Money Matters

Money Matters

Do you know how to look after the pennies?

In a second you will be asked to type in one method of looking after money. Try to give a less obvious method so we don't all have the same answer!

Open Ended

What ways can someone look after there money?

Ways to look after your money...

• Piggy bank for small amount of coins

• Bank account (a current account)

• ISA (higher interest savings account)

• Regular savings accounts (ISA's have limits)

• Investment in stocks and shares (risky!)

• many other options too!!

Quiz Time

How much do you know about finances?

Some questions only have one answer and some questions will have more than one correct answer, make sure you're happy with your choices before pressing anything!

Multiple Select

How can you check how much money you have in your current account?

• Via an ATM/cashpoint

• Visiting your bank

• Logging on to online banking

• Via a mobile phone app

• Send your parents to the bank for you

Multiple Choice

Which term describes your bank account if the balance drops below £0?

• Under-balance

• Over-balance

• Overdraft

• Bank Draft

Multiple Choice

Which of the following forms of borrowing money do you think has the highest risk associated with it?

• Mortgage

• Credit Card

• Loan Shark

• Payday Loan

Multiple Choice

What does the term Annual Percentage Rate (APR) mean in relation to a credit card?

• The minimum you must repay on the total amount you owe

• The percentage of your annual income that you must use to repay credit card debts

• The amount you can borrow over a year without paying interest

• The interest rate you pay for borrowing money

Multiple Select

What is your credit rating?

• Lenders will consider your rating when deciding on whether to lend you money

• It can impact on the interest rates lenders set for you

• How much money you have in your bank account compared to everyone else

• It lasts for six years

• Your rating can affect how likely banks and building societies are to give you a mortgage to buy a house

Multiple Choice

Which of the following could have a negative impact on your credit rating?

• Having a credit card

• Paying your mobile phone bill by direct debit

• Living at the same address for a long time

• Missed payments on a credit card

Multiple Select

Which of these actions can harm your credit rating?

• Saving into an ISA

• Applying for lots of credit (cards or loans)

• Being at your credit limit

• Moving home often

• Borrowing more than you can afford to repay

Multiple Select

Which of these actions can improve your credit score?

• Being registered to vote in elections

• Using direct debits

• Paying off loans or credit cards on time or early

• Setting up your own business

• Having higher level qualifications (like a degree)

Multiple Choice

Which of these is the most important bill to prioritise if you are in financial difficulties? (so which bill should you pay first!)

• Council Tax

• Broadband

• Water

• Digital TV Package

• Mobile phone bill

Multiple Choice

How much is an annual colour TV licence to watch live or recorded TV, or use BBC iPlayer?

• Free

• Under £50

• Between £50 and £100

• Between £100 and £200

• Over £200

How patient are you?

Sometimes you need to buy something urgently, sometimes you want something immediately.

You need to be aware of the benefits and disadvantages of using different finance options when you make purchases.

Let's see if you can recognise some...

How patient are you?

The next set of slides have a statement at the top.

You need to decide if that statement is a benefit or disadvantage of using credit or saving money instead.

Multiple Choice

Using a credit card lets you buy something now

• Benefits of using credit

• Disadvantages of using credit

• Benefits of saving

• Disadvantages of saving

Multiple Choice

Saving for something means you'll have to wait to buy it

• Benefits of using credit

• Disadvantages of using credit

• Benefits of saving

• Disadvantages of saving

Multiple Choice

Using a credit card doesn't cost anything if you pay it all off each month

• Benefits of using credit

• Disadvantages of using credit

• Benefits of saving

• Disadvantages of saving

Multiple Choice

Using a savings account earns interest on your money

• Benefits of using credit

• Disadvantages of using credit

• Benefits of saving

• Disadvantages of saving

Multiple Choice

Borrowing money, such as a student loan or a business loan, can help get you started on the career ladder.

• Benefits of using credit

• Disadvantages of using credit

• Benefits of saving

• Disadvantages of saving

Multiple Choice

Saving for something means you don't get into debt

• Benefits of using credit

• Disadvantages of using credit

• Benefits of saving

• Disadvantages of saving

Multiple Choice

If you use a credit card and don't pay it all back each month, you pay interest on what you spend.

• Benefits of using credit

• Disadvantages of using credit

• Benefits of saving

• Disadvantages of saving

Multiple Choice

Borrowing money and paying it all back when needed improves your credit score.

• Benefits of using credit

• Disadvantages of using credit

• Benefits of saving

• Disadvantages of saving

Multiple Choice

Getting into debt can have a negative impact on your credit score.

• Benefits of using credit

• Disadvantages of using credit

• Benefits of saving

• Disadvantages of saving

Multiple Choice

Having some money saved reduces the stress if something goes wrong or an unexpected even happens.

• Benefits of using credit

• Disadvantages of using credit

• Benefits of saving

• Disadvantages of saving

Be aware of the risks and benefits

Handling money isn't always as easy as it sounds.

Keeping on top of bills whilst still being able to afford the things you want is tricky.

Always think carefully before you purchase anything, is it a necessity or a luxury? Can you wait or not? What are the long term implications of buying it?

Let's look at a simple scenario...

Meet Katie, she is 17 and...

She studies at college and has a part time job at a cinema. She works 12 shifts of 4 hours for £7.50 per hour every month.

She enjoys shopping and regularly spends about £20 every Saturday.

She likes having the latest phone and is currently spending £80 per month on her contract.

She likes to treat her and her sister each month too, by going to gigs, and spends about £35 a month.

She drives a car and spends £20 a week on fuel.

Can you work out how income and outgoings each month? Is she spending more than she makes?

Katie's Budget:

• Income: 12x4x7.5 = £360 per month

• Outgoings: 20x4 = £80 on shopping

• £80 on mobile phone

• £35 on treating her sister going to bands

• 20x4 = £80 on fuel for her car

• Total outgoings = 80+80+35+80 = £275

• Each month she has £360 - £275 = £85 profit

Katie's money worry...

• Katie's car needs fixing and her parents have given her £850 towards the cost, but she still needs another £350 to get it fixed. Her parents don't mind when she pays the money back, but she feels guilty for owing them every time she drives the car.

• Her best friends birthday is coming up and she wants to go to Fashion Week in Paris to celebrate. She reckons this will cost about £600 for both of them to go.

• What advice would you give Katie? Get ready to type your advice in a second!

Open Ended

Do you have any questions about money you'd like to ask?

Money Matters... Advice:

• A budget allows you to keep track of your money.

• Always consider your incomings (regular allowance? part time job?)

• Think of every outgoing (shopping, phone, food, going out, etc.)

• Before borrowing money think carefully whether you have to, it may not be necessary or worth the risk!

• If unsure always speak to someone you trust for advice.

Money Matters... Signpost:

• For free and impartial advice you can use these websites:

• https://www.moneyadviceservice.org.uk/en

• https://www.citizensadvice.org.uk/