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A Practical Guide to
Financial Education within Citizenship
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A Practical Guide to Financial Education within Citizenship
Contents
Introduction and context
What is financial education, and financial capability?
Developing a coherent approach to financial education
Citizenship
PSHE education
Mathematics
Practical approaches
Practical activities
Societal issue 1: Is pay fair? Why is there such a large gap between high
earners and low earners?
Personal issue 1: How much will I earn?
Suggested activities
Societal issue 2: How is public money raised and spent?
Personal issue 2: What is on my payslip?
Suggested activities
Societal issue 3: Should payday lenders be outlawed, strictly controlled or
allowed to operate freely?
Personal issue 3: Can I afford to move into a flat share?
Suggested activities
Societal issue 4: Should everybody have the right to a bank account?
Personal issue 4: Should I open a bank account?
Suggested activities
Societal issue 5: Consumer rights – are most of us in the dark?
Personal issue 5: Can I return the jeans I bought in a sale?
Suggested activities
Societal Issue 6: Is globalisation a force for good or evil?
Personal issue 6: Should I consider more than price when I buy a product?
Suggested activities
Resource sheets
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Introduction and context
Welcome to this guide, developed by pfeg in partnership with CISI and the Citizenship community. The guide, and resources included, aim to:
• the functions and uses of money, the importance
and practice of budgeting, and managing risk (Key
Stage 3);
• income and expenditure, credit and debt,
insurance, savings and pensions, financial products
and services, and how public money is raised and
spent (Key Stage 4).
As schools plan an effective programme of financial
education in light of the new National Curriculum for
England, and consider what pupils need to know, they
will develop and flesh out the detail of the key stage
specifications. This will present opportunities to teach
financial capability in different areas of the curriculum.
There is another aspect to the addition of financial
education in Citizenship. Financial exclusion is a huge
issue in some of the communities from which students
are drawn. They may receive limited information
and guidance from parents and carers about how
to manage money competently. This can mean that
they become marginalised and may find it difficult to
participate in mainstream society, thereby threatening
their future life chances and certainly affecting their
ability to become active citizens in their communities.
• help teachers understand the connections between
Citizenship and financial education;
• bring together the ‘personal’ and ‘public’ aspects of
financial education;
• help schools develop a coherent approach to the
delivery of financial education through Citizenship
and other curriculum subjects;
• provide practical ideas and activities for teaching
financial education within Citizenship.
One of the main aims of Citizenship education is
to enable individuals to play a full and active part
in society. Financial and economic understanding
leading to increased financial capability is an
important part of achieving this aim. Many of the key
decisions in life – at personal, school, community,
national and international level – involve financial
considerations, whether this is to do with the allocation
of scarce resources, establishing priorities or sticking to
tight budgets. A sound grasp of how the economy and
financial markets work, allied with an understanding of
our economic and financial rights and responsibilities,
helps to lay the foundations for more informed
participation and effective decision making.
In England, the 2014 National Curriculum includes
a specific provision for financial education within
Citizenship. It states that a high quality Citizenship
education should:
• prepare pupils to take their place in society as
responsible citizens, manage their money well and
make sound financial decisions;
• equip them with the skills to enable them to
manage their money on a day-to-day basis, and
plan for future financial needs.
More specifically in respect of key stages 3 and 4, it
states that all pupils should be taught about:
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They also need to understand the wider economic
context in which financial decisions are made, and
how personal finance and public policy can be
influenced by the UK and global economy. This
includes aspects of finance such as changes in
interest rates (who sets them and why), recession,
financial exclusion, how taxation is decided, how
pensions are arranged, wage levels (the National
Minimum Wage), gender differences in pay, the
way the energy market works, and the decisions
made by local and central Government and financial
institutions. All of these impact on people’s lives
and the financial decisions they make, and should
be taken into account in order to manage money
effectively. To be financially capable, you need a
wider financial understanding.
Financial education in schools is a planned
programme of learning opportunities and experiences
designed to increase the financial capability of
young people from every social and cultural
background. Being financially capable means having
the confidence, skills and knowledge we need to
manage our money well, now and in the future. The
development of financial capability is lifelong and
includes the ability to adapt our approach to money
management in response to changes in our financial
circumstances and the wider economic environment.
Young people need to know how financial products
work and acquire the knowledge and understanding
to make sound financial decisions. This means that
they should have a working knowledge of financial
products such as bank accounts, credit cards, loans,
shares and savings. They also need to acquire the
skills involved in handling money competently i.e.
when budgeting, assessing risk, spending responsibly
and so on. This will help them manage money on a
day-to-day basis, avoid falling into debt and negotiate
the increasingly complex world of electronic finance
and e-commerce.
What is financialeducation, and financialcapability?
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Developing a coherentapproach to financialeducation
Consulting students can be a fruitful way of deciding
what aspects of financial education to teach. You can
carry out an audit of what they already know as well
as what they would like to learn about, this aspect
of pupil voice fits in well with the aims of Citizenship
education. pfeg has a number of case studies which
show how this can be done and the financial criteria
or topics that could be used in the consultation – see
www.pfeg.org/resources.
Financial education may take place in a number of
ways including:
• within timetabled subjects, most notably
Citizenship, PSHEe and Mathematics; and PHSEe
and Mathematics;
• tutorial time which may occur once a week for 50
minutes or in short 10 - 20 minute periods;
• blocks of lessons on a carousel, e.g. a run of five
lessons over five weeks
• one-off events, e.g. My Money Week (www.pfeg.
org/MyMoneyWeek);
• special activity days where outside financial experts
play a role.
