October 23-18, 2014
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Legal tender: coins and paper money, as
defined by the Government of Canada, that
must be accepted as payment for good or
services.
Coins are minted, or manufactured, at the
Royal Canadian Mint headquarters in Ottawa
or at the Mint’s Winnipeg branch.
The Bank of Canada issues paper money, also
known as bank notes.
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To prevent counterfeiting, the production of
fake money, Canada’s bank notes have certain
security features.
Let’s have a look:
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http://www.bankofcanada.ca/banknotes/banknote-series/polymer/security/
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Money’s true value is purchasing power, how
much we can buy with it.
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Money printed and minted has virtually no value.
 Our “silver” coins contain no silver.
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Purchasing power is measured by the
Consumer Pricing Index (CPI), which is
calculated monthly by Statistic Canada.
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It measures 600 products typically bough by
Canadian households. This basket of good includes
food, shelter, transportation, clothing, and
recreation.
Purchasing power changes because of inflation.
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http://www.statcan.gc.ca/tablestableaux/sum-som/l01/cst01/cpis01geng.htm
Have a look at the chart.
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What does each piece mean?
What items are more expensive this year compared
to last month? Last year?
Are any items cheaper? The same?
What items are cheaper now than they were 12 years
ago?
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What is legal tender?
What features on Canadian bank notes help
prevent counterfeiting?
What is the Consumer Price Index? What does
it measure?
Explain why the dollar’s purchasing power
changes.
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Income is money that an individual or business
receives from various sources, such as wages,
sales, interest, or dividends.
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Personal Income
 Gross income – the total amount of income received by
a person.
 Disposable income – the income we actually take home
after taxes are paid.
 Discretionary income – income left after necessities are
paid for
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The daily financial activities connected to using
your limited income to satisfy all your needs
and wants.
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Income and price
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Status
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The desire to flaunt purchases to impress others is called
conspicuous consumption.
Current trends
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Amount of money we have to spend influences what we
buy
Staying in style
Peer pressure
Customs and habits
Promotion
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Lifestyle advertising shows healthy, attractive, young
people using the product or service.
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What are three types of personal income?
Name the five factors that affect buying
decisions.
Why can being influenced by peer pressure
when making purchases become costly?
What is lifestyle advertising?
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https://www.youtube.com/watch?v=nFY0HB
kUm8o
What was Theo’s gross income?
What was Theo’s disposable income?
What was Theo’s discretionary income?
What factors affected his buying habits?
Can you do a Bill Cosby impression?
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A budget is a plan for wise spending and
saving based on income and expenses.
Fixed expenses occur regularly and cannot be
adjusted.
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Variable expenses differ from month to
month.
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Ex: Mortgage, car payments
Ex. Food, clothing, entertainment.
Set goals!
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How much do I want to save?
Calculate expected income
Calculate expenses
1.
2.
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3.
4.
Fixed and variable
Calculate what’s left
Review
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What is the purpose of a personal budget?
Why is setting a goal an important part of
personal budgeting?
What are the steps in personal budgeting?