
Making the Most of My Money and
Resources
Time: 405 minutes
In
consideration of their goals for the future, students consider the methods by
which their savings can grow. They consider typical investments such as mutual funds,
stocks, RRSPs, GICs, and Canada Savings Bonds.
Strand(s): Economic Decision Making, Economic Stakeholders
Learning
Expectations
DMV.01 -
identify the economic choices that individuals, organizations, and societies must
make because resources are scarce;
DMV.02 -
demonstrate an ability to use economic knowledge and methods of inquiry to make
informed decisions;
ESV.02 -
identify the factors that influence consumer demand and the skills used by
consumers to maximize their satisfaction in the marketplace;
ESV.04 -
compare the different forms of saving and personal investment and the criteria
to be considered when selecting them;
DM1.02 -
describe economic choices they have made and will have to make as consumers and
contributors, and the trade-offs involved in those choices;
DM2.01 -
apply economic concepts (e.g., opportunity cost, demand, supply) to identify
and describe economic choices (e.g., to spend or to save) that consumers face;
ES4.01 -
identify the benefits of acquiring different forms of financial assets;
ES4.03 -
explain the principles of sound financial planning (e.g., start saving early,
diversify investments) and the criteria (e.g., liquidity, risk, rate of return)
used to determine the most appropriate form of saving for the individual.
Ontario
Catholic School Graduate Expectations
CGE.2a -
listens actively and critically to understand and learn in light of gospel
values;
CGE.2b -
reads, understands, and uses written materials effectively;
CGE.2e -
uses and integrates the Catholic faith tradition, in the critical analysis of
the arts, media, technology, and information systems to enhance the quality of
life;
CGE.4b -
demonstrates flexibility and adaptability;
CGE.4e -
sets appropriate goals and priorities in school, work, and personal life;
CGE.4f -
applies effective communication, decision-making, problem-solving, time and
resource management skills;
CGE.4g -
examines and reflects on one’s personal values, abilities, and aspirations
influencing life’s choices and opportunities;
CGE.7i -
respects the environment and uses (financial) resources wisely.
·
Schedule
one full period in a computer lab with Internet access.
·
Obtain
a copy of the pamphlet “Making your
money work for you” from the Canadian
·
Bankers’
Association information package, “There’s something about money.”
·
Order
a class set of “Investing in Your Future,” available for free from the Investor
Learning Centre of Canada, Toronto, Ontario.
·
Obtain
enough copies of The Globe and Mail so that students may view the stock
listings in the Report On Business section. Alternatively, the teacher can
obtain similar information from the National Post (Investing section), The
Toronto Star, or the Toronto Sun.
·
Obtain
copies of mutual fund prospectuses. These are available, upon request, from
fund management companies (Mackenzie, AGF, Franklin/Templeton, Altamira,
Dynamic, CI, Scudder, and any of the chartered bank funds (TD, Scotia, CIBC,
BMO, RBC, National, etc.)
None
required.
1. Calculate at the board how long it will take
to become a millionaire if you have $1000 accumulating 5% interest. This helps
to illustrate and emphasize the value and the need for saving and the “beauty”
of compounding interest.
2. Write a note on the rule of 72s (a simple way
to see how many years it will take for an investment to double) on the board.
3. Write a note on the importance of starting
early when it comes to saving, and investing, and compounding on the board. The
more frequently interest is paid, the stronger the effect of the compounding.
4. Write a definition for investing.
5. Present an overhead of different types of
investment options. Identify and explain the three categories of options: cash
and cash equivalents, fixed income investments, and equity investments. See the
folder “Making your money work for you”, from “There’s something about money”.
6. Organize students into groups of not more
than three. Supply each group with a recent copy of stock listings found in the
Business sections of newspapers. Ask each group to identify five companies
whose products they use or own and that trade on stock exchanges. Find out
which stock exchange lists these companies. From the newspaper, find out how
much one share of one of these companies is worth.
7. Research the price history of a particular
share on the Internet. If the Internet is not available, share price histories
are available in annual reports (many of which can be accessed and ordered on
the Internet) and from investment research companies such as Standard and
Poor’s Stock Reports, ValueLine Investment Survey, Globeinvestor, and Financial
Post Surveys. Without the Internet, the teacher may have to provide these
resources. Students can report on their findings to the class.
