Hello.

My name's Mrs. Hopper, and I'm really excited to be working with you in this lesson from our Financial Education unit.

In these lessons, we're going to be exploring money, how it makes us feel, how we can make good choices about what to do with our money and how we can make it safe.

So if you're ready to learn a bit more about finance, then let's make a start.

In this lesson, we're going to be thinking about saving, spending, borrowing, and lending.

And by the end of the lesson, we want to know that we can choose what to do with our money and understand the consequences of any decisions we make around our money.

So let's make a start.

So we've got lots of keywords in our lesson today.

We've got consequences, borrow, debt, lend and owe.

Some of those you may be familiar with.

Let's practise saying them and then we'll have a look at what they mean.

So I'll take my turn, then it'll be your turn.

So my turn.

Consequences.

Your turn.

My turn.

Borrow.

Your turn.

My turn.

Debt.

Your turn.

My turn.

Lend.

Your turn.

My turn.

Owe.

Your turn.

Okay.

Let's have a look at what those words mean.

So consequences are the results of an action, and today we're going to be thinking about the consequences of the decisions we make over money.

To borrow means to use someone else's money or something of someone else's, and to pay it back, we'll give it back later.

A debt is an amount of money that needs to be paid back.

To lend means to give someone money temporarily, or maybe an object as well, but we are thinking about money today, but it will need to be paid back later.

Lending and borrowing are sort of the opposites, aren't they? And if you owe money, you need to pay someone back, so you would owe a debt to somebody.

So we're gonna be thinking about using those words as we go through our lesson today.

There are two parts to our lesson.

In the first part, we're going to be thinking about borrowing and lending money, and in the second part, we're gonna be thinking about making decisions about our money.

So let's make a start with borrowing and lending.

And we've got Alex, Jacob, Sofia, and Aisha in our lesson today, and some members of Alex's family.

Alex is going shopping with his sisters.

He's got an older sister and a younger sister.

They each have different amounts of money to take with them on their shopping trip.

Alex says, "I've saved my pocket money up for ages." So he must be feeling quite proud, I think, that he's got lots of money to spend.

His older sister says, "I've earned some money from a part-time job that I have." I bet she's feeling quite proud as well then, isn't she? What about his younger sister? She says, "I've got lots and lots of pounds "from my birthday." So she's obviously had a birthday and she's got some money that she's been given, lots of pounds according to her.

Alex's little sister quickly spends all of her money, but there's a panda there, isn't there? Oh, she says, "I want the panda.

"He's just so cute." Does look quite cute, doesn't he? He costs nine pounds.

Her older sister says, "You don't have enough pounds left.

Sorry." Alex says, "That's okay.

I can lend her some money." Should Alex lend his sister some money, do you think? Sister says, "I really do want him.

He's lovely." What do you think? Should Alex lend his sister some money? Pause the video, have a discussion, and when you are ready for some feedback, press Play.

It's a tricky decision, isn't it? Alex clearly likes his very.

Alex clearly loves his little sister and he'd love to be able to help her out, but she has spent all her money and he did save his up to buy things for himself.

I wonder what you thought.

Alex still thinks he should lend her the money.

He says, "She can owe me the money." How's his little sister going to pay it back though? I wonder.

His older sister says, "You should not lend her any money.

She needs to understand about spending it." So she needs to know that there are consequences.

If we spend all our money and we haven't got any left, then we won't be able to buy other things that we want.

So how would Alex's younger sister pay him back, do you think? Nine pounds is quite a lot for a young person to owe to somebody else, but will she understand the consequences? This is what the big sister was saying.

She needs to learn that once the money's gone, it's gone, and to spend wisely.

I wonder what you decided.

Would you have lent the money in Alex's situation or would you be more in line with his older sister? Lending money is quite complicated.

Alex says, "If I lend the money to my sister, it would mean she has to pay me back." That's very true.

She would owe that money.

His older sister says, "You should never lend money unless you can afford it." So could Alex afford it? He clearly had the money, but he hadn't done his shopping yet, had he? Sofia says, "Your little sister might be too young to understand the consequences." This is very true.

Or when Jacob says, "I fell out with a friend once because they never paid back the money I lent them." It is really difficult, borrowing money and lending money, and deciding whether to lend money to somebody is difficult.

You need to have enough money.

You need to trust that they're going to pay it back, and you need to know that they really understand what's happening.

What are the consequences of borrowing money from somebody? Alex in the end decides not to lend his sister any money.

He says, "I'm going to buy these pencils.

I love art." He's going to buy a lovely set of watercolour pencils.

And his sister says, "If you'd lent your sister some money, you couldn't have afforded them yourself." So maybe it was the right decision.

His little sister says, "Can I do some art with you?" I'm sure Alex will say yes, won't he? He seems to be very fond of his sister.

So it'd be nice to think that they did some art together with the watercolour pencils.

So what do we think about this? Should you never lend money to somebody else? Is that right? Well, let's have a look at another scenario before you discuss it.

"Oh no," says the big sister.

"I haven't got enough money for the bus home.

