Hello, my name's Mrs. Hopper and I'm looking forward to working with you in this lesson on personal finance.

We're going to be thinking about lots of different aspects around money, where money comes from, what money is spent on, how things are funded, and how the government raises money as well.

So if you're ready to make a start and to have some interesting discussions about how we make and how we spend our money, let's get going.

In this lesson, we're going to be considering what we mean by value for money.

And hopefully by the end of the lesson you will understand that value for money can mean the best deal for everyone or the best deal for you yourself.

So let's see what's gonna be in our lesson.

We've got some key words and phrases here.

We've got value, value for money and invest or investment.

We'll have a look at what they mean in the moment, but let's just practise saying them first.

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

So my turn, value, your turn, my turn, value for money, your turn, my turn, invest, your turn, my turn, investment, your turn.

You may have come across those words before maybe in different context.

Let's look at what they're going to mean for us in the context of our lesson today.

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

We are going to be thinking about value for money this time, and that is when you feel that what you have bought is well worth the money that you have spent.

You feel you've got good value for your money.

To invest in something is to buy something in the hope of making a profit in the future.

It's also called making an investment.

So you put money towards something, towards an object to buy something or to buy into a business perhaps in the hope that in the future your money that you've paid in will have grown in value and you'll get more back than you put in.

And that's going to come up in our lesson today so watch out for it.

There are two parts to our lesson today.

In the first part, we're going to be thinking about what we think is good value, and in the second part we're going to be calculating value for money.

That's really helpful when we're out shopping, we'll look at that in part two of the lesson.

So let's make a start on what I think is good value.

And we've got Aisha, Sam and Jacob in the lesson with us today.

So what do you have that's valuable? You might want to have a think about this before our characters share their ideas.

So let's see what they say.

Aisha says, "I've got a new coat from my favourite brand." So she's clearly got a designer or a label that she likes and she's got a new coat.

That's really exciting.

So to Aisha, that is a value.

Jacob says, "My gran bought me a teddy bear when I was born," and that's going to be something that has huge value to him as well, isn't it? Wonder what Sam's valuable thing is.

Sam says "I saved up for my new football boots." So those are things that are valuable to them.

Let's think about what value they have.

Is value always about money? Were all of those things expensive? Are they all worth a lot of money to somebody else? Jacob says his teddy has sentimental value.

It means a lot to him because it was bought for him by somebody who he cares about, by his gran.

Sam values her football boots because she's proud that she bought them for herself.

She saved up that money.

Wonder what about Aisha's coat she likes? Ah, Aisha's mum found her coat on a second hand app, so she possibly got good value for money that she got a new coat, but she bought it second hand.

So things can be valuable to us for different reasons.

It may not always be about the money.

So what is it that makes something valuable to us? Well, Aisha says, "The full price of the coat was quite expensive.

I wonder if it was worth it." So would it have been worth spending a lot of money on that coat when it was at the full price? Remember her mum found it second hand on an app.

Jacob says "A coat has lots of material and it's difficult to make." That's true, if you look at your coat, there's lots of different parts and they've all been put together very carefully to make sure that the coat looks good and fits you.

And Sam says that "Buying the parts and making things costs money.

There are lots of people involved in this." So there have been people involved in making and sourcing the material, cutting it out, putting it together, and then maybe putting it into a form where it goes off to the shops to be sold.

So can something be worth more than the value of its parts and the labour? That's the work that went into making it.

If we count it up for Aisha's coat, what the parts had cost and what it had cost the people to make it, is the coat worth more than that? Something to think about, isn't it? You might want to have a discussion.

Are things worth more than the value of their parts and the work that's gone into making them? And what is it that makes them more valuable than that? Aisha and her uncle have bought the same robot toy.

It's Robomania Special Edition toy.

Aisha says, "I can't wait to play with my robot! It can battle with my other robots." She's clearly got a collection of them and enjoys playing with them.

Do you think Aisha's uncle plays with his robots as well? He says "I'm keeping mine in the box.

It will be valuable in the future.

It's an investment!" Ah, so he's thinking that because it's a special edition robot, there may not be as many of those made, and if he keeps it in perfect condition in the box, he might be able to sell it for more than he bought it for.

So it's a toy to Aisha, but to her uncle, it is an investment.

Its value may increase with age.

I wonder if you've ever thought about that with your toys.

Toys are there to be played with, aren't they? But some people buy them as an investment and don't ever take them outta the box.

Let's have a look at another scenario.

Remember we are thinking about what's good value when we are spending our money.

So Aisha has saved £7.

00 to buy a birthday present for Jacob.

Which t-shirt should she buy? We've got three t-shirts there and they're all different prices.

Which would you buy do you think? Well, Aisha says, "I know he loves aliens and the colour green." Hmm, that's leading me to look at one T-shirt in particular.

Which one would you advise Aisha to buy? You might want to pause here and have a think and discussion.

Which would you advise her to buy? I wonder what decision she's made.

