Hello, everyone.

My name is Ms. Wyatt and I'm so pleased that you could be here today for our lesson.

Welcome to today's lesson on what is the best way to look after money from the unit "How can we manage money well?" By the end of today's lesson, you will be able to explain what financial responsibility is, the different types of bank accounts, and ways to bank ethically.

We will be using the following key words in today's lesson, and some of these words may be new to you today, but please don't worry as I'm here to guide you.

So, our first keyword is financial responsibility, which means managing money wisely by budgeting, saving, and avoiding unnecessary debt.

We then have bank accounts.

Now, bank account is a secure place to store, manage, and access money, allowing deposits, withdrawals, transfers, and payments.

And then we have ethical, ethical means doing what is morally right, fair, and good for people, society, and the environment.

Our lesson is broken up into three parts today with the first part exploring what is financial responsibility.

We will then start to look at what bank accounts can we use, and we will finish off by exploring the question of how can we bank ethically.

So when you are ready, let's start our lesson on what is the best way to look after money? Money, in terms of coins and notes, has not always existed.

The principles of value and worth have though.

So historically, people would trade goods instead of using money to pay for them.

And trade is when you swap one set of goods for another or some work.

So for instance, money didn't used to exist, and so, what they would do is they would trade things instead, like food, or metal, or animal skins, for example.

Money has three main purposes.

Exchange, which means money allows people to buy and sell goods and services.

Measurement.

So, it provides a standard measure of value, making it easier to compare prices and track financial transactions.

And stored value.

So, money holds its value over time, allowing people to save and use it in the future.

Now, these functions make money essential for a stable economy.

Economy means how a country makes, buys, and sells goods and services, and how money is handled.

A stable economy means money and prices don't jump up and down a lot.

It stays stable.

So, money has three main purposes, which are exchange, measurement, and stored value.

And these functions then therefore make money essential for a stable economy.

Let's check our understanding so far.

The three main purposes of money are exchange, measurement, and stored.

What's that final word we're looking for? Is it payment, value, deposit, or money? Pause the video and try and finish off this sentence.

Okay, it's time for our answer.

So, the three main purposes of money are exchange, measurement, and stored value.

Hopefully, we've said.

So, our answer is B, value.

Money allows us to meet basic needs like food and water and shelter, making sure that we've got access to buy them things.

Increase comfort and security.

So, afford better housing, transportation, and saving for emergencies.

Access opportunities.

So, we might have to pay for education, or training and experiences that improve quality of life.

Gain freedom and flexibility.

So, we choose how to spend time, travel and make life decisions without financial stress.

Money also allows us to support others to help family and friends or donate to causes that matter.

Enjoy leisure and luxury.

So, afford entertainment, hobbies and experiences that bring joy.

And build wealth and influence.

So, investing, start businesses, and create financial stability for the future.

So, money allows us to do a lot of things.

Izzy says, "What do you use money for, Jacob?" Jacob says, "I use money to buy food and clothes.

Sometimes I save a little bit of my birthday money so I can buy gifts to my friends and family.

I like saving because it feels good to be able to give back to others." So, true or false? Money allows us to access opportunities and meet our basic needs.

Is that true or is it false? Pause the video and have a think about this question.

Okay, hopefully, we've decided now whether this is true or false, and hopefully, we've all said that it is true.

Well done, if we did.

It's true money does allow us to access opportunities and meet our basic needs of buying food, water, and shelter.

Now, with money comes responsibility.

Maybe a lot of your parents, carers, or guardians have said to you when perhaps giving you money or lending you money, "Look after this or use it well." So, we all have financial responsibility.

This means we must manage our money wisely and live within our means.

Our financial choices also affect and are affected by, others, like the government and businesses.

Financial responsibility means making smart money choices to afford what you need now and in the future.

So, not spending it all at once for instance.

Financial responsibility includes budgeting, saving for important things and not spending more than you have.

So, I wonder, if many of you already are budgeting or perhaps saving any money that you get.

Now, budgeting means keeping track of your money.

So, what comes in, which is your income, and what goes out, which is your expenditure.

