Personal Finance Facilitators' Guide

ACKNOWLEDGEMENTS

JA Canada
Karen Gallant, VP Programs & Charter Services
Andre Gallant, Director, Programs & Charter Services
JA Charters
JA Canada acknowledges the following JA Canada Charters for their work in piloting Personal Finance.
• JA Nova Scotia
Consultants
JA Canada expresses its gratitude to the consultants who contributed to the Canadian localisation of
Personal Finance. Their expertise in personal finance has significantly enhanced the quality of this program.
• TD Bank Group Advisory Panel
Cover Design
Avi Studio
Interior Graphic Design
Juni Xu

PERSONAL FINANCE

© JA Canada 2016

TABLE OF CONTENTS

02 FOREWORD

03 PROGRAM OVERVIEW

Preparing For Lessons

04 PLANNING GUIDE

05 LESSON 1: PLAN TO EARN

08 LESSON 2: SAVING FOR LIFE
11 LESSON 3: THE BUDGET GAME

14 LESSON 4: CREDIT CHOICES

20 LESSON 5: SAVVY CONSUMER

24 GLOSSARY
26 LIST OF MATERIALS
27 JA PROGRAMS AVAILABLE

INSPIRATION GUIDE 1

FOREWORD

JA CANADA All programs are developed or localized by the JA
Canada Education Team and are piloted in
JA Canada is a nonprofit organization financed by classrooms around the nation. Members of the
businesses, foundations, and individuals. Since its Education Team possess postgraduate degrees in
founding in 1955, JA Canada has contributed to the education, have experience in the classroom, and
business and economic education of more than 4 are experts in curriculum development and design.
million young people around the country.
JA Canada is the nation’s largest organization For more information about JA Canada programs for
dedicated to educating students in grades 3-12 high school, middle school, and elementary grades,
about entrepreneurship, work readiness, and visit JA Canada online at www.jacanada.org.
financial literacy through experiential, hands-on
programs designed to help young people
understand the economics of life. In partnership with
local volunteers and educators, JA brings the real
world to students, opening their minds to their
potential.

Thank You, Volunteers and Teachers!

JA Canada appreciates the commitment you have made to the success of this
program. We are certain you and your students will find Personal Finance to be an
informative, worthwhile, and enjoyable experience.

Online Survey

At the program’s conclusion, you may access an online survey to offer feedback on
your experience. Please take a moment to complete the survey. Your comments will
improve the quality of Junior Achievement programs.

2 PERSONAL FINANCE

© JA Canada 2016

PROGRAM OVERVIEW

OVERVIEW • a general overview MATERIALS
• learning objectives
JA Canada seeks to create educational partnerships • a guide to assist in planning your time Use the Classroom Materials
between schools, volunteers, business leaders, Note: The times are given as maximums. Do not Checklist found at the back of this
and donors, by providing opportunities for students spend more than the allocated maximum time on guide to double check that you
to shape their future and achieve success. an activity. have received all of the materials
Through the delivery of cutting-edge, experiential • instructions for conducting Core Activities, necessary for delivery of the
learning in financial literacy, work readiness, and program.
entrepreneurship, JA Canada expands the potential suggested time for each activity, and and a list of
for young people to engage in their own economic the resources that you will need Inspiration Guide
development and contribute to the strength of their • tips for volunteers Read this Inspiration Guide
families, their communities, and Canada’s economy. carefully BEFORE delivering
PREPARING FOR LESSONS the program. If you are
JA’s unique approach offers business volunteers teaching with a partner, you
the chance to deliver our curriculum, share their JA Canada provides additional resources online for will each want to have your
experiences, and make a significant impact on first-time volunteers or for volunteers who would own guide.
youth contemplating their future. Our classroom like a refresher as they prepare to teach the lessons
volunteers transform the key concepts of our in this guide. These tools are available by visiting Preparation Portfolio
lessons into a message that inspires and empowers the Royden Richardson Virtual School at These are comprised of
students to believe in themselves, to discover their www.rrvs-jacanada.org. The topics include: task sheets and supporting
potential, and explore ideas to craft their future. • Scheduling a class visit/planning session with information that the
students need in order
Personal Finance is an interdisciplinary program the teacher before your first lesson with the to complete the lesson
supporting academic standards in social studies, students to: activities.
business, consumer economics, reading, writing,
and mathematics, with an emphasis on financial • Meet and plan with the teacher. Tent Cards
issues faced by teens and young adults. • Observe the students. These are to be distributed
• Reviewing the lessons. to the students at the
Personal Finance is in JA’s high school program beginning of the delivery
group. It is five lessons in length and focuses on: • Working with Students: day. Tent cards sit on the
earning money; spending money wisely through • General Tips students’ desks indicating
budgeting; saving and investing money; using • Creating Expectations their names. If you are
credit cautiously; and protecting one’s personal • Teaching Strategies delivering the program over
finances. A variety of extended learning • Managing the Class several days, collect the
opportunities are offered throughout that reinforce tent cards after each day,
lesson concepts. and pass them out again
the following day.
PROGRAM STRUCTURE JA CANADA WEBSITE
Classroom Kit
Personal Finance is structured into five lessons. The For additional resources and activities for Included in the kit are a
program is designed to meet the needs of a variety volunteers, educators, and students, please number of essential activity
of delivery options. visit www.jacanada.org. resources.
• one full day or two half days
• one lesson per session 3

Each lesson is built around mandatory Core
Activities. The Planning Guide on Page 4 will assist
you in structuring the timing for delivery in the
classroom. Each lesson in the Inspiration Guide
includes:

