Starter quiz
- Match the words to their correct definitions.
- ethical⇔doing what is morally right, fair and good ✓
- debit⇔money taken from a bank account and used for payment ✓
- credit⇔money that can be used for payment but it is borrowed from a lender ✓
- budget⇔a plan for how to spend money and track income and expenditure ✓
- Various bank accounts serve different purposes, like ______ accounts for spending and savings accounts for storing money.
- 'current' ✓
- The main types of payments we can use includes ______, debit cards, credit cards and digital payments.
- 'cash' ✓
- What tasks does financial responsibility involve?
- spending all your money on wants
- making informed decisions about your money ✓
- ignoring your bank statements
- focusing on budgeting and saving ✓
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- What is the focus of ethical banking?
- maximising profits at all costs
- supporting banks that invest responsibly ✓
- ignoring the impact of investments
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- Why is it important to avoid unnecessary debt?
- to increase financial stress
- to spend more money on wants
- to maintain financial security ✓
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Exit quiz
- What can happen if you borrow money through credit cards?
- you can get charged high interest rates ✓
- you get to keep the money for free
- you avoid paying interest altogether
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- Match the words to the correct definition.
- borrow⇔taking money from a lender with the intention of paying it back ✓
- interest⇔the extra money you have to pay when you borrow money as a fee ✓
- overdraft⇔when you spend more money than you have from your bank account ✓
- loan⇔a sum of money you receive and agree to pay back with interest ✓
- Borrowing money can be part of budgeting sensibly and learning to be ______ by always paying loans back on time.
- 'financially responsible' ✓
- What are loan sharks?
- banks with low interest rates
- lenders who charge high rates ✓
- legal financial advisors
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- Overdrafts can lead to ______ fees if not repaid quickly.
- 'high' ✓
- What is a potential result of taking out long-term loans?
- paying no interest at all
- getting to keep the money
- paying more interest over time ✓
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Worksheet
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Lesson Details
Key learning points
- Borrowing money through credit cards can lead to high interest rates.
- Short-term loans can quickly accumulate debt and become expensive.
- Long-term loans can result in paying more interest over time.
- Overdrafts can lead to high fees if not repaid quickly.
- Loan sharks charge extremely high interest rates and operate outside FCA protections.
Common misconception
Borrowing money is always a dangerous thing to do.
In our lives it is sometimes necessary to borrow money, e.g., when we buy a house most people have to get a mortgage. However, this can be part of budgeting sensibly and learning to be financially responsible by always paying loans back on time.
Keywords
Borrow - taking money from a lender with the intention of paying it back
Interest - the extra money you have to pay when you borrow money, acts as a fee for using it
Overdraft - when you spend more money than you have from your bank account
Loan - a sum of money you receive and agree to pay back with interest
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