When we are budgeting and thinking about our long-term financial goals, we need to consider everything that we need to pay for straight away, and make sure that we have enough money to cover this first. That means identifying things like groceries, any medicines needed and transport expenses, and making sure that these things are budgeted for before anything else. 22.3 SkillBuilder activity INTERPRETING AND ANALYSING DATA AND INFORMATION 1. Explain why buying shares might be considered a sensible long-term financial goal. 2. Examine a stock market report online by visiting the ASX weblink in the Resources panel and selecting the ASX200 top 5. You can click on an individual company for more detailed information. This will display a graph of the share prices. Answer the following questions: a. Identify two companies that experienced an increase in share price during the previous day’s trading. b. State by how much each increased in price. c. Determine how many shares were bought and sold for each company. d. Set the time period on the graph to one year. Identify the highest and lowest price that each company’s share reached during this time period. e. Identify whether the current price is closer to the highest or lowest experienced during the past year. f. From what you can see of the shares in these two companies, determine whether they would be good value to buy right now. Explain your answer.
22.3
Exercise
Learning pathways LEVEL1 1, 4, 5
LEVEL2
LEVEL3
2, 3, 8, 9
6, 7, 10
REMEMBER AND UNDERSTAND 1. By the year 2035, the minimum age for accessing the pension will have risen to _____________. 2. Define what is meant by long-term personal financial goal . 3. Provide three examples of long-term personal financial goals. 4. Identify three benefits of owning shares. Select all possible answers from the options below. A. The value of shares can fall, which means that you can lose money. B. The value of shares can rise, which means that you can gain money. C. You ‘earn’ a share in the company’s profits. D. Shares allow you the flexibility to buy and sell when you need to. E. Your shares may only be worth a fraction of what you paid for them if the company fails. 5. From the options below, select the expenses that are classed as needs.
A. Groceries B. Aholiday C. Medicines D. Dinner at a restaurant
E. Coffee with friends F. A gym subscription ANALYSE AND APPLY 6. Explain why a property is considered a long-term investment. You may wish to give an example to support your answer. 7. Describe the role of superannuation in planning for retirement.
636 Jacaranda Humanities Alive 8 Victorian Curriculum Third Edition
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