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

Money and Finances: Payments, Financial Plans, Budgets, Interest and Smart Spending: Unit Review

A1 F1.1 F1.2 F1.3 F1.4 F1.5 F1.6About 40 minutes
Learning goals
  • I can compare ways to pay when other currencies are involved.
  • I can create a financial plan that includes income, expenses and taxes.
  • I can keep a budget balanced and track income and spending.
  • I can calculate and compare simple and compound interest and explain their long-term effects.
  • I can find the best value when shopping and when comparing credit cards and contracts.

Words to know

foreign transaction fee
A percent many cards add when you pay in another currency.
net pay
Take-home pay after deductions.
balanced budget
Spending and saving are not more than income.
simple interest
I = P × r × t: interest on the principal only.
compound interest
A = P(1 + r)ⁿ: interest on the principal and on earlier interest.
unit price
The price per unit, used to compare sizes.
annual fee
A yearly charge for having a credit card.

Let's review!

In this unit you compared ways to pay when other currencies are involved, created a financial plan that includes income, expenses and taxes, learned ways to keep a budget balanced and tools to track money, calculated simple and compound interest by hand and with spreadsheets, found better value when shopping, and compared credit cards and contracts.

This review has a few questions from every lesson. Try each one, then press Show answer to check. All rates, prices and fees are example amounts in Canadian dollars.

1. Earnplan with net pay2. Budgetkeep it balanced3. Trackrunning balance4. Spend smartcompare final costs5. Save and growcompound interestCheck inand adjust
The big ideas of this unit fit together in a cycle: earn, budget, track, spend smart, and save, with regular check-ins in the middle.

Ways to Pay When Other Currencies Are Involved

1

A 70 USD purchase is paid with a card at 1 USD = 1.38 CAD plus a 2.5% fee. What is the total in CAD?

2

A store outside Canada offers to charge you in CAD at 1.46 instead of in USD. Your no-fee card uses 1.38. Which should you choose for a 50 USD bill?

3

Give one advantage and one disadvantage of a prepaid travel card.

Creating a Financial Plan for a Long-Term Goal

1

A goal costs $640 before tax. With 13% HST, what is the total?

2

You have $123.20 and need the $723.20 goal in 12 months. How much should you save each month?

3

Your income is $95 a month and your expenses are $40. Can you save $50 a month? How much buffer is left?

Income, Deductions and Taxes in a Financial Plan

1

Gross pay: 22 h at $18.50. Deductions: $28.49. What is the net pay?

2

A receipt total, all with 13% HST, is $90.40. What was the price before tax?

3

Why should a financial plan use net pay?

Ways to Keep a Budget Balanced

1

Income $180. Expenses + savings $195. What is the result? Give one fix.

2

A yearly $156 fee should be budgeted at how much per month?

3

Using 50/30/20, how much of a $2 900 net income is for wants?

Tools for Tracking Income and Spending

1

Start $18.25. Earn $30. Spend $11.60. Spend $7.45. What is the balance?

2

Write a running-balance formula for D6 (income in B, spending in C).

3

Food budget $450, actual $473.80. Over or under, by how much?

Simple Interest and Compound Interest

1

Simple interest on $2 500 at 3% for 6 years?

2

Amount for $2 500 at 3% compounded annually for 6 years?

3

How much more does compound interest earn than simple interest in the last two questions?

Exploring Interest with Spreadsheets and Planning for the Long Term

1

Rule of 72: about how long to double at 8%?

2

The rate is in B1 and last year's balance is in B10. Write the formula for this year's balance.

3

Explain why starting to save 10 years earlier can matter more than saving a little more money later.

Getting More Value: Sales, Unit Prices and Loyalty Programs

1

Pasta: 900 g for $2.79 or 450 g for $1.49. Which is cheaper per 100 g?

2

A $150 item is 20% off, then an extra 15% off. What is the final price before tax?

3

Points: 20 points per $1, and 5 000 points = $5. What percent back is that?

Comparing Credit Cards and Consumer Contracts

1

Someone spends $1 000 a month and pays in full. Card A: $0 fee, 0.5% back. Card B: $120 fee, 2% back. Which is better, and by how much?

2

In a simplified example, someone carries $1 800 all year. Interest at 19.99% vs 11.99%?

3

Phone Plan 1: $0 down, $70/month for 24 months. Plan 2: $450 phone + $45/month. Which costs less over 2 years?

× 1.13add 13% HST$100 → $113÷ 1.13remove the HST$226 → $200× 0.7030% off$80 → $56× 1.025add a 2.5% fee$82.80 → $84.87× 1.38USD to CAD (example rate)60 USD → $82.80× 1.05³5% compounded, 3 years$1 000 → $1 157.63
Many money problems in this unit are one multiplication (or division). Know your multiplier, and a calculator does the rest.
Just for fun

Good news: what you learned in this unit grows like compound interest. The more you use it, the more it grows, and there is no foreign transaction fee.

How to use this review

  • Work through one section at a time and write your steps, not just the answers.
  • Put a check mark beside each question you got right on your own. Put a star beside any you needed help with.
  • If you starred two or more questions in a section, go back to that lesson and redo its "More practice" questions.
  • Finish with the quiz. For every quiz mistake, read the explanation and find the lesson it came from.
  • Use a calculator for interest, but estimate first so you can catch a slipped decimal.
Check your understanding

Quiz

1.

A 40 USD purchase with a card at 1 USD = 1.40 CAD and a 2.5% fee costs:

2.

A $500 goal plus 13% HST, with $165 already saved, over 10 months needs how much per month?

3.

Net pay equals:

4.

Income $300; expenses and savings $285. The budget has:

5.

Which tool will miss cash spending unless you also keep your own notes?

6.

Simple interest on $800 at 5% for 4 years is:

7.

$1 000 at 6% compounded annually for 2 years is:

8.

Rule of 72: at 3%, money doubles in about:

9.

A $60 item: which deal gives the lowest price?

10.

For someone who often carries a credit card balance, which matters most?

For parents and teachers

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

  • Forgets a percent fee, or chooses to pay in CAD outside Canada without comparing: revisit Ways to Pay When Other Currencies Are Involved.
  • Forgets HST, rounds the monthly amount down, or ignores regular expenses: revisit Creating a Financial Plan for a Long-Term Goal.
  • Plans with gross pay, or subtracts 13% to undo tax instead of dividing by 1.13: revisit Income, Deductions and Taxes in a Financial Plan.
  • Mixes up surplus and deficit, or forgets yearly costs: revisit Ways to Keep a Budget Balanced.
  • Makes running-balance errors or writes formulas without =: revisit Tools for Tracking Income and Spending.
  • Writes 4% as 0.4, uses P × r × t for compound interest, or confuses interest with the total amount: revisit Simple Interest and Compound Interest.
  • Forgets $ signs in spreadsheet formulas, multiplies by the rate instead of (1 + rate), or can't explain why starting early matters: revisit Exploring Interest with Spreadsheets and Planning for the Long Term.
  • Adds stacked discounts, compares unit prices in different units, or counts points as cash: revisit Getting More Value: Sales, Unit Prices and Loyalty Programs.
  • Compares only monthly prices, or ignores fees when comparing rewards: revisit Comparing Credit Cards and Consumer Contracts.

A few mistakes are normal. Praise clear steps, estimates and checking, not only the right answer.