For example, if you want to buy trainers, you'll need to budget to make sure you don't spend the money before you can afford them.

So, with budgeting, it means we're keeping track of our money.

So, what's coming in and what's going out.

Financial responsibility also means understanding the difference between needs and wants.

So, I wonder how many of us think that we could define what's the difference between a need and a want.

For example, you need food for dinner, but you might want to spend your money on sweets.

Food for dinner is a need, but sweets are an example of a want.

We should budget for needs first as they are often different from wants.

Always prioritise needs over wants.

So, this is a really important thing now, always prioritise.

So, that means put first your needs over what you want.

Lucas says, "Do you think you are financially responsible, Andeep?" Andeep says, "I don't think I know enough about savings and borrowing, but I try to use my money wisely.

I think I'll be better in the future, but at the moment I need to learn more about how to budget my money so I don't spend it all at once." I wonder if any of you are in the same position as Andeep at the minute and thinking, "Well, I don't actually know that much about savings and budgeting, but I try to use my money how I think I should use it." Andeep then says, he'll be better in the future, but he needs to learn more.

So, being responsibly financially when you are an adult also involves paying bills on time and avoiding unnecessary debt.

Now, debt is when you owe money to someone or to an organisation.

Most debts come with interest, which is extra money you have to pay back on top of what you've already borrowed, okay? So, a lot of loans come with interest, okay? And debts come with interest.

So, this is an extra bit of money that you've got to pay back on top of what you have already borrowed.

Some debt can be more responsible than others depending on the situation.

For example, taking out a loan to buy a house and paying interest might be a smart financial decision, while borrowing money to buy a TV could be considered unnecessary debt.

Unnecessary debt is when you spend money that you don't have on wants.

It's coming back to our needs versus our wants.

Remember, we always prioritise needs over wants.

So, let's check our understanding.

What is not an important part of financial responsibility? Is it A, budgeting, B, saving, or C, wasting? What is not an important part of financial responsibility? Pause the video and choose your answer to this question.

Okay, let's go through our answer then.

So, what is not an important part of financial responsibility? Hopefully, we said wasting C.

Well done, if we got that correct.

Budgeting and saving is a real, real important part of financial responsibility, but wasting isn't.

The earlier you start practising financial responsibility, the easier it will be to manage money as you get older and become more financially independent.

Being financially responsible helps you avoid money problems and gives you more freedom later in life.

It's important to learn about financial responsibility so we can become adults who manage money successfully.

So, let's filling the missing words here.

We've got a few to fill in.

So, keeping track of your money is called blank.

If you spend money you don't have, you can get into blank, which may result in you being charged blank.

So, we've got three gaps here that we need to fill in.

Let's pause our video here and have a go at filling in the missing words.

Okay, it's answers time.

So, let's go through it together then.

Keeping track of your money is called budgeting.

If you spend money you don't have, you can get into debt, which may result in you being charged interest.

So, our missing words were budgeting, debt, and interest.

Well done, if we filled those in correctly.

Okay, for this task, I would like us to explain to the Oak National Academy pupils what financial responsibility is and give them a list of tips to teach them how to be financially responsible in their lives.

So, can you just briefly explain to these pupils what financial responsibility is? So, write it down and also give them a list of tips to teach them how to be financially responsible, okay? So, pause the video when you are ready to start this task and enjoy.

Okay, well done, everyone.

So hopefully, we've managed to explain to the Oak National Academy pupils what financial responsibility is and give them a list of tips on how to be financially responsible.

So, we might have said something like, financial responsibility means that we have to manage what money we have to make sure it is used well and we are not living beyond our means.

To be financially responsible, we need to follow these tips.

So, budgeting and keeping track of your money, so your income and expenditure.

Saving for important occasions or items. Understanding the difference between wants and needs.

Paying bills on time.

Not getting into unnecessary debt and being charged interest.

So well done, if you got some of the same tips as I did.

There's some good tips there that will hopefully, teach the Oak National Academy pupils how to be financially responsible.

We have now explored what is financial responsibility and we are to move on to what bank accounts can we use.

To be financially responsible, we need to know what sort of bank accounts are available to us in order to be able to manage our money well.

