Grade by Grade
F. Financial Literacy · Money and Finances: Payments, Financial Plans, Budgets, Interest and Smart Spending

Getting More Value: Sales, Unit Prices and Loyalty Programs

F1.5 A1About 45 minutes
Learning goals
  • I can compare unit prices to find the better buy.
  • I can compare different kinds of sales and discounts, including stacked discounts.
  • I can work out the real value of loyalty points and incentive programs.
  • I can decide the best choice for a scenario, including whether to buy at all.

Words to know

unit price
The price for one unit, like the price per 100 g, per litre or per item. It lets you compare different sizes.
discount
An amount taken off the regular price, as a percent (30% off) or in dollars ($20 off).
loyalty program
A store or company program that gives points or rewards to customers who keep buying from them.
incentive
Something offered to get you to buy, like a free gift, bonus points or a coupon.
price matching
When a store agrees to sell an item at a competitor's lower advertised price.
impulse buying
Buying something on the spot without planning, often because of a sale or display.

A sign that says SAVE!

Boxing Day flyers are full of words like SAVE, DEAL and LOWEST PRICE. Stores also offer coupons, points cards and "buy one, get one" offers. Some of these really do save money. Others only look like deals.

In this lesson you'll use math to tell the difference, and remember the biggest saving of all: not buying something you don't need.

Ways to get more value

  • Compare unit prices. Bigger packages are often, but not always, cheaper per unit.
  • Compare sales by the final price. "30% off" and "$20 off" can't be compared until you calculate.
  • Stacked discounts are applied one after the other: 25% off, then an extra 10% off is not 35% off.
  • Coupons and promo codes take money off. Check whether they need a minimum purchase.
  • Price matching: some stores will match a competitor's lower advertised price. Ask.
  • Loyalty and rewards programs give points worth money later. Work out what the points are really worth. Programs also collect information about what you buy.
  • Timing: end-of-season sales (winter coats in spring), back-to-school sales and Boxing Day.
  • Student discounts at some museums, transit systems and stores.

Sales tax (13% HST in Ontario) is added after discounts, on the sale price.

Worked example

Example 1: Unit price

Cereal: 750 g for $5.49 or 1.2 kg for $8.29. Which is the better buy?

  1. Use the same unit: price per 100 g. 750 g = 7.5 hundred grams; 1.2 kg = 1 200 g = 12 hundred grams.
  2. Small box: 5.49 ÷ 7.5 = $0.732 per 100 g.
  3. Large box: 8.29 ÷ 12 ≈ $0.691 per 100 g.

The 1.2 kg box is the better buy, about 4 cents less per 100 g, if your family will eat it all before it goes stale.

CEREAL750 g$5.49≈ $0.73 per 100 gCEREAL1.2 kg$8.29≈ $0.69 per 100 g ✓same unit(per 100 g)
To compare sizes, change to the same unit first. The bigger box costs more, but less per 100 g.
Worked example

Example 2: Percent off or dollars off?

An $80 jacket. Store A: 30% off. Store B: $20 off. Find each final price with 13% HST.

  1. Store A: 30% of 80 = 24. Sale price: 80 − 24 = $56. (Or 80 × 0.70 = 56.)
  2. Store B: 80 − 20 = $60.
  3. With HST: A: 56 × 1.13 = $63.28. B: 60 × 1.13 = $67.80.

Store A saves $4.52 more. But on a cheaper item, "$20 off" can be better: on a $50 item, 30% off is only $15.

Worked example

Example 3: Stacked discounts

A $100 pair of boots is 25% off, and there's an extra 10% off at the till. Is that 35% off?

  1. First discount: 100 × 0.75 = $75.
  2. Second discount is 10% of $75, not of $100: 75 × 0.90 = $67.50.
  3. Total saved: 100 − 67.50 = 32.50, which is 32.5% off.

$67.50, which is 32.5% off, not 35% off. Each discount is taken from the price after the one before.

$100.00regular price$75.0025% off $100 = −$25.00$67.50extra 10% off $75 = −$7.50$65 would be 35% offYou pay $67.50: 32.5% off
The second discount is taken from the new price ($75), not the original $100. That is why 25% off and then 10% off is 32.5% off, not 35%.
Worked example

Example 4: What are points worth?

A store's loyalty program gives 10 points per $1 spent, and 10 000 points can be redeemed for $10. Store A sells a game for $52 and gives points. Store B sells it for $49.50 with no points. Which is the better deal?

  1. Value of 1 point: $10 ÷ 10 000 = $0.001 (a tenth of a cent).
  2. Per $1 spent: 10 points × $0.001 = $0.01, so it's like 1% back.
  3. Store A: 52 × 10 = 520 points, worth $0.52. Effective cost: 52 − 0.52 = $51.48.
  4. Store B: $49.50.

