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 learned today, by the end, we want you to be able to confidently say, "I know that I can plan what to do with a sum of money by budgeting." We've got two keywords here, and they're very similar.

I'd like you to repeat them back to me, so that you can practise saying them, and then after that we'll look at exactly what they mean in the context of financial education.

I'm gonna say, "My turn." Say the word, and then I'll say, "Your turn" and you can say it back.

Ready? My turn.

Budget.

Your turn.

My turn.

Budgeting.

Your turn.

You can see that those words are very similar in terms of how they sound.

There's just a slightly different suffix, but let's see what it is that we mean using these words.

Well, a budget is the money that is available and a plan of how it'll be spent over a period of time.

It's almost got two meanings there.

Budgeting is the process of planning to spend an amount of money for a particular purpose.

This is the outline of today's lesson.

We're gonna start by thinking about budgets, and then we're gonna move on to planning a budget.

Along the way, we'll meet Sofia, Sam, and Laura.

They'll be in some different situations, which will help us to learn about the things that we need to learn about today.

Hi, Sofia, hi, Sam, hi, Laura.

Okay, they are ready? Are you? Well, let's get learning then.

Laura goes to a fairground.

Each amusement costs a certain number of tokens.

Her granny buys her 10 tokens.

Have you ever been in that situation where you've been to a fairground and you have tokens to spend? It's quite a common thing.

Good fun too.

We've got a table there and it says, "Amusement and "Tokens." Helter-skelter costs one token, rollercoaster costs four, trampoline three, dodgems three, that's a bargain.

Carousel four and chair swing two.

Laura says, "I have a budget of 10 tokens to spend on the rides." Laura chooses what to have a go at.

She says, "I will go on the rollercoaster, the dodgems and the carousel." What do you notice? The rollercoaster, the dodgems and the carousel.

So that's four tokens add it to three tokens, add it to four tokens, hang on a minute, how much did she say she had to spend? Laura doesn't have enough tokens, so she makes some different choices.

"I will go on the rollercoaster, the dodgems and the trampoline." You can see a bar model that's been drawn out to show her budget.

You've got rollercoaster, four tokens, dodgems, three tokens and trampoline, three tokens.

They're the parts and the whole is 10 tokens.

Okay, let's check your understanding so far.

This time, it's your turn to make some decisions about what you would like to go on at this fairground.

What would you choose to go on with the budget of 10 tokens to spend? Pause the video and have a go at that.

Welcome back.

What did you choose? I think, if I was gonna have a go, I'd do the helter-skelter, the rollercoaster, the dodgems, and the chair swing, which means I would've spent 10 tokens.

Sam has been given three pounds to spend on snacks to take to the cinema.

I love going to the cinema with snacks.

Great fun.

Sam says, "I have a budget of three pounds on cinema snacks." You can see the prices of all the snacks there.

Wine gums for two pounds, gummy bears for 1.

50 pounds, popcorn for two pounds, chocolate frog, 50 p each, mints 1.

50 pounds and toffees two pounds.

Sam chooses what to buy.

She says, "I will buy some popcorn and a chocolate frog." What do you notice? Hmm.

Popcorn, two pounds, chocolate frog, 50 p.

She's got a budget of three pounds.

Hmm.

Sam realises she has money left over from her budget and decides to buy another chocolate frog.

So you can see there that we've got a bar model drawn again, showing what she's decided to spend so far.

She's got three pounds to spend, and she spent two pounds on popcorn and 50 p on a chocolate frog, so she adds on another chocolate frog, and she says, "I can afford to buy popcorn and two chocolate frogs." Well done, Sam.

It's time for your first task then.

Number one, what would you choose to buy for your cinema snacks with a budget of three pounds to spend? Number two, how many different ways of spending a three pounds budget that includes toffees can you find? Number three, how many different ways of spending a three pounds budget that includes gummy bears can you find? Pause the video here and have a go at those questions.

Welcome back.

So for number one, what would you choose? Well, that's up to you really.

You might like to compare that with somebody else.

For number two, there's only one way.

If you buy toffees for two pounds and you're looking to spend three pounds, then you're gonna have to buy two chocolate frogs.

What a hardship, but that's because there's nothing on that price menu that's one pound or less other than chocolate frogs, and if you've already spent two pounds on toffees, you've only got one pound remaining to spend with the three pound budget.

For number three then, there were two ways, and you can see them both displayed there using a bar model.

One of the ways was to get two packs of gummy bears for 1.

50 pounds each, which would give you a total of three pound spent, the budget, or you could get gummy bears and three chocolate frogs, which also would total three pounds.

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

Now we're gonna look at planning a budget.

Every school day, Laura practises multiplication facts playing five games online on "Robo-Recall." "I get 20 tokens for every game I play and I can spend them on accessories." You can see Laura's avatar there, robo name, May Trix.

