Book 3: Responsible Spending Habits

Transcription

1 Math 11 Earning and Spending Money Book 3: Responsible Spending Habits Teacher Version Assessments and Answers Included

2 Year Overview: Earning and Spending Money Home Travel and Transportation Recreation and Wellness 1. Earning Money 2. Pay Statements and Deductions 3. Responsible Spending Habits 4. Data in Your Life 5. Measurement 6. Angles and Triangles 7. Let s Travel Project 8. Personal Health and Wellness 9. Puzzles and Games Topic Overview You may have already entered the workforce and have some knowledge about earning and spending money. The intent of this theme is to help you be aware of financial decision making that you face. In this topic, you will learn about responsible spending habits. Timeframe: Hours Outcomes Overlapping Outcomes M11.1 Extend understanding of arithmetic operations to rational numbers to solve problems within the home, money, recreation, and travel themes. Theme Specific Outcomes M11.9 Demonstrate understanding of responsible spending habits. 1

3 Contents Topic Overview... 1 Outcomes... 1 Overlapping Outcomes... 1 Theme Specific Outcomes... 1 Glossary of Terms... 4 Responsible Spending Habits... 5 Check Your Skills Personal Budget... 7 B. Analyzing Budgets... 8 Math 10 Essentials Student Edition p B Practice Your Skills - Analyzing Budgets Calculating Percents Estimating Costs Math Essentials Student Edition p Math Essentials 10 Skills Practice 5 & Math Essentials 10 BLM 4, 5 & Practice Your Skills - Do I Have Enough money? Math Essentials 10 Student Edition p and What Do You Spend Your Money On? A. Types of Expenses a Practice Your Skills - Spending Log bPractice Your Skills Sample Spending Log Needs versus Wants Practice Your Skills Needs vs Wants Purchasing and Buying Goods and Services A. Provincial Sales Tax (PST) B. Goods and Services Tax (GST) C. Calculating Taxes D. Identifying Taxes Paid Discuss the Ideas: Taxes in Other Provinces Finding the Best Price for the Best Product Student Evaluation

4 Learning Log Show What You Know Shopping Spree! Show What You Know Selecting a New Phone & Contract Show What You Know Quiz Responsible Spending Habits Show What You Know Quiz Responsible Spending Habits Answers Answers

5 Glossary of Terms essential expenses expenses that cover needs (cannot live without) fixed expense expenses that do not change Goods and Services Tax (GST) revenue collected as tax paid on every good and service in Canada to be used for all services provided by the federal government non-essential expenses expenses for wants (can live without) Provincial Sales Taxes (PST) used to fund provincial expenses such as education, health care, policing and road variable expenses expenses that change month to month 4

6 Responsible Spending Habits There are many different types of expenses that you will have as a consumer. Fixed Non- Essential Essential Variable Sometimes we need to make decisions about where our money is spent so that we make sure we can cover essential and fixed expenses. These decisions are not always easy! To make our money go further, sometimes we can shop around for discounts and sales, and decide on what features of a product are most important and best suit our needs before we buy. When buying products or using services, we also need to consider the taxes that are charges that are applied to the goods or service. We need to use our mental math to estimate our costs so that we have enough money to cover them. This section will have you learn useful tips to increase your purchasing power and help you think about spending your money responsibly. 5

7 Check Your Skills 1. Calculate: a.10% of $100 b. 5% of $100 c. 7% of $40 d.14% of $40 e. 8% of $24.50 f. 5% of $ Math skills are embedded into real life situations. In this unit, you will use the following skills: Calculating with percents Estimating Rounding Mental math strategies 2. Round to the nearest two hundredth (two decimal places) a b c d Estimate. (Use mental math and rounding) a. 10% of $47.99 b. 20% of $49.99 c. 10% of $9.17 d. 5% of $

8 3.1 Personal Budget A. Graphs Different Types of Graphs: Bar Graph allows you to compare the one variable amongst many different scenarios Histogram/Plotted Line Graph allows you to see changes over time Pie Graph show out of 100% what percentage is allocated to different categories Graphing Principles: - Axis x (horizontal) is always time (seconds, hours, days, weeks, months) o Y (vertical) is the other variable being studied (needs to go up by the same increments) - If points are connected means values in between are also counted as well this is why some types of graphs are not used o Example graphing admissions to a movie on certain nights, histogram would not work cause cannot have half a person, need to do a bar graph instead 7

