How do we pay for things? | Financial education | Quizalize & Oak National Academy

Starter quiz

What is budgeting?
- Raising money to donate to a charity.
- The process of planning to spend an amount of money for a particular purpose. ✓
Tick the items that you would need to save up to be able to afford if you had the money in the picture.
- Sketch pad £2.50
- Paint set £4.99 ✓
- Sketching pencils £4.25
Postcards are 49 p each. If you have £3 then how many can you afford?
- '6' ✓
At a fairground, each ride costs a different number of tokens. Alex likes riding the rollercoaster. How many times can Alex afford to go on the rollercoaster with 12 tokens?
- '3' ✓
At a fairground, each ride costs a different number of tokens. Laura loves the dodgems. How many times can Laura afford to go on the dodgems with 16 tokens?
- '5' ✓
Snacks at the cinema cost different amounts. Jacob has £5 to spend and buys toffees and gummy bears. How many chocolate frogs can he afford to buy with the rest?
- 1
- 2
- 3 ✓
- 4

Exit quiz

Jun and Izzy have both bought the new Battle Robots comic. Jun owes his Mum £4 and Izzy used her pocket money. Which one has borrowed money?
- Izzy
- Jun ✓
Jun owes his Mum £4 for a comic. How long will it take him to pay her back?
- '8 weeks' ✓
Izzy has borrowed £2.50 from her Dad. It will take her five weeks to pay him back. How much is she paying back each week?
- '50 p' ✓
Match the type of card to the definition.
- Credit card
  
  ⇔
  
  Used to buy things and pay for them later. ✓
- Debit card
  
  ⇔
  
  Takes the money straight out of a bank account. ✓
Can a debit card always be used to pay for things?
- Yes
- No ✓
Izzy thinks a credit card is magic as you don’t have to have the money and you can just keep buying things. Is she right?
- Yes
- No ✓

Worksheet

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Presentation

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Lesson Details

Key learning points

Debit cards are used to spend the money in an account.
Credit cards are used to spend now and pay back later, sometimes paying more.

Common misconception

Pupils may think that paying by contactless card is free money because there is no concrete exchange of money that can be seen.

Remind children that bank accounts are charged whenever a card is used. Ask a child to pass plastic coins from one pot to another outside the classroom as you use a pretend contactless card. Pupils won't see the exchange but it has happened.

Keywords

Credit card - A credit card can be used use to buy goods and services and pay for them later.
Debit card - A debit card can be used to take money directly from a bank account to pay for goods or services.
Borrow - Borrow means to use someone else's money. It will be paid back later.
Declined - When a debit card is declined it means there isn’t enough money left in the account to pay.