CITIZENSHIP, MATHS AND ICT

1
CITIZENSHIP, MATHS AND ICT

• Unit Overview
• Financial Literacy

2
Financial Literacy

• Managing your finances
• is something which most
• people struggle with
• its not easy!

This unit is going to build on work which you
will cover in your Maths and Citizenship lessons
and it will use ICT to help you to learn how
to manage your finances!
3
Unit Objectives

• By the end of this unit, you should be able to
• Understand about issues such as taxation,
  mortgages and insurance
• Understand how to manage your finances
• Use a computer system to help you to manage your
  money
• Use your system to make financial predictions and
  future plans

4
Your Task

• Just imagine
• you are in your mid-twenties
• you have a good job in your chosen career
• you could be living anywhere in the country
• you might be living with a partner or a
  housemate
• There are lots of financial figures to keep track
  of!
• To begin, in pairs, write a list of all the
  different income and expenses which you might
  need to keep a record of

5
Website Links
6
Creating Your Financial Model

• Once you have most of the figures including
  income and expenditure you can begin to design
  your own financial system using the computer.
• Separate your figures into two sections whether
  they are an income or an expense
• Then decide whether the figures you have are
  weekly, monthly or annual (yearly) amounts

7
Creating Your Financial Model

• Now youre ready to go! So
• On paper first, sketch out the design of how you
  want your system to look
• Decide on the software which will be most useful
  for handling numbers and making calculations
  automatically
• Begin to transfer your figures into the layout of
  your new financial model on the computer

8
Your Financial Rules

• There are some rules which your model needs to
  follow. This will help you to make your system
  more accurate and useful.
• For example, you must pay one third of your
  salary in Income Tax.
• The rules follow on the next slide (and on the
  help sheet here)

9
Your Financial Rules

• You must pay one third of your salary in Income
  Tax
• If you buy a house, you can only borrow four
  times your salary (before tax)
• You can share a house with up to two other people
  in this case you should divide your expenses by
  the number of people living in the house
• If you own your house
• monthly mortgage payments are the price of your
  house divided by 300
• monthly council tax bill is the price of your
  house divided by 2400
• If you are renting your house
• monthly council tax bill is the price of your
  monthly rental divided by 8
• If you buy a car
• monthly payments are the price of your car
  divided by 36
• monthly car insurance is the price of your car
  divided by 225

10
Testing Your Financial Model

• Now your model is complete, you need to check
  that it works properly
• Try entering some simple figures into your system
  and check whether the calculations are accurate.
• If you change some of the figures, do the totals
  automatically re-calculate?
• Make a note of what changes you make and check
  some of the calculations using either arithmetic
  or a calculator...

11
Now you can plan ahead!

• You have a system whch works, so now we can look
  into the future
• Your ICT model should now enable you to predict
  what might happen, if

12
Using Your Financial Model

• Now use your model to predict what might happen
  to your finances, if
• Income tax goes up from one third of your income
  to one half of your income
• Council tax goes down divide your house price
  by 3000 or your monthly rental by 12
• You get a pay rise! Add 10,000 to your annual
  salary!

13
Possible financial scenarios

• Finally, change your financial situation so
• You have money left at the end of each month
• You break even every month you spend almost
  exactly what you earn
• You are in debt you end each month spending
  more than you earn
• Save each scenario as a separate file. You have
  
• proved that your model works and can predict the
• future!

14
Extending your model

• Can you build upon this model to make it more
  complex or more useful?
• Try looking at the following functions-
• Conditional Formatting
• Goal Seek
• Data Validation
• Input Messages and Comments
• Graphs and Charts

15
How your ICT work will be marked

• Level 4
• With help, you are able to use a computer system
  to make calculations. The results of the
  calculations help you to understand your
  financial situation. You can understand why this
  work links to Maths and Citizenship.
• Level 5
• You create a system using the computer, which
  makes calculations and can automatically display
  your financial situation. You can describe how
  and why your work connects to your Maths and
  Citizenship lessons.
• Level 6
• You create a financial management system and can
  test it with different values to demonstrate more
  than one financial situation. You can use your
  system to make predictions about future financial
  situations and you are able to write a user guide
  to your system.

16
CITIZENSHIP, MATHS AND ICT

• Unit Overview
• Financial Literacy