October 23-18, 2014

 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.

 To prevent counterfeiting, the production of fake money, Canada’s bank notes have certain security features.  Let’s have a look:  note-series/polymer/security/ note-series/polymer/security/

 Money’s true value is purchasing power, how much we can buy with it.  Money printed and minted has virtually no value.  Our “silver” coins contain no silver.  Purchasing power is measured by the Consumer Pricing Index (CPI), which is calculated monthly by Statistic Canada.  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.

 tableaux/sum-som/l01/cst01/cpis01g- eng.htm tableaux/sum-som/l01/cst01/cpis01g- eng.htm  Have a look at the chart.  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?

 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.

 Income is money that an individual or business receives from various sources, such as wages, sales, interest, or dividends.  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

 The daily financial activities connected to using your limited income to satisfy all your needs and wants.

 Income and price  Amount of money we have to spend influences what we buy  Status  The desire to flaunt purchases to impress others is called conspicuous consumption.  Current trends  Staying in style  Peer pressure  Customs and habits  Promotion  Lifestyle advertising shows healthy, attractive, young people using the product or service.

 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?

 kUm8o 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?

 A budget is a plan for wise spending and saving based on income and expenses.  Fixed expenses occur regularly and cannot be adjusted.  Ex: Mortgage, car payments  Variable expenses differ from month to month.  Ex. Food, clothing, entertainment.  Set goals!  How much do I want to save?

1. Calculate expected income 2. Calculate expenses  Fixed and variable 3. Calculate what’s left 4. Review

 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?