Banks differ from one another, so their account options can vary a lot.

A way to be financially responsible is to research different bank accounts as what they offer can change often.

You might want to know the benefits of them, where they invest your money, or whether they provide just online or in-person banking.

So, there's lots of different banks around, okay? And we need to do our research to see which one would suit us best.

Each bank account serves different financial needs based on lifestyle, income, and goals.

So, we've got different types of accounts, okay? So, we've got current, savings, and package.

So, if you have a current account, it's used for everyday banking, spending, receiving your salary, paying bills, things like that.

We then have a savings account and you use this to store money with higher interest for short and long-term saving goals.

And then we have a package account.

So, this includes extra benefits, for example, travel insurance, breakdown cover for a fee.

There are many other types of bank accounts, including student, children's, joint, business, and ISAs, or individual saving account.

So, a student account gives special benefits for students, for example, interest-free overdrafts.

This can help people who perhaps are moving away to university.

Children's accounts, this helps children save and learn money management.

They then have joint accounts.

So, these are shared accounts for couples, family members, or business partners.

There are then business accounts for companies to manage income and expenditure.

And then there are ISAs, which are tax-free savings.

So, in February, 2025, citizens in the UK can save £20,000 a year tax free.

So, let's check our understanding.

A current bank account is used for spending, receiving your salary, and what else? Is it tax-free savings, businesses, couples, or paying bills? What's a current bank account used for? Pause the video, read back through our list and make your choice.

Okay.

So, a current bank account is used for spending, receiving your salary, and paying bills.

So, if we said do paying bills, we would be correct.

That's what a current bank account is used for.

The most common bank account that most adults use is a current account.

A current account is for everyday money management, allowing easy deposits, withdrawals, and transfers.

Current accounts vary between banks with differences in saving rates, perks like free phone insurance, and account fees based on interest.

Choosing the right one is important for being financially responsible.

Jun says "I have a children's bank account that I can save money in.

It is a savings account, not a current account.

Do you have a current account, Sofia?" Sofia says, "I have a current bank account, because my older brother told me it helped prepare me in understanding things like savings, spending, and avoiding debt, so I learned financial responsibility." So, true or false? Current bank accounts are all the same.

Is that true or is it false? Hopefully, we're all saying it is false.

It's false, because there are a large amount of current accounts that banks offer and you have to look for the best bank account to suit your lifestyle or your goals.

So, Well done, if we all said that current bank accounts aren't all the same.

What I would like us to do now is to match the bank account with its purpose.

So, we've looked at some of these.

We've looked at current, savings, children's, ISA, package, and joint, and the uses of them, the purpose of them.

So, I would like you to match the bank account with its purpose on the right-hand side.

Pause the video and have a go at this task.

Okay.

So, let's have a go now at putting our answers together and matching the bank account with its purpose.

So, we had current bank accounts.

What is the purpose of a current account? Hopefully, we said it's everyday banking.

For a savings account, it stores money with interest.

A children's account, helps teach money management to young people.

An ISA, saves money tax free.

A package account, includes extra benefits.

And that leaves us with a joint account, which you share your account with someone.

So, well done, if we managed to match the bank account correctly to its purpose.

We have now looked at what bank accounts can we use and the different types of them.

We're now going to look at the last part of the lesson, which is how can we bank ethically? When we bank, we make a choice that goes beyond just our needs.

So, it involves our morals and ethics.

Ethics are our moral principles which guide our decisions.

It is our responsibility to manage money thoughtfully.

How we manage it can affect both ourselves, others, and the environment in which we live in.

So, when we come to like looking with money and how we can bank ethically, we do have to involve our own morals and our own ethics.

So for example, if we choose to use our money buying secondhand clothes, we are helping the environment and being more sustainable in our consumption.

Ethical banking relates to how banks use the money they have available to them.

Ethical banks will invest in areas which are socially or morally responsible.

For example, they wouldn't invest in industries related to weapons as this would be considered morally wrong.

Morally responsible things to invest in might include renewable energy, Fairtrade companies, affordable homes, or green technology, for example, electric cars.

