Section 1
1. Section 1
1.40. Connect
Section 1: Personal Budgets
Connect
Going Beyond
Budgets must be revised because prices rise. A price increase is called inflation. The Bank of Canada’s website has an inflation calculator. You can calculate how the price of a basket of goods has changed between any two years after 1914. For example, a “basket” that cost $2000 in 1914 would cost $38 524.59 in 2011. So a 2011 salary of $38 524.59 would be comparable to a salary of $2000 in 1914.
Go to the Internet and use the keywords “Bank of Canada inflation calculator” in a search engine. Use the Inflation Calculator to estimate what salary in 1967 would be equivalent to a salary of $65 000 in 2010.
Project Connection
At this time, you should now be ready to complete Steps 4 and 5 of the Create Your Own Personal Budget project. Review the evaluation rubric to ensure you have completed all parts of the project. Save your work in your course folder.
Lesson 4 Assignment
Your lesson assignment contains some problems for you to solve using knowledge gained during the lesson. Now you will have the chance to apply the concepts and strategies that you have learned to a new situation. Please show work to support your answers.
Open the Lesson 4 Assignment that you saved to your course folder and complete the questions. You will need to use Dagmar’s Current Budget to complete question 2.
