F. Financial Literacy · Money and Finances: Exchange Rates, Budgets, Financial Decisions and Interest

Reliable Sources of Financial Information

F1.2 A1About 40 minutes

Learning goals

I can name different sources of financial information.
I can use questions to decide if a source is reliable.
I can spot warning signs of scams and misleading money advice.
I can choose reliable sources to help me plan for a financial goal.

Words to know

source
Any place you get information: a website, a person, a book, a video, an ad.

reliable
Trustworthy and accurate. A reliable source is correct, up to date and honest about its purpose.

bias
When a source leans one way, often because it wants something, like selling you a product.

sponsored
Paid for by a company. A sponsored post or video is a kind of ad.

scam
A trick to steal money or personal information.

financial goal
A clear money target with an amount and a deadline, like saving $300 by June.

Remember from Grade 6

In Grade 6 you set financial goals with an amount and a deadline, and you looked at things that help or get in the way, like advertising. You also compared accounts at banks and credit unions.

In Grade 7 you'll learn how to find good information to plan for a goal, and how to tell good information from bad.

Who should Eli believe?

Eli is 12. He wants to save $400 for a used electric keyboard by next summer. He searches online for help and finds:

A video that says, "Turn $50 into $5000 in ONE WEEK! Click the link!"
A free budget planner on a Government of Canada website.
A bank's page about youth savings accounts, showing the interest rate and fees.
A blog post from six years ago listing "the best savings accounts".
His aunt, who saved for her first car when she was a teenager.

Some of these can really help Eli. One could cost him all his money! How can he tell which is which?

Kinds of financial information sources

Government sources. The Financial Consumer Agency of Canada (FCAC) is a federal government agency. Its website (on canada.ca) has free tools, like a budget planner, and plain-language information about bank accounts, credit and fees. The Bank of Canada posts exchange rates and has an inflation calculator. Government sources aren't trying to sell you anything.
Financial institutions (banks and credit unions). Good for exact facts about their own products: rates, fees and rules. But remember: they want you as a customer.
Qualified professionals, like a financial planner or a staff member at a bank. Grown-ups can ask about their training and how they are paid.
Trusted adults: family members, teachers or a coach who have experience with money.
Books and library resources: check how recent they are.
Social media, videos and ads: some are helpful, many are sponsored or just entertainment. Be extra careful here.

Five questions to check a source

Who made it? Is it a person or group that knows about money? Can you find their name?
Why was it made? To teach, or to sell something? Is it sponsored?
When was it made? Rates, prices and fees change. Old information can be wrong today.
What's the evidence? Does it give real numbers and explain them? Does it sound too good to be true?
Do other reliable sources agree? Check at least two sources.

Run every money source through the same five questions. A source that fails one or more of them needs extra checking.

Source	Who?	Why?	When?	Reliable for Eli?
"$50 into $5000" video	Unknown	To get clicks or money	Unknown	No. Too good to be true
Government budget planner	Federal agency	To teach	Kept up to date	Yes
Bank's youth account page	The bank	To inform and attract customers	Current	Yes, for facts about that account. Compare with others
Six-year-old blog post	A blogger	Maybe ads on the page	Old	Not on its own. Rates have likely changed
Eli's aunt	Trusted adult	To help Eli	Now	Yes, for advice and experience. Check numbers elsewhere

Eli's sources, checked with the five questions.

Worked example

Example 1: Doing the math on a "too good to be true" claim

The video says $50 can become $5000 in one week. How many times bigger is that? What would that be as a percent increase?

5000 ÷ 50 = 100. The money would become 100 times bigger.
The increase is 5000 − 50 = 4950. As a percent of 50: 4950 ÷ 50 = 99, so it's a 9900% increase in one week.
Compare: in Grade 6 you saw example savings rates of a few percent per year.

A 9900% gain in a week is not realistic. A promise like that is a big warning sign of a scam.

Worked example

Example 2: Old information vs. new

A blog post from six years ago says a savings account pays 1% a year. The bank's website today says the same account pays 2.5% a year (example rates). Eli plans to save $400. How much difference does it make in a year?

Old info: 1% of $400 = $4.00.
Today's info: 2.5% of $400 = 2.5 × $4 = $10.00.
Difference: $10.00 − $4.00 = $6.00.

Using the up-to-date source changes his plan by $6 in a year. Always check the date.

Worked example

Example 3: Spotting a scam message

Eli gets this text: "CONGRATS! You won $1000! To claim your prize, reply with your bank card number and PIN in the next 10 minutes!" Which warning signs can you find?

A prize he never entered. You can't win a contest you didn't enter.
Asks for private information. Real banks never ask for your PIN or password by text, email or phone.
Rush. "10 minutes" is pressure, so you won't stop and think.
Unknown sender. He can't tell who sent it.

It's a scam. Eli should not reply or click anything, and should show a trusted adult.

Eli's scam text with its four warning signs pointed out. Any one of them is a reason to stop; all four together mean it is definitely a scam.

Warning signs of scams and misleading money advice

Guaranteed big returns, or "no risk"
Pressure to act now
Asks for passwords, PINs or card numbers
Asks you to pay to collect a prize
No name, or a name you can't check
Sponsored content that doesn't say clearly that it's an ad

If something feels off, stop and talk to a trusted adult. It's always okay to say no or not answer.

Feeling unsure is a good sign

It can feel embarrassing to ask for help with money, even for adults. But asking questions is what smart planners do. Noticing that a claim "feels too good" is your critical thinking at work.

Just for fun

If someone online promises to turn $50 into $5000 in one week, ask them a simple question: "Then why are you still making videos?"

Hands-on activity

Source check-up

You need: paper, a pencil and a grown-up to help you search.

Pick a goal, like saving for a bike, a phone, a camp or a gift.
With a grown-up, find three sources about saving money or about prices for your goal. Try to find one government source (such as FCAC on canada.ca), one financial institution, and one video, post or ad.
Make a table with the five questions: Who? Why? When? Evidence? Do others agree?
Rate each source: Reliable, Use with care or Not reliable, with a reason.
Write one thing you learned that will help with your goal.

Safety: don't enter personal information on any site, and don't click on ads or pop-ups.

What to look for: reasons connected to the five questions (for example, "It's sponsored, so it may be biased"), not just "I like it".

Your turn

Name two reliable sources Eli could use to plan his savings.

A video about saving money says at the start, "This video is sponsored by a phone company." Why should you be careful?

Why is the date important for financial information?

A website says, "Guaranteed to double your money in a month, no risk!" Reliable or not? Why?

A bank's website lists its own savings account rate. Is it reliable for that fact? What should you still do?

Someone online asks for your banking password to "send you money". What should you do?

More practice: warm-up

What does reliable mean?

True or false: everything on a government website is trying to sell you something.

Give one warning sign of a scam.

What does sponsored mean?

How many sources should you check before trusting a big money fact?

More practice: on your own

An ad says a game console is "50% off, only today!" It used to cost $480. What is the sale price? What question should you ask before buying?

A five-year-old book says a youth account pays 0.5% a year. A bank's website today says 2% (example rates). How much interest would $300 earn in a year with each rate?

Your friend says, "An influencer said this app is the best way to save, so it must be true." What would you tell your friend?

Rank these from most to least reliable for learning today's US exchange rate: (a) a friend's guess, (b) the Bank of Canada website, (c) a 2-year-old travel blog.

A message says you won a $500 gift card but must pay $20 to "unlock" it. Is this reliable? Explain.

Challenge

A post claims an investment grows 10% every week. If you start with $100, about how much would you have after 4 weeks? Is this realistic?

Eli wants to buy a used keyboard online for $250 from a stranger. Name three steps to make sure the information is reliable and he stays safe.

Explain why a financial institution can be both reliable and biased at the same time.

Check your understanding

Quiz

Which source is most likely reliable and unbiased for learning how to make a budget?

A website promises to double your money in a week, guaranteed. This is most likely...

Why should you check the date of financial information?

A text message that says it's from your bank asks for your PIN. What should you do?

What does it mean if a post is sponsored?

$50 turning into $5000 in a week is what percent increase?

For parents and teachers

Big idea: F1.2 asks Grade 7 students to identify and describe various reliable sources of information that can help with planning for and reaching a financial goal. The skills are critical thinking (who, why, when, evidence, agreement) plus a little math to test claims.

Common difficulties:

All-or-nothing thinking. A bank's site is reliable for its own rates but is not neutral. Help your child say "reliable for ___, but...".
Trusting popularity. Lots of views or likes doesn't make information correct.
Embarrassment about scams. Make it clear they can always show you a strange message without getting in trouble.

How to help: Look at a real ad or money video together and use the five questions. Show your child (without sharing private details) how you check a bill or bank fee. Remind them never to share passwords or PINs. This lesson also builds A1 skills: critical thinking and communicating reasons.