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����ý Teach > Primary Resources > Primary PSHE > Financial education

Video summary

This animated video introduces the idea of interest: the money which can be added to the money that we save or borrow.

Sujit wants to buy a drone so he borrows money off his brother who charges him a high rate of interest. His friend Dylan decides to put money into a savings bank account to earn interest on.

As Sujit struggles to pay his brother back he ends up owing him twice as much money as the drone orignally cost.

This video is from the series Financial education.

Teacher Notes

Central or big idea

Interest is money which can be added to the money that we save or borrow.

Questions to explore

• What is interest?
• What are the benefits of saving money in a bank account?
• What are the risks of borrowing money?
• Why might someone choose to borrow money?

Key learning outcomes (Young Enterprise Financial Education Planning Framework)

9-11 - Upper KS2

• I know what interest is and that it may be added to money I save and borrow.
• I can explain some of the benefits of saving, and some of the risks involved in borrowing money.
• I understand it is important to consider any risks and potential consequences before borrowing money, including the impact on my feelings and those of others.

7-9 - Lower KS2

• I know that if I don’t have enough money I may have the choice to borrow, but that if I do I will have to pay it back.
• I can explain why I might want to borrow money and how this might make me feel.
• I am beginning to understand that I can pay for things without having enough money and that this has consequences e.g. I could get into debt.

Key vocabulary and definitions

• Credit card: a payment card which allows you to make purchases and then pay for them later. If the amount is not paid back in time you pay interest on top of the purchase price
• Lend: to give to someone to use in agreement that it will be given back
• Interest (on savings): money you earn on your savings for lending your money to the bank (a reward for saving)
• Interest (on a loan): money you pay to someone (or a bank, company or other organisation) who has lent you money
• Debt: an amount of money that is owed

Suggested activities

Role on the wall:

• Draw an outline of Sujit on a large piece of plain paper. Around the outine write what Sujit does in the animation.Inside the outline, explore Sujit’s thoughts and feelings.
  • How does he feel when he decides to ask his parents for a loan to buy the drone?
  • Why does he want to borrow the money?
  • What does he feel when they say no?
  • How does he feel when he asks his brother?
  • How does he feel when he realises how much he will be paying back to his brother with the interest?
  • How does he feel when his parents help him?

Saving money and gaining interest:

• What motivates Dylan to put his money in a savings account?
• What are the benefits of putting money in a savings account?

Bank account advert

• Rewatch the parts of the animation where Dylan explains how much money he has saved and what interest he will gain. Use the information Dylan shares to create an advert (poster, audio, video) to promote a bank account like Dylan’s.

Borrowing money and paying interest:

• In the animation we hear about the debt Sujit’s brother got into with a credit card and the repayments Sujit has to make to his brother for the money he lends him.
  • What are some of the risks of borrowing money? (e.g. not being able to pay it back, paying back much more than you have borrowed, feelings about owing money).Sujit’s parents help him to solve the problem with his brother.
  • Who could you talk to if you were worried about owing money?

Ideas for going further

• Investigate what type of bank accounts and bank cards are available to children.
  • What are the benefits of the accounts?
  • How might you decide which bank account to open?
  • What would influence your decision?

Links to other ����ý resources

• ����ý Bitesize: KS2 Money

More from this series: