Lesson Topics
Our curriculum contains six simple lesson plans, each introducing one vital financial topic to students. Each lesson contains an assortment of teaching note, handouts, overheads, and activities. Every lesson is centered around its ‘Big Idea.’
Lesson Index
Lesson 1: Time Value of Money
“The concept of compound interest makes savings a powerful investment tool.”
Most teenagers think that a dollar saved today is a dollar put aside for use later on. Therefore, it doesn’t matter much whether they save the a dollar today as they can always earn the dollar back in the future. However, when we incorporate compound interest into the equation, this presents an entirely different story. A dollar saved today is definitely not one dollar in the future. A dollar today is equal to $2.16 compounded annually at 8% for 10 years, which is a double. Students need to understand the impact of their savings to make educated decisions about how to spend their money. By teaching students the time value of money, students will be able to see the consequences of their actions today on their financial future. We believe that this will encourage students to start managing their finances at a younger age.
Lesson 2: Debt and Credit
“Students should understand the positive and negative aspects of using credit cards to use them to their advantage.”
Credit cards provide consumers with one of the most convenient and flexible payment methods. To youth today, the internet is not only a tool for finding information, but also a platform for daily activities such as shopping and socializing. Both online and off, the use of credit cards has become increasingly necessary, and youth are introduced to them at an increasingly early age. As the use of credit cards becomes more wide spread, so has the problem of credit card debt.
According to the Canadian Bankers Association, Canadians carry an average of 2.6 credit cards, but 27% of them do not pay off their balance in full every month (Statistics Canada). A Canadian survey indicates that Canadians’ credit card debt amount to a total of $49.8 billion dollars.
Today, education about credit cards have not caught up to speed with the increase in credit card use. Youth are now more susceptible to debt mismanagement. Therefore, responsible credit card use must be taught to students at an early age.
Lesson 3: Budgeting
“A budget serves as a decision making tool for students.”
Students in this generation spend more money than any other generation before them. They have more discretionary income, and more places to spend it. Parents and teachers address this issue by teaching budgeting early. Most teenagers today have some idea of what budgeting is about by the time they are in high-school. They know it’s a “good idea” in theory, however, few actually put budgeting into practice.
Why don’t students budget? One important reason is that teenagers tend to associate the concept of budgeting with bothersome constraints and limitations. In order to engage students more effectively, we present budgeting as a problem solving method. Our big idea for the lesson is that budgeting is a decision making tool. Making a budget helps us think clearly about money and how it relates to other priorities in life. We believe presenting budgeting this way will help students see clearly the relevance of budgeting to their lives.
Lesson 4: Taxes
“Getting a head start on accumulating tax credits is beneficial to youth.”
The majority of high school students have not yet been exposed to income tax, yet it is an important concept that they will soon encounter after stepping out of high school. Developing an understanding of the purpose and legal obligation of income tax will prepare them for when they receive their first paycheck. Learning about tax credits and how it can be used to their advantage may not seem applicable now, but realizing the effect of accumulated tax credits will equip students with a powerful tax-saving tool in the future.
Lesson 5: Investments
“Choice of investments depends on individual’s risk preference.”
The growth of personal wealth relies heavily on investment selection. However, most high school students know little, if anything, about the world of investments. Exploring the options of investments at an early age enables students to plan ahead and build a strong foundation on financial knowledge. Understanding one’s personal risk preference is equally important, as it is the starting point to many financial decisions. As young adults and children are increasingly becoming the target of many investment house’s promotional material, it is important for students to have the basic knowledge of what they will be exposed to for the rest of their lives.
Lesson 6: Starting Now
“Start now to build up momentum towards a future of financial freedom.”
With the impact of interest, the value of money can grow significantly over time. The earlier you save – the more you can accumulate. The same impact of interest can also work against you if the pitfall of loans like credit cards are not properly understood. It is important that students understand both positive and negative aspects of using a credit card. By starting early and learning to budget, debt mismanagement can be prevented and a good credit history can be built to their advantage. In addition to credit history, students should also be aware that there are many tax-saving credits that they can start accumulating early on to take full advantage of them when they file their taxes. Exploring different investment options enables students to plan ahead.
There is a unifying theme that resonates throughout the objective of each of the 5 lesson plans – to help students see and become motivated by the advantages of Starting Now. The knowledge and skills gained in all the previous lesson plans has limited potential if they are not applied in real life. In this final lesson, students are challenged to bring all the new concepts learned and apply them to a realistic case study – to truly emphasize the importance and relevance of Starting Now in their every day lives.