Planned saving and borrowing
Lesson details
Learning outcome
I can calculate, evaluate and select the most appropriate saving schemes and borrowing arrangements for given circumstances.
Key learning points
- Certain situations may require planned saving/ borrowing. Interest rates and my circumstances will affect my choices.
- Saving schemes/borrowing arrangements need to be analysed to determine the most appropriate choice for my circumstances.
- Planned and organised saving/borrowing over extended periods of time can be useful when managing my money effectively.
Keywords
Annual percentage rate - The annual percentage rate (APR) is the cost of borrowing money on a credit card or loan over a year.
Common misconception
Being in debt is always bad.
Managing debt is a key skill and being able to do this may save you money over a longer term.
Teacher tip
Pupils may wish to discuss what other big purchases/expenses may occur (such as buying property). They could discuss the likelihood that someone can buy property outright rather than borrowing money to buy the property. Does this mean we should not buy a property?
Content guidance
Depiction or discussion of sensitive content
Supervision
Adult supervision recommended
Licence
Lesson video
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Prior knowledge starter quiz
6 Questions
Q1.When money is added to an account, it can be said that the account has been with that amount.
Q2.Credit (rating) is a score reflecting how trusted you are to pay back any money that you borrow.
Q3.Which of the following are emergency expenses?
Q4.Sofia's mobile phone contract costs £33.50 per month. What is her annual phone bill?
Q5.Calculate 15% of 360
Q6.Calculate 35% of £640
Assessment exit quiz
6 Questions
Q1.The is the cost of borrowing money on a credit card or loan over a year.
Q2.Match the word/phrase with the correct definition.
Q3.Alex borrows £60 and has to pay it back with 6% interest. What is the total he has to repay?
Q4.Sofia borrows £70 and has to pay it back with 7.5% interest. What is the total she has to repay?
Q5.I borrow £450 and have to pay it back plus interest. I am asked to make 3 equal payments of £156.30. How much must I pay back in total?
Q6.I borrow £450 and have to pay it back plus interest. I am asked to make 3 equal payments of £156.30. Which interest rate has been applied?
To help you plan your 9 financial education lesson on: Planned saving and borrowing, download all teaching resources for free and adapt to suit your pupils' needs...
To help you plan your 9 financial education lesson on: Planned saving and borrowing, 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 financial education lessons from the Smart spending: budgets and investments unit, dive into the full secondary financial education curriculum, or learn more about lesson planning.