Schools and others responsible will have to decide
on how to devise a programme of financial education
to suit their circumstances and the needs and
interests of their students. However, the relationship
between three key subjects – Citizenship, PSHEe and
Mathematics – is particularly important. They can
provide a cohesive and complementary framework
to teach financial capability, understanding and
responsibility. For more help, advice and tools on
planning financial education see www.pfeg.org.
Although financial education has been introduced
in the Citizenship curriculum it may, of course, be
delivered through other subjects. Indeed, some
aspects of financial education may be taught more
appropriately elsewhere, e.g. calculating interest
rates in mathematics (where it also has a statutory
home), or the relationship between personal money
management and wellbeing in PHSE education.
However, it is essential that there is a coherent and
planned programme of financial education across all
subjects, and schools should map out clearly where
elements of financial capability are being taught.
Moreover, these elements should be addressed
directly and explicitly in lessons with learning
outcomes clearly stated. Research has shown that
financial education is most effective when it is taught
within standalone lessons or as a distinct component
of a lesson.
To support the planning, teaching and progression
of financial education within schools, pfeg has
developed two frameworks – see www.pfeg.org/
PlanningFrameworks. These frameworks have been
designed to help teachers deliver financial education
flexibly across the range of subjects and learning
opportunities available within the school curriculum.
The frameworks can be used in a number of ways, for
example to:
• gauge students’ starting points for financial
education;
• identify learning outcomes for lessons and schemes
of work;
• map existing provision and identify gaps;
• plan for progression between ages and key stages.
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The new Citizenship curriculum also provides
scope to examine some of the more personal
aspects of financial decision making and to address
how the choices we have and decisions we make
about money are inextricably linked to, and
informed by, wider public policy and legislation.
The contribution of Citizenship to financial
education is explained well in a joint statement
from pfeg, the Association for Citizenship
Teaching and the PSHE Association:
‘Although the [Citizenship] Programme of
Study at Key Stage 3 places an emphasis on the
personal aspects of financial decision-making, the
Key Stage 4 Programme of Study indicates that
this can only be fully interpreted in Citizenship
through a recognition that individuals make
these decisions in a wider public policy context.
It is this that provides the distinctive Citizenship
perspective on personal finance – acknowledging
the importance of collective decisions, providing
opportunities to explore public interest issues
relating to money and making links between
private matters and our role as public citizens.’
Citizenship
The introduction of financial education into
Citizenship at KS3 and KS4 has raised questions
about the relationship of the personal aspects of
financial capability to the more public arena of
Citizenship education. Matters have often been
defined as Citizenship when they move from the
personal to the public sphere, that is, matters
of public interest and public concern where
participation and action are required. The aim of a
good Citizenship education is to develop informed,
active and critical citizens who will engage in,
and contribute positively, to society at large.
There is no debate over the relevance and
importance of finance in Citizenship. Important
decisions on public projects often depend on the
amount of money available and the perceived benefit
to citizens. Decisions about taxation and Government
spending, particularly in relation to cuts in spending
and issues around welfare and benefits, affect all
of us. Young people need to be able to join in the
debate on these areas armed with the knowledge and
skills to allow them to participate with confidence.
Topical controversies about finance issues, e.g.
bankers’ bonuses or payday lenders, usually
generate a good response from students and
develop interest in learning about financial matters
such as how banks work, debt, the dangers of
borrowing, why we pay taxes, why some jobs
get much less money than others and so on.
This is not only a good way to access financial
education but also to help students become better
informed citizens able to engage in these crucial
discussions linked to their personal wellbeing as
well as the wellbeing of their fellow citizens.
Developing a coherentapproach to financialeducation continued…
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PSHE education
Financial education is an important aspect of Personal,
Social, Health and Economic education and is already
incorporated into many PSHEe programmes. The
focus here is upon equipping students with the
knowledge, skills and understanding to manage
their money now and in the future through exploring
the personal, social and emotional aspects of
financial decision-making and responsibility. It is
this perspective that places financial knowledge and
skills in personal and family contexts, recognising
the impact money has on many important areas
of our lives including our relationships, our
physical and mental health and wellbeing, and
our plans for work or career development.
Mathematics
At its most basic level, managing money involves
calculations using numbers, and numeracy skills
underpin most of our interactions with money; without
them we cannot make informed financial decisions.
Money provides a real-world context and relevance
for mathematical tasks. For instance, understanding
the way ‘interest’ is calculated is central to managing
money (borrowing and saving) in the everyday world.
Students need to be able to work out the interest on
loans or savings to make sound decisions.
See Introducing Financial Mathematics, produced
by pfeg, for practical guidance, and activities in
respect of mathematics and financial capability.
www.pfeg.org/MathsGuidance&Resource
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Practical approaches
The second part of this guide offers some ideas for practical approaches and activities that teachers can use to deliver financial education in the context of Citizenship. We have identified two main lines of approach:
2. Personal issue led
Starting from the perspective of the individual and connecting matters of personal finance to public policy on money, as well as to public debate.
Beginning with an individual’s personal experience
may be less familiar to Citizenship teachers, but
there is a strong pedagogical case to be made for
starting from ‘where the person is at’ before moving
on to wider concerns and matters. Students often
find it easier to process information and understand
concepts that are rooted in their personal experience,
or that they have encountered in some form in their
daily lives.
