What are the implications of borrowing money?
I can explain the different types of borrowing and the dangers attached to borrowing.
What are the implications of borrowing money?
I can explain the different types of borrowing and the dangers attached to borrowing.
These resources will be removed by end of Summer Term 2025.
Lesson details
Key learning points
- Borrowing money through credit cards can lead to high interest rates.
- Short-term loans can quickly accumulate debt and become expensive.
- Long-term loans can result in paying more interest over time.
- Overdrafts can lead to high fees if not repaid quickly.
- Loan sharks charge extremely high interest rates and operate outside FCA protections.
Keywords
Borrow - taking money from a lender with the intention of paying it back
Interest - the extra money you have to pay when you borrow money, acts as a fee for using it
Overdraft - when you spend more money than you have from your bank account
Loan - a sum of money you receive and agree to pay back with interest
Common misconception
Borrowing money is always a dangerous thing to do.
In our lives it is sometimes necessary to borrow money, e.g., when we buy a house most people have to get a mortgage. However, this can be part of budgeting sensibly and learning to be financially responsible by always paying loans back on time.
To help you plan your year 9 citizenship lesson on: What are the implications of borrowing money?, download all teaching resources for free and adapt to suit your pupils' needs...
To help you plan your year 9 citizenship lesson on: What are the implications of borrowing money?, download all teaching resources for free and adapt to suit your pupils' needs.
The starter quiz will activate and check your pupils' prior knowledge, with versions available both with and without answers in PDF format.
We use learning cycles to break down learning into key concepts or ideas linked to the learning outcome. Each learning cycle features explanations with checks for understanding and practice tasks with feedback. All of this is found in our slide decks, ready for you to download and edit. The practice tasks are also available as printable worksheets and some lessons have additional materials with extra material you might need for teaching the lesson.
The assessment exit quiz will test your pupils' understanding of the key learning points.
Our video is a tool for planning, showing how other teachers might teach the lesson, offering helpful tips, modelled explanations and inspiration for your own delivery in the classroom. Plus, you can set it as homework or revision for pupils and keep their learning on track by sharing an online pupil version of this lesson.
Explore more key stage 3 citizenship lessons from the How can we manage money well? unit, dive into the full secondary citizenship curriculum, or learn more about lesson planning.
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Lesson video
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Starter quiz
6 Questions
doing what is morally right, fair and good
money taken from a bank account and used for payment
money that can be used for payment but it is borrowed from a lender
a plan for how to spend money and track income and expenditure
Exit quiz
6 Questions
taking money from a lender with the intention of paying it back
the extra money you have to pay when you borrow money as a fee
when you spend more money than you have from your bank account
a sum of money you receive and agree to pay back with interest