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Year 4

How do we pay for things?

I know the difference between a debit card and a credit card.

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New
New
Year 4

How do we pay for things?

I know the difference between a debit card and a credit card.

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Lesson details

Key learning points

  1. Debit cards are used to spend the money in an account.
  2. Credit cards are used to spend now and pay back later, sometimes paying more.

Keywords

  • Credit card - A credit card can be used use to buy goods and services and pay for them later.

  • Debit card - A debit card can be used to take money directly from a bank account to pay for goods or services.

  • Borrow - Borrow means to use someone else's money. It will be paid back later.

  • Declined - When a debit card is declined it means there isn’t enough money left in the account to pay.

Common misconception

Pupils may think that paying by contactless card is free money because there is no concrete exchange of money that can be seen.

Remind children that bank accounts are charged whenever a card is used. Ask a child to pass plastic coins from one pot to another outside the classroom as you use a pretend contactless card. Pupils won't see the exchange but it has happened.


To help you plan your year 4 financial education lesson on: How do we pay for things?, download all teaching resources for free and adapt to suit your pupils' needs...

Remember that there are many different cultural perspectives on borrowing money. Make sure you are aware of the diversity within your class before teaching the lesson. You might even want to find a place in the lesson to acknowledge and celebrate these differences.
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Content guidance

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Supervision

Adult supervision recommended

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Licence

This content is © Oak National Academy Limited (2025), licensed on Open Government Licence version 3.0 except where otherwise stated. See Oak's terms & conditions (Collection 2).

Lesson video

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6 Questions

Q1.
What is budgeting?
Raising money to donate to a charity.
Correct answer: The process of planning to spend an amount of money for a particular purpose.
Q2.
Tick the items that you would need to save up to be able to afford if you had the money in the picture.
An image in a quiz
Sketch pad £2.50
Correct answer: Paint set £4.99
Sketching pencils £4.25
Q3.
Postcards are 49 p each. If you have £3 then how many can you afford?
Correct Answer: 6, six
Q4.
At a fairground, each ride costs a different number of tokens. Alex likes riding the rollercoaster. How many times can Alex afford to go on the rollercoaster with 12 tokens?
An image in a quiz
Correct Answer: 3, three, 3 times, 3 goes
Q5.
At a fairground, each ride costs a different number of tokens. Laura loves the dodgems. How many times can Laura afford to go on the dodgems with 16 tokens?
An image in a quiz
Correct Answer: 5, five, 5 times, 5 goes
Q6.
Snacks at the cinema cost different amounts. Jacob has £5 to spend and buys toffees and gummy bears. How many chocolate frogs can he afford to buy with the rest?
An image in a quiz
1
2
Correct answer: 3
4

6 Questions

Q1.
Jun and Izzy have both bought the new Battle Robots comic. Jun owes his Mum £4 and Izzy used her pocket money. Which one has borrowed money?
Izzy
Correct answer: Jun
Q2.
Jun owes his Mum £4 for a comic. How long will it take him to pay her back?
An image in a quiz
Correct Answer: 8 weeks, 8, eight
Q3.
Izzy has borrowed £2.50 from her Dad. It will take her five weeks to pay him back. How much is she paying back each week?
Correct Answer: 50 p, 50, 50 pence
Q4.
Match the type of card to the definition.
Correct Answer:Credit card,Used to buy things and pay for them later.
tick

Used to buy things and pay for them later.

Correct Answer:Debit card,Takes the money straight out of a bank account.
tick

Takes the money straight out of a bank account.

Q5.
Can a debit card always be used to pay for things?
Yes
Correct answer: No
Q6.
Izzy thinks a credit card is magic as you don’t have to have the money and you can just keep buying things. Is she right?
Yes
Correct answer: No