Spending

Financial understanding
In this activity, Kalala shops around and investigates the different deals there are on telephones. This will help her to make a more financially responsible decision and to manage the different risks involved in deciding which telephone package to purchase.
The question 1 task requires the students to read each advertisement carefully to see if it has the three special features that Kalala is looking for.
In each case in question 2, it is worthwhile having the students compare the hire purchase price with the plan price. For example, the Talkup 992 plan price is $499. This means the hire purchase price is an extra $146.84 (the others are an additional $126.20; $111.80; $168.52; $189.16, and $168.52 respectively).
Students will respond more fully to questions 3a and 3b if they are discussed in a group. It may be useful to find examples of mobile phone plans that are currently available and familiar to the students and work together to calculate the likely yearly cost of these plans.
For question 4, ask Which phones does Kalala have enough money to buy? (Note: If the students have completed the previous page, they need to consider that she has already given some of her $1,000 to charity.) When the students answer the question of which phone they themselves would buy, they should consider the “ongoing
costs”, that is, how much they will be spending each month on phone calls or plan costs.
Mathematics and statistics
For question 2, each phone offers a hire purchase option over a period of 24 months, that is, 104 weeks. Multiplying by 100 will give a quick estimate of the price. To find the exact cost, students can use a range of strategies, such as multiplying by 100, multiplying by 4, and adding the results together (see examples 1 and 2
below); or using place value (see examples 5 and 6 below) or tidy numbers or rounding and compensating (see example 3).
Students may benefit from using a simpler example first, such as:
$4.50 per week would cost a little more than $450 after 24 months (that is, 104 weeks) because $4.5 x 100 is $450. To calculate the cost for 104 weeks, add $4.50 x 4 = $18 (double $4.5 = 9, and double again) to $450 to get the exact price of $468.
Working examples:
1. Talkup 992: $6.21 x 104 = $621 + $24.84 (that is, $6.21 x 2 x 2) = $645.84
2. Fotalk 600: $5.05 x 104 = $505 + $20.20 = $525.20
3. Talkup 973: $3.95 x 104; ($4.00 x 104) – ($0.05 x 104) = $416 – $5.20 = $410.80
4. Fotalk 700: $7.38 x 104 = $767.52 (as for 3)
5. Fotalk 800: $8.54 x 104 = $854 + $32 + $2.00 + $0.16 = $888.16
6. Zardon B34: $7.38 x 104 = $738 + $28 (that is, $7 x 4) + $1.20 (that is, $0.30 x 4) + $0.32 (that is, $0.08 x 4) = $767.52
Statistics
Cellphone usage may be an interesting topic to investigate. Students could ask questions such as: “Do young people use cellphones more than adults?” “Do people spend more money on texting, ‘pxting’, or talking?”
Students should be encouraged to use the PPDAC (problem, plan, data, analysis, conclusion) statistical investigation cycle when completing these investigations. (See Census At School website, www.censusatschool.org.nz)
Extension
Financial understanding
Cellphone plan providers often have websites that offer an online service to work out the best plan for a person’s needs. Students may wish to estimate the type of usage Kalala (or a typical 12-year-old) is likely to incur and work out the appropriate plan.
 

Social Sciences Links
Achievement objectives:
• Understand how people make decisions about access to and use of resources (Social Studies, level 3)
• Understand how exploration and innovation create opportunities and challenges for people, places, and environments (Social Studies, level 4)
Ask: Is price the only thing that Kalala will think about when deciding on a phone? Might she be influenced by brand or what her friends might think? Should she worry about those things?
Other Cross-curricular Links
English achievement objective:
• Purposes and audiences: Show a developing/increasing understanding of how to shape texts for different purposes and audiences (Speaking, Writing, and Presenting, levels 3–4)
Students could do a close reading of the terms and conditions of current cellphone contracts .

Answers to Activity

1. The Fotalk 700, the Fotalk 800, and the Zardon B34 have all the features that Kalala wants.

2. Talkup 992: $645.84; Fotalk 600: $525.20; Talkup 973: $410.80; Fotalk 700: $767.52; Fotalk 800: $888.16; Zardon B34: $767.52
3. a. Kalala would be locked into a plan that would require monthly payments. She
needs to make sure she will have enough money to pay the plan fee every month and
any extra costs if she exceeds the plan. (Remember that she has already given some
of her money to charity.)
b. Answers will vary. Advantages may include: a phone with a plan is often cheaper than buying a phone and using prepaid cards.
Disadvantages may include: you may find yourself locked into a plan for 12 or 24
months; you have to pay a set amount even if prices fall or you don’t use the phone
very often.
4. Answers will vary.
Reflective question
Answers will vary. Shopping around and doing research on aspects such as prices, quality, follow-up service, and possible complications are all ways to minimise mistakes. Also, it’s important to keep receipts and take note of dates and terms of
warranties and guarantees.