After exploring Sections 1 and 2, students will have a strong understanding of their relationship with money. Section 3 focuses on taking charge and understanding some financial products. Students will research ways to manage their money through banks, post offices and credit unions, gain understanding of the financial services available and how these help in day-to-day management of money and making payments. They will learn how to research, consider and compare their available options in terms of finance.
Students will look at the options when planning for future expenses, they will examine savings and compare savings to borrowing by looking at the cost of credit.
Students should arrive at the conclusion that while borrowing is a vital facility it can sometimes be avoided by making adjustments to budgets and saving instead.
Section 3 also includes lessons on dealing with debt, raising awareness of debt, reasons why people might encounter problems with debt and how to get on track. Because debt can be a sensitive topic, case studies and a range of supportive methodologies are included in the lesson activities.
Students should be able to:
1. Design their ideal bank, naming the services and types of accounts that would be offered to customers
2. Research the information sought by a bank when someone wants to open an account – either by visiting, phoning, emailing, writing a letter to the bank, or navigating a bank website
3. Outline the different methods of payment available to bank account holders, giving examples of when someone might use each method
4. Interpret bank statements
5. Discuss, using correct terminology:
- The key features of saving and borrowing
- Common terms and conditions attached to saving and loan accounts
6. Calculate compound interest
7. Using case studies, determine whether it is better to save or to borrow
8. Examine the range of unforeseen circumstances leading to, and the emotional impact of, out of control debt
9. List the steps needed when drawing up a ‘Debt Action Plan’
10. Recognise the importance of communication and seeking help if debt gets out of control
11. Reflect on what was learned in this section