9 Graphs are often used to represent the money that we spend. Here are some different ways that we can represent data: Circle Graph: Bar Graph: Gas Food Housing Entertainment B. Analyzing Budgets Write a definition of the following terms. Income: Expenses: Budget: 1. Use the information on the circle graph on the previous page. I have a budget of $2500. Calculate how much money I spent on each of the categories. 8

10 Set up a ratio Percent 100 = Amount spent on budget Total Budget Cross multiply and Solve for the missing variable OR Change the percent to a decimal number by dividing by 100. Multiply the total budget by the decimal number. a) Groceries: 25% = 0.25 $2500 x 0.25 = $625 b) Housing: = x x = x 100 x = $ = 100 9

11 2. Use the information from the bar graph on page 6. I have a total budget of $725. What percent of my budget is spent on: amount spent total budet 100 = % a) Gas: = % 100 = % Round to the nearest percent: 14% b) Food = % 100 = % Round to the nearest percent: 21% Math 10 Essentials Student Edition p

12 3.1B Practice Your Skills - Analyzing Budgets 1. Use the information on the circle graph below. I have a budget of $2750. Calculate how much money I spent on each of each of the categories. Entertainm ent 15% Clothes 10% Budget Groceries 35% Housing 40% a) Housing b) Groceries c) Entertainment d) Clothes 11

13 2. Use the information from the bar graph below. I have a total budget of $1800. What percent of my budget is spent on: Gas Food Housing Entertainment a) Gas b) Food c) Housing d) Entertainment 12

14 3.2 Calculating Percents ALWAYS OUT OF 100 Percents are a part of our everyday world consumer math is an integral component of purchasing. Some percents are easy to find without the use of a calculator. When trying to figure out mental discounts (without pencil and paper and exact procedure) it is easier to determine the discount in terms of: Because: 10% or 50% 1) 10 % - simply move the decimal over to the left one space Try: 10% off of $9.99 = $0.99 Try find 10% off the following prices: a) $12.50 b) $13.67 c) $18.96 d) $ e) $0.87 f) $

15 2) 50% is exactly half of the original price Try: 50% off of $9.98 = $4.99 Solve 50% off the following: a) $3.10 b) $1.50 c) $24.00 d) $4.50 e) $ f) $88.02 Which would be easier to solve the following, 10% or 50%? a) 30% b) 25% c) 75% d) 5% e) 40% f) 90% g) 80% h) 50% i) 45% j) 60% k) 100% l) 15% Solving Mental Math Problems: a) 20% off of $4.40 Round Price to nearest dollar 10% off would be 20% off would be b) 30% off of $9.99 Round Price to nearest dollar % would be % would be % would be c) 50% off of $

16 Round Price to nearest dollar % would be % would be d) 25% off of $16.24 Round Price to nearest dollar % would be % would be e) 90% off of $75.79 Round to nearest dollar % would be % would be % would be % would be % would be % would be % would be % would be % would be *** ESTIMATION IS JUST A BALLPARK GIVE YOU AN IDEA IF YOU WILL HAVE ENOUGH MONEY BEFORE REACHING THE TILL*** REMEMBER THAT TAXES ARE ALSO ONTOP OF THE PRICE AS WELL To find 5% or 1%, use what you know: 5% is exactly ½ of 10% so find 10% then divide by two 1% looks like 10% but rather than moving one space to left, move two spaces to the left So when asked to find 25% = 2 sets of 10% and 1 set of 5% Or find 50% and then divide by 2 1) Find 25% off of $ ) 15% off of $ ) 35% off of $100 15

17 4)45% off of $8.00 5) 75% off of $250 Tipping in Restaurants: Tipping providing a bonus for great service, effort Places where tipping occurs: Tipping Rate in today s society the going rate for tipping is 15% (composed of a 10% and a 5%) Supper bill of $54.50 How much would you tip on top of the bill? 10% = 5% = Total Tip = Try: a) $14.98 b) $25.99 c)$ d) $ Estimating Costs When you are shopping, you often need to do mental math to estimate what your total bill will be, including the taxes that will be charged. Here is an example: Getting ready for a Roughrider Football game, about how much money would it cost for the following? 16