If, for instance, you want students to understand
budgeting in local authorities or at national level,
in particular setting priorities and making decisions
about value, then starting at the personal level can
be a good way to help pupils understand what is
involved. Importantly, this approach also offers the
opportunity to cover some of the more personal
aspects of financial education that feature in the
Citizenship Programme of Study and to explore how
personal decisions about money are always made in
the wider context of public policy and debate.
1. Societal issue led
Using societal issues to engage with the public side of finance including the collection, and allocation of public funds and money-related matters of public interest.
Citizenship teachers will be familiar with an enquiry-
led approach to teaching. Topical issues to do with
the public side of finance are constantly in the news
and should engage students and encourage a lively
response. Some of these may touch the lives of
students, their families and the communities in which
they live, so of course sensitivity is required on the
part of the teacher.
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Practical activities
The following pages contain six pairs of societal and personal issues involving money that can be used to develop financial understanding and responsibility within Citizenship. Each pair first looks at a societal issue and how it could be investigated using different financial topics and themes. This is followed by a personal issue in the form of a question which, through the use of a flow diagram, is ‘unpacked’ and connected back to the societal issue. The intention here is to highlight how personal questions about money can be used to explore public aspects of finance. Each flow diagram also links to a number of activity suggestions, some of which have accompanying resource sheets which can be found at the back of the pack.
It may also be helpful to use other pfeg or Quality
Mark resources to teach various aspects of the
financial topics below. See www.pfeg.org/resources
or use pfeg’s ASKpfeg service www.pfeg.org/
ASKpfeg which can help you identify resources
to teach any financial topic, or provide advice on
planning and teaching financial education.
Another useful resource for young people is
#yourmoney, a publication supported by CISI and
available from www.cisi.org/bookmark/genericform.
aspx?form=29848780&URL=yourmoney
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Is pay fair? Why is there such a large gap between high earners and low earners?
This issue is at the heart of a fair and just society and can be investigated in a number of ways.
• Look at the levels of pay across different jobs.
• Consider the type of work done in these jobs and
discuss with students whether the pay awarded is fair.
• Consider the reasons why some people might be
paid much more than others.
• Explore whether equal pay for men and women
exists in the UK.
• Investigate the National Minimum Wage and the
Living Wage.
• Consider whether bankers should get such large
bonuses.
• Look at measures by which the Government could
bring more equality to the system of pay awards, for
example more taxation on large amounts of income,
and the potential pros and cons of such action.
Societal issue 1
How much you are paid for the job you do is influenced by a number of factors. Office cleaners, ambulance drivers,
teachers, and barristers each play a valuable role in society but they are not rewarded equally. Jobs that require high
levels of skill, education or responsibility often pay more than those that require lower levels of skill, training and
responsibility. But it is not always the case, for example the boss of a major company can earn more in three days than a
nurse does in a year, yet both jobs involve significant levels of skill and responsibility. Many question whether the large
pay gap between high and low earners is fair and debate the Government’s role in encouraging greater equality of pay,
and in ensuring that low paid workers earn a Living Wage. Currently there is a National Minimum Wage for workers in
the UK that employers are legally obliged to pay.
How much will I earn?
Level of skill/qualification/pressure/responsibility
Gender inequality
Why do some people get paid more than others?
Is this fair?
Is money a motivating factor? Others might include job satisfaction and making a contribution to society
What type of job do I want and why?
Levels of income for different jobs
Should a Living Wage replace the National Minimum Wage?
Should bankers’ bonuses be capped?
How can the Government encourage greater equality of pay?
Is the level of gap between high earners and low earners fair?
Personal issue 1 Suggested activities
How much will I earn?
1
2
3
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Suggested activities
1
2
A fair day’s work for a fair day’s pay?
Is there a gender pay gap in the UK?
Use the following questions to structure class
discussion:
• Does the level of pay always reflect the duties and
tasks required for a particular role?
• Are you surprised by some of the annual salary
amounts associated with particular job roles?
• Do you think some people are overpaid or
underpaid – is it fair?
• What other factors might influence levels of pay?
Reasons might include: discrimination in hiring,
differences in the jobs men typically go into as
opposed to women (occupational segregation),
discrimination in pay or salary negotiations,
differences in amount of work experience, and the
fact that women still bear the main responsibility for
looking after children. Extend the activity by asking
groups to come up with one more solutions to reduce
the gender pay gap.
Ask students to work in pairs to discuss the different
job roles listed in resource sheet 1, thinking about
the tasks carried out in each job, the skills, experience
and training required to do the job well, as well as the
level of responsibility involved.
Ask students to complete column A ‘your guess –
gross annual salary (£)’, using the selection of gross
salaries listed at the bottom of the resource sheet.
(Some of the actual gross salaries have been filled in
to give students a steer.)
Take feedback from the students as to why they
have allocated certain salaries to certain roles, before
revealing the actual average annual gross salary for
each job role in the UK in 2014/15.
Explain to the class that they are going to work in
groups to investigate the ‘gender pay gap’, (defined
as the difference between the average earning of men
and women in any given population) using the web
links below, or similar.
• http://www.equalpayportal.co.uk/where-to-
start-2/
• http://www.telegraph.co.uk/women/womens-
business/10513636/Gender-pay-gap-widens-with-
women-earning-an-average-of-5000-less-reports-
ONS.html
Ask each group to identify three possible reasons why,
on average, men may earn more per hour than women.
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3A fair day’s work for a fair day’s pay? The National Minimum Wage:
Keep it? Scrap it? Change it?
Is there a gender pay gap in the UK?
The legislation made it a criminal offence for
employers not to pay the National Minimum Wage to
employees. Rates are updated every October and are
dependent on age.