An example of an ethical bank is The Co-operative Bank.

We might have seen some of these on our high streets.

The Co-operative bank became the first UK high street bank to launch a customer-led ethical policy in 1992.

It is committed to carbon-neutral operations and avoids funding companies involved in climate harm and activities, like fossil fuel extraction.

So, what would an ethical bank invest in? Would they invest in fossil fuel extraction, renewable energy, or weapons manufacturing? Which one would they invest in? Pause the video and have a think.

Okay.

Hopefully, we all said that an ethical bank would invest in B, renewable energy.

They wouldn't invest in fossil fuel extraction and weapons manufacturing as these are not ethical.

Since the 1980s, Islamic banks have been open to all and some consider these to be ethical banks.

This is because Islamic banks operate according to principles of Islamic finance, which avoid charging interest, or riba, and do not invest in activities deemed harmful or unethical, like gambling, tobacco, or alcohol.

So, Islamic banks are open to A, everyone, B, Muslims, C, religious people, or D, Christians.

Who are they open to? Hopefully, we just remembered that Islamic banks are open to everyone.

Well done if we said that.

Alex says, "Would you bank ethically, Izzy?" Izzy says, "It's a difficult decision, because I would want to make the most interest possible on my money, but I also don't want my money paying for unethical things, like weapons production.

Therefore, I would research what the banks invested in before opening an account." Banking ethically means choosing a bank that supports responsible social and environmental causes, while avoiding harm.

Ethical banks often use their money to fund community projects.

For example, Triodos Bank focuses on financing businesses that create social and environmental benefits, like renewable energy and sustainable agriculture.

Making responsible financial choices can contribute to a fair and more sustainable world.

If you're interested in banking ethically, you could research your bank's policies, consider switching to a more responsible bank, or explore ways to use your money to support causes you believe in.

Organisations such as Switch It Green and Make My Money Matter can also help you choose an ethical bank.

So, true or false? Researching a bank's policies help us to bank ethically.

Is that true or is that false? Hopefully, we've all said it is true.

If we do our research and look into a bank's policies and what they invest in, it does help us to bank ethically, 'cause we can see where that money is being used and spent on.

What I would like us to do now is to explain what banking ethically means and how citizens can do this.

Include at least two examples of ethical banks in your answer, okay? So, in a minute we're gonna get started.

We're gonna have a go at explaining what banking ethically means and how citizens can do this.

And when we are doing this, we're gonna try and include these two examples of ethical banks that we've just talked about in our answers.

So, when you are ready, pause the video and have a go at this task.

Okay.

So, your answer might include some of the following.

Ethical banking means choosing a bank that supports positive social and environmental causes, while avoiding harmful industries like fossil fuels and weapons trade.

Triodos Bank is an ethical bank, because it funds businesses that benefit people and the planet, like renewable energy.

The Co-operative Bank has carbon-neutral operations and avoids funding companies that harm the environment, like fossil fuels companies.

To bank ethically, citizens can research where their bank invests its money, switch to a more responsible bank account and use financial services that match your values and support good causes.

This helps make sure your money supports and contributes to a fair and more sustainable future for everyone.

Well done, if we managed to include some of the following, and also included our two examples of ethical banks such as The Co-operative and Triodos Bank.

We have now come to the end of our lesson on what is the best way to look after money.

I'm gonna summarise it into a few points for us.

Financial responsibility means making smart choices with money, like budgeting, saving, and avoiding unnecessary debt.

Different types of bank accounts, include current accounts for everyday spending, saving accounts for saving money, and special accounts like ISAs, children's accounts, or student accounts.

Ethical banking involves choosing banks that invest in positive causes, like Triodos Bank and The Co-operative Bank, which support the environment and fair practises.

Banking ethically ensures that financial decisions align with personal values and contribute to a better world.

Understanding these concepts helps in managing money wisely and responsibly to prepare us for the future.

So, I hope you've got a lot from this lesson on what is the best way to look after money and about budgeting and the different types of bank accounts.

I hope we can take this into the future with us.

Thank you for all of your efforts today and I hope to see you in the next one.

Bye-bye.