Can I please borrow a pound?" And Alex says, "Should I lend my sister some money?" Is it always a bad thing to lend money? What do you think? Pause the video, have a discussion, and when you're ready for some feedback, press Play.

What did you decide? Well, Sofia says, "Of course you should.

Otherwise she can't get home.

She won't forget to pay you back." She seems to be pretty good with money and makes good decisions and gives good advice as well, doesn't she? Do you agree with Sofia? I wonder what Jacob said.

Jacob says, "I think you should make her walk so she understands the consequences of spending all her money." Well, that's quite harsh.

Isn't it, Jacob? (Hopper chuckles) I wonder which way you went.

Did you think with Sofia that yes, he should lend the money, that his sister is trustworthy and will pay him back, or with Jacob that she needs to understand the consequences and so he shouldn't? I wonder which you decided to go with.

Time for you to do some practise now.

Who might you lend money to, and who might you borrow money from? We've got some examples and you are going to sort them.

You can sort them into this Venn diagram.

Would you lend money to them? Would you borrow money from them or would you maybe do both? Lend if it was needed and borrow if you needed it? Remember also that outside the Venn diagram is part of the sorting as well.

You might decide that there are people that you wouldn't lend to or borrow from.

So they go outside the Venn diagram.

Aisha gives an example.

"I'd borrow money from my parents, but I probably wouldn't need to lend it to them." So her parents might go into the just borrow part of that circle.

So here are the people that you're going to sort and you're going to sort them into the Venn diagram, remembering that the outside counts as well.

People that you wouldn't either lend money to or borrow from.

So pause the video, have a go, when you are ready for some feedback, press Play.

How did you get on? Did you enjoy discussing those again? Did you agree on all of them? Maybe you didn't.

Let's have a look at where we place them.

So this is a possible way that you might have sorted them.

In the middle, we've got people who we would lend money to and we would borrow money from.

So in there we've got a cousin, a close friend, or maybe an older sister.

People that we might lend money to, but probably wouldn't borrow it from, maybe a little brother or a little sister.

People we might borrow money from, but we probably wouldn't need to lend them any money would be grandparents and parents perhaps.

What about the people around the outside? So people like other people in your school, somebody who isn't a close friend or is maybe in a different class.

We probably wouldn't want to be lending money and borrowing money to and from them because we don't know them well enough to know that we can trust them.

Similarly with a neighbour, it might be a neighbour that you've known all your life and very well, and that's okay, but just any old neighbour.

Again, we need to make sure that we know these people well and we can trust them.

And the same with the shopkeeper, the bus driver and possibly even your teacher.

So I hope you enjoyed discussing those and maybe had some good thoughts around when it's the right idea to borrow and to lend money.

Let's look at part two, making decisions about your money.

Jacob wants these expensive headphones.

He might have thought about those words, wants and needs.

He just say he wants them, doesn't really need them, but he wants them.

He says, "I could ask my sister to lend me money, but it will take weeks to pay her back." Hmm, yes, that's tricky, isn't it? You've gotta think about the long-term consequences of borrowing a lot of money, haven't you? What do you think Alex should do? You might want to pause and have a think before Sofia and Jacob give their ideas.

So what do they think? Sofia says, "If you need to borrow money, make sure you have agreed how to pay it back." Very important, especially if it's more than just a pound for a bus fare home or something.

Jacob says, "I think you should save up instead, you might change your mind about them." Well, that is also true, isn't it? You don't want to be regretting something you've bought but still having to pay back the money that you borrowed to buy it.

So maybe worth saving up, making sure you're making exactly the right decision in buying that item.

Here's another scenario.

Alex has lent his cousin three pounds.

Next time they see each other, Alex asks for his money back.

What do you think Alex should say to his cousin? And how do you think Alex is feeling? You might want to pause and have a think about that.

What did you think? Sometimes it's difficult, isn't it? His cousin might have forgotten or might not realised that he has to pay the money back.

So Alex has got to be quite careful in how he talks to his cousin.

Hey, do you remember the other time when we were out shopping and I lent you that three pounds? I could really do with it back.

Have you got it? And Alex might feel a bit nervous about having to ask that question.

How might his cousin respond to Alex? There might be some different situations, mightn't there? You might want to pause here again and have a think about what those situations might be.

What did you reckon? His cousin might say, Oh, I thought you gave it to me.

He might not have realised that this was a lending and paying back situation.

Mightn't he? He might have forgotten about it.

It's quite difficult then, isn't it? As they're in the same family, they might be able to involve an adult in their family.

Maybe an aunt or an uncle or Alex's parents might be able to help out with this discussion and sort it out.

But always something to think about, is this the right person to lend money to? Have you agreed that they're going to pay it back? Does everybody understand what's happening in this situation? Okay, over to you for a scenario to discuss again.

A few weeks later, Alex and his cousin are out shopping again.

"Hey Alex, can you lend me one pounds?" Says his cousin.

Well, Alex says, "I could lend him one pound?" But what should he do, do you think? Pause the video.

Have a talk about it, and when you're ready for some feedback, press Play.

What do you think? What should Alex do? What would you do if you were Alex? Aisha says, "He can afford it.

