YEAR 7 PSHE Financial Education Lesson 1 Money

YEAR 7 PSHE Financial Education Lesson 1 – Money Learning objectives: To consider your own attitude to money. To understand the differences between wants and needs

Starter activity – Read the bio and answer the questions below: This is Robert, all his friends have the latest next gen. console. Both of his parents work but they cannot afford to buy him a new PS 4/Xbox One. He has a argument with his parents as he claims ‘HE NEEDS ONE’. 1. Does he need a new console or does he just want one? 2. What is the difference between needing something and wanting something? 3. Why do you think it is important to learn the difference between needs and wants?

What Makes Money Valuable? Early money had intrinsic value – e. g. a gold coin. This was used in the UK until 1931. You could, in theory, take a bank note to the Bank of England demand gold in exchange. Now we have left the gold standard, and the value of the pound is no longer tied to anything. It has no intrinsic value, it works on belief in the system. If enough people are willing to accept the pound, it works as a currency.

How is Money Created? Banks – control how much money is in circulation. • Minting – making physical coins. • Printing – making paper money. • Fractional reserve banking – i. e. borrowing and lending. Example If you give the bank £ 100, then you have £ 100 saved. But the bank does not keep all of it, it can lend some of it. If the bank then lends £ 90 to someone else, then they have £ 90 in addition to your £ 100, so £ 190 in total. Key point: the bank doesn’t keep all of the money put in all of the time – it lends it and grows it – so if everyone’s trust in the bank broke down and everyone tried to withdraw their money at once, the system would break.

Are you a super saver, savvy spender or a spendaholic? Task : Take the quick quiz to find out! Once you have finished add up your score and find out what you are below…

Needs and Wants Tasks 1. Watch the short clip explaining the difference between needs and wants. https: //youtu. be/el 40 d 2 gy. Wa. I 2. Draw a table with two columns in your exercise book. Name the columns NEEDS and WANTS Sort the items into things someone your age may “need” and things they may “want”. Do you think your list would be different from your parent/carer. Why not ask them what they consider to be a need or a want.

TASK – MONEY MYSTERY You are going to find out about a young girl and her money issues with her mum.

MEET KERRY! Kerry is 13 years old She lives with her older brother and her Mum Kerry loves swimming and dreams about either being a competitive swimmer or a lifeguard when she’s older Kerry’s has a few very good friends who she loves to hang out with, text, phone and go on snapchat with. Kerry’s and her friends are all crazy about anything to do with K-Pop. Kerry usually gets on with her mum ok but recently the households bills have gone up and they have started arguing because Kerry’s mum thinks that Kerry wastes money. Kerry shouted “You just don’t care about me!” Her mum tried to explain that she only has about £ 50 per month to spend on Kerry said “Mum, I’m a responsible person now. I could do a much better job with £ 50!” Next morning, Kerry’s mum went to work at 7. 30 am and left Kerry a note. On the next slide you are going to open the envelope addressed to Kerry and try to figure out what choices she should make. Remember you will need to explain the choices you have made on Kerry’s behalf.

Dear Kerry, As you are now feel responsible enough to manage your own money, I have drawn up a list of items that you wanted to buy this month. I know you don’t have enough for all of them so you will have to prioritise things which are most important to you. You could even try saving up some of your money to buy things later on in the year. I have also attached the £ 50 as promised. All my love, Toiletries: Mum xxx £ 2. 99 - Foundation - Mascara - Deodorant - Perfume (what happened to that stuff Nan got you for Christmas? ) Mobile phone contract payment (why do you feel the need to text your friends constantly? ) School theatre trip to see a K-Pop band. Bus pass (No, you can’t not go to school) K-pop album download Snacks for school (I’ll still make your lunch up though) Scientific calculator (Remember you do need this!) Hairdresser’s appointment (I rang Sally and she said that she would take £ 10 off if you didn’t want the highlights this month) Magazine K-pop hoodie Swimming club (you do know that the local baths only cost £ 1 a week) New swim suit Drama club Fluffy’s food (I told you, if you got a pet, it is YOUR responsibility) Pens and pencils (if you don’t take the correct equipment to school you’ll get detention again) £ 1. 99 £ 1. 00 £ 9. 99 £ 25 £ 10 £ 9. 99 £ 10. 00 £ 9. 99 £ 15 £ 3. 50 £ 29. 99 £ 15 £ 7. 99 £ 10 £ 6 £ 3

Task: Copy Kerry’s Shopping List into your exercise book. Remember she only has £ 50 to spend. Consider her NEEDS and WANTS. Write down your chosen items in your table. Explain each of your choices. Use the sentence starters to help.

Plenary task: Copy and complete the tweet in your book to show what you have learnt today about NEEDS and WANTS: