F1.2 Create a financial plan to reach a long-term financial goal, accounting for income, expenses, and tax implications.
Activity 1: I Work, I Get Paid, I Plan
Ask students the following question:
- What is the difference between gross income and net income?
Present students with a mock pay stub. Explain that each pay stub includes the following information:
- Identification (personal information)
- Gross income (regular rate, overtime, tips, commission, bonuses, etc.) (before deductions)
- Deductions (federal tax, provincial tax, employment insurance, pension plans, contributions, group insurance, etc.)
- Net income - amount received in the bank account (after deductions)
Present students with a sample pay stub without the totals and have students do the calculations.
Have students create a financial plan to reach a long-term goal, using the mock pay stub as the basis of income for their plan.
Activity 2: My Passion: Motorcycles!
Present students with the following scenario:
Darcus is 13 years old and is a motorcycle fanatic. He talks about it with his family on a daily basis. His family suggested that he set a financial goal to purchase a used motorcycle for his 16th birthday. Currently, he receives a $25 per week allowance from his family to mow the lawn and cook dinner twice a week for the family. In addition, he earns $50 per week for babysitting the neighbour's child for an hour before and after school.
Invite students to develop a plan that could help Darcus achieve his long-term financial goal, taking into account income, but also expenses that may arise.