BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 Credit, have you read it? How to manage money – Key Stage 3

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 Meet the family Maya and Rohan live with their parents on a small island, but are about to move to the UK mainland. The island is expensive and their parents have not always managed their money well so feel the need to move. Maya and Rohan have four cousins; Henrik, Alice, Max and Izzy, who they often chat to online. The cousins give advice to Maya and Rohan, but it can often be very different. Take a look at the profiles and messages from Maya and Rohan and their cousins and see if you can come to any conclusions about the differences between their lives. Keep in mind the topic of this session is personal finance and write your ideas onto the sheets provided.

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 ContractPay-as-you-goSIM only When is it a good option? If you make lots of calls or texts – over an hour of calls a month. If you use your phone for sending s or accessing the internet. If you’ve already got a pay-as-you-go phone and you are topping up your credit several times a month. If you don’t make a lot of calls or texts and don’t want to use your phone for accessing the internet. If you already have a phone you’re happy to continue to use. If you don’t want to be tied into a long contract. Advantages? A greater choice of price packages. Overall the cost of phone services can be cheaper than pay-as-you-go. You will be able to choose from a variety of phones and spread the cost in your monthly payments. You will be able to upgrade your phone as part of your contract. You can end the service when you want to. You only pay for the services you use and there is no monthly contract fee to pay. You can only use your phone when there's credit on it so you can’t run up unexpectedly large bills. You won’t have to have a credit check. You have cheaper calls, texts and other phone services than with a full contract because the cost doesn’t include the price of your phone. You are not tied into a long contract so if you have problems with reception you can change provider easily. Disadvantages? You can lose track of the services you’ve used meaning unexpectedly expensive monthly bills. You are tied into monthly payments for up to two years and if you want to end the contract early you will usually face penalties. You will have to have a credit check which means you have to be over 18 to take on the agreement in your name. You will have to pay for a handset up front. You often get less choice of phone models. Calls per minute and texts may cost more than with a contract. You will have to top up every time your credit runs out. Services such as accessing the internet may be more expensive. You’ll have to provide your own phone. Some phones need to be unlocked if you switch provider.

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 Check that the provider’s network covers all the areas where you'll be using your phone. Ask for a copy of the contract. Read it before you sign up to any deal. Make sure you know how long you'll be tied to the phone company's network before you can cancel. Check the period of notice you'll have to give, and how you will be compensated for the loss of any airtime if your phone develops a fault and has to be repaired or replaced. Find out what the phone will cost to replace if it's lost or stolen. Check with your insurance company if your household insurance covers the loss or theft of the phone. Don't pay for an expensive shop policy if its not needed. Find out what kind of service back up your provider's subscriber helpline can offer if your phone is faulty or stops working, and how quickly it will be replaced.

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 ContractPay-as-you-goSIM only Benbung Mars S4 Black High specifications and innovative features. The 5-inch touchscreen display. Eye scroll technology. 13-megapixel camera. HD video recording. take photos with both cameras at the same time - front and back view in one shot. quad-core processor for impressive memory can be expanded up to 64GB. multitasking. Phone cost – free 24m contract 250MB data 300 minutes Unlimited texts £25.00 a month Phone cost £ p a minute 2p a text 1p a MB Phone cost new or £ (refurbished) Free SIM 100 texts & 100 minutes £5.00 a month – 1 month contract OR 200 minutes & unlimited texts £7.50 a month Work out the best deal for each of the characters

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 ContractPay-as-you-goSIM only Cherry x 5 phone 4-inch touchscreen display. Touch ID technology fingerprint to unlock the phone. apps like Siri, FaceTime, Twitter and Facebook are pre-loaded. The 8-megapixel camera. 4G and Ultra fast wireless connectivity. GPS and Bluetooth. Phone cost – free (refurbished handset) 24m contract 100MB data 100 minutes Unlimited texts £25.00 a month Phone cost £ p a minute 2p a text 1p a MB Phone cost new or £ (refurbished) Free SIM 100 texts & 100 minutes £5.00 a month – 1 month contract OR 200 minutes & unlimited texts £7.50 a month What’s the best deal continued..

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 What’s the best deal continued.. ContractPay-as-you-goSIM only Sometal Two Touch 4G smartphone. 4.7-inch touchscreen. 8-megapixel camera. The front facing camera. Phone memory can be expanded. Phone cost – free 24 month contract 1000MB data Unlimited minutes Unlimited texts £21.99 a month Phone cost £ p a minute 2p a text 1p a MB Unavailable

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 What’s the best deal continued.. ContractPay-as-you-goSIM only Sokia 105 Bright colour display. Alphanumeric keypad. Long lasting battery with 35 days of stand by time. Calendar. Five programmable alarms. Flashlight Pre-loaded. Phone cost – free 24m contract 100MB data 50 minutes 200 texts £15.00 a month £2.16 a month if you do the cashback deal – see details Phone cost £ p a minute 2p a text 1p a MB Unavailable

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 Bill Expenses Bill Dated September 2014£ Bill Dated February 2015£ Bill Dated June 2015£ Bill Dated October 2015£ Bill Dated February 2016£ Save over £308 cashback by redemption. Send your claim in line with the cashback claim process below and we will credit you by cheque with £61.64 each time. This will save you £ over the 24 month duration of the contract. In effect this means that your average line rental per month over the contract period is £2.16 per month. Please note: the above calculations are based on the basic line rental of the tariff and do not include itemised billing Cashback claim process: Claiming your cashback couldn't be simpler. You will need to send in your mobile phone bill at months 7, 12, 16, 20, and 24. It's so simple to work out when you need to claim your cashback, please see the below table for when you should send your bills to us. The required bill needs to be sent to XXXXXXXX and must be received within 60 days from the date on the bill. The bill must show your name, address, mobile number and tariff you are connected to. We recommend you send this by recorded delivery as we cannot be held responsible for lost items or claims that arrive outside the qualifying period. We also recommend you keep your proof of postage. Please note: the above calculations are based on the basic line rental of the tariff and do not include itemised billing. Phone bills and cashback claims

A world leader of the accountancy and finance profession BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014