Financial Literacy Resources

 

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Financial literacy topics are wide and varied and there is much to learn. The resources below have been curated or designed with high school teachers and students in mind and with the goal of sparking curiosity. Students can’t learn and know everything. Most adults do not. But we hope that through exploration of a variety of financial literacy topics, students will be more prepared and feel more confident when facing financial decisions in the future. And let’s face it, we can learn all about mortgages, but until we need one and go through the process of applying for one, we likely don’t have a true understanding of all its complexities. We want students to become more familiar (not experts) with a variety of financial topics so that when faced with an important financial decision in the future they can ask good questions and seek out answers from reliable sources.

Preparing for the competition? Explore the resources below to get familiar with the topics that are included in the competition and check out the sample questions and mock competition on our competition site for additional competition preparation and a good example of what students can expect when competing. Make sure you are logged out to access the practice questions. If you're looking for a more comprehensive review of financial literacy topics, the Canadian Foundation for Economic Education in partnership with the National Bank of Canada has created FINLIT 101 for teachers and students. The interactive modules of this course provide a great foundation for our competition. 

Financial Literacy

Financial Literacy is a big topic. We all know it's important. We all want to make smart financial decisions in our life. But knowing and wanting is different than becoming and doing. So where do you start? Take some time to explore the broad topic of financial literacy, why it is important, how it connects to our well-being, and what topics are of interest to you. Once you've found a topic that interests you, start there.

Questions to consider:

  • Why is financial literacy important?
  • What can you do to become more financially literate?
  • What is financial well-being?

Resources to explore:

Suggested activities:

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Taxes

Tax, referred to as one of life’s certainties, is something you can’t avoid. In fact, you are likely familiar with some types of tax already. GST is a federal tax on the purchase of many goods and services in Canada. If you’ve purchased clothing, video games, or even some snacks, you’ve likely paid GST (or HST in some provinces). Income tax is another tax you may be familiar with. Perhaps you’ve paid income tax or filed a personal tax return if you’ve earned money from a part time job. Understanding how taxes work can help you be better prepared for the annual requirement to file a personal tax return in Canada.

Questions to consider:

  • How much tax will I owe on the money I earn?
  • How can I reduce the amount of tax that I owe?
  • When do I have to pay the tax that I owe?
  • Is a tax refund a good thing?
  • What is the difference between a tax credit and a tax deduction?

Resources to explore:

Suggested activities:

  • Create an individual profile and estimate the tax that the individual would owe using Intuit’s tax calculator.
  • Find an example of a T4 (perhaps you have one from a part time job), and use this CRA resource to interpret what each of the boxes on the form reports.
  • Challenge yourself to some self-directed learning at elearningontario.ca by exploring a few of the units the Mathematics for Work and Everyday Life course (MEL4E). Unit 2 has some good information about filing taxes and the related tax forms.

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Income Management & Budgeting

Budgeting is an essential skill. Budgeting helps you "live within your means". Understanding your sources of income and the costs of your needs and wants helps you manage our money wisely - not only so that you're prepared for today, but also so that your future plans can become a reality.

Questions to consider:

  • How do you create a budget and what can a budget tell you?
  • What is income? What are expenses? What makes expenses variable or fixed?
  • How do you identify needs vs. wants?
  • How do you make good spending decisions using a budget?

Resources to explore:

Suggested activities:

  • Get your students to compare the elements of a personal budget with the more complex federal budget presented by Chrystia Freeland, Canada’s Deputy Prime Minister and Minister of Finance.
  • Learn the tricks of budgeting with Next Gen Personal Finance's Money Magic
  • Ask your students to research the cost of the basic necessities; rent, utilities, groceries, etc. and then figure out how much money (before tax) they would need to make to pay for these necessities.

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Economics

We exist in a complex world and resources are limited. How do we choose where to allocate those resources? The study of economics looks at the choices and behaviours of individuals, businesses and more broadly the economy as a whole and how they relate and interact with each other and the limited resources available to them. Exploring economics means you are better able to understand the world around you and respond when faced with choices.

Questions to consider:

  • What is the role of the Bank of Canada? Why are they raising interest rates right now?
  • What is inflation and how is it calculated? Why is inflation high right now?
  • How does inflation impact your purchasing power?
  • What is the relationship between supply and demand?
  • What determines the price of the goods and services we consume?
  • What is a recession?

Resources to explore:

Suggested activities:

  • Watch a Bank of Canada interest rate announcement
  • Explore the headlines for newsworthy events and predict the impact on the economy
  • Research historical interest rates, inflation rates, and economic cycles (ask your parents/grandparents about periods of high inflation and double digit interest rates)

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Saving & Investing

Saving and investing are two different things and are done for different reasons. At various stages of your life, your needs and level of comfort with risk will change. Understanding the factors that influence risk and therefore return can help you make smart decisions about what to do with your extra money (i.e. once your needs are met).

