1. Personal Finance (Unit 3)
Year 12
BTEC National Extended Certificate

2. Starter 1) Give three reasons as to why we need money? (3 marks)
2) Identify two disadvantages of a credit card? (2 marks)
3) Describe what is meant by a credit rating? (1 mark)
4) What is the difference between a direct debit and a standing order? (2 marks)
(Out of 8)

3. Aims of today Give feedback from presentations
Hand in homework based on Gabriella
Common principles for the use of money

4. Reflection In pairs discuss-
How would you rate your own attitude to money?
Can you take risks?
Can you think of a time when your attitude to money was irresponsible?
How would you have behaved differently?
What factors influence your attitude to risk?
Jot down some of your points in a spider diagram.

5. Common principles
When planning personal finance- the common principles that need to be considered…..
Avoid getting into debt
Control costs
Avoid legal action/repossession
Remain solvent
Maintain a good credit rating
Avoid bankruptcy
Manage money to fund purposes
Set financial goals and targets
Generate income and savings
Counter the effects of inflation
Provide insurance against loss/illness

6. Reflection
What do you think are the short and long term effects of bankruptcy?
Bullet point down 2 points for short term and 2 points for long term.

7. Different ways to pay Come up with 14 different ways to pay?
Can you provide an explanation, list some advantages and disadvantages for each?
If not, you need to learn this for your exam.

8. Current accounts
An account with a bank/building society that is designed for frequent use.
The features of the different accounts will depend on-
What you are looking to get out of the account?
Interest rates
Credit scoring

9. Research
In groups, you will be given a specific bank/building society and you must find out the following-
What are the features of this banks standard, packaged (premium), basic and student accounts.
What are they called?
What do they require before you can have one?
What interest rates do they pay out?
What are the terms?

10. Quick term check What is meant by the following? Debt Credit rating
Bankruptcy
Solvent

11. Other methods of payment
Pre-paid card
Contactless card
Charge card
Store card
Mobile banking
Banker’s Automated Clearing Service (BACS) e.g. faster payment
Clearing House Automated Payment Service (CHAPS)

12. Types of borrowing What is borrowing? Overdraft Personal loan
Hire purchase
Mortgage
Credit card
Payday loan

13. Homework
Homework will be on SMHW and will need to be completed before next lesson and brought to the lesson to evidence you have completed it.
Anyone having difficulty with SMHW must speak to IT.