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Grade 7 · Financial Literacy · Exchange Rates and Long-Term Budgets

Plan Across Currencies and Time

Exchange rates convert value between currencies, while a budget connects income, spending, and saving to a goal over time.

The big idea

A useful financial plan records assumptions

A currency conversion depends on a quoted rate and date. A longer-term budget depends on expected income and expenses that may change.

Work it through

Convert US$80 at US$1 = C$1.35

  1. 1. Identify the direction: US dollars to Canadian dollars.
  2. 2. Multiply 80 × 1.35 = 108.
  3. 3. Record the result as C$108 and cite the exchange-rate source and date.
  4. 4. Add fees if the real transaction includes them, then update the budget.