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 PowerPoint for teachers/trainers to use as required.

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 and demonstrate the real-life process of foreign exchange.

Learner aims

The National Literacy and Numeracy Framework (LNF)

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 and demonstrate the real-life process of foreign exchange

• understand and calculate income tax.

Starter activity:

Foreign money

What is an exchange rate?

Why do exchange rates exist?

Foreign money and exchange rates

Where can you purchase foreign money?

Do they all offer the same

exchange rate?

Discussion activity:

Adding up to a lifetimeThis 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)• Working life• Relationships• New life• Active retirement.

The modules offer the whole range of manage money topics.

www.addinguptoalifetime.org.uk

Each module has an audio tutorial

which can be listened to in

English or Welsh.

Adding up to a lifetimeThe 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.

Country Currency Rate (per £)

Euro zone Euro 1.17

USA US Dollar 1.54

Egypt Egyptian Pound 10.82

Japan Japanese Yen 151.15

Turkey Turkish Lira 2.97

Calculating with exchange rates

Country Currency Rate (per £)

Euro zone Euro 1.17

USA US Dollar 1.54

Egypt Egyptian Pound 10.82

Japan 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.

Country Currency symbol

Euro zone Euro €

USA US Dollar

United Kingdom

Pound Sterling £

Currency signsA 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.

$

Currency Symbol We also use

Euro € c (for cents)

US Dollar ¢ (for cents)

Pound Sterling £ p (for pence)

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?

Country Currency Coins Notes

Euro zone

Euro €2, €1, 50c, 20c, 10c, 5c, 2c

and 1c

€500, €200, €100, €50, €20,

€10, €5

USA US Dollar 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

Egypt Egyptian Pound 10.82 10 (or 11)

Japan 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?

ExtensionWas 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.

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.

Calculating with exchange rates

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 resourcesThe 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.