Ah, she's going to go for the green one with the alien type thing on it I think.

But it is more expensive, isn't it? But she says, "I think it's worth spending the extra money," because she knows she's going to get Jacob a t-shirt that he's really going to like.

So sometimes it's not actually the best value to buy the cheapest one.

We might buy one that's a bit more expensive because we know it's something that will mean something to somebody else or maybe to us.

Over to you to check your understanding.

You are buying flowers for your aunt's birthday and here are some flowers on sale.

She loves flowers and roses are her favourite.

Which would you buy? Pause the video.

Have a think and a chat about it, and when you're ready for some feedback, press play.

What did you go for? Well Jacob says "If I could buy one bunch of roses, I would do that.

It's worth the extra pound to get her favourite flower." So the sunflowers are £6.

00 a bunch, but the roses are two bunches for £14.

But if he can buy just one bunch for £7, he's prepared to spend that extra pound because he knows that his aunt loves roses.

I wonder what you decided.

Sometimes good value is about more than money.

Which of these batteries would you buy? We've got rechargeable batteries, four for £8 and we've got some extra power batteries, eight for £4, so which batteries would you buy? How would you explain your decision? What value is important? You might want to pause here and have a think before we share our thoughts.

So what did you come up with? Let's think about those rechargeable batteries.

Well, they are more expensive, so you might be thinking, well they're not value for money, are they? But there's less waste.

These are rechargeable batteries so we can use them again, that means kind of to the environment because we are not using as many resources to make batteries and to recycle them.

What about those extra power batteries though? They are a lot cheaper, aren't they? But there is more waste, once they've run out, you've got to get rid of them.

You can't recharge these ones.

And whilst you can recycle batteries, it's not the easiest process.

They are quite difficult to recycle.

So what did you decide to go for? Which values are important to you? Is it all about the money or are there other things to consider? Time for you to do some practise now? We are thinking about those batteries again.

So for question one we're gonna look at those different packs of batteries and answer these questions.

How much does each individual battery cost? How many times would you need to recharge the batteries for them to be worth buying? What other devices do you have that use rechargeable batteries.

And are there any drawbacks to rechargeable batteries? Are there any negative points around rechargeable batteries? So that's question one.

And for question two, think of something that is valuable to you.

Think of things that have monetary value so they're worth a lot of money or worth more money.

Some things that have sentimental value, that mean a lot to you because of who gave them to you, where they came from perhaps, have a personal value such as making you feel happy and proud, and maybe something that might be an investment that might be valuable in the future.

Pause the video, have a go at those two questions and when you're ready for some feedback press play.

How did you get on? So we were looking at the batteries again.

So each individual battery costs £2.

00 for a rechargeable battery and 50p for a non-rechargeable one.

That's a big price difference, isn't it, between each individual battery, but we can recharge the rechargeable ones.

So how many times would you need to recharge them? Well, you'd need to use the rechargeable ones more than four times.

Four times 50p is equal to £2.

00.

So if you use them four times, then they've cost the same as the non-rechargeable ones.

But every time you use them after that, you are getting better value for money from the cost of the battery.

For C, what else uses rechargeable batteries? Well, you might have a tablet or a phone perhaps that you plug in and recharge.

You might have an electric toothbrush, that has rechargeable batteries in it.

You might even have an electric car which has rechargeable batteries.

So think of anything that uses electricity but that you don't have to keep putting batteries in.

And D asked you for any of drawbacks? Well, electricity isn't free.

Electricity costs money and it does take time to recharge things.

So those could be drawbacks to using rechargeable batteries.

You've got to think about the values that are important to you.

Now, it's impossible to give you examples for part two because this was all about what is valuable to you.

And you'll all have different answers to these and it's okay to value different things.

We are all individuals.

So I hope you had fun thinking about and discussing what has monetary value, sentimental value, personal value, and what you might own that could be an investment for the future.

And on into the second part of our lesson, calculating value for money.

We've got sunglasses here.

Sunglasses are £6.

50 a pair, but we can buy one pair and get another pair half price.

Aisha says, "Hey, the second pair only costs £3.

25," that's half of £6.

50, isn't it, is she right? Well Jacob says, "Yes you are right, but you have to buy the first pair for £6.

50 so that's really £9.

75 that you've spent to get your second pair of sunglasses." So is that value for money? "Oh," says Aisha, "Do I really need two pairs?" It's good value if you need two pairs of sunglasses, but if you only need one pair of sunglasses, then it's trying to tempt you to buy another pair and spend more money than you need to spend.

So it's worth thinking, is this really value for money given what you want to buy? Let's have another think about that.

Here's a check for understanding.

Do you think this is a good deal? Footballs are £7.

99 each or three for the price of two? Is this a good deal? Pause the video, have a think, and maybe talk it through with somebody.

And when you're ready for some feedback, press play.

What did you think? Aisha says, "It does look like a good deal, but I only want one football." Hmm, so she could just pay £7.