8. Write a board note on investing in bonds.
Identify the three components of a bond, and how you can earn a return on bonds
with special attention given to Canada Savings Bonds. Also identify the three
reasons why conservative investors buy bonds (see pp. 20, 21, p. 24 of
“Investing in Your Future”). Write a board note on mutual funds. The board note
should cover what a mutual fund is, types of mutual funds, advantages and
disadvantages of mutual funds, and the “lowdown” on fund fees (see pp. 28 to 32
of “Investing in Your Future”). In pairs, have students examine the prospectus
of a mutual fund and analyse the fund’s portfolio. What are the names of
companies and types of businesses invested in? Students record this and share
with another pair. In groups of four, students report their findings to the
class.
9. Write a board note on how to pick a mutual
fund (see p. 35 of “Investing in Your Future”).
10. Explain the acronym RRSP and the reasons in
favour of contributing to an RRSP in Canada. Write this on the board and have
the students record this in their notebooks.
11. Prepare a note on “Intelligent investing –
four basic steps” (see pp. 36-40 of “Investing in Your Future”). Distribute the
note to students for their notebooks. Discuss these steps with your students.
12. In pairs, have students create a three-column
table. In the first column, list five short and long term individual goals such
as a vacation, paying down a mortgage, or early retirement. In the middle
column, match each of these goals with one or more of the three basic
investment objectives. In the third column, match the right asset class for
each of these objectives. For each of the asset classes, identify the names of
one or two specific investments.
13. In small groups, using Appendix 2.3.1, list
the investments in order of risk from least to most risk. Then explain how this
portfolio matches or does not match the three basic investment objectives and
how the investments fit into the three asset classes. How would you rate this
investor’s tolerance for risk? Discuss the ways the investor has attempted to
spread out the risk.
|
Task/Product |
Purpose |
Assessment |
Tool |
|
Oral
Presentation |
Formative |
Knowledge/Understanding Communication Application |
Peer
evaluation |
|
Quiz |
Formative |
Knowledge/Understanding Thinking/Inquiry Communication |
Teacher
developed |
|
Investment
Portfolio Analysis |
Summative |
Knowledge/Understanding Thinking/Inquiry Communication Application |
Rubric
checklist |
|
Test |
Formative |
Knowledge/Understanding Thinking/Inquiry Communication Application |
Teacher
evaluation |
·
Where
appropriate, encourage students to read all questions first and use reading
partners as often as possible.
·
Provide
enrichment activities.
·
Teach
students to verbalize all of their ideas prior to writing them down.
Print
There’s
something about money.
Canadian Bankers’ Association, 2000.
Investing
in Your Future.
Investor Learning Centre of Canada, Canadian Securities Institute, 2001.
Chilton,
David. The Wealthy Barber. Stoddart Publishing Company. ISBN 0773753184
ValueLine
Investment Survey.
New York, N.Y.
Standard
and Poor’s Stock Reports. New York, N.Y.
Business
section of any newspaper (local or national).
Websites
www.yourmoney.cba.ca
www.globeinvestor.com
www.financialpostsurveys.com
Appendix
2.3.1
Here is a
ranking of various investments in terms of their risk and (potential) return.
|
Type of Investment |
Risk (High - Low) |
Return (High - Low) |
|
High-tech
shares/funds Blue
chip shares/funds Balanced
growth mutual fund Preferred
shares GICs Canada Savings
Bonds |
High Moderate Moderate Low Low Low |
High Moderate Moderate Low Low Low |
Working
with a group of not more than three, analyse the following investor portfolio:
Canadian
equity blue chip shares $18
500
High-tech
mutual fund $31
500
High-tech
shares $12
000
Balanced
growth mutual fund $17
000
GICs $ 9 000
Canada
Savings Bonds $12
000
$100 000
Refer to
the chart above and, using the types of mutual funds in your (the student’s)
notes, list these investments in order of risk from least to most risk. Then
explain how this portfolio matches or does not match the three basic investment
objectives and how the investments fit into the three asset classes. How would
you rate this investor’s tolerance for risk? (Low? Moderate? High?). Discuss
the ways this investor has attempted to spread out the risk.
