S1 Personal Finance - Lesson 1

Word Cloud

In what ways can young people (teenagers) get access to money?

Poll

You have £20. Do you...

• Spend it all on a new game for your PS5

• Save half and spend half

• Save it all

Poll

You want to buy a more expensive generation of AirPods. Do you...

• Wait and save up

• Borrow money from your parents/carers

• Borrow money from a friend

• Use a credit card

Poll

You receive £10 inside one of your birthday cards. What proportion should go into your savings?

• All of it

• Half of it

• A quarter

• None

Match

Match the following definitions to the correct terminology...

• Getting money from somewhere else (e.g. a bank) that you may have to pay back later. 
  

• Making a plan for how you’re going to spend your money. 

• Putting money aside for something you want in the future.

Borrowing

Budgeting

Savings

• Borrowing

• Budgeting

• Savings

Poll

You want to buy a new pair of trainers that cost £80. You have £60 in your bank account. What option, do you think, is best?

• Debit Card

• Overdraft

• Credit Card

• Savings

Poll

You are buying your weekly supermarket shop. You have just been paid from your job. Which option is best?

• Debit Card

• Credit Card

• Overdraft

• Savings

Poll

You need to pay for an unexpected car repair. You don't have enough money in your bank account and you need the car for work. What could your financial options be?

• Debit Card

• Credit Card

Poll

Tickets are on sale for a music artist you follow. It costs £50 and the gig is in 3 weeks. You get £15 a week from your part-time job. What source of finance will you use?

• Debit Card

• Credit Card

• Overdraft

• Savings

Categorize

Options (20)

Allows you to buy goods/services now and pay for them later.

• You have to pay back the amount you borrow, plus interest (an extra charge).

Can help you spread out the cost of expensive items.

Can help build a credit history (which can be useful later in life, e.g., for getting a mortgage

Missing payments can damage your credit history.

Allows you to spend money that you already have in your bank account.

Transactions are usually processed immediately.

Can be used for online and in-store purchases.

Often comes with lower fees compared to credit cards.

Helps in managing your budget since you can only spend what you have.

Allows you to withdraw more money than you have in your account.

Can help cover unexpected expenses when your account balance is low.

Interest is charged on the overdrawn amount.

Can lead to additional fees if not managed properly.

Requires an agreement with your bank to set up an overdraft facility.

Allows you to earn interest on your deposited money.

Typically used for long-term financial goals.

Funds are usually accessible but may have withdrawal limits.

Can help you build an emergency fund.

Often considered a safe place to store money compared to investments.

Organise the following features, advantages and disadvantages to the correct finance term:

Credit Card

Debit Card

Overdraft

Savings

Open Ended

A group of friends in Edinburgh are planning to attend a concert in two months. The tickets cost £60 each for the four friends. How could the group manage their money to ensure they can attend?
What are the advantages and disadvantages of different approaches you have suggested?

Open Ended

A teenager wants to upgrade to the latest mobile phone model, which costs £800. They currently have £200 in savings and earn £50 a month from a part-time job. What financial factors should the teenager consider before making this decision? Is the upgrade affordable given their current financial situation?

Open Ended

A teenager is planning to buy an outfit for the school prom and has a budget of £100. They find an outfit they like that costs £120. What are the teenager's options for acquiring the outfit? What are the financial implications of each option?