Page 40 - The Ontario Curriculum: Career Studies, Grade 10, Open (GLC2O) – Guidance and Career Education. Advance Release of Curriculum Expectations, 2019 (revised course)

C2.2 compare different forms of borrowing and identify some of the risks and benefits associated with each
Examples
Different forms of borrowing: federal student loans; provincial student loans, such as those available through the Ontario Student Assistance Program (OSAP); loans or bursaries from their local communities; personal (unsecured) loans from a bank
or credit union; lines of credit; credit cards; overdrafts; understanding the pros and cons of various types of loans; payday loans
Risks and benefits: use of a credit card can improve an individual’s credit rating, but a poor credit rating will result from failure to comply with payment conditions; student or bank loans can enable a person to pay for a costly item, such as tuition or a vehicle, in instalments, but too much debt can lead to a poor credit rating or even bankruptcy; borrowing from friends or family can be convenient because of more flexible repayment terms, but if the loan is not repaid this could have a negative effect on a personal relationship
Teacher Prompts
What are some different types of borrowing? What are some advantages and dis- advantages of each? Are there community resources to support you in exploring borrowing options?
What are the costs of a payday loan compared to a bank loan? Why might some people seek a payday loan rather than a bank loan?
How can you determine the amount of OSAP assistance you are eligible for? How do you apply for funding through OSAP? Is there a risk to applying?
What are the pros and cons of using a line of credit or a credit card to pay off a student loan?
What other options are available to repay a loan [e.g., payment plans, overtime work]?
C2.3 identify key considerations related to preparing a personal budget, and apply them in
developing a budget for their first postsecondary year
Examples
Budget considerations: current and anticipated future income, including grants and loans; program costs, such as those associated with apprenticeship; tuition and fees; living and other monthly expenses, such as rent and a cell phone plan; savings; donations; compounded interest, from savings and/or borrowing
40 CAREER STUDIES, 2019 | The Ontario Curriculum, Grade 10