Workbook: Financial Literacy

1. According to this paystub from McDonalds:

a. How much does this employee make an hour:

b. How many hours did they work over the pay period (two weeks):

c. Did this employee have any taxes taken off their pay? If yes, how much?

d. If this employee made $13, 811 over the course of a year, how many hours did they work?

2. Alex purchases a hamburger combo advertised at $5.99. If the tax will be 7%, how much will he pay in total?

3. Wade goes to the grocery store to buy milk, bread, butter and cereal for his parents. The bill comes to $17.99. At the checkout he picks up a chocolate bar for $2.45. How much will the total bill be?

Remember: Essential food is non-taxable. Non-essential items, like chocolate, chips, candy, ice cream, etc. are taxable: 5%

4. Maria receives a new car for her birthday. Her parents paid $1,250.00 for the car plus 7% tax. How much did they pay in total?

5. Dillon buys two Speed Sticks at Shoppers Drug Mart. How much does he pay in taxes according to the receipt?

6. Look at the paystub below to answer the following questions.

a. How much money does Jane Doe earn per hour:

b. How many hours did she work in this pay period:

c. How much money was deducted for taxes:

d. What sort of taxes did she pay?

e. How much did she make before and after taxes?

f. What is the difference between NET and GROSS?

g. How much did Jane NET:

h. How much did she GROSS:

BONUS: What percetage of taxes is deducted from each paycheck (hint: divide the pay by the total deductions):

7. Janet works at a coffee shop for $10.15 and hour. She works 10 hours a week. Every two weeks she gets a paycheck, but she realizes 6.5% taken off for deductions. How much does she earn each week?

8. Look at the following budget. Which items are FIXED and which are VARIED:

9. If you save $5.00 every month for a year, how much money will you have saved?

Now see what happens if you deposit various amounts of money into a savings account over 1 year and then 5 years:

Step 1: monthly deposit x 60 months

Step 2: times total savings by 4%

Monthly Deposit

Number of years

Savings

Interest Rate

Final Investment

$10

1

$120

4%

$124.80

5

$600

4%

$624.00

$25

1

4%

5

4%

$50

1

4%

5

4%

$100

1

$1,200

4%

5

$6,000

4%

10. On average, people spend 35% of their wages on housing, $15 on food, 14% on transportation, 10% on necessities, 2% on entertainment and the remaining amount on bills. Draw as a pie graph.

11. Compare the following Boxing Day Specials on Big Screen TV’s. Which store offers the best deal?

BIG TV Sale at the Big Box Store

22-30 inch25% off

32-42 inch20% off

44-48 inch18% off

50-55 inch15% off

60 inch or larger10% off

Brand names include: Samsung, Vizio, Pansonic, RCA and Insignia

Neighbourhood Best

THIS BOXING DAY ONLY!

Save $75.00 on all TV’s under 48 inches

OR

$100.00 off all TV’s larger than 48 inches

Electronic One Warehouse

Purchase a Plasma TV this Boxing Day and receive a rebate up to $175.00 dollars!

22-30 inch$100 rebate

31-42 inch$125.00 rebate

60 or more$175 rebate

12. Look at the following loan calculations. The longer it takes to pay back a loan, the more interest you will pay. What is the difference paid in interest from a 2 year loan to a 4 year loan?

13. Create a budget sheet for these two families. Which family is more financially secure?

Reading Lab:

Follow Your Money

Read one of the examples from the book, “Follow Your Money” (Sylvester & Hlinka). Write a summary of your reading:

Title of Article: ______________________________________________________

What is the most surprising cost associated with this item:

________________________________________________________________________

________________________________________________________________________

How many steps do you think are involved in extracting, making, buying, selling and/or distributing this item. Draw a flow chart to show the steps:

Now that you know how much the item costs to manufacture, do you think that the retail price (the price people pay at the till) is too low or too high? Explain your answer in detail.

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

Video Labs:

Link: https://www.youtube.com/watch?v=5isqid6FAh0

Link: https://www.youtube.com/watch?v=v_8W58LMHrs

Link 1: https://www.youtube.com/watch?v=SAFxhSVngeQ

Link 2: https://www.youtube.com/watch?v=5CXFNtsjNBg

Link 3: https://www.youtube.com/watch?v=nrSrHl6TdrE

Link 4: http://mymoneymychoices.com/registration/

Link: https://www.youtube.com/watch?v=x-4JlxYvt7k