Time: 330 minutes
The
culminating activity for this unit requires students to perform the steps
required by a consumer when purchasing a motor vehicle. This activity asks
students to consider each of the previous components of this unit, including
their own projected income and expenses and therefore availability of funds,
for monthly car-related expenses. Most students at this age have an acute
interest in purchasing an automobile which should provide widespread appeal for
this activity. Students should be instructed to proceed on the basis that they
are actually going to purchase the vehicle.
Strand(s):
Economic
Decision Making, Economic Stakeholders, Self-Interest and Interdependence
Learning
Expectations
DMV.02 -
demonstrate an ability to use economic knowledge and methods of inquiry to make
informed decisions;
SIV.01 -
explain how self-interest motivates both consumers and producers in a market
and creates interdependence;
ESV.02 -
identify the factors that influence consumer demand and the skills used by
consumers to maximize their satisfaction in the marketplace;
DM2.01 -
apply economic concepts (e.g., opportunity costs, demand, supply) to identify
and describe economic choices (e.g., to spend or to save) that face consumers;
DM2.03 -
apply a cost-benefit inquiry to define a problem and to identify and evaluate
choices from the point of view of different stakeholders;
SI1.01 -
describe how consumers and producers each determine what is in their own best
interest (e.g., satisfaction of need, profitability);
ES2.02 -
explain the factors that influence a consumer’s ability to pay for goods and
service (e.g., their income, assets, and creditworthiness);
ES2.03 -
apply correctly the steps involved in analysing a specific consumption choice
(e.g., a car purchase, continuing education) and method of payment.
Ontario
Catholic School Graduate Expectations
CGE.4f -
applies effective communication, decision-making, problem-solving, time and
resource management skills;
CGE.3d -
makes decisions in light of gospel values with an informed moral conscience;
CGE.7a -
acts morally and legally as a person formed in Catholic traditions;
CGE.7b -
accepts responsibility for one’s own actions.
·
Teachers
should have considered the issues related to leasing a vehicle versus buying
one.
·
Teachers
should have the website addresses of relevant financial institutions and auto
dealers.
·
Teachers
should visit with managers from area banks, credit unions, and car dealers to
obtain approval for visits from individual students (it is likely that certain
institutions may discourage students from coming in, in which case the teacher
should identify such places to avoid when looking for information).
·
Teachers
should obtain information regarding alternative fuel vehicles (i.e., electric,
hydrogen, or solar-powered cars).
·
Successful
completion of the previous activities in this unit including the establishment
of a personal budget.
·
Ability
to calculate both simple and compound interest.
·
Ability
to locate relevant websites.
·
Location
of local financial institutions and automotive dealerships.
The
Issues to be Examined when Purchasing a Motor Vehicle
1. Students should use the projected personal income
stream from their targeted career occupation in addition to their monthly
expenses (Activity 2) to determine the amount of discretionary income available
for a car payment. Students should produce a written analysis which outlines
the exact amount of funds available each month for a car payment and related
expenses.
2. After determining funds available for an
automobile purchase, students must next decide which model of vehicle to
purchase. Students should be encouraged to consider other relevant issues when
purchasing a vehicle, including the car’s safety rating, standard features and
options available, warranties, service records, dealer/seller reputation, where
the car was made, environmental friendliness, gas mileage, and other operating
expenses, resale value, etc. Other relevant criteria could be identified and
evaluated by each student on the car of his/her choice.
3. Students should identify how much of the
purchase price they will provide from their own savings or investments (see
Activity 3) and how much of the purchase price must be financed with a loan.
4. Once the amount of financing has been
established, students should identify various alternatives for financing the
purchase of this vehicle. Students should be able to identify a variety of
sources of financing available to them. The various sources could include an
automobile dealership, a bank, credit union, trust company, or relative, etc.
Students should identify at least three viable financing alternatives and
explore the actual cost of one of these options. Students should also identify
the “actual cost” (include all taxes and interest payments) to purchase the
vehicle.
