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Learning Objectives
• Learn about the importance of being sensible with your personal finances
• Explore why people need to borrow money• Understand responsible borrowing and be able to
analyse different financial products• Assess the possible consequences of getting into
debt & the impact this can have on individuals & families
• Know where to find financial support & advice
I promise to make a positive contribution to today’s activities
I will listen to the evidence presented
I will respect the views of others
I will behave sensibly and maturely
Activity Instructions
In your groups discuss the following question…
Why do people borrow money?
Make notes and choose somebody to feedback from your table You have 5 minutes
Summary: Why Do People Borrow Money?
Financial Planning – making rational financial decisions
e.g. – You decide to take out a loan to cover a large purchase knowing you have the finances to pay for it
Buying things on impulse
e.g. – You see a special offer on a widescreen TV but you haven’t got the money so you take on a ‘Buy Now Pay Later’ deal to buy it
Unforeseen Circumstances – things you need to pay for but don’t have the money for
e.g. - Your car breaks down and you need to get it repaired quickly because you need it to get to work
Activity Instructions
Match the descriptions of different financial terms to the pictures
Choose a different person to feedback
You have 5 minutes
Activity Instructions
For this activity imagine you are single and live by yourself
£1,500 is your monthly wage and you need to decide what to spend it on
Start by putting the money on your rent, utilities and mobile phone/internet – you have no choice with these categories
Decide whether you will travel by bus or have a car
Put at least the minimum on food and savings
Everything else you decide how much to allocate
Work as a group – don’t let one person take over
You have 10 minutes
Unforeseen Circumstances
You can not take money from the following categories:
House/Flat
Utilities
Mobile Phone & Internet
Travel
You also have to keep the minimum of £200 on your food
Activity Instructions
You want to get a TV that costs £800You have 5 different options for buying the TVEach option has a list of terms & conditions and a list of pros and cons Share the cards out amongst your group and work individually or in pairs to look at the details of each optionOnce you have each read your cards discuss them all as a groupDecide as a group which option you are going to select to buy the TVWe will ask you to feed back which one you have chosen and how the terms and conditions influenced your choice and how you will alter your spending if your monthly payments are highThere are no right or wrong answers – each of the 5 options has its advantages and disadvantagesYou have 15 minutes
Maria
• Managing Director• Married• 2 children
John
• Graphic Designer• Single• No children
Adya
• Student• Single• No children
Dale
• Teaching Assistant• Divorced• 2 Children
Betty and Gil
• Retired• Married• 3 adult children
Activity Instructions
You are a company that gives people credit
As a business you make profit by lending people money but you have to be careful of the risk they may not be able to pay it back
Decide based on the information on the credit reports whether you would lend each person the money they want
Look out for any warning signs that they might be a risk: the debt they already have, their credit score, missed or late payments You have 10 minutes