Risk and reward
I can describe the relationship between risk and reward in different financial contexts.
Risk and reward
I can describe the relationship between risk and reward in different financial contexts.
These resources will be removed by end of Summer Term 2025.
Lesson details
Key learning points
- Investing money can lead to an increase but it also comes with a level of risk
- Borrowing money comes with a level of risk
Keywords
Profit - Profit is a business’ financial gain; the difference between the revenue and the cost.
Interest - Interest is money added to savings or loans.
Rate of interest - The rate of interest is the percentage by which an amount will increase.
Common misconception
Investing money is always the right choice as you will make more money.
Investing money comes with a level of risk; what you receive may be less than you put in.
To help you plan your year 7 financial education lesson on: Risk and reward, download all teaching resources for free and adapt to suit your pupils' needs...
To help you plan your year 7 financial education lesson on: Risk and reward, 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 financial education lessons from the Choices, risks and rewards unit, dive into the full secondary financial education curriculum, or learn more about lesson planning.
Equipment
Content guidance
- Depiction or discussion of sensitive content
Supervision
Adult supervision recommended
Licence
Lesson video
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