Alex should lend one pound.

This is his cousin after all." That might have been what you thought as well.

I wonder what Sofia thinks.

Oh, she says, "You definitely shouldn't lend it.

He's not very reliable about paying his debts." I think we must have found out from the previous slide that his little cousin had forgotten all about the three pounds and wasn't really thinking he had to pay it back perhaps.

So yes, you need to make sure that that person understands what's happening and is going to pay you back.

But as Aisha says, it is his cousin.

And again, if you are worried about money that you've borrowed or money that you've lent to somebody and it's in your family, always talk to an adult about it.

Aisha has borrowed two pounds from Jacob.

Oh, there's a cuddly penguin involved here.

I wonder what's gonna happen.

She says, "My mum gave me five pounds.

Should I buy this toy or pay Jacob back first?" Ooh, that's an interesting question, isn't it? You might again want to pause and think about what you think before we hear what Alex, Sofia and Jacob think about this.

So what do her friends think? Alex says, "It's your money.

Jacob chose to lend you some." Hmm.

Do you agree with Alex? I'm not so sure.

Sofia says, "You should pay your debt first." Yes, that two pounds is a debt that she owes to Jacob.

Jacob says, "Well, I quite like my money back." He might be wanting to buy something.

He might be wanting to save up for something as well.

So difficult decisions to make, but Aisha really pay her debt before she spends money on something else she wants but doesn't need.

There are those wants and needs again.

She wants the cuddly toy.

She doesn't really need the cuddly toy, so she should always settle her debt and pay the money back before she buys something that she wants.

If it's something in emergency that she needs, that's a different matter.

That would take another discussion.

Okay, another one for you to discuss.

Jacob has borrowed three pounds from Sofia.

"Did he? I don't remember.

Are you sure?" Says Sofia.

She's forgotten about this.

Hmm.

So Jacob says, "Do I still owe Sofia money if she's forgotten about it?" Is there still a debt to be paid back? What do you think? Pause the video, have a talk about it and when you're ready for some feedback, press Play.

What did you think? Tricky situation, isn't it? Jacob knows he borrowed the money, but Sofia's forgotten about it.

Does he still owe her her money? Aisha says, "Of course you need to pay it back.

Sofia is your friend, and being honest is important." I think Aisha's got a really good point there, hasn't she? What does Alex says? Yes.

He says, "If you borrowed money, you have a responsibility to remember and to pay it back." I think their friendship will be better if he pays it back.

She might suddenly remember when she counts up her money and wonders where three pounds has gone and it might come back to her.

And if Jacob decided just to ignore it, then that doesn't do much for your friendship, does it? I think they're right.

Being honest is really important, and being responsible with money is also really important.

So I hope you came to those conclusions too.

And it's time for you to do some practise.

We've got some situations to discuss.

What would you do in each situation? Should you spend, save, lend or borrow? So you could use role play to discuss each.

So you could work in pairs, or you could maybe set up in your class something called a conscience alley where you decide on what the possible outcomes might be, and half a class gives you a reason for doing one of those things, and the other half gives you a reason for doing the other thing, and one person has to make that decision.

So either role play in pairs or maybe you could set this up in your whole class.

So there are four scenarios for you to think about.

One, two, three and four.

So pause the video, have a go at discussing those situations, and when you're ready for some feedback, press Play.

How did you get on? Did you enjoy? Did you role play those? So here are some possible answers.

You will all have had your own individual discussions.

So for one, it said your friend and you both want the same item.

Neither of you has enough money to buy it on your own.

What do you do? Aisha says, "I think you should buy it together.

You could share it." That's one possible solution, isn't it? Alex says, "I think that could lead to lots of arguments.

I think you should both save up separately." I wonder what you decided.

Should they club together and buy it, or should they both save up? Plumbing up together and sharing something across two friends could be tricky.

Who keeps it for this day? Who keeps it for another day? And in two, you have five pounds and you wanted to buy a toy and you collect these toys.

They cost three pounds each.

But if you buy two, you get one free.

So what would you do? So buying two would cost six pounds and you've only got five pounds.

Hmm.

What would you do? Aisha says, "I'd definitely save up or ask to borrow one pound from my mum." And Alex says, "I'd save up two.

I could buy three of them for six pounds rather than just the one for three pounds." So would you save up or would you ask to borrow it? I think that's a case where you might ask to borrow a pound, especially from an adult that you trust, or an adult that you know very well who's with you shopping, and then you could agree to pay it back out of your next pocket money, couldn't you? Well, I hope you've enjoyed all those discussions about making decisions about your money.

Would you save, spend, borrow or lend? Saving money means that we can buy the things we want.

Decisions can be made as to how much money you spend or save.

When you've got money, you don't have to spend it all.

You can spend some and save the rest.

Lending money to other people needs to be thought through carefully, as does borrowing from other people.

I hope you've enjoyed those discussions, and I hope it's helped you to be confident in the decisions that you make when you are deciding what to do with your money.

Thank you for all your hard work, and I've enjoyed working with you.

I hope we get to work together again soon.

Bye-bye.