INSPIRATION GUIDE

PLANNING GUIDE

LESSON 1 Plan to Earn 45 MIN LESSON 2 Saving for Life 45 MIN

INTRODUCTION 10 MIN INTRODUCTION 15 MIN
ACTIVITY 30 MIN ACTIVITY 25 MIN
SUMMARY & REVIEW SUMMARY & REVIEW
5 MIN 5 MIN

LESSON 3 The Budget Game 45 MIN LESSON 4 Credit Choices 45 MIN

INTRODUCTION 10 MIN INTRODUCTION 10 MIN
ACTIVITY 30 MIN ACTIVITY 30 MIN
SUMMARY & REVIEW SUMMARY & REVIEW
5 MIN 5 MIN

LESSON 5 Saavy Consumer 45 MIN Final Visit 5 MIN

INTRODUCTION 5 MIN PRESENT CERTIFICATES 5 MIN
ACTIVITY 25 MIN
SUMMARY & REVIEW 10 MIN

PROGRAM EVALUATION

To Business Volunteers and Teachers

JA Canada™ needs your help! We have developed a program evaluation and impact assessment system to get feedback.
We want to hear from our volunteers, teachers and students. Please take a few minutes to complete the post-program
surveys as directed by your local JA Charter.

4 PERSONAL FINANCE

© JA Canada 2016

LESSON 1 PLAN TO EARN

OVERVIEW INTRODUCTION

Students learn that healthy personal finances take Suggest 10 minutes CONCEPTS
planning and managing. They begin to analyze major
life events and issues that have financial implications. Greet the students. Tell them your name, describe your Earnings
job, and provide some information about your Education
OBJECTIVES background. Explain that you are a volunteer with
Junior Achievement, an organization dedicated to Income
Students will be able to: inspiring and preparing young people to succeed in a Lifetime earnings
• Recognize the role income plays in personal global economy. Management of money
Personal finances
finances. Use this space to note what you would like to share:
• Evaluate the effect their educational choices have SKILLS

on lifetime earnings. Analyzing information
• Describe the importance of planning in making Decision making

financial decisions. Evaluating alternatives
Oral and written
PREPARATION Distribute the Tent Cards and Preparation Portfolios. communication
If you have not written the students’ names on the
• Review the session and list of materials. Discuss tents, ask them to do so. Prioritizing information
with the teacher how best to organize the Using a timeline
students into pairs and arrange the room for the Ask the students to imagine building something
activity. complex; for example, a house, a cell phone, or an Working in groups
airplane. Is it better to design a plan and work from
• Become familiar with the term discussed in this the plan or just start building and see how it goes? PRESENTING TIPS
session. The Key Term is highlighted in boldface Discuss the importance of planning.
text and defined in the margin. Define the term Consider writing the students’
for the students as it is mentioned in the session. names on the Tent Cards in
If possible, post the term in a visible place in the advance to save classroom time
classroom. and to ensure the names are
visible.
• Review the Extended Learning Opportunities for
this session on Page 7. Discuss implementation 5
options with the teacher.

RECOMMENDED TIME Talking Points

This session typically takes 45 minutes to complete. • Building a life is a complex project. There
Ask the teacher to help you keep track will be thousands of design decisions to
of the time. make along the way.

MATERIALS • Many of those decisions will expand or
limit your next set of choices.
Tent Cards
Preparation Portfolios • For example, if your first decision when
building a house, airplane, or cell phone is
to make it out of duct tape instead of
standard materials, that decision will limit
all your other design choices.

• The same is true in life. The decisions you
make about jobs, schooling, or savings
will limit or expand all the other choices
you will make in life.

INSPIRATION GUIDE

1 PLAN TO EARN

KEY TERMS Define personal finances, income, and Ask students use pages 1-5, the Perseonal Finance
management of money as indicated in the margin. Checklist and Timeline in the Preparation Portfolio.
PERSONAL FINANCES Explain that many people go through life without a
The practice of determining and plan for their personal finances. But just like building Explain that they are going to explore five topics that
managing a person’s financial a cell phone from duct tape, decisions made without will have a significant impact on their personal
needs and goals for the future. planning will affect other choices. finances through the course of their lives:
INCOME
Any money earned or received Provide a personal or local example of a time when 1. Earning income
(wages or gifts). planning helped with personal finances—or would 2. Becoming a couple
MANAGEMENT OF MONEY have helped. 3. Starting a family
The practice of planning one’s 4. Living independently
goals, then earning, budgeting NOTES 5. Everything else
and investing to reach those
goals. Ask a student volunteer to read aloud the
instructions in the box at the top of the Checklist on
PRESENTING TIPS page 4 of their portfolio. The instructions also appear
below.
If time or students’ reading abilities
are a factor, considering the For each numbered item (1-5) on the
following alternate activity method: Personal Finance Checklist:
Instead of having each student
read silently each topic on the Explain that the Personal Finance program is an a. Read the information in the box titled
Personal Finance Checklist, either opportunity for the students to think about and begin “Facts to Consider.”
you or a student volunteer could planning for some of the basic aspects of personal
read aloud each checklist topic. finance—earning money, saving and spending b. Then read the information in the box titled
Then have students mark their money wisely, using credit cautiously, and protecting “Timeline Choices” (three boxes for
Timelines individually. their finances. Earning Money).

6 Today’s session is about the first step in personal c. Mark the Timeline based on the decision
finances: determining a person’s needs and goals for or decisions you think you will make in
the future. It’s only when you know what you’re the future when it is time to take on that
planning for that you can begin to plan well. particular milestone in life.
Two examples are shown on the
ACTIVITY Timeline.

Allow students to discuss the project in pairs,
although each student should mark his or her own
Timeline.

Suggest 30 minutes Allow students 10 minutes to complete the activity.

