Profit is a business’ financial gain; the difference between the revenue and the cost.

Interest is money added to savings or loans.

The rate of interest is the percentage by which an amount will increase.

Risk and reward

Financial education

Saving and borrowing

Making financial decisions

In this unit we explore saving and borrowing, making financial decisions, and understanding financial risks and returns.

Choices, risks and rewards

Subjects which particular individuals may be sensitive to, eg, adoption, migration, bereavement or death, divorce, poverty, deprivation.

Depiction or discussion of sensitive content

Alex invests £50 into a savings account that pays 3% interest per annum. After a year, Alex withdraws his £50 plus the interest it earned. How much did Alex withdraw?

Alex decides to keep his £51.50 in the savings account that pays 3% interest per annum. A year later, Alex withdraws his £51.50 plus the interest it earned. How much money did Alex withdraw?

Izzy wants to start her own business. The start-up cost is £350 and she has £287. Jun offers to invest the rest. What would Jun's share of the profits be?

Jun has a part-time job that pays £24/week. He wants to buy a laptop costing £600. How many weeks will it take for him to save enough money?

Jacob borrows £300 and is expected to pay it back with 8% interest. How much money will Jacob need to pay back?

You may not pay in back in time, resulting in more debt.

You can afford something that you otherwise could not.

You may see a reduction in your credit score.

You may see an increase in your credit score.

Select the potential negative consequences when borrowing money.

If you have 40 colouring pencils and 30% of them break, how many do you have left?

A top originally cost £20. It is now on sale for £15. What is the percentage decrease in price?

A store owner buys a pair of shoes for £50 and sells them for £71. What is the percentage profit?

A house originally valued at £175 000 increase in price by 12.5%. What is its new value?

An item that originally cost £35 is discounted by 17%. What is the sale price?

Starter Quiz