Module 9 Foreign money Module objectives

Module 9: Foreign money

Module objectives • Provide an opportunity to look at the learner outcomes in the ‘Manage money’ element of the numeracy component of the National Literacy and Numeracy Framework (LNF) in order to identify where teaching learners about calculating with foreign currency exists in the curriculum in Wales. • Highlight resources and activities that can be used in Key Stages 3 and 4 to develop learners’ numeracy skills in the context of calculating with foreign currency. Note: Differentiation, extension ideas and effective questioning will often be suggested in the notes within the Power. Point for teachers/trainers to use as required.

Learner aims The module introduces the process of calculating using exchange rates and using foreign money. Learners will be able to: • appreciate the different places/ways to buy foreign money • carry out calculations using a given exchange rate • understand demonstrate the real-life process of foreign exchange.

The National Literacy and Numeracy Framework (LNF) focuses on four strands of numeracy: • • Strand 1: Developing numerical reasoning Strand 2: Using number skills Strand 3: Using measuring skills Strand 4: Using data skills.

Numeracy component of the LNF Strand: Using number skills Elements: • Use number facts and relationships • Fractions, decimals, percentages and ratio • Calculate using mental and written methods • Estimate and check • Manage money

LNF learner outcomes The following table shows the learner outcomes as specified in the numeracy component of the LNF. The focus in this module is the topic of foreign money and the specific learner outcomes are highlighted in bold.

Manage money Learners are able to: Year 7 • use profit and loss in buying and selling calculations • understand the advantages and disadvantages of using bank accounts, including bank cards • make informed decisions relating to discounts and special offers. Year 8 • carry out calculations relating to VAT, saving and borrowing • appreciate the basic principles of budgeting, saving (including understanding compound interest) and borrowing. Year 9 • calculate using foreign money and exchange rates • understand the risks involved in different ways of saving and investing • describe why insurance is important and understand the impact of not being insured. Extension • use and understand efficient methods of calculating compound interest • understand demonstrate the real-life process of foreign exchange • understand calculate income tax.

Foreign money Starter activity: What is an exchange rate? Why do exchange rates exist?

Foreign money and exchange rates Discussion activity: Where can you purchase foreign money? Do they all offer the same exchange rate?

Adding up to a lifetime This is a free online resource which follows four characters and how they deal with financial situations. It is suitable for Key Stage 3 to Key Stage 5. The package is approximately 25 hours of learning activities which learners can complete online. It is presented as 5 modules: • Life as a student (aged 14 upwards) Each module has an audio tutorial • Working life which can be • Relationships listened to in English or Welsh. • New life • Active retirement. The modules offer the whole range of manage money topics. www. addinguptoalifetime. org. uk

Adding up to a lifetime The module ‘Life as a student’ explores a variety of topics. Visit www. addinguptoalifetime. org. uk, click ‘Menu’ and choose the topic ‘Holidays’. The resource covers budgeting for a holiday, destinations, money (currency) and insurance. The work can support the development of learners’ literacy and numeracy skills and any project work on holidays.

Calculating with exchange rates Country Currency Rate (per £) Euro zone Euro 1. 17 USA US Dollar 1. 54 Egyptian Pound 10. 82 Japanese Yen 151. 15 Turkey Turkish Lira 2. 97

Country Currency Rate (per £) Euro zone Euro 1. 17 USA US Dollar 1. 54 Egyptian Pound 10. 82 Japanese Yen 151. 15 Turkey Turkish Lira 2. 97 For every pound I get just under 3 Turkish lira. For every pound I get 1. 17 euros. For every pound I get just over one and a half times as many US dollars.