Activity-at-a-Glance Note: Students may ask about the specific cost of
the items on the checklist. Explain that this is just an
As students begin planning for their personal introductory activity to think about the types of
finances, they examine some significant issues and large-ticket items they may confront
and expensive financial decisions they have throughout their lifetime. Encourage them to
ahead of them and plot their choices on research costs for specific items that are of particular
a life timeline. interest to them.

S Oession nePERSONAL FINANCE
© JA Canada 2016

PLAN TO EARN 1

Ask for volunteers to share the choices they made learned by others can often be invaluable.
for the items on the checklist and offer personal or Encourage students to speak with older family
local examples to illustrate each point members about their early financial decisions and
what they learned from their experiences.
Ask students to review the Lifetime Earnings chart
on their Timeline. Point out that someone earning a Thank the students for their participation.
small monthly salary will have to make very different
spending decisions than someone making three EXTENDED LEARNING OPPORTUNITIES
times as much. For example, they will have to
choose less expensive housing; they may not be Be Entrepreneurial
able to help their children with school tuition; and Another way to earn income is by starting your own
they may not be able to retire comfortably. business. Students can learn more about this
Emphasize that salaries and the stability of jobs can through the Be Entrepreneurial program, which
and do affect people’s quality of life. focuses on the idea of building a business plan and
offers related advice.
SUMMARY AND REVIEW
Go to: http://www.jacanada.org/programs. Click on
Suggest 5 minutes Be Entrepreneurial.

Explain that although the basics of financial planning Battle of the Bands
are easy to understand—earn money, save money, This activity is an interactive, online supplement
and spend wisely—many Canadians are in debt with designed as a graphic novel that tracks the progress
little or no savings for a rainy day. It’s not enough to of the hero as she searches for success in her
understand the right thing to do. Students must chosen career.
make a plan and commit to that plan to get the
results they want.

Tell them that during the next session they will Go to: https://www.jamyway.org/resources. Click on
examine the first step of budgeting—saving. Battle of the Bands.

Remind students that financial decisions are
something we all learn to make, and that the lessons

INSPIRATION GUIDE 7

LESSON 2 SAVING FOR LIFE

CONCEPTS OVERVIEW INTRODUCTION

Budgeting Students analyze the role saving plays in their Suggest 15 minutes
Compound interest personal finances and how having a healthy savings
plan is necessary in all phases of life. Remind students that the first step in healthy
Investing personal finances is to pick an educational path and
Opportunity cost OBJECTIVES a job that will allow them to be happy but also
Pay yourself first financially secure. The next step is to spend wisely
Students will be able to: the money they earn. Students will take a closer look
Principal • Recognize high-dollar items and unexpected at budgeting in the next session, but today they will
Saving money explore the first step to any good budget—saving
costs that require savings. money.
Savings • Review key concepts related to successfully
Define compound interest, debt, interest,
SKILLS saving money. investing, Pay Yourself First, and Saving as
indicated in the margin. Discuss the importance of
Analyzing information PREPARATION building savings for every stage of life.
Categorizing data
Decision making • Review the session and list of materials. Discuss Talking Points
with the teacher how best to organize the
Evaluating alternatives students into pairs and arrange the room for the • Although most people know they should
Oral and written activity. set aside money each month, many find
communication it difficult to do.
Prioritizing • Become familiar with the terms discussed in the
Working in pairs session. Key Terms are highlighted • Because people have unlimited wants but
in boldface text and defined in the margins. limited income, many people choose to
Define the terms for the students as they are indulge their wants now and worry later
mentioned in the session. If possible, post each about future needs.
term in a visible place in the classroom.
• Without money in a savings account,
• Review the Extended Learning Opportunities for people often choose to go into debt to
this session on Page 10. Discuss implementation pay for their wants. They pay interest to
options with the teacher. someone else instead of being paid
interest on a savings account, like they
RECOMMENDED TIME would if they had planned ahead and
saved.
This session typically takes 45 minutes to complete.
Ask the teacher to help you keep track • To have healthy personal finances, people
of the time. need to save for:

MATERIALS • Large-ticket items, such as a car, a
refrigerator, or a major medical
Preparation Portfolios expense.

• Unexpected costs, such as an
accident or an unplanned opportunity.

Provide personal examples of a time when having
money in a savings account was needed for
expensive or unexpected items.

8 PERSONAL FINANCE

© JA Canada 2016

SAVING FOR LIFE 2

NOTES Some examples are first and last month’s rent, small KEY TERMS
appliances, and food.
COMPOUND INTEREST
Explain that they’ll need to have savings built up for The interest a person earns on
each new phase of their lives. There are big-ticket today’s money that will compound
items in each phase, such as cars, education, (add) to the amount of money that
marriage, kids, housing, hobbies, and ultimately will earn interest later.
retirement, plus many unexpected costs along the DEBT
way. Money owed.
INTEREST
Explain that during this brief introductory activity Describe a personal example of a time when a new Income earned from allowing
students will see an example of costs that come phase of life brought unexpected or high-dollar someone else to use your money.
along in life that demonstrate the need for a savings expenses that required savings. INVESTING
account. Putting money into a venture that
NOTES offers the possibility of earning
more money.
Ask students to turn to pages 6-8 (Moving Day/My PAY YOURSELF FIRST (PYF)
Savings Plan) in the Preparation Portfolio. Display the Setting aside money for saving
Moving Day slide on the classroom projector. prior to paying monthly expenses.
SAVING
Tell the students they will help write a story by Explain to the students that if they wait until they Setting aside a portion of current
coming up with part of the story themselves. Read have extra money to begin saving, they may never income for future use.
the story, emphasizing the blanks in each sentence. be ready for life’s financial challenges.
Have the students fill in the blank lines on the Moving 9
Day page of their portfolio with words that fit the ACTIVITY
prompts. Allow students 2 minutes to complete the
activity. For example, if the prompt is Form of
Transportation, the students might choose car, boat,
train, or something accurate but funny like a donkey.
Let them know their answers can be funny, but they
should be school appropriate and should correctly fit
in the category listed.

