Hi there, my name is Mr. Tazzyman.

Today, I'm going to be teaching you a lesson about financial education.

That's all about money, how it makes us feel, what we use it for, and how we think about it.

Hopefully, it's going to be good fun.

So, get ready to learn, and let's do this.

Here's the outcome for the lesson then.

By the end, we want you to be able to say with confidence, I know the difference between a debit card and a credit card.

We've got some key words here, and I'd like you to be able to say them as well as understand them.

I'm going to get you to repeat them back to me.

I'll say my turn, say the word, and then I'll say your turn, and you can repeat it back.

Ready? My turn, credit card, your turn.

My turn, debit card, your turn.

My turn, borrow, your turn.

My turn, decline, your turn.

Okay, we now need to look at these because these will help us to understand what we mean by those terms in the financial education context.

A credit card can be used to buy goods, and services, and pay for them later.

A debit card can be used to take money directly from a bank account to pay for goods or services.

Borrow means to use someone else's money, and it will be paid back later, and when a debit card is declined, it means there isn't enough money left in the account to pay.

Okay, here's the outline for today then.

We're going to start by looking at spending borrowed money or your own money.

Then, we're going to think about credit cards or debit cards.

In the lesson, we're going to meet Alex, and Izzy, and a few of their friends as well.

Alex, and Izzy have been given permission to buy a game from an online store for their consoles.

They chat to each other online as they do this.

You can see they've got their headphones on there.

"My parents very kindly lent me £15 to spend as long as I pay it back," says Alex.

"Every week for five weeks, I've saved £3 of my pocket money," says Izzy.

What's the same and what's different? Have a look at those statements.

What do you think? Both Alex and Izzy purchase a copy of their favourite game.

What is the same and what's different? Well, Alex says, "I spent money that I borrowed from my parents.

I owe them £15." "I spent money that was mine already.

I don't owe anything," says Izzy.

That does look like a good game.

"Robot Racer 6." Okay, let's check your understanding.

Would you want to save up the money or borrow it and pay it back? So, you've got to think carefully here, and you might want to discuss it with other people if you're in a class situation.

Remember, people can have different opinions to yours.

There's no wrong or right answer here.

Pause the video and give that a go.

Welcome back.

What did you think? Were there different opinions where you were? I hope so because sometimes listening to different opinions helps you to learn.

Alex talks about repaying the money to his parents.

Here's Alex's dad.

"We give you £4 pocket money a week.

From that, can you pay back £3 a week?" "That would leave me with £1 a week to spend on other things," says Alex, and there's a bar model at the bottom there of the repayment plan.

The total is £4 of pocket money.

Alex is choosing to repay £3 of that and spend £1 of it.

Okay, it's time for your first task.

I'd like you to tick the characters who have borrowed money in question one.

We've got Lucas who says, "I saved up £4, and my parents lent me £6 more to buy a frisbee." We've got Izzy who said, "Jun bought me some sweets this week.

I'll buy his next week." We've got Jun who said, "I have saved up £12 to buy a new football." And we've got Alex who says, "My uncle gave me £5 for my birthday to spend online." For number two, Lucas and Jun have both borrowed money.

How long will it take each of them to pay it back? A, Lucas owes £8 to his aunt, and you can see his repayment plan drawn as a bar model there.

B, Jun owes £10 to his older sister, and again, his repayment bar model has been drawn as well.

Okay, pause the video and have a go at those questions.

Good luck.

Welcome back.

Let's get some feedback then.

The characters who have borrowed money are Lucas.

He borrowed £6 from his parents to be able to buy a frisbee.

We know that it wasn't given to him because it says lent.

That's what you do when you're giving money to somebody else that you expect to be paid back.

Izzy says, "Jun bought our sweets this week, and I'll buy his next week." And in a sense, she's borrowed money until next week when she's going to pay it back.

Although she hasn't actually borrowed money physically, she will make sure that she buys something else of equal value as a way of paying back what she owes.

For the other two, well, we didn't tick those because Jun has saved up his money, and Alex has been given that money.

