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

Money and Finances: Exchange Rates, Budgets, Financial Decisions and Interest: Unit Review

A1 F1.1 F1.2 F1.3 F1.4 F1.5About 40 minutes
Learning goals
  • I can convert between Canadian dollars and other currencies.
  • I can judge whether a source of financial information is reliable.
  • I can create, track and adjust a budget for a longer-term goal.
  • I can describe personal and societal factors that affect money decisions.
  • I can explain how interest rates affect savings, investments and borrowing over time.

Words to know

exchange rate
How much one currency is worth in another, like 1 USD = 1.40 CAD.
reliable source
Information that is accurate, up to date and honest about its purpose.
balanced budget
Income = expenses + savings.
opportunity cost
What you give up when you choose one thing over another.
inflation
Prices in general rising over time.
compound interest
Interest that earns interest.

Let's review!

In this unit you compared exchange rates and converted money both ways, checked sources of financial information, created, tracked and adjusted budgets for longer-term goals, described personal and societal factors that affect money decisions, and saw how interest rates change savings, investments and the cost of borrowing over time.

All rates in this review are examples: 1 USD = 1.40 CAD, 1 EUR = 1.50 CAD, 1 GBP = 1.80 CAD, 1 MXN = 0.08 CAD. Try each question, then press Show answer. If a part feels tricky, go back to that lesson.

foreignmoneyCanadiandollars× rate÷ rate1 USD = 1.40 CAD1 EUR = 1.50 CAD1 GBP = 1.80 CAD1 MXN = 0.08 CADCheck: convert back the other way and you should get your start amount.
Multiply by the rate to turn foreign money into Canadian dollars; divide by the rate to go back. The example rates used in this review are along the bottom.
Saving: interest works FOR youBorrowing: interest works AGAINST you$1000$1338$1000 saved at 6% for 5 years$500$600$720$864$500 owed at 20%, 3 years unpaid
The same idea, interest on interest, makes savings grow and unpaid debts grow. Higher rates and more time make both effects bigger. (Example rates.)

Exchange Rates: Comparing Currencies

1

Convert 45 USD to CAD.

2

Convert 2000 MXN to CAD.

3

Which costs less: a 16 EUR ticket or a 17 USD ticket?

4

The rate goes from 1 USD = 1.40 CAD to 1.45 CAD. Did the Canadian dollar get stronger or weaker?

Converting Canadian Dollars to Other Currencies

1

Convert $210 CAD to US dollars.

2

Convert $36 CAD to euros.

3

A booth takes a $4 fee, then exchanges $184 CAD at 1 GBP = 1.80 CAD. How many pounds?

Reliable Sources of Financial Information

1

Give two of the five questions for checking a source.

2

A post promises "guaranteed 50% profit every month". Reliable? Why?

3

Name one reliable source for learning how to budget.

Creating a Budget for a Longer-Term Goal

1

A goal costs $720 in 9 months. How much per month?

2

Income $95; expenses: snacks $18, fun $22, giving $5. How much can be saved?

3

A $250 item plus 13% HST?

Tracking and Adjusting a Budget

1

Planned $40, actual $52. Difference?

2

Start $30; earn $45; spend $22; spend $9. Final balance?

3

Goal $800, saved $350, 5 months left. Per month?

Personal Factors in Financial Decisions

1

$84 at $12 an hour = how many hours of work?

2

A $3 treat 3 times a week for 52 weeks costs?

3

Boots: $160 for 200 wears, or $90 for 75 wears. Lower cost per wear?

Societal Factors in Financial Decisions

1

A $60 item rises 5% a year for 2 years. Price after 2 years?

2

Is advertising a personal or societal factor?

3

Price rises from $8 to $10. Percent increase?

How Interest Rates Affect Savings and Investments

1

$600 at 5%, interest on interest, 2 years. Balance?

2

Which grows more over 10 years: 3% or 5%? Why?

3

Savings earn 1%, inflation is 3%. Purchasing power up or down?

How Interest Rates Affect the Cost of Borrowing

1

Borrow $1200 for 1 year at 9%. Interest?

2

A $500 item or 10 payments of $56. Cost of borrowing?

3

$800 balance at 2% a month, pay $50. Balance after month 1?

Just for fun

Why did the loonie stay up late doing math homework?

It wanted to make sure every cent counted!

How to use this review

  • Do the review over two short sittings. Each section matches one lesson.
  • Use a calculator for decimals and multi-year interest, but estimate first.
  • For conversions, ask: multiply or divide? Then check by converting back.
  • Round money to the cent, and round months up when you need enough money.
  • For questions about sources and factors, more than one answer can be right. Ask, "Why do you think so?"
  • Note which section had mistakes, then revisit that lesson's examples, activity and practice.
Check your understanding

Quiz

1.

With 1 USD = 1.40 CAD, 25 USD is...

2.

With 1 EUR = 1.50 CAD, $75 CAD is...

3.

Which source is least reliable?

4.

A $1000 goal in 8 months needs how much per month?

5.

Income $60; savings $20; expenses $45. The budget is...

6.

Balance $90, spend $35, earn $20. New balance?

7.

Which is a personal factor in a money decision?

8.

A $50 item rises 8%. New price?

9.

$1000 at 5% with interest on interest for 2 years is...

10.

Which costs the most to borrow $1000 for a year?

For parents and teachers

Use mistakes to choose what to revisit. Each review section matches one lesson.

  • Divides instead of multiplying (or the reverse) when converting to CAD, or compares prices in different currencies without converting: revisit Exchange Rates: Comparing Currencies.
  • Struggles going from CAD to another currency, or forgets fees and buy/sell rates: revisit Converting Canadian Dollars to Other Currencies.
  • Trusts a source because it's popular or sounds exciting, or misses scam warning signs: revisit Reliable Sources of Financial Information.
  • Rounds monthly savings down, forgets HST, or makes unbalanced budgets: revisit Creating a Budget for a Longer-Term Goal.
  • Mixes up actual and planned, or makes running balance errors: revisit Tracking and Adjusting a Budget.
  • Can't name personal factors, or has trouble with cost per use and opportunity cost: revisit Personal Factors in Financial Decisions.
  • Confuses personal and societal factors, or calculates percent increase from the wrong amount: revisit Societal Factors in Financial Decisions.
  • Uses the starting amount every year instead of the new balance, or forgets risk and inflation: revisit How Interest Rates Affect Savings and Investments.
  • Looks only at monthly payments, or doesn't see why higher rates and longer times cost more: revisit How Interest Rates Affect the Cost of Borrowing.

A few mistakes are normal. Praise careful, step-by-step work and good reasons, especially on questions where more than one answer can be right.