18 In order to estimate your total cost: Start by rounding the costs up. This is so that you ensure that your estimate is higher than the actual cost. Green & White Wig SK RR Radhand Watermelon Warface Mask Interception TEE $15 $35 $25 $30 Then add the estimates: $15 + $35 + $25 + $30 = $105 Next decide on what taxes are charged on your purchases. All of these items would be charged both GST and PST, which is a total of 10%. $105 x 10% = $10.50 Round the tax to the nearest $1 for easier mental addition. Total Estimated Cost: $ $11 = $

19 Math Essentials Student Edition p Math Essentials 10 Skills Practice 5 & 6 Math Essentials 10 BLM 4, 5 & Practice Your Skills - Do I Have Enough money? Imagine that you have $35 to spend in a store that is full of items that have both GST and PST charged. This means you can t buy something that costs exactly $35 because tax will be added. From the following list, identify 5 items you think you could afford. Highlight these predictions. DVD... $31.20 Hoodie... $32.80 Video Game... $27.00 Jeans... $33.99 Phone Card... $30.00 Jacket... $29.99 Headphones... $31.99 Shoes... $ Record each item you highlighted. Estimate the amount of PST, GST, and total cost for each item. Item Rounded Price Estimated PST + GST Estimated Total Cost 18

20 2. Record each item you highlighted. Calculate the exact total taxes and total cost for each item. Item Price Calculated PST + GST Total Cost Under/Over $35 Under Over Under Over Under Over Under Over Under Over 3. What was the most expensive item that you were able to afford? Were your predictions accurate? Math Essentials 10 Student Edition p and

21 3.4 What Do You Spend Your Money On? A. Types of Expenses In the 2013 Taking Stock With Teens project, the spending habits of 5200 teens was surveyed. This is what they found an average age of 16.3 year old teens spent their money: How similar are your spending habits? Log your spending over a two week period. Save your receipts for a later activity. There are different types of expenses. There are some expenses that are: ESSENTIAL: Cannot live without (needs) NON-ESSENTIAL: Can live without (wants) FIXED: Do not change VARIABLE: Change from month to month In your log, categorize your spending into these categories. 20

22 3.4a Practice Your Skills - Spending Log Place the cost of the item into the appropriate column. Add the columns at the end of the two weeks. Check off if each item is essential or nonessential, fixed and/or variable Date Item Purchased Essential Non- Essential Fixed Variable Category Total Total Spent 21

23 3.4bPractice Your Skills Sample Spending Log Here is a sample spending log. Answer the questions below. Ashley s Spending This Week Item Amount Coffee Tim Horton s $3.59 Gas Co-op $70.60 Boots - Spring $ Groceries Costco $ Dinner out Finn McCool s $56.65 Parking downtown $2.00 Cat food Critters $39.12 Sled Birthday present for Jack Target $85.40 Coffee Starbucks $9.92 Groceries Walmart $65.20 Jack s daycare bill $ Basketball fees $ Cell phone bill $65.12 Jack mini golf $5.25 Lunch - Subway $ How much did Ashley spend this week? 2. Put a star beside the items that you think are essential. What is the total amount of these items? 3. The items that aren t starred should be non-essential. What is the total amount of non-essential items? 4. Which if these items do you think are fixed? 5. Which of these items do you think are variable? 22

24 3.5 Needs versus Wants The things you purchase or spend money on are sometimes things you need, and sometimes things you want. You should be aware of how you spend your money, not so that you don t ever buy things you want, but you should be aware if your needs are not being met. For example, you may spend money on getting your nails done or going to a movie, and then be short of funds for bus passes, gas for your car, or groceries. What are some other things that are needs? Wants? Some items or services above are hard to categorize. How would you categorize each of them? How would you categorize your cell phone bill. Is this a need or a want? Sometimes it depends on when and how you use it. 23

25 3.5 Practice Your Skills Needs vs Wants Fill in the following table, determine if the items in your spending log were a need or a want. Be prepared to justify your classifications. If you do not have very many items in your spending log, use Ashley s sample spending log from the previous section. Needs Wants Item/Service Cost Item/Service Cost Total Total 24