The National Minimum Wage Act 1998 came into
effect in the UK on 1st April 1999 to help those
affected by low pay, many of whom did not have
access to trade union representation.
Introduce the concept of the National Minimum Wage (NMW) and NMW rates using the information below:
Split the class into small groups. Ask half of the
groups to create a mind map highlighting the possible
advantages for employees, businesses and the
Government of having a NMW.
Ask the other groups to do the same but to highlight
the disadvantages, with all groups presenting their
points to the rest of the class.
Year 21 and over 18-20 Under 18 Apprentice1
From 1st October 2013 £6.31 £5.03 £3.72 £2.68
From 1st October 2014 £6.50 £5.13 £3.79 £2.73
Possible Benefits Drawbacks
• Greater equality – narrows the pay gap between
high and low paid workers;
• Lowers poverty;
• Workers are less likely to be exploited;
• Increased numbers in work;
• Greater amount of tax raised;
• Decrease in benefits paid out.
• Can cause inflation – higher wages means
increased costs are passed on to customers
through higher prices;
• The UK becomes less competitive – low wage
economies such as China and India are more
appealing for investment;
• Shadow markets form – employers use people
who are not entitled to work in the UK and pay
them less than the National Minimum Wage –
this means lost tax income for the Government;
• Those in poorer parts of society already claiming
benefits do not benefit from it.
Source: https://www.gov.uk/national-minimum-wage-rates
Use the web links below to facilitate a debate around whether the NMW should be replaced by with the Living Wage.
http://www.livingwage.org.uk/
BBC Newsnight report on the living wage (up to 4:25) – http://www.youtube.com/watch?v=-E7LZFAYlho.
1 This rate is for apprentices aged 16 to 18 and those aged 19 or over who are in their first year of an apprenticeship. All other
apprentices are entitled to the National Minimum Wage for their age.
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How is public moneyraised and spent?
This question can be addressed directly as it appears explicitly in the KS4 Programme of Study.
• Ask pupils what they know about tax and to list any
taxes they are aware of, and use their answers to
construct a list of taxes to which you can add.
• Divide these into direct and indirect taxes and
explain the difference – provide examples for
them to categorise, e.g. duty on cigarettes is an
indirect tax.
• Discuss the idea of progressive tax, e.g. income,
and ask them whether they think this fair. Look
at the different rates and discuss whether richer
people should be paying more. Ask them if
they think the starting point for tax should be
raised further.
• Ask them what they think taxes are spent on –
construct a class list and explain some of the areas,
e.g. welfare spending and benefits, education.
• Set up an activity to prioritise spending. Give
them areas of public spending, e.g. education and
defence. Tell them that cuts have to be made in
spending and they have to decide where the cuts
are going to fall and to justify these.
• The limited nature of public money can be used
to debate a range of issues of public interest, for
example ‘should tax payers be giving money to the
royal family?’, or ‘should treatment on the National
Health Service be rationed?’.
Societal issue 2
Your payslip contains lots of information about the income you earn. It shows your gross pay and your net pay; your gross
pay is what you earn before any deductions and your net pay is what you actually receive into your bank account once all
the deductions have been taken off. Deductions can include income tax, National Insurance, pension contributions and any
student loan repayments. The amount of income tax and National Insurance that you pay is dependent on how much
you earn – as earnings increase, so does the amount of tax and national insurance deducted. Tax and National Insurance
are used to pay for a range of public services such as healthcare, education, and the welfare system.
What is on my payslip?
Income tax National Insurance
How much will I have to pay?
Why do we pay income tax and National Insurance?
Public services (e.g. education, health, welfare)
Prioritisation of spending and ‘The Budget’
Workplace pension contribution
Automatic enrolment
Student loan repayments
What is the difference between gross and net pay?
Personal issue 2 Suggested activities
What is on my payslip?
1
1
31
2
2
3
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Suggested activities
1 Understanding your payslip
Focusing on the deductions area of the payslip,
explain that income tax and National Insurance are
deducted from your earnings before you get them.
Show students the four different annual incomes in
the table below. Ask them to guess what they think
the total deductions for income tax and National
Insurance would be for each one (students are not
expected to guess correctly, it’s more to get a sense
of how much they think is deducted).
To extend this activity, highlight that as earnings
increase so too does the proportion of tax deducted.
This is known as progressive taxation. Do students
think the idea of progressive tax is fair?
Introduce this activity by asking students how
individuals in work know whether they’ve been paid
the right amount of money. Answers may include the
fact that employers provide employees with a payslip
to show their earnings. Ask students what they
think would be included on a payslip and list these
suggestions on a flipchart or whiteboard.
Hand out resource sheet 2 and compare this to the
list made by the students. Discuss each of the terms –
have the students come across any of these before?
Reveal the correct answers. Were the students’
guesses higher or lower than the actual figures? Are
they surprised by the actual figures? You may wish
to introduce the concept of a personal allowance
(the amount you can earn in a year before tax is
deducted), and tax and National Insurance rates, and
that these change each year.
