Active learning ideas
Credit and investing are powerful tools for building wealth, but they come with significant risks if misunderstood. This topic covers the mechanics of credit, including credit scores, interest rates, and the difference between 'good' and 'bad' debt. Students learn about the long-term costs of borrowing and the importance of maintaining a strong credit history in Canada.
Activity 01
Students are given a 'virtual' $10,000 to invest in a selection of Canadian companies. Over two weeks, they track their portfolio's performance and must write a brief reflection on why their investments went up or down.
What is a credit score and why does it matter?
Activity 02
Groups use an online credit card calculator to see how long it takes to pay off a $1,000 balance by only making the minimum payment. They present the total interest paid, which often shocks them into understanding the dangers of debt.
What are the dangers of high-interest debt?
Activity 03
Create posters for different investments (GICs, Mutual Funds, Stocks, Real Estate). Students move around, ranking each on a scale of 1-10 for 'Risk' and 'Potential Return,' explaining their reasoning on a worksheet.
How can investing help grow personal wealth over time?
A few notes on teaching this unit
Watch Out for These Misconceptions
A credit card is 'free money.'
Students often focus on the ability to buy now without seeing the future obligation. Using a 'Debt snowball' simulation helps them see how interest accumulates and how much extra they end up paying for that 'free' money.
Investing is only for rich people.
Many students think you need thousands of dollars to start. Discussing 'micro-investing' apps and the power of starting small but early (compound interest) helps them see investing as an accessible tool for everyone.
Methods used in this brief
Income, Budgeting, and Money Management
Students learn how to track personal income, create effective budgets, and set short-term and long-term financial goals.
8 methodologies
Banking and Financial Institutions
An overview of the Canadian banking system, types of accounts, and the services provided by financial institutions.
8 methodologies