Financial Literacy : Appreciation and Depreciation
Key Concepts
Appreciation and Depreciation
- The value of an object can either increase (appreciate) or decrease (depreciate) over time, and these changes can occur in a linear or non-linear manner.
- Understanding the concepts of appreciation and depreciation allows for the analysis of financial situations and informed decision-making.
Borrowing and Investing
- The overall cost of a good or service can be affected by several parameters, such as the way interest is calculated, the interest rate, the length of the borrowing time, and the frequency of payments.
- The total amount saved can be influenced by several parameters, such as the interest rate, the initial amount invested, the frequency of contributions, and the investment duration.
- An understanding of these parameters can help optimize savings strategies and minimize interest expense or maximize returns.
Budget
- Budgets should be dynamic and flexible to accommodate changing circumstances and the exploration of various options.
- The adaptability of a budget allows for more effective and responsive financial management in the face of unexpected events and new opportunities in life.
Reflection
- How can we establish an inclusive, safe, and trust-building environment that allows everyone to feel comfortable discussing different attitudes towards money, as well as the various values related to credit and savings within different families?
- How can mastering financial literacy contribute to the development of individuals’ social-emotional learning skills?
- Which aspects of financial literacy are most authentic and relevant to Grade 9 students?