The document outlines a financial literacy project with six parts: frequently asked questions about financial institutions; researching two types of loans; researching two types of investments; a bibliography; and reflections. Students must complete all parts to receive a bonus mark. The project teaches concepts around wise money management.
The document outlines a financial literacy project with six parts: frequently asked questions about financial institutions; researching two types of loans; researching two types of investments; a bibliography; and reflections. Students must complete all parts to receive a bonus mark. The project teaches concepts around wise money management.
The document outlines a financial literacy project with six parts: frequently asked questions about financial institutions; researching two types of loans; researching two types of investments; a bibliography; and reflections. Students must complete all parts to receive a bonus mark. The project teaches concepts around wise money management.
The document outlines a financial literacy project with six parts: frequently asked questions about financial institutions; researching two types of loans; researching two types of investments; a bibliography; and reflections. Students must complete all parts to receive a bonus mark. The project teaches concepts around wise money management.
Goals: To synthesize the concepts learned about financial institutions and services, credit options, store promotions, loans and savings. Project Overview: For this project, you will be presenting whatever you learned by typing all the information out and submitting this word document. This project will be composed of five parts: 1) List out 10 frequently asked questions (FAQs) about financial institutions and find the answer online. [10 marks] 2) Research into the advantages and disadvantages of two types of loans. A detailed description and calculation of the loans should be included. [10 marks] 3) Research into the effects of two types of investments. A detailed description and calculation of the investments should be included. [10 marks] 4) Bibliography [5 marks] 5) Reflections [5 marks] * By completing all the sections of this project, you will receive 2% bonus mark to your grade. Step 1: Start to plan Brainstorm 10 questions that should be included in your FAQs. You can use the following questions as guidelines:
What kind of financial institution should I choose?
What kind of account should I choose? How can I keep my personal and financial information secure? How can I use credit effectively? What advice can you give about financial institution’s store promotions? What kind of financial commitments should I avoid? What is the difference between variable/floating and fixed rate? What does prime rate refer to? What percentage is the current prime rate? Your questions should cover the following broad topics: financial institutions, credit options, store promotions, and loans. You should also include questions on wise money management and how to avoid debt. If you wish, you can ask your peers/parents what questions they have about money management. Use the internet to research answers to your questions. As you research your answers, you may find more questions to ask. Write answers to each question in your own words. Answers need to cover the basic facts, but should be no more than a few sentences or a short paragraph.
Make sure you site the sources in the bibliography section!
10 Frequently Asked Questions and the Answers: ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________
Step 2: Research loan options
The next step in the project is to research different loan options. Begin by choosing something that you might take out a loan for – for example, a car, a boat, a computer/laptop, a cell phone or a post-secondary school program. Research the cost for it. Put all the information below: Item to purchase: _____________________________ Description of the item (model, specs, etc.): ______________________________________________________________________________ ______________________________________________________________________________ Total cost of the item (including taxes): __________________________ Pretend you have graduated and are currently working. How much can you afford to put down per month (ie. monthly payment) towards the loan? ___________________________ Next, choose two ways a student could borrow money to pay the cost. Payment options include taking out a line of credit, personal loan, or using a credit card. You can also choose to compare variable versus fixed rates for the loan options. Research and compare the costs of the two loans you have chosen. For example, what is the interest rate on the line of credit compared to the credit card? (Note: if you cannot find the specific interest rate from the bank, simply Google line of credit interest rate as an example for a rough estimation.)
Make sure you site the sources in the bibliography section!
Loans:
Option 1 Option 2 What is the interest rate for this option? What is the interest rate for this option? How long will it take for you to pay off the How long will it take for you to pay off the loan given the monthly payment you loan given the monthly payment you provided above? (Google online loan provided above? (Google online loan calculator to help you with this calculation. calculator to help you with this calculation. You must show how the calculations was You must show how the calculations was done. You have the option to take a done. You have the option to take a screenshot of the calculation with the screenshot of the calculation with the website on it.) website on it.)
Which loan option would you recommend students choose? Why?
Step 3: Research investment options
Next, you will research the information needed to inform students about wise investment strategies and planning for the future. Choose two types of investment, such as a Guaranteed Investment Certificate or a bank savings account. You can also choose to invest in mutual funds offered by the banks. Research interest rates and terms of investment, and calculate the interest earned on two different investments:
$1200 yearly (ie. $100 monthly) invested for 20 years; and
$2400 yearly (ie. $200 monthly) invested for 10 years If students want to save money for the future, would they be better off investing a small amount of money for a longer term, or a larger amount of money for a shorter term? Investments:
Option 1 Option 2 $1200 yearly deposit (or $100 monthly $1200 yearly deposit (or $100 monthly deposit) invested for 20 years deposit) invested for 20 years
versus versus $2400 yearly deposit (or $200 monthly $2400 yearly deposit (or $200 monthly deposit) invested for 10 years deposit) invested for 10 years Hint: Google future value calculator to help Hint: Google future value calculator to help you with the calculation. The future value you with the calculation. The future value calculator must allow you to input periodic calculator must allow you to input periodic deposit amount into it. Again, you must show deposit amount into it. Again, you must show how the calculations was done. how the calculations was done.
If students want to save money for the future, would they be better off investing a small amount of money for a longer term, or a larger amount of money for a shorter term? Explain your choice.
Make sure you site the sources in the bibliography section!
Step 4: Bibliography Make sure your bibliography is complete. (If you want, you can do it according to APA style.) Step 5: Reflections
1. Describe your feelings about working on this project. Did you enjoy it? How long did it take you to complete it?
2. What was the hardest part about working on this project? Explain.
3. List some of the things you learned while working on this project.
4. Were you satisfied with your final project? Elaborate.
5. What personal strengths did this project bring out in you? Elaborate.
6. If you had to do the project over again, what would you do differently? Explain.