5. An evaluation of the comparative costs of
buying versus leasing should be performed. Teachers should review the cost,
tax, and ownership issues of leasing versus buying. Students should evaluate
the difference between the total cost of buying (including loan repayments)
versus leasing a vehicle. Teachers could reinforce the concept of opportunity
cost (Unit 1) of the financing decision
(i.e., leasing enable students to continue to invest other money).
6. Additional issues which could be introduced
during this culminating activity include:
· alternative energy source cars (e.g., electric, hydrogen, solar powered, etc.) and their cost versus benefits
· identification and costing of insurance
· the implication of traffic violations on the cost of insurance
· the “social cost” of drinking and driving (increased police resources, legal resources, hospital resources, etc.)
· consideration of short-term costs versus long-term costs and their implications; for example, a car with a higher sticker price may have better gas mileage and lower maintenance costs in the long-term.
|
Task/Product |
Purpose |
Assessment |
Tool |
|
Research Report |
Formative |
Thinking/Inquiry Communication Application |
Research Paper Rubric Checklist |
|
Oral
Presentation of a Summary of the Research Paper |
Summative |
Knowledge/Understanding Thinking/Inquiry Communication Application |
See
Rubric 2.4.1 |
|
Test on
Purchasing a Vehicle |
Formative |
Knowledge/Understanding Thinking/Inquiry Communication Application |
Teacher-created
test |
Note:
Research paper
should include the following:
·
Numeric
analysis (discretionary funds available each month, comparison of various
financing options, lease versus buy).
·
Narrative
analysis of relevant issues when purchasing a vehicle, including the car’s
safety rating, standard features and options available, warranties, service
records, dealer/seller reputation, where the car was made, environmental
friendliness, gas mileage and other operating expenses, resale value, etc.
·
Brochures
and attachments from financial institutions and car dealers.
·
Consult
with the Special Education Department for recommendations about how to assist
students who require help in preparing a written paper or test.
·
Students
with serious writing difficulty could present their research as an alternative
to a written report.
·
Students
with difficulty researching or communicating could be paired with students with
strengths in these areas.
·
Some
students may require an extended timeframe in order to complete this
assignment.
Internet
Car
purchase sites such as www.autotrader.com and
vehicle evaluation related sites
Personal
visits to interview representatives and to obtain brochures and literature from
the following:
·
banks,
credit unions, trust companies
·
new
and used auto dealers
·
insurance
companies
Media
Magazines
– e.g., Consumer Reports, Canadian Consumer
Newspaper
automobile advertisements
Appendix
2.4.1 – Oral Presentation Rubric
|
Categories/Criteria |
Level 1 (50-59%) |
Level 2 (60-69%) |
Level 3 (70-79%) |
Level 4 (80-100%) |
|
Communication
|
||||
|
Presents
information in the form of an argument |
-
communicates information in the form of an argument with limited
effectiveness |
-
communicates information in the form of an argument with some effectiveness |
-
communicates information in the form of an argument with considerable
effectiveness |
-
communicates information in the form of an argument with a high degree of
effectiveness |
|
Application |
||||
|
Develops
arguments from proposal by stating a focus or predicting an outcome |
-
develops arguments with limited effectiveness |
-
develops arguments with some effectiveness |
-
develops arguments with considerable effectiveness |
-
develops arguments with a high degree of effectiveness |
|
Knowledge/Understanding |
||||
|
Understands
the concept of the significance of purchasing a vehicle |
-
demonstrates a limited understanding of the concept of purchasing a vehicle |
-
demonstrates some understanding of the concept of purchasing a vehicle |
-
demonstrates a considerable understanding of the concept purchasing a vehicle
|
-
demonstrates a high degree of understanding of the concept of purchasing a
vehicle |
|
Thinking/Inquiry |
||||
|
Use of
critical economic thinking skills |
-
applies critical thinking skills with limited effectiveness |
-
applies critical thinking skills with moderate effectiveness |
-
applies critical thinking skills with considerable effectiveness |
-
applies critical thinking skills with a high degree of effectiveness |
Note: A student whose achievement is below
level 1 (50%) has not met the expectations for this assignment or activity.
Student’s
Name__________________ Overall level _____
Comments:
Strengths:
Areas to
Review:
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