26 Reflection Questions: 1. Are there any items in both columns? 2. Was it challenging to classify each item? 3. In which category did you spend more money? 4. Are there items in the Want category that could be eliminated? 5. What would you eliminate in order to save for a special event? 6. Share your chart with a partner. Are your needs and wants similar? 7. Can one person s needs be another s wants? Explain. 25

27 3.6 Purchasing and Buying Goods and Services When you purchase something, or use a service, you need to pay consumer taxes. These are calculated as a percent of the cost of each item. What items and services taxes are applied to and the tax rates differ depending on which province you are in. A. Provincial Sales Tax (PST) Separate Provincial Sales Taxes (PST) are collected in the provinces of British Columbia, Saskatchewan, Manitoba and uebec. PST is used to fund provincial expenses such as education, health care, policing, and roads. What items and services are you not charged PST on? In Saskatchewan, a 5% sales tax is applied to everything you purchase or service you use except for items such as: Used vehicles that are sold privately, including: o Cars o SUVs o Van o Light Trucks Clothing for children up to and including youth 17 and under. Medicines and drugs prescribed by a doctor. Food and drink including snack foods. Magazines, newspapers, and books. Agricultural equipment. Fishing and hunting licenses. Other Interesting Facts about PST in Saskatchewan PST would need to be paid on used vehicles such as buses, trailers, motorhomes, motorcycles, mopeds, snowmobiles, ATVs, and boats. o When paying PST on a private sale of one of the above, you can apply a $3000 reduction to the sale price, and pay tax on the difference. Vehicles sold to Status Indians are exempt from tax only when the sale is finalized on the reserve and the vehicle is delivered to the reserve. Similarly, only consumer goods that are delivered to Status Indians on reserve are not taxable. Carbonated beverages, like pop, as well as juices with less than 25% real juice are taxable. 26

28 B. Goods and Services Tax (GST) Goods and Services Tax (GST) is charged on every good and service in Canada. It is charged at a rate of 5%. This money is collected as general revenue to be used for all services provided by the federal government, such as: military, parliament, federal parks, hospitals, roads, prisons, and embassies. C. Calculating Taxes In Saskatchewan, GST and PST are calculated separately, and your total bill is the total of the purchase price + GST + PST. Example: You purchased a new badminton racquet. Its price is $ What is the total cost? Purchase Price: $72.00 PST: $72.00 x 5% = $3.60 GST: $72.00 x 5% = $3.60 Total Cost: $ $7.20 = $79.20 Do you notice anything about these calculations? How might you calculate total taxes in an easy way? Shortcut: You may notice that the total taxes are 10%, which is an easy number to calculate with $72.00 x 10% = $7.20 Total Cost: $ $7.20 What items and services are you not charged GST on? Just as there are things that we do not pay PST on, there are also goods and services that we do not need to pay GST on, including: o Basic groceries o Prescription drugs o Medical devices o Music lessons, educational services o Goods and services provided by charities o Medical and dental services o Childcare services o Food and beverages sold in a school cafeteria o Meal plans at Universities or Colleges o Loans and mortgages 27

29 D. Identifying Taxes Paid Different retailers will note taxes in different ways on their receipts. For example: A G in the code here indicates that the Diet Coke has GST charged to it. A GP in the code here indicates that the toilet paper has GST and PST charged to it. A B in the code here indicates that the Trimmer has BOTH GST and PST charged on it. 28

30 1. Look at the receipts you collected or use the sample receipt on the next page. What code(s) are used to indicate PST, GST, and both taxes. You only need to note the types of taxes represented on your receipts (ie if there was nothing that had PST charged on your receipt, you do not need to include it. Indicate this with an n/a (not applicable). Retailer GST PST Both Ex: Superstore G P GP Ex: Sears n/a n/a B 2. Use 20 of the items on receipts you collected. Identify items that had GST and/or PST added. Make a list below. PST and GST on my purchases Item Total Cost Before Taxes No Tax PST GST Cost After Taxes 29

31 30

32 Reflection Questions: 1. Look at the items that had no taxes charged. What types of items were they? 2. Look at the items that had only GST charged. What types of items were they? 3. Look at the items that had only PST charged. What types of items were they? 4. Look at the items that had BOTH PST and GST charged. What types of items were they? 31

