Interest is money added to savings or loans. Simple interest is always calculated on the original amount.

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

Using information and advice to make financial decisions

Financial education

Managing risk

Insuring against risk

This unit teaches how to evaluate financial advice, manage risk effectively, and understand insurance as a safety net.

Making informed financial decisions

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

Depiction or discussion of sensitive content

{{}} are used to purchase property (e.g. a house) and are typically paid back over 20-30 years.

Bank {{}} tend to be used to borrow over £1000 (e.g. for a car) and are typically paid back over 1 to 5 years.

{{}} cards allow users to purchase items for up to a few thousand pounds. The credit card provider pays for the item and then the customer pays the provider back in a flexible way.

{{}} loans are unsecured loans for typically between £50-£1000.

'{{}} pay later’ schemes allow customers to purchase an item and then pay for it over time with regular monthly payments.

Select the best (cheapest) option if I want to go to the gym once a week for 11 months.

Andeep wants to buy a phone costing £235. He is offered a loan that requires him to pay back £41/month for 6 months. How much would Andeep have to pay back in total?

Andeep wants to buy a phone costing £235. He is offered a loan that requires him to pay back £41/month for 6 months. How much interest does he pay?

Izzy wants to buy a laptop costing £880. She is offered a loan that requires her to pay back £77.25/month for 12 months. How much would Izzy have to pay back in total?

Izzy wants to buy a laptop costing £880. She is offered a loan that requires her to pay back £77.25/month for 12 months. How much interest does she pay?

Interest is money added to savings or loans. {{}} interest is always calculated on the original amount.

{{}} of interest is the percentage by which an amount will increase.

This lesson was made for home learning during the pandemic.

Using information and advice to make financial decisions

Lesson outcome

Content guidance

This lesson was made for home learning during the pandemic.