F. Financial Literacy · Money and Finances: Paying, Saving and Smart Choices

Is It a Good Buy? Reasonable Prices

F1.5 A1About 40 minutes

Learning goals

I can compare prices for the same item at different stores.
I can compare the cost of each item in packs of different sizes.
I can think about quality and how long something will last.
I can check whether a sale is really a good deal for me.
I can describe several ways to decide if something is reasonably priced.

Words to know

reasonably priced
A fair price for what you get, not too high.

compare
Look at two or more things to see how they are the same and different.

quality
How well something is made and how long it will last.

sale
A time when a store lowers the price.

value
What you get for your money.

extra costs
Other things you have to pay for to use an item, like batteries.

Let's start with a story

Zoe wants a sled. At the hardware store, the sled costs $36. In a flyer from another store, the same sled costs $29. Zoe's grandpa says, "Let's think. Is $36 a reasonable price? Is $29?"

A good purchase is something you need or really want, at a price that is fair for what you get. Let's learn some ways to tell.

Way to check	What to ask
Compare stores	Is the same item cheaper somewhere else?
Compare pack sizes	How much does each one cost in a small pack and a big pack?
Think about quality	Is it well made? How long will it last? How many times will I use it?
Check the sale	How much do I really save? Would I buy it even if it were not on sale?
Look for extra costs	Does it need batteries, a case or anything else?
Look for other ways	Could I borrow it, buy it used, or get it from the library?
Ask and wait	What do trusted grown-ups say about it? Will I still want it tomorrow?

Ways to decide if something is reasonably priced and a good purchase.

Worked example

Example 1: Compare stores

The same sled costs $36 at one store and $29 at another. How much do you save at the cheaper store?

Count up from $29 to $36: $29 → $30 is $1, $30 → $36 is $6.
$1 + $6 = $7.
But also think: is the cheaper store far away? If it costs money to get there, the saving could be smaller.

The cheaper store saves $7.

Worked example

Example 2: Compare pack sizes

A pack of 4 markers costs $8. A pack of 10 markers costs $10. Which pack costs less for each marker?

Small pack: $8 ÷ 4 = $2 for each marker.
Big pack: $10 ÷ 10 = $1 for each marker.
Each marker in the big pack costs less.
But it's only a good buy if you will use all 10 markers. Otherwise, you spend $2 more for markers that dry out.

The 10-pack is better value per marker ($1 each), as long as you will use them.

Divide the price by the number in the pack to compare. Each marker in the big pack costs $1 less, if you will really use all 10.

Worked example

Example 3: How long will it last?

A cheap snow shovel costs $15 and usually breaks after 1 winter. A strong snow shovel costs $40 and lasts about 5 winters. Which is the better value?

Cheap shovel: $15 for each winter.
Strong shovel: $40 ÷ 5 = $8 for each winter.
Over 5 winters, cheap shovels would cost 5 × $15 = $75, compared to $40 for one strong shovel.

The $40 shovel costs more today, but it is the better value because it lasts much longer.

Over 5 winters, five cheap shovels cost $75, but one strong shovel costs $40. Paying more today can cost less in the end.

Worked example

Example 4: Is the sale a good deal?

A sign says: Hoodie, was $50, now $35! How much do you save? Is it a good buy?

Savings: $50 − $35 = $15 (count up: $35 → $40 is $5, $40 → $50 is $10).
Now ask: Did I plan to buy a hoodie? If you needed one, saving $15 is great.
If you didn't want a hoodie until you saw the sign, buying it doesn't save $15. It spends $35.

You save $15 off the price, but it's only a good buy if you needed or planned to buy it.

Extra costs count

A remote-control car for $20 needs batteries for $8. Its real cost is $20 + $8 = $28. Always ask, "What else will I need to buy?"

Think like a detective

There is often more than one clue. A good purchase is usually a fair price, good quality, and something you will really use. If you're not sure, wait a day and talk it over with a grown-up.

Just for fun

A sign says: Buy one snow shovel, get one free!

