MT12 Financial Mathematics
Specific Curriculum Outcomes
FM01 Solve problems that involve compound interest in financial decision making.
FM02 Analyze costs and benefits of renting, leasing and buying.
FM03 Analyze an investment portfolio in terms of: interest rate, rate of return and total return.
FM01 Solve problems that involve compound interest in financial decision making.
FM02 Analyze costs and benefits of renting, leasing and buying.
FM03 Analyze an investment portfolio in terms of: interest rate, rate of return and total return.
FM01 activities
- Making Money with Benjamin Franklin from Math Central and OPTIMISM: Ben Franklin and the 200 Year Endowments from Eddie Thompson - The story of Ben Franklin's bequest to Boston and Philadelphia is an inspiring story of philanthropy as well as an example of the enormous power of compound interest.
- The Lowdown - The Math of Credit Cards: A short video on how credit cards work.
FM02 Activities
- Aaron's Rent to Buy Activity from Dan Anderson - Investigate the costs of purchasing items from rent-to-own/lease-to-own stores such as EasyHome, Aaron's and Rent-a-Centre. What the benefits and costs of these purchases?
- Financial Math - Buying vs Leasing a Car Desmos Activity - An online Desmos activity that compares the benefits and drawbacks of buying and leasing a car.
FM03 Activities
- Investing Basics online course from Everfi - An overview of financial investing basics.
- If You Can by William Bernstein - If You Can is a free pamphlet from author William Bernstein aimed at a young audience. He says, "For years I've thought about an eleemosynary project to help today's young people invest for retirement because, frankly, there's still hope for them, unlike for most of their Boomer parents. All they'll have to do is to put away 15% of their salaries into a low-cost target fund or a simple three-fund index allocation for 30 to 40 years. Which is pretty much the same as saying that if someone exercises and eats a lot less, he'll lose 30 pounds. Simple, but not easy." William Bernstein is my favourite finance author and his book The Investor's Manifesto is about as good as it gets.
- Passive Investing: The Evidence video on YouTube - One aspect of analyzing and investment portfolio is whether to choose an actively managed mutual fund or a passively managed fund such as an index fund. A UK investment firm created a 54-minute documentary called Passive Investing: The Evidence, which includes cameos from some of the leading proponents of the passive investment strategy. The film production quality is very high and the interviews include luminaries such as John Bogle, Charles Ellis, Rick Ferri, Kenneth French, William Bernstein, Burton Malkiel and William Sharpe.
- What the Fed said: Translated from CNN Money - I find this video hilarious. There is a well written article that goes with this video from CNN Money. I don't know what students will think. It is important to know how much effect a change in the federal interest rate impacts individuals paying mortgages or other loans.
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- The City: A Financial Life Skills Resource - The City is a free, powerful teacher resource to help young Canadians improve their knowledge of today’s financial universe. The resource is ready to use with lesson plans, overheads, income, expense and budget handouts, and a variety of worksheets. Understanding basic concepts such as budgeting and savings, credit and debt, and financial planning will arm students with the tools they need to navigate the financial realities of adulthood.