What are the implications of borrowing money?
Lesson details
Learning outcome
I can explain the different types of borrowing and the dangers attached to borrowing.
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.
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
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.
Teacher tip
You may wish to speak to your RSHE lead or DSL before teaching this lesson, as some topics, such as debt or loan sharks, might be upsetting to some pupils.
Content guidance
Depiction or discussion of discriminatory behaviour
Depiction or discussion of sensitive content
Depiction or discussion of sensitive content
Depiction or discussion of mental health issues
Supervision
Adult supervision required
Licence
Lesson video
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Prior knowledge starter quiz
6 Questions
Q1.Match the words to their correct definitions.
Q2.Various bank accounts serve different purposes, like accounts for spending and savings accounts for storing money.
Q3.The main types of payments we can use includes , debit cards, credit cards and digital payments.
Q4.What tasks does financial responsibility involve?
Q5.What is the focus of ethical banking?
Q6.Why is it important to avoid unnecessary debt?
Assessment exit quiz
6 Questions
Q1.What can happen if you borrow money through credit cards?
Q2.Match the words to the correct definition.
Q3.Borrowing money can be part of budgeting sensibly and learning to be by always paying loans back on time.
Q4.What are loan sharks?
Q5.Overdrafts can lead to fees if not repaid quickly.
Q6.What is a potential result of taking out long-term loans?
To help you plan your 9 citizenship lesson on: What are the implications of borrowing money?, download all teaching resources for free and adapt to suit your pupils' needs...
To help you plan your 9 citizenship lesson on: What are the implications of borrowing money?, download all teaching resources for free and adapt to suit your pupils' needs.
The starter quiz will activate and check your pupils' prior knowledge, with versions available both with and without answers in PDF format.
We use learning cycles to break down learning into key concepts or ideas linked to the learning outcome. Each learning cycle features explanations with checks for understanding and practice tasks with feedback. All of this is found in our slide decks, ready for you to download and edit. The practice tasks are also available as printable worksheets and some lessons have additional materials with extra material you might need for teaching the lesson.
The assessment exit quiz will test your pupils' understanding of the key learning points.
Our video is a tool for planning, showing how other teachers might teach the lesson, offering helpful tips, modelled explanations and inspiration for your own delivery in the classroom. Plus, you can set it as homework or revision for pupils and keep their learning on track by sharing an online pupil version of this lesson.
Explore more key stage 3 citizenship lessons from the How can we manage money well? unit, dive into the full secondary citizenship curriculum, or learn more about lesson planning.