33 Discuss the Ideas: Taxes in Other Provinces 1. Some provinces use HST rather than GST. How are they the same and different? Similarities Differences 2. Different provinces have different tax rates. Research and fill in the following chart (Saskatchewan has been done for you): Province Type of Tax (GST, HST, PST) Provincial % Total Tax % Alberta British Columbia Manitoba New Brunswick Newfoundland and Labrador Northwest Territories Nova Scotia Nunavut Ontario Prince Edward Island Quebec Saskatchewan GST + PST 5% 10% Yukon 3. What did you find out about how much we pay for taxes in Saskatchewan compared to other provinces and territories? 32

34 3.7 Finding the Best Price for the Best Product The market for mobile phones is ever changing. People are always replacing their smart phones with a newer, faster, and better model that has the latest technologies. How do you choose which phone you should buy or upgrade to? When shopping for a mobile phone, there are many features to consider such as size, appearance, screen display, and price. For example, one feature to consider when purchasing a mobile phone is its size. Some consumers like a larger phone which results in larger screen for displaying images and videos. Others prefer a smaller phone that is more compact for fitting into pockets and purses. What is your preference? 33

35 Student Evaluation Insufficient Evidence (IE) Student has not demonstrated the criteria below. Developing (D) Growing (G) Proficient (P) Exceptional (E) Student has rarely demonstrated the criteria below. Student has inconsistently demonstrated the criteria below. Student has consistently demonstrated the criteria below. Student has consistently demonstrated the criteria below. In addition they have shown their understanding in novel situations or at a higher level of thinking than what is expected by the criteria. Proficient Level Criteria IE D G P E M11.1 Extend understanding of arithmetic operations to rational numbers to solve problems within the home, money, recreation, and travel themes. b. I can use whole numbers, integers, fractions, decimals, and percents. c. I can compare and convert among fractions, decimals and percents. d. I can round decimals. e. I understand percents. f. I can determine if my answer is reasonable. M11.9 Demonstrate understanding of responsible spending habits. a. I can identify and justify personal expenses (e.g., mobile phone, vehicle, electronics, recreation, travel, home renovations, and aesthetics). b. I can explain reasons for prioritizing spending money (e.g., recurring expenses and unexpected opportunities). c. I can estimate the cost and justify affordability of a desired purchase. d. I can determine PST and GST on purchases and discuss exemptions. e. I can create or analyze a personal spending log over a set period of time. f. I can compare and contrast the cost of purchasing items or services at various vendors. g. I can compare various sales incentives (e.g., Groupon, percent discounts, pre-sale gift with purchase, reward zone points, buy 1, and get 1... (BOGO)) and discuss the value of estimating. h. I can investigate and analyze what if questions related to personal spending (e.g., cash versus debit purchases involving the penny or rounding). i. I can research and report on the estimated costs involved in a large expense (e.g., a trip, home renovation, or an activity or sport). 34

36 Learning Log Date Starting Point Ending Point 35

37 Show What You Know Shopping Spree! You have $500 to spend on any item you would like! What would you shop for? Your Task: o Find online pictures or take photos of the item(s) that you would include in your shopping spree. o Find the exact price and where you would purchase it from. o Shop around for the best price! Which seller provided the best price? o Estimate the taxes and total cost of each item. Picture/Item Price Total Cost (Estimate) Total Cost (Calculated) Seller Totals (Max $500) /// 36

38 Reflection Questions: 1. Where do you prefer to shop (online, in stores, malls, etc.)? Explain. 2. What types of incentives increase your likelihood of buying an item? 3. Describe a past purchase that had incentives (e.g., SPC cards, Groupon, Best Buy price zone points, Shoppers Optimum, Safeway Club Card, BOGO, percent discounts, pre-sale gift with purchase, buy now and receive money off your next purchase). 37

39 Show What You Know Selecting a New Phone & Contract Part 1: Comparing Phone Features: Choose four smart phones to compare and contrast features. You can compare and contrast older or current models or phones. Based on the features of each, rank the phones in order of your first through fourth choices. Phone Model Features Ranking (1-4) Part 2: Comparing Phone Costs: The cost of purchasing a phone depends on the type of phone, where you purchase it, as well as the type of mobile contract you are willing to sign up for. Using your #1 preference from Part 1, research the cost of the initial purchase for your phone, including the provider and the contract type needed to get that purchase price. For example, in July 2014 if your prefered phone is a Blackberry Z10, then: Provider Contract Type Cost of Phone 2 year contract $ $25.00 activation fee SaskTel Mobility 1 year contract $ $25.00 activation fee Prepaid/Monthly $ $25.00 activation fee Telus 2 year contract $0.00 No Term $ Rogers 2 year FlexTab contract $ $15.00 connection fee No Term $ $15.00 connection fee 38