Currency signs A currency sign is a graphic symbol used as a shorthand for a currency’s name, and used to represent an amount of money. Where is the sign located – at the end or the front of the numbers? When writing an amount of money the position of the symbol varies by currency. Also some currencies use a decimal point and others use a comma. Country Currency symbol Euro zone Euro € USA US Dollar $ United Kingdom Pound Sterling £

Banknotes and coins Discussion idea: How many pence in one pound? How many cents in one US dollar? How many cents in one euro? Discussion idea: Is there a £ 3 note? Or a 25¢ coin? What is the highest coin available in euros? Currency Symbol We also use Euro € c (for cents) US Dollar Pound Sterling $ £ ¢ (for cents) p (for pence)

Country Currency Euro zone Euro USA US Dollar Coins Notes € 2, € 1, 50 c, € 500, € 200, 20 c, 10 c, 5 c, 2 c € 100, € 50, € 20, and 1 c € 10, € 5 1$, 50¢, 25¢, 10¢ and 1¢ $100, $50, $20, $10, $5, $2, $1 Learners can investigate what coins and notes are in circulation in a chosen currency. Two examples are given above. In a real-life context, when simulating the purchase of foreign currency online, learners may notice that the amount will possibly be rounded to the nearest note or coin. This may or may not include commission.

Calculating with exchange rates Use the given exchange rates to calculate the amount of currency you would have for £ 400. Encourage learners to think also about the approximate values they could use to carry out the calculation. Country Currency Rate (per £) Approximate Euro zone Euro 1. 17 1 (or 1. 2) USA US Dollar 1. 54 1. 5 Egyptian Pound 10. 82 10 (or 11) Japanese Yen 151. 15 150 Turkey Turkish Lira 2. 97 3

Calculating with exchange rates Use the given exchange rates to calculate the amount of currency you would have for £ 400. Encourage learners to think also about the approximate values they could use to carry out the calculation. Currency Rate (per £) Approximation Amount for £ 400 Euro 1. 17 1. 2 x 400 = 480 1. 17 x 400 = 468 US Dollar 1. 54 1. 5 x 400 = 600 1. 54 x 400 = 616 Egyptian Pound 10. 82 11 x 400 = 4400 10. 82 x 400 = 4328 Japanese Yen 151. 15 150 x 400 = 60000 151. 15 x 400 = 60460 Turkish Lira 2. 97 3 x 400 = 1200 2. 97 x 400 = 1188

Calculating with exchange rates Finley went on a trip to New York. (a) He changed £ 750 into dollars ($) when the exchange rate was £ 1 = $1. 54. How many dollars did he receive? (b) In New York, Finley purchased a new camera for $199. Using the same exchange rate, calculate the cost of this camera, giving your answer to the nearest pound. (c) When Finley returned home he changed $115 back into pounds (£), when the exchange rate being offered was £ 1 = $1. 64. How much did he receive? Extension Was it in Finley’s favour that the exchange rate being offered was $1. 64 instead of $1. 54 when he changed his dollars back to pounds? Give an explanation to support your answer.

Calculating with exchange rates Eurocamping prices (charges per night) Per person 5 euros Tent plot (small) 4 euros Tent plot (large) 6 euros Electricity 10 euros Pets 2 euros Olivia and James share one tent and stay for two nights at the Eurocamping campsite. They changed pounds into euros for an exchange rate of 1. 13 euros to the pound. Calculate the cost, in pounds, of their two-night stay in a small tent with no electricity.

Foreign exchange and modern foreign languages Ideas for learners: • Produce a restaurant/café menu with prices converted from real-life prices. • Cost a holiday from the website of a campsite or European theme park in the chosen foreign language. Where prices are given in euros, part of the task is to work out the price in sterling. • Convert the cost to purchase items from an online website where prices and information are given in the foreign language being taught. • Compare pocket money and spending activities of learners from a different country, or compare salaries in euros with the equivalent occupations in sterling.

Websites and resources The following can be used to support work on foreign currency. • www. nationwideeducation. co. uk Finance Skills: games, factsheets* and worksheets* for learners aged 4 to 18+ (printable resources and online games). * Welsh versions available. • www. addinguptoalifetime. org. uk The modules offer the whole range of manage money topics including budgeting. • www. pfeg. org pfeg (Personal Finance Education Group) is an independent charity providing a wealth of resources to support financial education in schools. • www. xe. com/currencyconverter/ Exchange rates and free currency converting apps available.