Hi, there.

My name is Mr. Tazzyman.

Today, I'm gonna 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 gonna 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, "I understand the difference between saving, spending, and borrowing." These are the keywords that you might expect to hear during the lesson.

It's important that you can both say them and understand them.

We'll start by getting 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 say it back.

Ready? My turn, save.

Your turn.

My turn, spend.

Your turn.

My turn, borrow.

Your turn.

Well done.

Let's see what each of these means in the context of financial education.

To save is to keep money instead of spending it, especially in order to buy a particular thing.

Sometimes, those things are expensive.

To spend is to give money to pay for goods and services.

Borrow means to use someone else's money.

It will be paid back later.

Here's the lesson outline then for today.

We're gonna start by thinking about saving, spending and borrowing, and then we're gonna look at some dilemmas where we might not know whether to save or borrow.

In this lesson, you're gonna meet Aisha, Alex, and Izzy.

They're gonna be guiding us through some of their thinking, talking to one another, and maybe even giving us some hints and tips over some of the answers.

Hi, guys.

Okay, everyone ready? Let's do this.

Izzy says, "I got three pounds of pocket money a week." You can see there she's got a two-pound coin and a one-pound coin.

Altogether, that's three pounds.

"I've saved all of it for six weeks." How much money has Izzy saved? Hmm.

I think there's a calculation to be done here.

3 pounds multiplied by 6 is equal to 18 pounds.

Izzy has saved 18 pounds.

Izzy is going shopping with her aunt.

"I have 18 pounds to spend," she says, "I want this remote control car!" Can you see the price tag on the remote control car? It says 20 pounds.

What do you think about that? What do you notice? Izzy aunt pipes up, and she says, "I don't think you can afford to buy this with 18 pounds." "I feel upset now," says Izzy.

It is a difficult moment when you've been saving for a long time.

Maybe not for something specific, but just to have plenty of money to be able to buy something more expensive, and you go to the shops and find out that you still can't quite get what you want.

It's hard to manage those feelings.

Izzy's aunt makes a suggestion.

Izzy says, "I only need two pounds more, which is less than a week's pocket money." "Would you like to borrow some money from me?" Says Izzy's aunt.

What does Izzy's aunt mean? Hmm.

She explains, "I'll give you the two pounds now and you can give it back to me when you can afford it." "If I borrow it, I will be able to get the car now.

I will owe my aunt some money." Have a think about this, and we'll use it as a check for understanding.

Should Izzy borrow the money? What do you think? On the one hand, she'd be able to have the car straight away, but on the other hand, she'll owe money to somebody else.

Pause the video here and have a chat about that.

Welcome back.

You might have had lots of different opinions whilst you were talking that through.

Here's what Izzy's aunt thinks.

"Remember, it's two pounds, which you'll be able to pay back in a week, so you won't be in debt for long." When she says in debt, that's what you say when somebody owes money.

Izzy replies, "That's true.

You can trust me that I will pay it back and I can trust you to borrow from." So that's an important point, too.

You've got to make sure that both people are can be trusted.

The person who's lending the money and the person who's borrowing the money.

"I will borrow two pounds from you," says Izzy.

Good for you, Izzy.

Okay, let's do the first task then.

Alex, Izzy, and Jun have a football each.

Alex says, "I saved up my pocket money and bought it." Izzy says, "I got mine for my birthday." And Jun says, "I paid for some of it with birthday money and then borrowed the rest." Do you agree that they all own their football? Explain your thoughts now.

If you're in a class situation, you might want to use this to have a discussion.

Maybe take some time to think about your own opinion first, and then spend some time sharing your opinion with other people.

Remember, if you disagree, that's okay.

What's important is that you make sure you're respecting one another in sharing your opinions and that you are listening.

You never know, somebody might change your mind.

Pause the video and have a go at that.

Welcome back.

How did the discussion go? I hope that it helped you to see that these things are never quite as straightforward as they might seem.

You might think that Jun doesn't fully own the ball yet as he borrowed money to buy it.

Opinions might differ here.

It's time to move on to the second part of the lesson then, where we think about whether we should save or borrow in different situations.

Alex has been saving up his pocket money for six weeks to be able to buy a game for his console.

He gets two pounds of pocket money a week.

