Page 115 - THE ONTARIO CURRICULUM, GRADES 11 AND 12 | Canadian and World Studies

B1.5 explain how some financial variables (e.g., income, deductions, fixed expenses, investments, savings, credit, interest rates) can affect individuals’ personal budgets in the short, medium, and long term
Sample questions: “What does the term ‘house poor’ mean? Why might the fixed expenses associated with buying a house affect a family’s short-term budgets?” “When thinking about long-term budgets, why is it important to consider possible fluctuations in interest rates?” “What is the difference between a fixed- and variable-rate mortgage? Why might a person choose one over the other?”
B1.6 explain key considerations related to preparing a personal budget (e.g., the need to have an accurate sense of one’s personal financial resources, to distinguish between needs and wants, to prioritize wants and balance them against limited resources, to factor in costs of borrowing), and apply them when creating their own personal budget
Sample questions: “Are you able to cover all your needs in your budget? If there are resources left over, how will you decide the best way
to allocate them? Will you allocate money for savings in your budget? Why or why not?”
B2. Savings, Credit, and Debt
FOCUS ON: Economic Significance; Cause and Effect
By the end of this course, students will:
B2.1 compare key features of different types
of financial institutions (e.g., banks, including online banks; credit unions; insurance companies; companies offering payday loans; brokerage firms), with a particular focus on the services they offer
Sample questions: “What are the major differences between banks and credit unions in Ontario? Are there services that banks offer that credit unions do not?” “What are some different types of accounts offered by financial institutions? What are some of the advantages and disadvantages of each?”
B2.2 compare key aspects of different types of credit (e.g., credit cards, lines of credit, personal loans such as payday loans or car loans, mortgages, business loans), and describe criteria that financial institutions use to determine whether a person is creditworthy (e.g., capital, character, capacity, collateral)
Sample questions: “What are the costs of a payday loan compared to a loan from a bank? Despite its costs, why might some people seek
a payday loan rather than getting a bank loan?” “Why is the interest rate on unpaid balances on credit cards higher than the interest rates on mortgages?” “What would a bank consider when assessing the capacity of a loan applicant to repay the loan?” “What might be some of
the unintended consequences of having a credit card?”
B2.3 explain some positive and negative aspects of debt (e.g., loans enable a person to pay for costly items, such as tuition, a vehicle, or a home, over time; a good credit rating enhances a person’s ability to secure a personal loan at a good rate of interest; too much debt can lead to a poor credit rating or to bankruptcy)
Sample questions: “What types of behaviour can affect a person’s credit rating?” “What factors have the biggest influence on your own credit rating? Are there financial decisions that you have made or are facing now that might affect your credit rating? Why is it important to consider the long-term consequences of these decisions?” “What criteria should a person use in deciding whether to save for or get a loan to purchase an expensive item?”
B2.4 describe some factors (e.g., liquidity, rate of return, risk, disposable income, age) that influence individuals’ decisions about preferred types of savings and investments (e.g., tax-free savings accounts, guaranteed investment certificates [GICs], bonds, stocks, RESPs, RRSPs)
Sample questions: “What are the advantages and disadvantages of investing in a stock, buying a GIC, or saving money under your mattress?” “Why might the decisions you make now with respect to savings be different from those your parents are making?” “What level
of risk is associated with different types of investments?”
B3. Taxes and Government Expenditures
FOCUS ON: Economic Significance; Stability and Variability
By the end of this course, students will:
B3.1 describe some key aspects of personal income tax in Canada (e.g., tax brackets, child tax benefits, deductions for charitable/political donations, tax deferral with RRSPs, penalties for late or unfiled taxes), and analyse their purpose
Sample questions: “What is the purpose of allowing individuals to deduct RRSP contribu- tions when they file their income tax returns?
DEVELOPING FINANCIAL LITERACY
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Making Personal Economic Choices
CIC4E