Questions to consider:

  • Why should you save?
  • How much should you have in an emergency fund?
  • What investments are considered low risk, high risk, and why?
  • Why invest?

Resources to explore:

Suggested activities:

  • Practice saving and investing with Build Your Stax (a simulation activity)
  • Track the share price of a company your students are interested in. See if they can predict whether the price will go up or go down based on current events and company news.

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Banking & Credit

If you have your own bank account and debit card, you have already entered the world of banking. Perhaps next it’s a credit card, which is often our first experience with credit. It might start with using a credit card to make a purchase online, and then progress to taking out a loan to purchase your first car, and eventually obtaining a mortgage to buy your first home. Banking and credit products and services, if used wisely, can be important tools in our financial plan.

Questions to explore

  • Where should I open my bank account and which type of account should I open?
  • What types of credit cards are there, and what are their advantages and disadvantages?
  • How does the bank make money?
  • What is the difference between good debt and bad debt?
  • How can I build and maintain a good credit rating.

Resources to explore:

Suggested activities:

  • Create personas (or choose ones from a popular TV show or movie) and research the best bank account or credit card for each of them.
  • Use a credit card calculator to figure out how much different payment plans will cost (i.e. how much will that video game really cost?)
  • Learn how to read a credit card statement (note that many of the Canadian banks also offer helpful guides to reading and understanding your credit card statement)

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Accounting

Accounting is the process of capturing, recording, analyzing, and reporting transactions in a business. On the surface, it doesn’t sound too exciting, but when you think of the results of all that capturing and recording is information that helps stakeholders make important decisions about their business, or their investment, or their loan, etc., it gets a little more interesting. Accounting is often described as the language of business and it is expanding to include more than just financial information. Today, business decisions reflect more than just the numbers, and include environmental, social, and governance (ESG) considerations.

Questions to consider:

  • What is the accounting equation and the accounting cycle?
  • What are the three main external statements that help external stakeholders make decisions about a business?
  • How is ESG relevant to accountants?
  • What career paths can I pursue as an accountant?

Resources to explore:

Suggested activities:

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Post-Secondary Financing

A post-secondary education may lead to more opportunities and higher income so investing in it can pay off. But how do you pay for it? How much does it cost? A post-secondary education can feel out of reach, but support is available. Explore how to make your dreams a reality.

Questions to consider:

  • How much does post-secondary education cost?
  • What financial supports are available to help you pay for the cost of post-secondary education?
  • What are the differences between student loans, grants, scholarships, and other types of post-secondary financing options?
  • What is an RESP?

Resources to explore:

Suggested activities:

  • Choose a school, select a program, and use the budget workbook above to calculate how much it will cost, and how you might pay for this important investment.
  • Research scholarships and other funding sources for post-secondary education.
  • Explore your eligibility for student loans and other government assistance for post-secondary education.

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Home Ownership

Buying your first home is likely one of the most significant purchases you will make and the largest debt that you will manage in your lifetime. What does it take to own a home and what are some of the barriers for first time homeowners? Rising interest rates, down payment requirements, stress tests, and more. Explore the costs of home ownership and the many decisions that accompany such an investment.

Questions to consider:

  • What is a mortgage? What are the different features of a mortgage?
  • How much can I afford?
  • What expenses are associated with buying a home and owning a home?
  • Rent vs. Buy?

Resources to explore:

Suggested activities:

  • Explore housing prices in your area and across Canada at CREA National Price Map
  • Explore what communities and governments can do to ensure all Canadians have a place to call home - See Canada’s National Housing Strategy for more information.
  • Calculate the cost of borrowing to purchase a home using a mortgage calculator. What is the impact of changing interest rates or payment frequency?

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Fraud & Financial Safety

Did you know that Canadians lose over $100 million to fraud each year? Do you know what to do if you’re the target of fraud? No doubt, if you own a cell phone, you have some experience with the ways in which fraudsters work. The key to protecting yourself, according to the Competition Bureau of Canada, is recognition, rejection, and reporting. Do you know how to do your part to keep yourself and others safe?

Questions to consider:

  • How much do Canadians lose each year to fraud and scams?
  • How do you report fraud and what happens when you do?
  • What scams are currently affecting Canadians?
  • What are some red flags that can help you spot a scam or fraud?
  • What can you do to protect yourself or others from scams and fraud?

Resources to explore:

Suggested activities:

  • Participate in Fraud Prevention Month (March)
  • Create an awareness campaign or infographic to share at your school
  • Choose a vulnerable population and create resources to help them protect themselves
  • Explore the headlines for newsworthy scams and frauds
  • Keep a scam log and track the number and types of scams you (or your class or club) receive in a week

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