Essentials of Mathematics 12 - Investments

This sub-organizer contains the following sections:
Prescribed Learning Outcomes
Suggested Instructional Strategies
Suggested Assessment Strategies
Recommended Learning Resources

PRESCRIBED LEARNING OUTCOMES

It is expected that students will demonstrate and recognize the differences concerning different types of financial investments

It is expected that students will:

• determine a financial plan to achieve personal goals
• describe different investment vehicles (e.g., GICs, bonds, mutual funds, stocks, and real estate)
• compare and contrast different investment vehicles in terms of risk factors, rates of return, costs, and lengths of term
• identify reasons for investing money in RRSPs and RESPs
• investigate how to purchase and sell stocks

SUGGESTED INSTRUCTIONAL STRATEGIES

The ability to make sound financial decisions is a critical factor in financial independence. Financial decisions are influenced by an individual’s values, goals, attitudes, age, level of education, and income.

• Ask students to produce point-form paragraphs on the following topics:
  • List three goals you hope to achieve this year. Provide reasons why they are important to you and how you plan on achieving them. Consider any financial implications these goals may have.
  • List the ten things you value most in life. Briefly describe why each item on your list is important to you.
  • List three financial goals for people at different stages of life (e.g., 20s single, 50s married).
• Have students in small groups discuss the following questions:
  • What is an acceptable level of income to support your current life style?
  • What is a desired level of income to support a predicted life style in your future?
  • What factors can you influence to increase future income and benefits? Discuss their answers as a class.
• Invite a guest speaker (e.g., investment agent, banker, financial advisor) to address topics related to investment. Have students prepare questions that address the underlying mathematics of savings and investment options.
• Provide students with information on RRSPs and RESPs (e.g., bank pamphlets, web sites). Working in small groups, students list pros and cons for each.
• Have each student, given a fixed amount of money to invest, research and select stocks, "sell" old stocks, and "buy" new stocks according to predetermined rules. Students keep track of the stocks over a fixed period of time using a spreadsheet. Periodically compare the results as a class.

SUGGESTED ASSESSMENT STRATEGIES

Students need experience in setting financial goals and making financial decisions. It is therefore important that students demonstrate an understanding of the underlying mathematics involved in investment options and provide evidence that they are able to research and contrast a variety of investments.

Observe

• Note the extent to which students are able to establish a financial plan.
• Look for evidence that students differentiate between the different types of investment during group discussions.
• Observe the students’ ability to explain advantages and disadvantages of a variety of investments during the research on a variety of investments.

Collect

• Have students investigate in depth one type of investment vehicle, and write a report summarizing their findings. Look for evidence that:
  • a description of the investment vehicle is provided
  • a variety of pros and cons are listed
  • a spreadsheet is used to analyze the performance of the investment
  • a visual description (e.g., time graph, bar graph, pie graph) is given comparing a number of investments within that investment vehicle (e.g., mutual funds: resource, technology, European, Asian)
  • risk factors involved in making investments vs. potential returns or losses

• During the stock market competition, have students note in their journals the reasons for any action or non-action they are taking about their stock portfolio. After the competition, ask them to reflect back on their earlier journal entries, identify positive and negative decisions they made, and determine the factors that are important in making investment decisions.

RECOMMENDED LEARNING RESOURCES

Comprehensive learning resources for this course are currently under development. As an interim measure, schools are encouraged to use the teacher-developed learning resources distributed to schools (student and teacher resources). Please note that the student materials require photocopying for student use.

Video

• The ABC’s of Personal Finance

Software

• Math Tools

© 2000 Copyright. All Rights Reserved. Curriculum Branch.
Maintained by: Mathematics Coordinator
Revised: November 22, 2000

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