For details see http://www.hmrc.gov.uk/working/
intro/employed.htm
Annual Income Income Tax (2014-15 figures)
NI (2014-15 figures)
Total Amount paid in tax and NICs as % of annual income
£10,000 0 £245.28 £245.28 2.5%
£25,000 £3,000.00 £2,045.28 £5,045.28 20.2%
£50,000 £9,627.00 £4,231.78 £13,858.78 27.7%
£100,000 £29,627.00 £5,231.78 £34,858.78 34.9%
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Understanding your payslip 2 Spending cuts and the school budget
Develop this activity further by exploring how
the Government spends the money collected
from income tax and National Insurance. ‘Paying
for it’, a pfeg Quality Mark resource produced
by the Citizenship Foundation, includes
some excellent activities about Government
spending and the social and ethical dilemmas
involved in allocating limited funds – see www.
pfeg.org/resources/details/paying-it
Divide the class into six groups and give them each
are area of spending from the list. Ask each group
to prepare a five minute presentation on why their
area of the budget should be protected from cuts
as well as recommending one way to cut spending
in a different area. Explain that you will be acting
as the school budget holder and will make your
decisions based on the arguments presented.
You may wish to use the prompts below to
help students prepare their presentations:
• List three reasons why having money
budgeted for utilities (or another area
of the school budget) is important.
• What would be the consequences of a reduction
in funds for this area of the budget?
Once all groups have presented, summarise any
strong arguments for why certain areas of the school
budget should be protected as well as any convincing
arguments for why certain areas should be cut. Round
up by highlighting that schools, like the Government
and other organisations, face many competing
priorities for spending their limited budgets and
prioritising spending requires careful thought in
terms of the likely outcomes, and how these will
affect different groups within the community.
Hand out resource sheet 3. Tell students that the list contains various items of expenditure from the school
budget, all of which are required for the school to run effectively. Explain that due to the unforeseen cost of
school building work over the summer holidays, cuts need to be made to other areas of spending so that the
school does not exceed its budget for the year.
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3Will I have enough money when I’m older?
Students may find the final question, ‘Why is the
age of the State Pension increasing?’ challenging so
it is worth going over this detail. Explain that Britain
has an aging population i.e. people are living longer
and having fewer children, which means there
are proportionally fewer people of working (tax
paying) age to cover the rising costs of state welfare,
including a growing pensions bill. In order for the
State to be able to cover the cost of pensions people
will need to work for longer (and pay tax for longer)
and start receiving State Pension later in life.
This activity can be used as the basis of two sessions, the first on the State Pension and the second on workplace pensions.
a.
The State Pension
Start by asking students what sort of lifestyle they
would like in ten years time and how they might
achieve that. Someone is likely to answer ‘by having
a job’ or ‘by earning money’. Ask students to think
about their lifestyle in 60 years time. How might they
pay for basics such as food or heating, as well as
luxuries such as holidays when they are retired from
work? Someone might say ‘with savings’ or ‘with
a pension’.
Refer students to resource sheet 2 and specifically
to the National Insurance deduction. Explain that
throughout our working lives we pay National
Insurance (which is a tax on earning, deducted along
with income tax) to build up our entitlement to certain
state benefits, including the State Pension.
Hand out resource sheet 4 and, working in pairs,
ask students to complete the fact sheet, using the
following sources:
• www.gov.uk/state-pension/eligibility
• www.moneyadviceservice.org.uk/en/articles/
state-pensions
• www.telegraph.co.uk/finance/
personalfinance/10501607/State-pension-age-
rises-a-plan-to-retire-at-55-not-70.html
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(let students research what this is) would be
adding to their workplace pension per year if:
1. Both employee and employer pay in 1%
2. Employee pays in 4% and employer 3%
3. Employee pays in 3% and employer 6%
www.moneysavingexpert.com/savings/
discount-pensions#widget
Refer students to the pension deductions in
resource sheet 2. Explain that until recently
workers have been able to choose whether they
want to join their employer’s pension scheme, but
that a new law introduced in 2012 means that every
employer must automatically enrol workers into
a workplace pension scheme if they are over 22,
earn more that £10,000 and work in the UK. This
is called ‘automatic enrolment’. Under the current
system, an employee must contribute 0.8% of their
earnings to their workplace pension, an employer
must contribute 1% of an employee’s earnings,
and tax relief adds another 0.2%. This will rise to
4%, 3% and 1% respectively by 2018. Do students
think this automatic enrolment is a good idea?
What about the rates for employee / employer
contribution – are these set too high or too low?
b.
Workplace pensions
Remind students that the State Pension currently
provides an annual income of £5,881.20 but that
this figure is far below the amount most people
hope to retire on. The Joseph Rowntree Foundation
have calculated that the Minimum Income Standard
for retired people – the smallest income level
acceptable to ‘participate properly’ in society – is
around £15,000 per year. If time allows you could
look in more detail at what this means by exploring
living costs in retirement and how these might
differ from living costs when you are working.
Ask students how they might increase the amount
of money they have to live on in retirement?
Someone is likely to say ‘by saving money’.
Ask if any of the students have heard of the term
workplace pension or company pension. Explain
to students that through a workplace pension a
percentage of your pay (taken before tax is deducted)
is put into the pension scheme automatically
every payday and that your employer also adds
money into the pension scheme. This money is
not accessible until the age of 55 at the earliest,
and in the meantime the money is invested.
Using MoneySavingExpert.com’s pension
calculator widget, ask students to research how
much someone earning the average UK salary
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Should payday lendersbe outlawed, strictlycontrolled or allowedto operate freely?
• Introduce information about payday lenders and
how they lend money, focusing on the interest
rates charged.
• Look at case studies of people who have ended up
paying back a great deal of money on top of the
amount borrowed.
• Prepare a series of statements about payday lenders
for students to examine – some supporting them,
others suggesting they be banned, controlled or
regulated (see resource sheet 6). Ask students which
they agree with, disagree with or can’t decide about.
Use this as a basis for class discussion.
• Look at current government actions in this area
(e.g. regulation) and discuss whether these go
far enough.