Store B is cheaper by $1.98. Points are nice, but a lower price usually beats a small reward. Points only have value if you actually redeem them.

Questions before you buy on sale

  1. Would I buy this if it weren't on sale?
  2. What is the final price with tax?
  3. What is the unit price compared with other sizes and stores?
  4. Will I use it all (before it expires)?
  5. Is the "regular price" real, or just there to make the sale look big?
  6. What does the store get from me, like my data or future visits?

Notice the pressure

Sales signs, countdown timers and "only 2 left!" messages are designed to make you decide fast. Taking a breath and doing the math is a skill. It's OK to walk away and think.

Just for fun

A sign says "Buy 2, get 1 free!" Your wallet whispers, "Buy 0, keep 100%." Sometimes the best deal in the whole store is walking past it.

Hands-on activity

Flyer detective

You need: a grocery or store flyer (paper or online), a calculator, paper, and a grown-up to go shopping with (optional).

  1. Find three products sold in two sizes. Calculate each unit price. Which size is the better buy?
  2. Find two different kinds of deals (percent off, dollars off, buy one get one, multi-buy like "3 for $5"). Calculate the price of one item under each deal.
  3. If your family has a loyalty card, find out how many points you get per dollar and what they're worth. What percent back is that?
  4. At the store (with a grown-up), check the shelf tags: many show the unit price in small print. Do they match your calculations?

What to look for: units made the same before comparing, correct per-item prices, and a sentence on which deal is really best for your family and why.

Your turn

1

Juice: 2 L for $3.98 or 1.75 L for $3.29. Which has the lower price per litre?

2

A $65 sweater is 40% off. What is the sale price?

3

Which is better on a $60 item: $15 off or 20% off?

4

Shoes are $30 a pair: "Buy one pair, get the second 50% off." What do two pairs cost? What percent off is that overall?

5

What is the final price of the $39.00 sweater with 13% HST?

6

A program gives points worth 2% of what you spend. How much are your points worth after spending $250?

7

Give two reasons a sale might not be a good deal for you.

More practice: warm-up

1

10% off a $40 item. What is the sale price?

2

50% off an $18 item. What is the sale price?

3

Granola bars are 4 for $6. What is the price of one?

4

A $2 coupon is used on an $11.49 item. What is the price?

5

What is a loyalty program?

More practice: on your own

1

Rice: 500 g for $4.25 or 750 g for $6.15. Which is the better buy per 100 g?

2

A $90 coat is 30% off, then an extra 20% off at the till. What is the final price before tax? Is that 50% off?

3

Store A sells headphones for $129.99. Store B sells them for $119.99, and Store A agrees to price match. How much do you save with HST?

4

A program gives 5 points per $1. 1 000 points = $10 reward. How much must you spend to earn a $10 reward? What percent back is that?

5

Yogurt: a 24-pack for $12.48 or a 6-pack for $3.49. Your family will eat only 15 before the 24-pack expires. Which is really cheaper per yogurt eaten?

Challenge

1

Boxing Day: Store A sells a TV, regularly $699.99, at 25% off. Store B sells it for $549.99 and gives a $50 gift card you'll use for things you need anyway. Which is the better choice? Include 13% HST.

2

A warehouse store membership costs $60 a year. Members save about 8% on groceries. (a) A family spends $600 a month there. How much do they save in a year after the fee? (b) What is the least they must spend each month for the membership to pay for itself?

3

An ad says "Save up to 70%!" Explain what "up to" means and why you should be careful.

Check your understanding

Quiz

1.

Which is the better buy per litre: 4 L for $5.96 or 2 L for $3.18?

2.

A $120 item is 20% off, then an extra 10% off. What is the final price before tax?

3.

On a $40 item, which deal is best?

4.

A loyalty program gives 1 point per $1, and 1 000 points = $10. What percent back is that?

5.

When is HST calculated in Ontario?

6.

Which is the best reason to skip a sale?

For parents and teachers

Big idea: Ontario's F1.5 asks Grade 8 students to compare ways for consumers to get more value when spending, including sales and customer loyalty and incentive programs, and determine the best choice for different scenarios.

How to help at home:

  • Bring your child grocery shopping and let them find the unit price on shelf tags.
  • Look at a flyer together before a sale event and decide what's actually worth buying.
  • If you use a loyalty program, figure out together what the points are worth.

Common difficulties:

  • Adding stacked percents (25% + 10% = 35%). The second discount applies to the new, lower price.
  • Comparing unit prices in different units. Convert to the same unit first (g or kg, mL or L).
  • Counting points as if they were cash now. They're only worth something when redeemed.
  • Forgetting that "needing it" comes first. This builds A1 skills: critical thinking and self-awareness about pressure to buy.