For each blank on the slide, have a student volunteer Suggest 25 minutes
give you his or her response and write it in the
corresponding blank. Ask a volunteer to read the Activity-at-a-Glance
completed story with the blanks filled in to learn
about some scenarios where saving money is Students work in pairs to review aspects of a
needed. saving plan. They will use their Savings Plan
to capture what they learn about each topic.

Explain to the students that while some of the items
in the story may be a bit absurd, it is realistic to
expect that each new phase of life will bring
unexpected and often high-dollar items they need to
save for. Reread the story aloud and, based on your
personal experience, describe costs the students
might face when they move into their own place.

INSPIRATION GUIDE

2 SAVING FOR LIFE

Ask the students to turn to the portion of the Savings EXTENDED LEARNING OPPORTUNITIES
Plan titled My Savings Plan. Display the second slide of
the Savings Plan slideshow on the classroom projector. Ask students to make up their own story with blanks,
Tell students there are a few important things to know like Moving Day from the Introduction activity of this
about saving. session, using terms related to their own long-term
saving goals. Once complete, have them trade their
• Have student volunteers read each of the stories with each other and fill in the blanks.
numbered items from their portfolio.

• Add your personal examples to illustrate each
point.

• Then allow the student pairs 2-3 minutes to
complete each action item.

• Ask for volunteers to share their responses.
Answers for the charts are found at the bottom

of the page.

Explain that saving is fundamental to strong personal
finances; students should remember to save and to
make their personal finances a priority.

SUMMARY AND REVIEW

Suggest 5 minutes

Remind the students of the five elements of financial
planning in Personal Finance: Earn money, save
money, spend wisely, use credit cautiously, and
protect their finances.

Tell them that during the next session they will learn
more about how to build the rest of their budget in
order to spend their money wisely.

Thank the students for their participation.

10 PERSONAL FINANCE

© JA Canada 2016

LESSON 3 THE BUDGET GAME

OVERVIEW INTRODUCTION

Students investigate budgeting and why many Suggest 10 minutes CONCEPTS
people have difficulty staying within a budget.
Ask them to review the first step in financial planning: Budget
OBJECTIVES Earn money by getting an education and choosing Budgeting
the right career. Remind students the next step to a Expense
Students will be able to: successful financial plan is to spend money wisely, Fixed Expenses
• Recognize the importance of making and which starts with setting aside money for savings.
Income
keeping a spending plan. Spending wisely requires you to accurately account Opportunity cost
• Consider the wide range of expenditures that for your income and expenses by making a budget. Variable Expenses
Define budget as indicated in the margin.
might make up a monthly budget. SKILLS

PREPARATION Discuss with the students some of the challenges of Analyzing information
budgeting money, particularly when income is Categorizing data
limited. Decision making

• Review the session and list of materials. Discuss Talking Points Evaluating alternatives
with the teacher how best to organize the Oral and written
students into teams and arrange the room for the • Think of a time when you thought you communication
activity. had enough money for a purchase, but it Prioritizing
was more expensive than expected. Or a Working in teams
• Become familiar with the terms discussed in the time when you wanted something but
session. Key Terms are highlighted in boldface knew you didn’t have the money to buy it. KEY TERMS
text and defined in the margins. Define the terms
for the students as they are mentioned in the • Individuals, families, cities, states, and BUDGET
session. If possible, post each term in a visible even countries face these same A spending plan for managing
place in the classroom. challenges. Things often end up being money during a given period of
more expensive than we anticipate, or we time.
• Separate the Scenario Cards and place them in just don’t have enough money to get all OPPORTUNITY COST
a container that you can draw from. of the things we want and need. The next best alternative given up
when a choice is made.
RECOMMENDED TIME • Life is expensive, and that means tough
choices have to be made. However, if we 11
This session typically takes 45 minutes to complete. choose not to make tough choices but
Ask the teacher to help you keep track instead spend more than we can afford, it
of the time. leads to financial problems.

MATERIALS • The solution is to make a realistic list of
what expenses you have, build a budget,
6 Category Card Sets and stick to the budget—even if it
1 Scenario Card Set requires a tough choice of giving up
something you want.

Define opportunity cost as indicated in the margin.
For example, if you want to eat lunch at a restaurant
every day and also want to save for a car—but don’t
have enough money for both—the one not chosen is
the opportunity cost. So, when you make a budget

