Tax is money that you have to pay to the government so that it can pay for public services. Tax is also often paid on goods and services.

VAT or Value Added Tax is a tax that is added to the price of some goods and services.

A service is a business whose work involves doing something for customers but not producing goods.

A percentage is a part or share of the whole. It is expressed as if it is part of a total that is 100.

Who pays for all of this?

Financial education

In this unit we look at public spending, personal budgeting, getting value for money, and how ethics and beliefs shape financial choices.

Budgets and ethical spending

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

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

How do you plan and manage a budget?

The value of something is how much it is worth in money or other things for which it can be exchanged.

Value for money is when you feel that what you have bought is well worth the money you have spent.

To invest in something is to buy something in the hope of making a profit in the future. It is also called making an investment.

Value for money?

When something is ethical it is in line with beliefs and principles about what is right or wrong or morally correct or acceptable.

Fairtrade means that producers such as farmers are paid a fairer price for their work. There are also higher environmental standards and investment in local communities (e.g. building schools).

Recycling is treating things that have already been used so that they can be used again.

Sustainable means causing little or no environmental damage e.g. if trees are cut down, more are replanted.

Ethical spending

Attitudes are the way that people think and feel about things.

A charity is an organisation that helps people or animals in need.

Greed is wanting more wealth or possessions than are needed.

Kindness means caring about others and being generous.

Moral means thinking about what is right and fair.

Budgets and ethical spending

Choose a lesson (5)

These lessons will be removed by end of Summer Term 2025.