Year 4

Growing money

Today we will look at interest rates. How do they work when we are saving money with a bank or building society? And how do they work when we are borrowing from them?

Year 4

Growing money

Today we will look at interest rates. How do they work when we are saving money with a bank or building society? And how do they work when we are borrowing from them?

Lesson details

Key learning points

  1. By the end of the lesson, pupils will have: • know that by saving money in a bank/building society, people can earn interest. • recognise that by borrowing money in order to buy something, it is known as a 'loan', which usually has a general interest charge, so we pay back more than we borrow • create a feelings' map of how someone might feel when they borrow money.

Licence

This content is made available by Oak National Academy Limited and its partners and licensed under Oak’s terms & conditions (Collection 1), except where otherwise stated.

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4 Questions

Q1.
Which of the following is a key reason why we have money?
Because we couldn't use anything else.
Correct answer: It gives everything a monetary value.
It's nice to spend.
So we can exchange money when we go on holiday.
Q2.
Before the invention of money, what was one way that people would obtain the goods they needed?
They would go to the bank and ask them to create money.
They would only use the items they could make.
Correct answer: They would trade items.
They would travel long distances to find things they needed
Q3.
Which of the following is NOT a method we can use to pay for things?
A cheque.
A fingerprint.
A Gift Card.
Correct answer: A pen and pencil
Q4.
Which of the following are important reasons why we should save?
Correct answer: All of the above.
Just in case we need money for an emergency.
So that we can buy items we can't afford in the short term.
So that we don't go into debt.

3 Questions

Q1.
What mathematical sign is used to work out interest?
Addition.
Equals.
Multiplication.
Correct answer: Percentage.
Q2.
What is the word used when someone borrows money from the bank?
A current account.
Correct answer: A loan.
Investments.
Savings.
Q3.
What are the risks of taking out a loan?
Correct answer: All of the Above
You could lose other items you posses
You could lose the items you bought with the loan
You may go into debt