She buys a skull head for 200 tokens, 5 lots of 20 is equal to 100.

100 multiplied by 5 is equal to 500.

"I have a weekly budget of 500 tokens." Okay, let's check your understanding then.

What can she afford to buy with her weekly budget of 500 tokens? Tick the items in her price range and cross any that she can't afford to buy without saving.

You've got a list of items that she could buy for her avatar there, and you've got the price next to them.

Pause the video and have a go.

Welcome back.

She could afford all of those except for the rocket pack.

The rocket pack costs 1,000 tokens, and she only gets 500 tokens in her weekly budget.

Laura wants to save for the rocket pack, but she has a problem.

She doesn't wanna save 500 tokens each week.

Remember, that's how many she manages to get each week, but she doesn't wanna save them all.

She wants to spend something.

"I wanna be able to spend some tokens and save the rest of the tokens," she says.

What can Laura do? Hmm.

Well, Laura needs to do some budgeting.

She decides how to partition her weekly budget.

"I have a weekly budget of 500 tokens," she says, "I'll spend 300 tokens each week.

I'll save 200 tokens each week." Okay, let's check your understanding then.

Laura spends 300 tokens each week and saves 200 tokens.

Complete the table to show how many tokens Laura will have at the end of each week.

Pause the video here and give that a go.

Welcome back.

Here's the completed table then, 300 in all of the spend column, 200 in all of the save column.

The tokens column has changing numbers.

They're increasing by 200 each time, 200, 400, 600, 800, 1,000 and 1,200.

Laura manages to work out from this, how long it will take her to save? She says, "I will be able to save up enough tokens to buy the rocket pack after five weeks time with this budget plan." Sofia needs to do some budgeting, but this time with pocket money.

She wants to save up four pounds for a new mini water pistol.

"I have a weekly budget of three pounds pocket money," she says, "I'll spend 2.

50 pounds each week.

I'll save 50 p each week," and you can see the bar model there, which has shown how she's partitioned her weekly pocket money into spending and saving.

We are gonna use what Sofia has just told us for your second task.

For number one, it says, "Sofia spends 2.

50 pounds each week and saves 50 p.

Complete the table to show how much money Sofia will have at the end of each week." Sofia has a follow-up question as well.

She says, "After how many weeks will I have saved enough to buy a four pounds mini water pistol?" Number two asks, "If Laura saves 200 tokens per week, after how many weeks will she be able to afford a pair of sunglasses for her battle robot avatar?" Sunglasses cost 800 tokens.

For number three, "Laura has a weekly budget of 500 tokens.

She spends 150 tokens a week and saves the rest.

After how many weeks will she be able to afford to buy this blaster for her battle robot avatar?" Number four says, "Sam starts playing "Robo-Recall." A, complete the bar model below to show her weekly budget plan according to her instructions.

These are the instructions.

"My weekly budget is 600 tokens.

I want to be able to buy trainers in three weeks by saving some and spending the rest." You can see the trainers cost 1,200 tokens.

B, could you create a budget plan where she saves the tokens more quickly? C, how about one that takes six weeks? Pause the video here and have a go at those tasks.

Good luck.

Welcome back.

Let's look at number one to begin with.

And you can see that the spend column has 2.

50 pounds all the way down.

The save column has 50 pence all the way down, but the total saved changes by 50 p increments, 50 p, one pound, 1.

50 pounds, 2 pounds, 2.

50 pounds, three pounds, 3.

50 pounds, four pounds and the four pounds appears in the eighth week.

Consequently, Sofia says, "It will take me eight weeks to save up for the water pistol with this budget plan." For number two, then it would take four weeks.

That's because four multiplied by 200 is equal to 800.

For number three, it would also take four weeks.

That's because 500, subtract 150 is equal to 350.

That's how much she's saving each week, and four multiplied by 350 is equal to 1,400, which is the required amount to be able to purchase the blaster.

For number four, well, the bar model would look like this.

Save 400 tokens and spend 200 tokens.

For B, you could create a budget plan where she saves the tokens more quickly.

It says, "To do this, I would have to save all the tokens from my weekly budget.

Then it would take two weeks." For C, how about one that takes six weeks? Well, it might look like this.

If she saves 200 tokens and spends 400 tokens a week, it will take six weeks to save the required amount to be able to purchase the trainers.

Okay, I hope you got those.

Let's summarise our learning today.

A budget is the money that is available and a plan of how it will be spent over a period of time.

A budget plan partitions the budget into the amount of money to be spent and the amount of money to be saved over a regular time period, weekly, for example.

My name is Mr. Tazzyman.

I enjoyed learning that today.

I hope you did.

Maybe I'll see you again soon.

Bye for now.