Minds On
Shopping choices
Have your ever noticed something for sale and the price is listed in two different currencies: Canadian and US dollars? For example, $149 CDN or $109 USD.
What does this mean? What considerations should you make when purchasing products?
Many companies and credit cards use loyalty rewards for every dollar amount spent. For example, many retail outlets have cards that allow customers to redeem points every time they shop. After a certain number of points, they then receive a discount on their next purchase or a gift of some description.
Credit card users also receive benefits when they use their cards. For example, a customer may get one point for every dollar spent, then they redeem their points for products, gift cards or travel. What benefits does this give customers and sellers?
Action
Shopping overseas
Some purchases that people make require conversion from Canadian currency to a foreign currency, because they purchase it in another country or they purchase online and that company is located in a different country.
Task 1: Conversions
Let’s practise some ways we can convert Canadian currency to foreign dollars:
If you would like, you can complete this activity using TVO Mathify. You can also use your notebook or the following fillable and printable document.
While visiting their grandparents in Spain, a teenager wants to purchase a soccer jersey for their favourite player on a particular team. The jersey costs €57 (57 euros). The teen bought euros before they left for their trip at $1.55 Canadian.
What is the cost of the jersey in Canadian dollars?
The sports store back home was selling the same jersey for $120.00 Canadian. Why do you think it costs more? What factors contribute to the costs of items when they are imported?
Research the following terms with regards to purchasing items:
- exchange rates
- shipping
- duty
- taxes
Work with a partner, or independently, to record your ideas as to how these factors affect purchasing decisions. You can record your ideas in an audio recording, on paper, or digitally.
Press the ‘TVO Mathify' button to access this interactive whiteboard and the ‘Activity’ button for your note-taking document. You will need a TVO Mathify login to access this resource.
TVO Mathify (Opens in new window) Activity (Open PDF in a new window)Task 2: Paying with a credit card
If the teen pays for the jersey using a credit card, the credit card company will convert the price using the exchange rate for that day which may be different from when they bought the euros they brought with them. It could be a better rate (for example $1.47) or a higher rate (for example $1.62).
Brainstorm
Brainstorm
What are the advantages and disadvantages when paying for items using a credit card versus paying cash while travelling?
Consolidation
Shopping decisions
Complete the Shopping Decisions activity in your notebook or using the following fillable and printable document.
A shopper wants to buy a new pair of running shoes. They check around and have noticed the pair they want to buy in a store and online.
| Pair A (local) | Pair B (online US) | Pair B (online CA) | |
|---|---|---|---|
| Item price | C $ 97.25 | US $ 76.99 | C $ 85.99 |
| Shipping cost | No shipping | Shipping is free | C $ 9.25 (in 3 days) |
| Tax | 13% | 13% | 13% |
Note: 13% tax is charged on the Canadian price as well as on the shipping cost. At the time the shopper was searching, the exchange rate was $1 USD = $1.36 CAD.
- Which pair of shoes has the best price?
- Which pair would you order? Explain your choice.
- What are some of the reasons for the difference in price of the same item?
Press the ‘Activity’ button to access the Shopping Decisions.
Reflection
As you read the following descriptions, select the one that best describes your current understanding of the learning in this activity. Press the corresponding button once you have made your choice.
I feel...
Now, expand on your ideas by recording your thoughts using a voice recorder, speech-to-text, or writing tool.
When you review your notes on this learning activity later, reflect on whether you would select a different description based on your further review of the material in this learning activity.
Press ‘Discover More’ to extend your skills.
Discover MoreMany credit cards have reward programs. You get points for the money you spend. These points can be used to purchase other items, or in some cases to help pay for another purchase.
What are some examples of common credit card or points reward program benefits you have heard of?
A teen’s credit card offers them ten points for every dollar they spend. How much do they have to spend to get enough points for the following rewards?
- 250 points to get a $5 credit
- 25,000 points to get a small kitchen appliance
- 75,000 points to get a flight to the Caribbean
How long do you think it would take someone to save for rewards? What would be some factors that may change this time period for different people in different situations?
Student Success
Think-Pair-Share
With a partner, discuss the advantages and disadvantages of having a credit card that offers rewards.
Brainstorm
Brainstorm
Research two different reward-based credit cards and compare them. Why do you think there are so many options available? Which one would you prefer and why?
Connect with a TVO Mathify tutor
Think of TVO Mathify as your own personalized math coach, here to support your learning at home. Press ‘TVO Mathify’ to connect with an Ontario Certified Teacher math tutor of your choice. You will need a TVO Mathify login to access this resource.
TVO Mathify (Opens in new window)