INSPIRATION GUIDE

3 THE BUDGET GAME

PRESENTING TIPS and you have to make a choice about what to cut, ACTIVITY
the item you have to give up is the opportunity cost.
Consider asking the teacher to be In the example above, if you choose to eat out every Suggest 30 minutes
the score keeper. day, the car becomes the opportunity cost of buying
those lunches. Activity-at-a-Glance
KEY TERMS
The secret to successful budgeting can be summed First, students play a quick game in which
EXPENSE up in a few simple words: Spend less than you earn. they make tough choices about their budget
Money spent to buy or do Challenge the students: If this process is so simple, categories. Then they take a closer look at a
something. why are so many people, cities, and even countries sample budget and learn more about the
FIXED EXPENSES unable to stay within a budget, racking up debt and budgeting process.
Expenses that do not change credit problems?
from month to month, such
as rent. According to the Financial Consumer Agency of Organize the students into teams of three or four.
INCOME Canada, about 60% of Canadians don’t have a Distribute a set of Category Cards to the teams and
Any money earned or received budget. Many more ignore their budget when things ask them to separate the cards along the perforated
(wages or gifts). come along that they want but can’t afford. For lines. Assign each team a number or name for scoring
VARIABLE EXPENSES example, you may want some new clothes, but you purposes. Draw a score card on the board with each
Expenses that vary from also need a cell phone for work. How do you decide team labeled.
month to month, such as which to buy if you don’t have money for both?
entertainment, car repairs, or Unfortunately, many consumers try to find a way to Tell the students they will compete against their
doctor bills. pay for both, usually by over-extending their credit— classmates to see which team is best at budgeting.
causing even further problems to their long-term
12 finances. Describe a personal or local example of a Explain the game:
time when a budget prevented a problem or a lack • There are 29 Category Cards in a set. Each card
of a budget led to a problem.
is labeled with an item that costs money and
NOTES should be considered when deciding on
categories for a personal spending plan.
Tell the students that if they want to spend less than • Because of limited income, teams only have
they earn, they will have to make a realistic budget enough money to pay for 18 of the cards in this
that accounts for as many costs as possible. And month’s budget.
they will have to stick to that budget even if it means • Teams decide which 11 cards to leave off the
they can’t have items they really want. budget for the month. Teams turn in these cards
to the teacher or volunteer to prevent cheating.
Tell the students they will get a chance today to • The JA volunteer draws a Scenario Card at
practice making budget choices. random from the container and reads it aloud to
the class.
• Teams that still have that Category Card in their
pile of 18 cards must show it to the scorekeeper.
Those teams earn the number of points indicated
on the Scenario Card. Since some expenses are
more necessary than others, some cards are
worth more points.
• Repeat the process by drawing a new card until
10 scenarios have been read.
• The team(s) with the most points at the end of
the game wins.

PERSONAL FINANCE

© JA Canada 2016

THE BUDGET GAME 3

• In case of a tie, there can be multiple winners, or perform both of these steps to know how to
teams can play “sudden death” by drawing and adjust their spending plan.
reading scenarios until only one of the tied teams
remains. SUMMARY AND REVIEW

Ask the students to reflect on the outcomes of the Suggest 5 minutes
game.
• Were there certain categories that were more Review that the goal of budgeting is to spend less
than you make. That means tracking
important for winning? your income and expenses and making tough
• Did they have to give up some items that were choices when your needs and wants exceed your
income.
important to them?
• Some teams may have chosen to cut categories Remind students of the five elements of financial
planning in Personal Finance: Earn money, save
that are essential, such as housing, or required money, spend wisely, use credit cautiously, and
by law, such as taxes. Discuss the protect your finances.
consequences people face when they make
those choices in real life: foreclosure of their Tell them that during the next session they will take a
homes and fines and penalties for not paying closer look at credit.
taxes.
Thank the students for their participation.
Remind students of the general theory behind
budgeting: You must spend less than you make.
Successful budgeting requires a realistic spending
plan and a commitment to stick with the budget,
even when tempted by something you really want.

Emphasize that most people will not need all of the
categories listed in the game for their budget,
because everyone has different wants and needs.

Ask students to turn to page 10 (Sample Budget) in
the Preparation Portfolio. Explain that this is a good
starting template for analyzing potential expenses
and income. Point out that students can customize
this budget to match their individual situation by
downloading it.

Visit resources.jacanada.org. Log in, select the
Personal Finance program. Go to Lesson 3 and find
the Sample Budget to share on the projector with
the class.

Discuss the components of the budget.

• Define income, expense, fixed expense, and
variable expense as noted in the margin.
Discuss how each term is related to the budget.

• Point out that there is a column showing the
amount students plan to spend and a column to
track what they actually spent. It is necessary to

INSPIRATION GUIDE 13

LESSON 4 CREDIT CHOICES

CONCEPTS OVERVIEW MATERIALS

Debt Students analyze the importance of credit and the Credit Fact cards
Credit outcomes of wise and poor use of credit.
Credit cards Preparation Portfolios
Credit reports and scores
Interest OBJECTIVES

SKILLS Students will be able to:
• Recognize the importance of credit as part of
Analyzing information
Creativity personal finances.
• Express the need to make good credit decisions
Evaluating alternatives
Graphic presentation to avoid costly consequences.

Oral and written PREPARATION INTRODUCTION
communication
Reading for understanding • Review the session and list of materials. Discuss Suggest 10 minutes
Working in groups with the teacher how best to group the students
and arrange the room for the activity. Briefly review the topics covered previously in the
program: For healthy personal finances, students
• Become familiar with the terms discussed in the need to earn money, save, invest, and spend wisely.
session. Key Terms are highlighted
in boldface text and defined in the margins. Tell students that today’s topic is credit. Define
Define the terms for the students as credit, debt, and interest as indicated in the
they are mentioned in the session. If possible, margin. Explain how these terms are interconnected.
post each term in a visible place in
the classroom. Ask the students to tell you facts they know about
credit and where they learned those facts. Ask the
• Review the Credit Fact Cards and prepare following questions to start a discussion:
personal, local, or current examples to illustrate • Have you seen or heard commercials about
each point when each group presents its Graphic
Novel Panel to the class. credit on TV or radio?
• Were the commercials offering credit or warning
• Collect examples of graphic novels or comic
books to show the students during not to use credit?
the instructions. • Have your parents or other adults discussed

• Ask the teacher for a list of student names so you credit with you?
can prepare the Certificates of Achievement prior
to Session Five.

• Have you seen posters in stores, billboards, or
other advertisements either offering credit or

RECOMMENDED TIME offering to help with credit problems?