99 and get one football.

She doesn't need three footballs and she'd be paying twice as much for those three footballs.

She only really wants one.

Jacob says though, "This would be a good offer for a school or a youth group." Absolutely, somewhere where they needed more than one football, needed lots of footballs for people to play with.

That's a really good deal, isn't it? So sometimes things can be a good deal for some people but not for others.

Let's have a look at this then.

So which is better value? So we've got orange juice, four for £3, or eight for £4.

80.

Which do you think is better value? You might want to have a think about it before Aisha and Jacob share their answers.

Well, Jacob says, "Eight bottles should cost twice as much as four." So eight bottles should cost £6.

So eight for £4.

80 is better value for money.

You're getting more orange juice for your money than if you bought two lots of four for £3.

And we always need juice.

As long as it's got a nice long date on it, we can keep that juice and drink it over the next few weeks, can't we? So that is good value for money.

It's something that we keep buying every week and so it's good to be able to get a good deal on it.

How much does one bottle cost if you buy four? So four for £3.

What do you think? Aisha says, "I need to divide £3 by four." Jacob says, "I would halve £3 and halve it again." £1.

50, that's half of £3 and half of £1.

50 is 75p.

So each bottle costs 75p.

Over to you to check your understanding, how much is one bottle if you buy the pack of eight? And what is the saving per bottle? Pause the video, have a go.

When you're ready for some feedback, press play.

How did you get on? So £4.

80 divided by eight or something times eight is equal to £4.

80.

Do you spot a number in there that's quite familiar to you? 48? Yeah, 6 times is 48.

So 60p times eight will be equal to £4.

80.

So the bottles in the pack of eight cost 60p, so they're 15p cheaper for each bottle than if you buy four for £3.

So as long as you need lots of orange juice, that's a really good deal, you're getting good value for money.

And time for you to do some practise.

So question one asks you to think about these special offers.

What would you save if you bought three packs of these pencils? 10 pencils cost £1.

50, three packs for £4.

Do you think that's good value? And in B, the party hats cost £1.

80 for four and £2.

44 for six, what's the best value for money if you want 12 party hats and how much would you save? And in question two, we are thinking about footballs.

These footballs are £4.

50 each, and there are four deals.

You can pay £4.

50 for your football.

In B, you can buy four and save 20% on the total.

And C, you can buy two and get the third half price.

In D, you can get three for the price of two.

You wanted to buy three footballs.

So which deal would you choose? Which is the best value for money for you if you want three footballs? Pause the video, have a go at questions one and two, and when you're ready for the answers and some feedback, press play.

How did you get on? So question one, 10 pencils cost £1.

50, and three packs for £4.

Is this good value? Well yes, three times £1.

50 is £4.

50, so you're saving 50p.

So yeah, I think this is good value.

You can always use more pencils.

So I think you buying three packs for £4 would be a good deal.

What about these party hats? Remember we are wanting 12 party hats.

So we could buy three packs for £1.

80 or two packs for £2.

45, 3 lots of £1.

80 is equal to £5.

40, and two packs at £2.

45 is equal to £4.

90.

So you'd say 50p if you bought the two packs of six hats.

So that's definitely the way to go, isn't it? And so for question two, we were thinking about wanting to buy three footballs and we had these four different deals to look at.

So the footballs are £4.

50 each.

So if we bought three of them at £4.

50, we'd spend £13.

50.

The next deal said buy four and save 20% on the total.

So four times £4.

50 is £18, 10% of that is £1.

80, 20% is £3.

60, so if we subtract the £3.

60 from our £18, we'd be paying £14.

40 for four footballs.

Yeah, but we only want three footballs, so I'm not sure that's a good deal.

We're paying more and we're getting an extra football.

It might be a cheap extra football, but we only need three.

For part C, you could buy two and get the third half price.

So two of them will cost £9 and then half price from £4.

50 is £2.

25.

So that would be £11.

25.

Well that's better value than buying the three, isn't it? And I'm only getting the number of footballs I need and it's cheaper than the buy four and get 20% off.

And D was three for the price of two.

Oh, that's got to be a better deal, hasn't it? Because our third one is free this time, not half price as it was in C.

So the total cost would be £9.

So which offer would you choose? Well, you may have different views, but D is the cheapest way to buy just three footballs.

So I hope you had fun investigating the calculation of value for money there.

And we've come to the end of our lesson on value for money.

What have we been thinking about? Well, it's worth thinking carefully about and calculating deals and offers to see if you really are getting value for money.

Sometimes people will try to get us to spend more money to get more of what we are buying.

We may not want the more though, we may be better off buying just what we want and spending a bit less money.

Value for money may not be the same for everyone, and values can be personal to us, and we can value things for different reasons.

Something might have sentimental value or might be something we think is an investment for the future.

I hope you've enjoyed exploring value for money.

I've enjoyed working with you and I hope we get to work together again soon.

Bye-bye.