• Introduce students to credit unions as an
alternative and look at how they work and
how they support the community (www.
moneysavingexpert.com/banking/credit-unions)
• Ask the students to explore other ways of
borrowing money such as credit cards, loans
and hire purchase. Look at how these work and
consider the advantages and disadvantages of
different methods of borrowing.
Societal issue 3
Before deciding to move into a flat share, it’s important to establish the costs involved. The initial move may involve a
number of one off costs, but you will also need to consider the range of ongoing expenses associated with independent
living. Create a budget to establish whether the money you have coming in will cover the money going out to pay for
living expenses. Without careful planning and budgeting, and sometimes even when we try to plan and budget carefully,
expenditure may exceed income, and there are a number of ways to handle a money shortfall, including borrowing. The
cost of borrowing is determined by the interest rate (known as the Annual Percentage Rate or APR) charged over the
length of time you borrow for. Some forms of borrowing, such as payday loans, charge much higher APR than others
(as much as 5,000%). This means that the total cost of the loan can quickly increase and may result in further debt. It has
recently been announced that the Government will introduce a new law to cap the cost of payday loans.
Should I borrow?
Types of borrowing
Payday lending
Risks
Prioritise spending
Needs vs. wants
Can I afford to move into a flat share?
Identify living costs
What if expenditure is greater than income?
Personal issue 3 Suggested activities
Can I afford to move into a flat share?
1
1
1
1 2 3
3
2
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Suggested activities
1 Budgeting for your living costs
Hand out resource sheet 5. Tell students that whilst
Emma has some savings to pay for the initial costs
of moving into a new home, she needs to create
a budget to establish whether she can afford the
ongoing living expenses. After covering her living
costs, Emma would also like to be able to save £10
per week.
Ask students to identify all of Emma’s income
each month in one colour and all of the outgoings
(expenditure) in a different colour, and to use this
information to complete the budget planner. Based
on the completed budget planner do student’s think
Emma is able to afford to move into the flat share?
They should find that Emma’s income is £220 and her
outgoings total £223.
Extend this activity by asking whether Emma could
cut back on any items in her monthly expenditure to
make moving a viable option? What might happen if
Emma decides to go ahead with the flat share without
reducing her outgoings?
Ask students to imagine that they are just about to
move out of home and into a flat share. They have
found a single room in a two bedroom flat, sharing
with one other person. Most of the flat is furnished,
but their room is not.
Working in small groups ask students to think about
all the different costs associated with moving into
a flat share and to separate these into one-off costs
(such as a deposit and furniture) and ongoing costs
(such as rent, food and bills).
Share ideas as a class. Are there any notable
omissions? For suggestions see:
www.moneyadviceservice.org.uk/en/articles/
paying-your-own-way
www.severnsidehousing.co.uk/main.
cfm?type=COSTOFRUNNINGAHOME
Begin the second part of this activity by explaining
that many people make a budget to ensure that the
money they have coming in covers the money going
out to pay for their living expenses.
2 Different forms of borrowing
of borrowing as they can. Their suggestions may
include:
• Family and friends
• Secured loan
• Personal loan
• Credit cards
• Overdraft
• Payday loans
Explain to students than almost everyone will need
to borrow money at some point in their lives and
that there are many different reasons why this need
arises. The decision to borrow money should not be
taken lightly and you should only borrow what you
can afford to repay. Whilst this is straight forward in
theory, in practice it can be much more complicated
as there are many different ways to borrow money
and the cost of these can vary considerably.
Ask students to mind map as many different types
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Budgeting for your living costs
3
Should payday lenders be outlawed, strictly controlled or allowed to operate freely?
Different forms of borrowing
Split the class into pairs or small group and explain
that they are going to research different types of
borrowing, using the following websites:
www.moneysupermarket.com/loans/hubs/payday-
loans/payday-loans-guide/
www.moneyadviceservice.org.uk/en/articles/
deciding-on-the-best-type-of-credit-for-you
Ask students to find the average APR for each form
of borrowing on the list and then rank them from
lowest to highest APR. How does this order compare
with their earlier ranking? Are students surprised by
how much APRs can vary? Students may comment
that payday loans charge so much more interest than
other forms of borrowing. Ask students why they
think people use these if the APR is so high.
On the basis of this discussion ask each group
to decide whether they think payday lenders
should be outlawed, strictly controlled or
allowed to operate freely and to present
their decision, with reasons, to the class.
Write the suggestions on a flipchart or whiteboard
and discuss as a class. Are students able to explain
each of these types of borrowing? It’s important here
to address any misconceptions the students may
have. For further information see: www.adviceguide.
org.uk/wales/debt_w/debt_borrowing_money_e/
debt_types_of_borrowing_e.htm
Explain that the cost of borrowing is determined by
the interest rate charged and the length of time you
borrow for. All forms of borrowing are required to
display the cost as an Annual Percentage Rate (APR),
which means that they can easily be compared.
Working as a class, ask students to have a go at
ranking the different ways to borrow from lowest
to highest interest rate and note the suggestions on
the flipchart/white board. (The list above is in the
correct order, although it doesn’t include all types of
borrowing.)
This activity follows on from Activity 2: Different
forms of borrowing, and requires some basic
knowledge about how payday loans work.
Split the class into small groups and hand out
resource sheet 6 along with three sheets of card –
one red, one orange and one green. Give the groups
time to think about each statement and to decide
as a group, whether they agree (green), disagree
(red) or are not sure (orange). Read each statement
aloud to the class and ask each group to hold up
the card they chose. Ask different groups to explain
why they selected the red, green or orange card.
