Pocket Money

Learning outcomes The main learning outcomes for this lesson are: To understand there are different ways a young person can get money e.g. doing chores around the house. Gain a simple concept that money doesn’t grow on trees but that you have to work for it. Have a clear understanding of what you can do with your money and the pros and cons of spending it straight away or saving it.

Starter task Complete the Word Search provided. You must try to find all the words. The first person to find all the words gets a merit!

Answers to word search Spender - someone who spends a lot of their money Pocket Money - money that is given to you on a regular basis from your parents Savings - money you have put in a bank or building society to leave for a later date Interest – money that the bank pays you for leaving your money in their bank Bank Account - an account that you pay your money into and pay out for any bills or purchases Need – something you must have to survive Want - something that you do not need but would like to have Earn – money that you have received from doing a job

Activity 1 You need to complete the worksheet called ‘Pocket Money’. You must answer all questions in detail. You have 10 minutes!

Activity 2 Swap your answers with the person next to you. Think about the following questions:- Do they have the same answers? Are they different ? Why are they different? You have 5 minutes!

Activity 3 You need to get into groups of 4. Your team will be given £40.00 pounds pocket money and within your group you must decide what you are going to do with it. You have 4 options to choose from: Spend it on sweets and fizzy drinks Divide it up equally and buy something they each want e.g. a toy, a top etc. Go out for the day as a group somewhere Put the money in a bank to save it for later. Once each group has decided what they would do with the money you must write down the reason why you have chosen that option.

Feedback time Was the choice an easy choice or hard choice? Did everyone agree to the decision or were there a lot of disagreements?

Spending money Spending money follows into two categories: Need - a need is something you need to survive the real world like food and drink. Want - a want is something we would like to have e.g. a video game, DVDs, etc. A want will enhance our lives and make it more enjoyable but is not absolutely necessary! Some items can fall into both categories - for example clothes. We need clothes to stay warm but we don’t need to get lots of designer clothes.

Pros and cons to saving money Pros Cons

Pros and cons to saving money Pros Your money builds up You can buy nicer things as you will have more money to spend If it is in a bank it will gain interest (this is where the bank gives you a small amount of money) Save for emergencies Cons You don’t get to spend the money right away You have to wait for the item you want to buy A savings account typically comes with a low interest rate (so you don’t get much money back from the bank for saving your money with them)

Fun fact for pupils:- In a survey taken by Santander, 94% of kids aged between 11 and 16 save money, with an average saving of £336 a year. They are seen as better savers than their parents.

Plenary You need to complete the worksheet called “What sort of spender are you?” You have 3 minutes!

Answers A answers – if you answered A for both questions you are a frivolous spender. You need to do the following: Recognise your spending behaviour and change it immediately so you don’t fall into the financial disaster category. Learn some self-discipline, try to be a window shopper instead to save the pennies!! Go and open a savings account straight away!! B answers – if you answered B to both questions then you are a smart spender, you do look for those bargains - well done! You should pass on your wisdom to others and help them. C answers – if you answered C to both questions you are known as a penny – pincher. You will need to consider the following: Time to loosen the purse strings a little bit. It’s important to enjoy your hard earned money sometimes, don’t feel guilty having some fun!