Rent-Lease-Buy Learning Activity Created by FCNB and COE-Entrepreneurship

Overview

This financial literacy-based learning activity explores how students can: compare the advantages and disadvantages of renting, leasing and buying while analyzing factors that influence their decision. This learning activity encompasses five components:  Discussion, Activity, Extension, Collaborative Feedback, Pre and Post Assessment.  It was created by FCNB in collaboration with the Centre of Excellence for Entrepreneurship.  New Brunswick high school teachers were selected for focus groups to pilot the resource with their students and gather feedback.  A perfect example of provincial partnerships working with education to enhance the financial literacy knowledge of students in New Brunswick!

NB Curricular Outcomes:

What You’ll Need:

• “Which One Should I Choose – Pros and Cons” Handout
• “Buying vs. Leasing” Handout

Instructions

1. Discussion: Get your students involved by tailoring these discussion points to their grade level, interests, and experience

• What do you think of when you hear the terms rent, lease, buy?
•  What are some advantages to owning versus renting or leasing?
• What are some disadvantages to owning versus renting or leasing?
• When you sign a contract (agree to purchase something – new or used):
• Do you own it at the end of the contract? (buying)
• Are you finished with it at the end of the contract and must give it back? (renting or leasing)
• Are you buying it out for an additional fee at the end of the contract? (leasing)
• Important to note that “rent” is short-term (e.g., you rent an airBNB or a hotel room). In terms of an apartment, we often say we are paying our “rent”, but we actually sign a “lease”.

2. Divide the class into 3 groups (or have students do each option individually).

3. Have each group find real-world examples of one of the following options:

• Renting: vehicles and/or property. (Examples for research: Airbnb, Vrbo, hotel websites, commercial and residential real estate websites, vehicle and moving
  rental companies, and car sharing sites like Turo)
• Leasing: vehicles and/or property (Examples for research: new and used vehicle dealerships, social buy and sell sites, realtor companies)
• Buying: vehicles and/or property (Examples for research: new and used vehicle dealerships, social buy and sell sites, realtor companies)
• Have each group discuss and list all the pros and cons of their option. Encourage them to consider reasons why someone might choose their option (e.g., life expectancy of the item, income, new vs used item, short-term vs long-term need)
• Once the students have completed their research, discuss their findings in class.

4. Have the students calculate leasing versus buying options for a vehicle. (This can be
done in groups or individually).
5. Have students calculate renting vs buying options for a property using the links at the end of the Buying vs. Leasing handout

Extensions Ideas:

• Discuss the following and have students explain why their answers to the questions below might differ depending on their situation.
  You want/need:
  • to watch a movie with friends. Would you rent or buy?
  • an electric scooter to get around the city. Would you rent, lease or buy?
  • a textbook for university. Would you rent, lease or buy?
  • a new television. Would you rent, lease or buy?
  • a car to get to and from your job. Would you rent, lease or buy?
  • to buy an ATV or four-wheeler. Would you rent, lease, or buy?
  • a shop to start a new bicycle repair business. Would you rent, lease or buy?
  • a cellphone. Would you rent, lease or buy?
  • to furnish your apartment. Would you rent, lease or buy?

Reflection Activity

• Based on the research shared in class, what are some additional questions or considerations to think of when renting versus leasing versus buying?
• What might be a good reason to rent?
• What might be a good reason to lease?
• What might be a good reason to buy?

• What do you know about renting, leasing and buying?
• What did you learn about renting, leasing and buying?

Additional Resources:

Buying a Vehicle Workbook

When Making a Large Purchase;

Rent-to-own Plans – Canada.ca;  

Buy Now, Pay Later plans – Canada.ca

This learning resource was created by FCNB in collaboration with the Centre of Excellence for Entrepreneurship and New Brunswick High School Teachers. 

FCNB offers bilingual financial literacy lessons for Grades 2-12!  Check out their incredible Resource: Financial Literacy: A Guide for New Brunswick Teachers

French Version: Faites que ça compte La gestion financière et les jeunes – Guide de l’animateur

Global Competencies 

1. Innovation, creativity, and Entrepreneurship