40 Find providers and contracts to help you determine the purchase cost of the phone you selected earlier. Provider Contract type Cost of Phone 39

41 Part 3: Cell Phone Packages If you have a cell phone you know that they can be very expensive. Below is some information about different plans you can get from SaskTel Mobility in List what you would find necessary and not necessary in a phone package. Necessary Features Not Necessary Features 40

42 2. What is your monthly cost for the package and features you want? Describe your preferred package and its cost in the space below. Example from SaskTel, 2014: 3. Using the cell phone provider and plan that you have chosen, find out if the features you want come with an extra charge attached (ie. picture and video messaging, voice mail to text, message manager, etc.)? Note these extra charges in the space below. 41

43 Show What You Know Quiz Responsible Spending Habits Name: A. Calculate. Do not use a calculator % of $ % of $ % of $ % of $ % of $ B. Calculate. You may use a calculator. Round your answers to two decimal points. 1. 5% of $ % of $ % of $ % of $ % of $

44 C. Below is a Mrs. Spendsalittle spending log for a two-week period. Item Purchased Amount Essential Superstore Groceries $68.75 Superstore Gas $37.89 Fit for Less Gym Membership $12.75 Pita Pit Lunch $4.98 Tim Horton s Coffee $1.98 Sears Birthday gift for mom $48.50 Cell phone bill Jump.ca $41.25 Rent $450 Category Total Total Spent Non- Essential 1. Check off which items you think are essential or non-essential. 2. Add up the amount of all the essential items and then add up the amount of all the non-essential items. 3. Add up the essential and non-essential totals to get the total amount spent. 4. Are there any items that could have been placed in essential or non-essential? Explain why they could have been in either. 43

45 D. Calculate the following after tax. Remember to round your answers to two decimal places! 1. Socks for Carson: $ GST only because he is under New truck for Saalwan: $51,648 + PST and GST. 3. New Halo game for Isaak: $ PST and GST. 4. Being in this math class: Priceless 44

46 Show What You Know Quiz Responsible Spending Habits Answers Name: A. Calculate. Do not use a calculator % of $400 $ % of $170 $ % of $18.60 $ % of $7.60 $ % of $ $3.00 B. Calculate. You may use a calculator. Round your answers to two decimal points. 1. 5% of $900 $ % of $32.75 $ % of $4.13 $ % of $ 9.99 $ % of $8.98 $

47 C. Below is a Mrs. Spendsalittle spending log for a two-week period. Answers will vary Item Purchased Amount Essential Superstore Groceries $68.75 Superstore Gas $37.89 Fit for Less Gym Membership $12.75 Pita Pit Lunch $4.98 Tim Horton s Coffee $1.98 Sears Birthday gift for mom $48.50 Cell phone bill Jump.ca $41.25 Rent $450 Category Total Total Spent Non- Essential 1. Check off which items you think are essential or non-essential. Answers will vary 2. Add up the amount of all the essential items and then add up the amount of all the non-essential items. Answers will vary 3. Add up the essential and non-essential totals to get the total amount spent. Answers will vary 4. Are there any items that could have been placed in essential or non-essential? Explain why they could have been in either. Answers will vary 46

48 D. Calculate the following after tax. Remember to round your answers to two decimal places! 1. Socks for Carson: $ GST only because he is under 17. $ New truck for Saalwan: $51,648 + PST and GST. $ New Halo game for Isaak: $ PST and GST. $ Being in this math class: Priceless 47

49 Answers Check Your Skills Answers: 1. a) $10 b) $5 c)$2.80 d) $5.60 e) $1.96 f)$ a)$45.67 b) c) d) Answers will vary a) $5.00 b) $10.00 c) $0.90 d) $ B Practice Your Skills Analyzing Budgets 1. a) $1100 b)$ c) $ d) $ a) 11% b) 22% c) 56% d) 11% 48