What a deal... if you have two driveways.

Hands-on activity

Price detective

You need: two store flyers (or a grown-up and a shopping trip, or a grown-up looking at two store websites), paper and a pencil.

Choose three items you can find in both places (for example, cereal, mittens or a board game).
Make a table: Item, Store A price, Store B price, Difference. Round prices to the nearest dollar.
Find the difference in your head by counting up.
For one item, compare two sizes (like a small and a big box). Which costs less for each one, or for each gram? (Ask your grown-up for help with the label.)
Decide: which would be the best buy, and why? Give at least two reasons.

Math talk: "Is the cheapest always the best? When might it not be?"

Your turn

The same puzzle costs $18 at one store and $14 at another. Which is cheaper, and by how much?

A pack of 2 tennis balls costs $6. A pack of 6 costs $12. What does each ball cost in each pack?

A toy costs $20 and needs batteries that cost $8. What is the real cost?

A coat was $40. Now it's on sale for $28. How much is the discount?

A book costs $15. Name a way to read it without buying it.

Lunch box A costs $12 and lasts 1 year. Lunch box B costs $24 and lasts 4 years. What is the cost for each year of each lunch box?

Is the cheapest item always the best buy? Explain.

More practice: warm-up

Which is cheaper: a ball for $9 or the same ball for $11?

A game was $30. Now it's $20. How much do you save?

A flashlight costs $10. Batteries cost $4. Total cost?

4 stickers cost $4. How much is one sticker?

Name one thing you could borrow instead of buying.

More practice: on your own

A pack of 3 notebooks costs $9. A pack of 5 costs $10. Which pack costs less for each notebook?

Skates cost $64 new or $25 used at a community sports swap. They fit well and are in good shape. How much do the used skates save?

Rain boots: $18 that last 1 year, or $30 that last 3 years. What is the cost for each year? Which is the better value if they still fit?

A sign says "Buy 2, get 1 free!" Juice boxes are $2 each. How much do 3 juice boxes cost? What is the cost of each?

Give three different ways to check if something is reasonably priced.

Challenge

A $50 board game is on sale for $35. Leo didn't plan to buy it, and he doesn't really like board games. He says, "If I buy it, I'll save $15!" What would you tell him?

Store A sells a bag of 5 apples for $5. Store B sells 8 apples for $8, but Leo only needs 5 apples and the rest might spoil. Which is the better buy for Leo? Explain.

A video game costs $40. To play online with friends, you also need a membership that costs $5 each month. What is the real cost for the game plus 4 months of membership?

Check your understanding

Quiz

The same backpack costs $27 at one store and $35 at another. How much do you save at the cheaper store?

A pack of 5 pencils costs $5. A pack of 10 costs $20. Which costs less for each pencil?

A toy costs $25 and needs a $5 charger. What is the real cost?

When is a sale item a good buy?

Boots A cost $20 and last 1 winter. Boots B cost $45 and last 3 winters. What do Boots B cost for each winter?

Which is a smart way to check if something is reasonably priced?

For parents and teachers

What your child is learning: the Ontario curriculum (F1.5) asks Grade 4 students to describe some ways of determining whether something is reasonably priced and therefore a good purchase. Your child learns to compare prices across stores and pack sizes, think about quality and how long something lasts, check whether a sale is really a saving, watch for extra costs, and consider borrowing or buying used. All prices are whole dollars and divide evenly; calculating unit rates in more detail comes in Grade 5. Reasoning and explaining a decision are mathematical processes (A1).

Common difficulties:

Believing the cheapest is always best, or that a sale always saves money.
Comparing whole-pack prices instead of the price for each item. Ask, "How much is one?"
Forgetting extra costs, like batteries or subscriptions.

How to help: Let your child compare two sizes or two brands at the grocery store using the shelf labels (many show a price per 100 g, which you can read together). When you see a sale sign, ask, "Would we buy this anyway?" Online and in-app purchases are a good discussion topic: they often include ongoing costs.