F1.3 Explain the concepts of spending, saving, earning, investing, and donating, and identify key factors to consider when making basic decisions related to each.
Activity 1: An Important Choice
Suggest the following learning situation to the students.
Maria received $100 as a gift. She would like to buy a new game for her and her brother, but she knows she also needs a new pair of sneakers to participate in a cross-country race in 2 weeks. She will not have the money to afford both items. What financial decision should she make?
Facilitate a discussion with the class that raises factors that may influence behaviours (sources of income, family values, lifestyle choices, etc.) related to spending, needs and wants.
- What factors influence Maria's decision?
- What do you think Maria should do with her money?
- Is a new game a need or a desire? Explain your thinking.
Ask questions to get students to thoughtfully and compassionately thinking about different financial circumstances of families, such as the number of children, illness of a family member, single parenting, instability of income and so on.
Get students to think about how Maria might get the 2 items:
- Buy used items.
- Saving her money to afford both.
- Ask a friend to share the game.
Activity 2: Used Items
Ask students to make a list of 5 used items (toys, musical instruments, bicycles, clothing, etc.). Have them estimate the value of each item and calculate the total. Consider breaking the class into smaller groups to allow students to do a short Internet search to learn the value of the items identified. Ask students what they could do with the items:
- Sell the items and put the money aside to purchase something new.
- Sell the items and donate the money to a charity.
- Donate the items.