This session typically takes 45 minutes to complete. Incorporating the following talking points, discuss
Ask the teacher to help you keep track with the students how to use credit as part of their
of the time. personal financial plan.

14 PERSONAL FINANCE

© JA Canada 2016

CREDIT CHOICES 4

Talking Points KEY TERMS

• There are mixed messages about whether using credit is good or bad. CREDIT
• There is a constant stream of advertising and information in the media and in the The ability to buy goods or
services now but pay later.
mail offering credit in one form or another.
• There are conflicting messages warning about misusing credit and DEBT
Money owed.
offering services and products to help with credit debt.
• Maybe even your own family members are struggling with credit problems or INTEREST
Payment for the use of money.
trying to pay off debt.
PRESENTING TIPS
Explain that although it can be complicated, knowing how to use credit is an important part of healthy
personal finances. Offer current or personal examples that would illustrate the bullet points on Page 16. Provide a visual aid to enhance
student learning and recall. For
NOTES example, bring a plastic toy ball
and chain or a weight set and
have students imagine having to
walk around with the real thing.
Then explain that consumers carry
around the weight of credit debt
until it is paid off.

INSPIRATION GUIDE 15

4 CREDIT CHOICES

PRESENTING TIPS • Most of you will need credit at some point in your ACTIVITY
life—to buy a car, a house, a large appliance, or
Consider bringing a credit card other expensive item that cannot be purchased Suggest 30 minutes
and a basic hand tool as a with cash at the time.
metaphor to illustrate the point Activity-at-a-Glance
that credit is a tool. It can build or • Credit itself is neither good nor bad. However,
destroy, based on how you use it. you can make good or bad choices about how Student groups each receive a set of facts on
Get permission before bringing the to use credit in your life. Think of credit as a tool, a different credit-related topic and must
tool to the school. like a hammer. The hammer is not good or bad, summarize the key points. They then use
it’s just a tool. But that tool can build things or those facts to fill in the dialogue bubbles on a
16 tear things down. corresponding Graphic Novel Panel. Finally,
each group presents its topic and panel to
• If you make good choices, you will have the the other groups.
credit necessary to buy the things you want and
need and the opportunity to pay for those items Organize the students into six groups. Assign each
over time. group a Credit Fact Card. There will be two left
unassigned that you can discuss as a class if time
• If you make bad decisions, you will pay far more permits.
money than the original purchase price. That • Tell students they will face frequent choices in
additional cost comes in the form of interest,
fees, fines, and higher interest on future credit. their lives about using credit and accumulating
You also could suffer consequences in other debt. Remind them credit and debt are just
parts of your life that may seem unrelated, like tools—it’s the choices that have good or bad
not being able to get certain jobs or rent the outcomes.
place you would like to live. • Explain that on each group’s card is a set of facts
related to a credit topic. The groups’ task is to
• One question to ask about using credit is: If I read the facts, and in the space provided on the
don’t have the money now, will I have it when I card write a few key facts about the topic to
have to pay back the loan plus interest? teach their classmates.
• Allow the students 5 minutes to read the card
Tell students that using credit now really means and summarize the facts in writing.
committing future money to repay current debt plus
interest. Each card has a specific Graphic Novel Panel for the
• What happens in the future if an unexpected topic. Ask each group to find the corresponding
panel on pages 12 and 13 of their portfolios, and
want or need arises? confirm that the topic on their card matches the
• How will you pay for possible future debt while topic on their chosen panel. Explain that each
Graphic Novel Panel is a scene depicting a credit
repaying the debt for past wants topic.
and needs? • Each of the panels has a Good Credit Decision
• This tug of war between unlimited wants and
limited income can have severe consequences, character, a Bad Credit Decision character, and a
so it is important to use credit cautiously. Consumer character making a decision about
credit.
Explain that during this session, students will learn • However, the character dialogue bubbles are
about some potentially good and bad credit blank. Students will use their key facts to explain
opportunities and dangers. what’s going on in each scene.
• Tell the students the goal of this activity is for
each group to communicate key facts about its

PERSONAL FINANCE

© JA Canada 2016

CREDIT CHOICES 4

topic through the characters in its panel. Remind Once all groups have completed their panels, ask PRESENTING TIPS
them that the hero and villain are trying to get the students to turn to pages 14-17 so that they can
consumer to make either a good or bad choice follow along as each group presents its topic. Explain that graphic novels are
related to credit. Explain that graphic novels are stories in the style of dramatic
often dramatic, so students can add information Ask each group to present the following: comic books in which the pictures
to make their story more interesting as long as • Briefly explain the topic from the Credit Fact are fundamental to the story. The
the facts stay accurate. pictures don’t just illustrate what
Card. happens, they tell part of the story.
• They may fill in all the blanks or not, and they • Describe the action in the Graphic Novel Panel Provide examples
may add more captions or pictures if possible.
as necessary. Ask them to write in large letters so and the captions that have been added.
classmates can easily see their presentations.
After each group presents, offer current or personal
Tell the students that once the groups have examples of each of the topics. Selected talking
completed their panels, each group will present. points for each topic are listed on the following page.
Allow 5 minutes for the groups to fill in their panels
with the facts they summarized on the card.

PRESENTING TIPS

Be aware that some students
may have used or seen family
members use some of the
alternative forms of credit, such as
pawn shops or payday loans. It is
important to present the pros and
cons in a factual, nonjudgmental
manner.

INSPIRATION GUIDE 17

4 CREDIT CHOICES

Talking Points

Credit Report and Credit Score
• Financial institutions look for behaviors that show whether you are likely to repay

a loan. They track these behaviors and assign each consumer a credit score, like a report card
grade.
• There are many ways to raise and lower your credit score. Some may be surprising.

