2. Learning Objectives Learn about the importance of being sensible with your personal finances Explore why people need to borrow money Understand responsible borrowing and be able to analyse different financial products Assess the possible consequences of getting into debt & the impact this can have on individuals & families ​ Know where to find financial support & advice

3. I promise to make a positive contribution to today’s activities I will listen to the evidence presented I will respect the views of others I will behave sensibly and maturely

4. Activity Instructions  In your groups discuss the following question… Why do people borrow money?  Make notes and choose somebody to feedback from your table  You have 5 minutes

5. Summary: Why Do People Borrow Money? Financial Planning – making rational financial decisions e.g. – You decide to take out a loan to cover a large purchase knowing you have the finances to pay for it Buying things on impulse e.g. – You see a special offer on a widescreen TV but you haven’t got the money so you take on a ‘Buy Now Pay Later’ deal to buy it Unforeseen Circumstances – things you need to pay for but don’t have the money for e.g. - Your car breaks down and you need to get it repaired quickly because you need it to get to work

6. Activity Instructions  Match the descriptions of different financial terms to the pictures  Choose a different person to feedback  You have 5 minutes

8. Activity Instructions  For this activity imagine you are single and live by yourself  £1,500 is your monthly wage and you need to decide what to spend it on  Start by putting the money on your rent, utilities and mobile phone/internet – you have no choice with these categories  Decide whether you will travel by bus or have a car  Put at least the minimum on food and savings  Everything else you decide how much to allocate  Work as a group – don’t let one person take over  You have 10 minutes

9. Unforeseen Circumstances You can not take money from the following categories:  House/Flat  Utilities  Mobile Phone & Internet  Travel You also have to keep the minimum of £200 on your food

10. Activity Instructions  You want to get a TV that costs £800  You have 5 different options for buying the TV  Each option has a list of terms & conditions and a list of pros and cons  Share the cards out amongst your group and work individually or in pairs to look at the details of each option  Once you have each read your cards discuss them all as a group  Decide as a group which option you are going to select to buy the TV  We will ask you to feed back which one you have chosen and how the terms and conditions influenced your choice and how you will alter your spending if your monthly payments are high  There are no right or wrong answers – each of the 5 options has its advantages and disadvantages  You have 15 minutes

13. Maria Managing Director Married 2 children

14. John Graphic Designer Single No children

15. Adya Student Single No children

16. Dale Teaching Assistant Divorced 2 Children

17. Betty and Gil Retired Married 3 adult children

19. Activity Instructions  You are a company that gives people credit  As a business you make profit by lending people money but you have to be careful of the risk they may not be able to pay it back  Decide based on the information on the credit reports whether you would lend each person the money they want  Look out for any warning signs that they might be a risk: the debt they already have, their credit score, missed or late payments  You have 10 minutes