Loans, savings and interest!

Mr Clowsley has been working hard and budgeting effectively. He has even started to have left over money each month! Mr Clowsley wants to start saving money – but what’s the best way to do this?

• Open up a tax-free savings account at a bank

• Open up a current account at the bank

• Put all the money in a suitcase under the bed

What does it mean by the term "savings"?

• Saving money simply means depositing money from your regular income so that the saved amount can be used at the time of urgency or for any other future use.

• money paid regularly at a particular rate for the use of money lent, money saved or for delaying the repayment of a debt.

• money that has been leant to you that you will pay back.

What does it mean by the term "Interest"?

• Saving money simply means depositing money from your regular income so that the saved amount can be used at the time of urgency or for any other future use.

• money paid regularly at a particular rate for the use of money lent, money saved or for delaying the repayment of a debt.

• money that has been leant to you that you will pay back.

• money paid regularly at a particular rate for the use of money lent, money saved or for delaying the repayment of a debt.

What does it mean by the term "Loan"?

• Saving money simply means depositing money from your regular income so that the saved amount can be used at the time of urgency or for any other future use.

• The lending of money. The recipient (i.e. the borrower) incurs a debt, and is usually liable to pay interest on that debt until it is repaid,

• money that has been leant to you that you will pay back.

• money paid regularly at a particular rate for the use of money lent, money saved or for delaying the repayment of a debt.

What does it mean by the term "APR"?

• American Payment rates

• Annual Percentage rate

• All pay rate

• Annual payment rating

What are the 2 types of bank accounts?

• Transactional account

• Savings account

• buy now, pay later account

• loan account

To access your bank account, what must you type in? What should you also not do with this information?

• PIN

• BIN

• Share it with anyone!

• keep it a secret

If you wanted to save money, what type of account should you have?

• Savings account

• Transactional account

• Credit account

When using a savings account, what do you earn?

• Lower interest, meaning you gain less money

• Higher interest, meaning you gain more money

• no interest, meaning you gain no money

Self assess your confidence with what we have look at during todays lesson?

• Red

• Amber

• Green