Who Really Cares About Your Credit?
• The choices you make about credit affect many other areas of your personal finances and

your life.
• A variety of companies review your credit before deciding whether to do business with you.

Common Mistakes
• The reason there are so many commercials about raising credit scores and repairing credit is

because a lot of Canadians struggle with their debt.
• There are some common mistakes that consumers can avoid.

Payday and Installment Loans
• These loans carry extremely high interest rates and a short pay-back schedule.
• It is important to use these loans only for emergencies after exhausting all other options. Read

all the fine print in the contract so you know what you’re agreeing to.

Rent-to-Own
• Furniture and appliances bought this way cost significantly more, sometimes two or three times

more than buying the product outright.
• It is important to read all the fine print in the contract so you know what you’re agreeing to.

Pawn Shops
• For your loan, you will receive only a fraction of the value of the item you leave as collateral, and

the shop owns your collateral if you fail to pay back the loan.
• It is important to read all the posted store policies and fine print in the contract so you know

what you’re agreeing to.

Credit Cards
• Credit cards are widely used as a tool in Canadians’ personal finances. They are more

convenient than cash. However, if the balance is not paid at the end of the month, you’ll pay
interest on it, making everything you buy cost more.
• When credit card bills are not paid off each month or a payment is late, they can have a
negative effect on your credit and finances.

Student Loans
• On average, higher education increases income, but there is a point when too much debt from

student loans is harmful to personal finances.
• Make plans early to pay for education beyond high school.
• There are several consequences for failure to pay back student loans.

18 PERSONAL FINANCE

© JA Canada 2016

CREDIT CHOICES 4

SUMMARY AND REVIEW Thank the students for their participation.

Suggest 5 minutes Ask the teacher to display the Graphic Novel
Panels to remind the students of good
Remind students that credit is neither good nor bad, credit decisions.
but consumers can make good or bad decisions
about credit. Credit may be necessary for most EXTENDED LEARNING OPPORTUNITY
people at some point in their lives, but using credit is
spending future money and should be done If time allows in the session—or in class at a later
cautiously. date—consider redistributing the Graphic Novel
Panels and blank pieces of paper. Have the students
Remind them of the five elements of financial create the panel of the story that would have
planning in Personal Finance: Earn money, save occurred immediately before or after the panel they
money, spend wisely, use credit cautiously, and added captions to. Ask them to include the dialogue
protect personal finances. that would describe what came before or after the
events in the current panels.
Tell them that during the next session they will learn
about protecting their personal finances.

INSPIRATION GUIDE 19

LESSON 5 SAVVY CONSUMER

KEY TERMS OVERVIEW RECOMMENDED TIME

RISK MANAGEMENT Groups work together to create public service This session typically takes 45 minutes to complete.
Predicting and minimizing the announcements (PSAs) to inform each other of risks Ask the teacher to help you keep track of the time.
chance of financial loss. they could face in their finances and identify ways to
protect themselves from potential loss. MATERIALS
20
OBJECTIVES Preparation Portfolios
Certificates of Achievement
Students will be able to:
• Recognize potential risks to their personal

finances.
• Describe appropriate preventative methods to

limit potential losses.

PREPARATION INTRODUCTION

• Review the session and list of materials. Discuss Suggest 5 minutes
with the teacher how best to group the students
and arrange the room for the activity. Remind the students that, so far, they have been
learning to build their personal finances by earning
• Become familiar with the terms discussed in the money, saving and spending it wisely, and using
session. Key Terms are highlighted in boldface credit cautiously. Creating healthy personal finances
text and defined in the margins. Define the terms takes a lot of time, attention, and effort, but the
for the students as they are mentioned in the payoff is a more stable and secure quality of life.
session. If possible, post each term in a visible
place in the classroom. Ask student volunteers to name some things that
could have a negative effect on someone’s personal
• Collect colored pencils or markers or other finances. If not mentioned, some examples could be
supplies the teacher will allow the students to medical or weather emergencies, theft, fraud, buying
use to decorate their posters. a bad product, or an accident.

• Collect public service announcements (PSAs) Define risk management as noted in the margin.
and pictures of PSA billboards as examples to Discuss with the students how all consumers
show the students, if possible. Possible sources potentially face the risk of financial loss and how
are Google Image, YouTube, or other search important it is to be informed and prepared.
tools. A common PSA is “No texting while
driving.” Talking Points

• Arrange for the students to complete the Post- • It is unpleasant to think about, but the
Test at the end of the program. The Post-Test is risks you face as consumers can have as
available at www.jacanada.org/programs/eval- big an impact on your finances as any of
pre-post.shtml. the other factors discussed during this
Please share the results with and return the program because the loss could be to
completed tests to the local JA office. your income, savings, or credit. Such
losses could change your budget—and
• Prepare the Certificates of Achievement in your life—significantly.
advance.

PERSONAL FINANCE

© JA Canada 2016

SAVVY CONSUMER 5

• These risks can happen through a choice ACTIVITY KEY TERMS
you make or through no fault of your
own. For example, both legitimate Suggest 25 minutes PUBLIC SERVICE
businesses and scammers want your ANNOUNCEMENT (PSA)
money and will try to talk you out of it. Activity-at-a-Glance An advertisement sent through
Also, accidents, car troubles, and job mass media with a message for
losses can—and do—happen. That is the Each student receives information about the common good.
risk in life. potential financial risks. Students read about
their topic and choose a single concept to PRESENTING TIPS
• You can become aware of these risks and teach to their classmates. Then, in groups,
how they can affect your personal they create public service announcements Consider bringing in PSA
financial plans. While no one can think of (PSAs). examples to show the students.
everything that could happen in the Consider asking the teacher to
future, you can choose to be educated Before introducing pages 22-23 (Public Service post the groups’ PSAs around
and prepared for as much as possible. Announcement): the classroom once the session is
• Ask students to turn to page 18 (Savvy complete.
Offer some personal or current examples of
financial loss that could have been or were Consumer Flier) of the Preparation Portfolio. 21
protected by a risk management technique • Organize the students into six groups.
(insurance, fraud prevention, or smart shopping • Assign each group a topic from Pages 19-21 of
techniques).
the portfolio.
NOTES • Ask each student to read the assigned topic and

decide on one point the whole class should
know.
• Have the students write their ideas on Page 18
of their portfolio as directed.
• Ask members of each group to share their ideas
then choose a single point to teach the rest of
the class.