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Should everybodyhave the right to abank account?
Societal issue 4
This is concerned with the application of rights to financial products and services. Not having a bank account may lead to financial exclusion and the marginalisation of vulnerable people.
• Look at what a bank account is and the functions
it performs.
• Consider the problems associated with not having
a bank account, e.g. problem of getting wages
and benefits paid, difficulty getting credit, lack of
reference for all sorts of economic activities (credit
scores etc), even being forced into using illegal
money lenders.
• Discuss the reasons why some people can’t get
bank accounts, e.g. poor credit history, criminality
or misuses of money.
• Look at what a basic bank account is and discuss
whether the Government should ensure that
everybody has one so they are not marginalised
in society.
Opening a bank account, and more importantly choosing one that is most appropriate for an individual’s needs, is a
first step in many people’s personal money management. Bank accounts, such as current and savings accounts, offer
security, convenience and, in some cases, the benefit of interest. Despite this there are individuals who do not have
access to a personal bank account. This may be as they choose to opt out of using one, but in many cases it is due
to those individuals having a poor credit score or criminal convictions which means many banks will not offer them a
standard account. The creation of basic bank accounts was intended to provide simple accounts, without the facility to
borrow, in order to make bank accounts more accessible.
Personal issue 4 Suggested activities
Should I open a bank account?
1 2 3
Should I open a bank account?
Why would some people not want, or not be able to get, a bank account?
The concept of basic bank accounts as a solution for those unable to access regular accounts
Different types of bank account for different purposes
Increased security and potentially gaining interest
Facilities to make every day money management more convenient
What’s in it for me?
3
1
1
2
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Suggested activities
1
2
Choosing a current account
Should everyone have a bank account?
Young people can often be swayed by these offers
rather than considering the main features of the
account. It is important that they understand that they
should initially be comparing the main features of the
account rather than the perks.
Although some of the young people may already
have a bank account there will be others that may
not. For some it can feel quite intimidating going into
a bank to open an account. Discussing the process
and the identification that might be required can be
useful in allaying these concerns.
• Why may some people not want, or not be able to
access, a regular bank account?
• Some people feel more secure looking after their own money themselves
• There may be a lack of trust towards the banks
• Poor credit history or criminal convictions may make it difficult to open a regular bank account
Once complete take feedback on the students’
thoughts for each question and summarise the key
points.
Again, in small groups, ask students to debate the
question below. This allows them to think about the
challenge that banks can face in making accounts
available to everyone.
• If you were a bank would you provide an account
for everyone who wanted one?
Review the student’s views and explore if there were
any individuals they would not be happy to provide a
bank account to.
Ask the students to look at the three scenarios of the
three individuals in resource sheet 7a. Using the
information they have on Lexi, Jake and Chelsea and
the details of the current accounts A, B, C and D they
should choose which of the four accounts would be
most appropriate for each person.
Take feedback to understand how the decisions were
made. Resource sheet 7b provides the answers and
the reasoning.
Many bank accounts offer perks, which can range
from sums of cash deposited into the account on
opening, to free travel insurance.
Ask students to work in small groups to discuss the
three questions below. For each question they could
develop a mind map, with the question in the middle
of a piece of paper and the ideas they come up with
noted around it.
Some suggested ideas have been provided below,
but students may well come up with many more.
• What is the difference between a current account
and a savings account?
• What do people use their bank account for?
• Withdrawing money from cash machines
• Gaining interest on their savings
• Receiving income from work and benefits
• Making payments (automated regular payments as well as one off payments)
• Accessing borrowing facilities such as overdrafts and credit cards
• Online banking
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3Choosing a current account Basic bank accounts: An answer to
financial exclusion?
Should everyone have a bank account?
Ask students to research basic bank accounts to find out
exactly how they differ from regular current accounts.
Some useful web links have been provided below,
but students could also find out additional information
from local bank branches.
www.moneysavingexpert.com/banking/basic-bank-
accounts
www.moneyadviceservice.org.uk/en/articles/basic-
bank-accounts
Following their research do students believe that
basic bank accounts can help people who have found
themselves financially excluded from society?
Basic bank accounts are a simplified version of a
current account. They often have limited facilities,
which ensure that the customer cannot access
any form of debt, but they do allow income to be paid
in and for cash withdrawals to be made out of the
account. In some cases debit cards may also
be issued.
The idea behind a basic bank account is that it allows
those customers who cannot access a regular current
account the opportunity to still run an account and
prove that they can manage it effectively. In time,
if a customer can show that they can responsibly
manage a basic bank account, they can improve their
credit rating and may then be able to access a regular
current account.
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Consumer rights – aremost of us in the dark?
Societal issue 5
Understanding the concept of rights and the law applied to buying and selling goods and services is useful for citizens in their everyday lives. It can also be used to teach students how to argue a case using the law and to practise skills of assertiveness.
• Make students aware of key provisions of
consumer law, e.g. the Sale of Goods Act, 1979
(available on the Trading Standards or Citizens
Advice websites or My Money My Rights by the
Citizenship Foundation).
• Prepare and introduce scenarios of faulty goods or
goods that need to be returned, in particular where
the retailer may be reluctant to comply.
• Ask students to apply the laws and work out what
to say to the retailer.
• Explore the characteristics of assertive behaviour
(as opposed to aggressive behaviour). This
includes expressing your rights in ways that don’t
violate the rights of others. Construct role plays for
students to practise behaving assertively.
When it comes to consumer rights we can often be a little in the dark about exactly what our entitlements are.
