Money & Exchange
What is an exchange rate?
The value of one currency in terms of another.
What does SMART stand for in SMART goals?
Specific, Measurable, Achievable, Relevant, Time-bound
What is a fixed expense? Give an example.
A fixed expense stays the same each month, like rent.
Name one personal and one societal factor that influences spending.
Personal: habits; Societal: advertising
What is simple interest?
Interest calculated only on the original amount (principal)
Convert 150 EUR to CAD if 1 EUR = 1.48 CAD.
150 × 1.48 = 222 CAD
Name one reliable and one unreliable financial source.
Reliable: Bank of Canada (official info); Unreliable: Random influencer with no credentials
What is a variable expense? Give an example.
A variable expense changes monthly, like groceries.
Describe a time you bought something because of a friend.
Example: Bought a trendy backpack because a friend had one.
What is compound interest?
Interest calculated on the principal and the accumulated interest.
If 1 GBP = 1.60 CAD, how much is 300 GBP?
300 × 1.60 = 480 CAD
Write a SMART goal for saving for a school trip.
“I will save $10 a week for 10 weeks to have $100 for my school trip by June 30.”
Create a budget for $1,000/month with at least 3 categories.
Example: Rent $500, Food $200, Transport $100, Savings $200
How do ads make products more appealing?
Ads use colors, music, celebrities, and emotions to attract buyers.
Calculate simple interest on $1,000 at 5% for 2 years.
I = 1000 × 0.05 × 2 = $100
How do you convert CAD back to USD if 1 USD = 1.30 CAD?
Divide the CAD amount by 1.30 (e.g., 130 ÷ 1.30 = 100 USD)
Why is it important to use reliable sources for financial advice?
Reliable sources give accurate, up-to-date, and safe financial advice.
If your grocery bill increases by $30, how would you adjust your budget?
Reduce spending in another category (e.g., entertainment) by $30.
What role does peer pressure play in financial decisions?
Friends may pressure you to buy things to fit in.
Calculate compound interest on $1,000 at 5% for 2 years.
A = 1000 × (1 + 0.05)^2 = 1000 × 1.1025 = $1,102.50
Why do exchange rates change over time?
Exchange rates change due to supply and demand, inflation, interest rates, and economic stability.
Give an example of a goal that is not SMART and explain why.
“I want to be rich someday” – not specific, measurable, or time-bound.
Why is budgeting important for reaching financial goals?
It helps you control spending, save money, and reach goals.
How can understanding your values help you make better financial choices?
Knowing your values helps you spend on what truly matters to you.
Compare a savings account and a credit card. What are the pros and cons?
Savings account: earns interest, safe; Credit card: useful for purchases, but can lead to debt if not paid off.