Can he afford the game? You can see that the game costs 20 pounds, and there's a calculation to be completed here, so that he knows whether or not he can afford it.

2 pounds multiplied by 6 is equal to 12 pounds.

20 pounds subtract 12 pounds is equal to 8 pounds.

And Alex says, "I have saved 12 pounds.

I need 8 pounds more." Alex wonders whether he should keep saving or borrow eight pounds to get the game straight away.

"Eight pounds would take time to pay back.

It would take four weeks to pay back." Alex asks his friends for advice.

That's always a good idea to ask friends, talk things through if you're ever unsure.

Izzy says, "It would be great to have the game straight away." She's very enthusiastic about the idea of borrowing.

Aisha says, "But if you borrow the money, you won't be able to buy anything else for four weeks." That's a tough one, isn't it? I suppose it depends on how good the game is and how much you want it.

Well, let's have a further think about it.

As your check for understanding, I want you to consider these questions.

Who do you agree with and what would you do? And again, if you're in a class situation, now's a good time to have a chat to discuss these things.

Pause the video and give that a go.

Welcome back.

What did you think? I wonder if everyone agreed? Maybe there were some different opinions.

Alex decides to borrow the eight pounds from his dad.

"Thanks, dad.

Now, I can play the game." "No pocket money for four weeks though.

Then you'll have paid me back." The next day, Alex and Aisha pass a toy shop on the way home from school.

"This Frisbee looks brilliant, but I don't have any money.

I really want it.

Should I try and borrow more," says Alex.

"You already owe your dad eight pounds," says Aisha.

What do you think? Alex really wants the Frisbee, but he already owes some money.

Should Alex try and borrow more? Pause the video here and discuss that.

Welcome back.

What did you think? Well, here's some opinions.

Aisha says, "I don't think you should borrow more money.

10 pounds is a lot to borrow in one go, especially as you already owe money." And Alex says, "I don't think I will borrow more.

If I owe money to lots of people, it will be hard to keep track, and people might lose trust in me paying them back as soon as I can." It's very noble of you, Alex, and good thinking.

There's no problems with borrowing money.

It's perfectly okay to do that, but you must make sure that you are doing it within your means so that you can keep track of it, and you can pay people back.

Okay, let's get to task B then.

We've got some statements.

You need to decide whether you agree or disagree with them, but I don't want you to just say yes or no.

You need to be able to explain your decisions, as well.

And once again, if you're in a class situation, you might like to turn this into more of a discussion and debate.

These are the statements then.

Izzy says, "Owing someone money is always a bad thing and you should avoid it whenever possible." Alex says, "It's okay to borrow money as long as you agree when to pay it back." And we've got some other statements here as well.

Aisha says, "You can borrow as much money as you need because then you get what you want quicker." Izzy says, "You can owe money to lots of different people as long as they don't know you owe anybody else." Okay, pause the video and discuss those statements.

Welcome back.

Here's what we thought about each statement, but just before I read these out, do remember that this is about opinion, and so as long as you've discussed it respectfully, then that's the main thing.

Money conjures up a lot of different emotions in people, and people have different opinions about it, but that's okay.

So for Izzy's statement, we've put, "It's not a bad thing, but you need to decide carefully when to do it and when not to." And for Alex's statement, we've said agree, because you both have a plan and you know when it will be paid back.

For Aisha's statement, we've disagreed, because borrowed money still needs to be paid back, so keeping it low is a good idea.

And for Izzy's, we've put disagree, because it can be hard to keep track of borrowed money, and you might be seen as untrustworthy.

Best to be honest.

Let's summarise what we've learned today then.

Spending money means giving money for goods or services.

You can save up for items that you can't afford.

Sometimes, you can borrow money so that you have enough money to buy what you want straight away.

Borrowed money should be paid back as soon as possible, and it's not a good idea to borrow money from lots of different people at the same time.

Do remember though, borrowing money in itself is not a bad thing to do.

It can be quite useful at times, especially if you're trying to buy something from somewhere where you've only got one opportunity to buy it.

However, you need to make sure you're keeping track of it, you're doing it safely, and that you are borrowing or lending to trusted people.

Thanks for today.

I hope you enjoyed it.

I did.

Maybe I'll see you again next time.

Bye for now.