Once students have written their ideas, ask them to
share them with the other members of their group
and then decide on one idea to teach the rest of the
class.

Ask students to turn to pages 22-23 of the
Preparation Portfolio. Distribute colored pencils,
markers, and other supplies you and the teacher
have agreed upon in advance. If students have
access to a mobile phone, they can also choose to
record a video PSA.

Tell the students that today they will learn about and Define Public Service Announcement (PSA) as
educate each other about some of these potential noted in the margin. Ask students to recall videos or
losses and explore ways to manage risks in their billboards they have seen that offer a public
lives. announcement or try to persuade citizens to make
healthy choices. Explain that these are examples of a
public service announcement (PSA), and they can be

INSPIRATION GUIDE

5 SAVVY CONSUMER

PRESENTING TIPS found on TV, radio, the Internet, or in newspapers or FINAL VISIT
magazines. Common topics of PSAs provide health-
Consider giving your JA tote bag related information (Signs of a stroke, Get an annual Suggest 5 minutes
as a reward to the team that’s check-up.); public safety (If you see something, say
produced the best PSA something.); or environment (Give a hoot, don’t Tell the students and the teacher you enjoyed your
pollute. Only you can prevent forest fires). Describe time with them. Thank the students for their
local examples of a current PSA. participation.

Tell the groups they will each create a PSA based on Distribute the Certificates of Achievement.
the topic they chose to share with the class. Encourage the students to share them with their
• A PSA informs or persuades the public about a families and include them in their portfolio of high
school accomplishments.
specific issue, so students’ PSAs should be brief
and make the point with pictures and a few Share what you learned or will remember from your
words. time with the students, and invite students to relate
• The message should be clear to a viewer. their JA experience.
• Each group member should contribute to the
creation of the PSA. REMINDER
• Each group should be prepared to briefly present
its PSA by explaining what the At the program’s conclusion, you may access an
topic was and the message of its PSA. online survey through the link provided to you by
your charter representative to give feedback about
Allow 10 minutes for the students to create their your experience. Please take a moment to complete
PSAs. the survey. Your comments will improve the quality of
JA Canada programs.
Ask each group to share its PSA with the class while
the other groups follow along using their portfolio.

SUMMARY AND REVIEW

Suggest 10 minutes

Ask student volunteers to name one thing they
learned today that will help them protect their
personal finances.

Review the five elements of financial planning in
Personal Finance and how they are connected: earn
money, save money, spend wisely, use credit
cautiously, and protect
personal finances.

22 PERSONAL FINANCE

© JA Canada 2016

GLOSSARY

Budget Interest rate

A spending plan for managing money during a given The cost of borrowing money, expressed as a

period of time. percentage.

Compound interest Investing

The interest a person earns on today’s money that Putting money into a venture that offers the
will compound (add) to the amount of money that possibility of earning more money.
will earn interest later.
Opportunity cost
Consumer
The next best alternative given up when a choice is
A person who purchases and uses goods and/or made.
services.
Pay yourself first (PYF)
Credit
Setting aside money for saving prior to paying
The ability to buy goods or services now but pay monthly expenses.
later.
Personal finances
Credit report
The practice of determining and managing a
A record of your personal financial transactions (your person’s financial needs and goals for
credit history). the future.

Debt Phishing

Money owed. Identity theft that appears in the form of
an email or pop-up message that seems legitimate
Expense and endorsed by a financial institution. The email
prompts the reader to provide personal information
Money spent to buy or do something. to authorize fixing a problem with an account,
product registration, or making a purchase.
Fixed expenses
Principal
Expenses that do not change from month to month,
such as rent. An initial amount of savings or an original amount of
money borrowed.
Fraud
Public service announcement (PSA)
Intentional deception to influence someone to part
with something of value. An advertisement sent through mass media with a
message for the common good.
Identity theft
Risk management
A crime that occurs when someone uses your name,
Social Insurance number, credit card number, or Predicting and minimizing the chance of financial
other personal information without your permission. loss.

Income Saving

Any money earned or received (wages Setting aside a portion of current income for future
or gifts). use.

Installment loan Savings

Borrowed money that is repaid in equal payments. The money left over after expenses have been paid.

Insurance Variable expenses

A means of guaranteeing financial protection against Expenses that vary from month to month, such as
various risks. entertainment, car repairs, or doctor bills.

Interest

(A) Payment for the use of money.
(B) Income earned from allowing someone else to
use your money.

INSPIRATION GUIDE 23

LIST OF MATERIALS

The following is a comprehensive inventory of items included in the Personal Finance kit.

Quantity Item Description Sessions

12345

30 Tent Cards •••••

2 Inspiration Guides •••••

30 Preparation Portfolios •••••
•
6 Category Cards •
(29 cards per set) •

1 Scenario Cards
(29 cards)

8 Credit Fact Cards (a-h)

30 Certificates of Achievement •

24 PERSONAL FINANCE

© JA Canada 2016

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INSPIRATION GUIDE Check out www.jacanada.org
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