He's not borrowed it; he's been given it, and there's a difference there.

For number two, well, it would take Lucas four weeks to pay back his aunt, and it would take Jun four weeks to pay back his sister.

Let's move on to the second part of the lesson then.

Credit cards or debit cards.

Izzy and her dad are at the supermarket to get some more strawberries.

You can see they've got a cost of £1.

95.

"Have you got the money, Dad?" she asks.

"I'm going to pay using my contactless debit card." "Do you know you have enough?" "I have an idea of roughly how much I have left in the account." That's good; he's keeping track of what he's got.

Debit cards allow adults to pay for goods, or services with the money they have in their bank accounts.

"What happens if you don't have enough in your account?" asks Izzy.

"Then, the card is declined, and you have to pay a different way." Okay, let's check your understanding so far on what we've learned in this second cycle.

True or false? Debit cards can always pay for anything.

Do you think that's true, or do you think that's false? You might want to discuss it with somebody near you.

Pause the video and give it a go.

Welcome back.

That was false.

Debit cards can only pay for things if there is enough money in the bank account.

Izzy and Dad want to book a holiday.

Sounds nice.

"Aren't holidays expensive, Dad?" "Yes, I don't have enough money to pay for the holiday completely at the moment.

I am going to use a credit card," replies Dad.

"What does that mean?" says Izzy.

Credit cards allow adults to pay for goods or services straight away on credit, and pay the bank back later.

They are a way of borrowing money.

Izzy's dad said, "I use my credit card for expensive things that I can't afford straight away." "Why don't you use your credit card for everything?" says Izzy.

Dad replies, "Because I would owe a lot of money, and I might lose track.

The bank charges something called interest, which means the item costs more over time." Okay, let's check your understanding on that then.

True or false? Credit cards are a way of borrowing money from a bank.

Pause the video here and have a think.

Welcome back.

That's true.

Credit cards are a way of borrowing money, but it is expensive as the bank charges you something called interest.

You pay back more than you have borrowed.

Let's do your second task then.

Number one.

For each of the statements below, decide if it describes a debit or credit card.

This card can only pay for something if there is enough money in the account.

This card can be used to pay for something even if an adult doesn't have the money for it.

This card is a way of borrowing money.

This card can be declined if there isn't enough money to pay for something in the account.

Number two.

How would you respond to these statements? Alex says, "When I grow up, I'm going to use a credit card all the time to pay for everything.

Free money!" Izzy says, "I'm only ever going to use a debit card because it's bad to own money and be in debt." So, how might you respond to those statements? It could be a good opportunity to discuss this with people around you if you can.

Different opinions help you to learn.

Pause the video and have a go at those.

Welcome back.

Let's get some feedback then.

Here's what we thought in this table.

The first statement was a debit card.

This card can only pay for something if there is enough money in the account.

The second was a credit card.

This card can be used to pay for something even if an adult doesn't have the money for it.

The third was a credit card as well.

It's a way of borrowing money.

And the last one, it can be declined, was a debit card.

Here's the feedback for number two then.

For Alex's statement, we've said the money used on a credit card is borrowed, not free.

It has to be paid back.

And don't forget we mentioned something called interest, and that means that you end up paying back more money than you actually borrowed in the first place.

And for Izzy, we responded by saying debt isn't bad provided you have a plan to pay it off.

Credit cards are useful to pay for expensive things over time, but still get the item or service immediately.

Okay, let's summarise then our learning today.

Sometimes, you can pay for something with money you have, and sometimes, you can borrow money to pay for something.

Debit cards are used by adults to pay for goods or services directly from their bank account only with the money they have.

If there is not enough money in the account, the debit card is declined.

Credit cards are used by adults to buy goods and services and pay for them later.

They are a way of borrowing money.

I hope you enjoyed that today, and I hope you've got a really strong understanding of the difference between a debit and credit card now.

My name's Mr. Tazzyman, and I might see you again soon in another financial education lesson.

Bye for now.