Frequently there can be confusion over statutory consumer rights and the enhanced policies offered by many popular
retailers. Such enhanced polices are a gesture of goodwill from the retailer in order to provide good customer service,
and may differ from one retailer to another. Those statutory rights such as the the Sale of Goods Act 1979, apply by
law to all UK retailers. To understand what these statutory entitlements are can prove extremely empowering for
young people, and can help to build confidence in situations where a dispute may arise. Lesser known legislation and
regulation is also covered within this section to provide a broader understanding of the rights we all have as a consumer.
Personal issue 5 Suggested activities
Can I return the jeans I bought in a sale?
1 2 3
Can I return the pair of jeans that I bought in a sale?
The Sale of Goods Act, 1979 offers protection if goods turn out to be damaged, broken or faulty in
some way
Other forms of consumer protection such as the Consumer Credit Act
There is a manufacturing fault
You’ve decided you don’t like them anymore
They don’t fit Why do people return goods?
3
1
1
2
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Suggested activities
1
2
Rights behind returning goods
Does consumer law go far enough now that we operate a truly global market?
Explain that only in scenario 1 would a full refund
be guaranteed under consumer rights law. For the
other three scenarios it is at the discretion of the shop
whether they offer a refund or not. The Sale of Goods
Act, 1979 states that any goods should be fit for
purpose and not be damaged, broken or faulty at the
point of purchase.
Explain that if products are bought from a country
within the EU they should have very similar consumer
law to the UK, but outside of the EU this can vary
significantly and would need to be checked with the
country’s authorities. More information on this can be
found on the website below:
www.adviceguide.org.uk/wales/consumer_w/
consumer_different_ways_of_buying_e/consumer_
buying_abroad_e.htm
With students working in small groups ask them to
read through the four scenarios in resource sheet 8.
For each scenario the group should discuss what they
think the rights of the young person are and what
they might be entitled to by way of a refund.
Take feedback from groups on their thoughts for each
of the scenarios, and see whether there is a general
consensus across the class.
With easy access to worldwide sites through the
internet it is very easy to order goods from outside of
the UK. On some of these sites the price of goods can
appear significantly lower than in the UK – a bargain
you may say. But what if there is a problem with what
you have purchased?
Ask students to work in small groups and hand out
red and green sticky notes to each group. They
should discuss in their groups what the advantages
and potential disadvantages are of buying something
from outside of the UK. Once complete ask a member
from each group to stick the green notes in one place
in the room and the red notes in another. Summarise
the feedback.
Working in groups again ask students to produce
a mind map of what issues might be involved in
returning a faulty product bought from outside of
the UK. This could involve a language barrier, cost of
return postage, the source country’s consumer law,
no response to your communications and no physical
address to go to.
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3
Rights behind returning goods
Does consumer law go far enough now that we operate a truly global market?
Is there anything other than the Sale of Goods Act, 1979 which can help protect me?
The Sale of Goods Act, 1979, is probably the most
well known piece of consumer protection law;
however, there are a variety of further laws which
offer different forms of consumer protection.
Ask the students to work in pairs to research each
of the four laws below using the internet. Using the
table in resource sheet 9 they should summarise the
protection they provide and give an example of when
a consumer may need to use the legislation.
• Consumer Credit Act
• Distance Selling Regulations
• Supply of Goods and Services Act
• Small Claims Court
Once the tables have been completed take feedback
from the groups.
An extension to this activity could be to devise role plays
from some of the examples. This not only builds on the
understanding of the relevant legislation, but can help
to develop student’s self assurance and assertiveness.
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Is globalisation a forcefor good or evil?
Societal issue 6
The impact of globalisation is a major area of public interest, debate and campaigning. Finance is at its core considering the issue is about profits and returns for multinational companies, as well as cheap goods for consumers. There is also an ethical spending issue for individuals, concerning the human and employment rights of people who live in other countries.
• What is globalisation? Look at different
brands and multinational companies.
• Consider the way multinationals move
production and operations to various parts of
world to reduce costs, lower wages etc.
• Look at a case study of the clothing industry,
e.g. the manufacture of a pair of blue jeans,
for example www.bbc.co.uk/learningzone/
clips/my-jeans-and-globalisation/12006.
html. Compare working conditions and pay
in factories with Ethical Trading Initiative Base
Code (www.ethicaltrade.org/eti-base-code).
• Consider the advantages of globalisation
such as cheaper prices and more
jobs in developing countries.
• Consider the effects on people in Britain,
e.g. variety of cheap goods, loss of
manufacturing jobs, tax issues where
multinationals do not pay tax in UK.
• Debate the notion of ethical spending, for
instance, should you buy goods where you
know cheap labour has been used? Should
the aim of shopping be to get the best value,
especially when a family is short of money?
This could also be linked to budgeting.
• Consider campaigns against multinational
companies who use cheap labour.
• What is the responsibility of individuals? Should
young people participate in such campaigns?
Globalisation has seen large multinational companies exploiting the cheaper labour and manufacturing costs of
developing countries in order to provide cheaper products to the UK market. On the face of it this would appear to be
a financial benefit to UK consumers, but should we consider more than just the price when we buy a product? In some
cases the wages paid to the workers producing the products are extremely low, and their working conditions can be well
below what would be considered acceptable. Given this situation many UK individuals choose to pay a slightly higher
price for goods that they know have been manufactured ethically. Companies can subscribe to ethical codes of practice
such as the Ethical Trading Initiative and Fairtrade to highlight this to consumers.
Personal issue 6 Suggested activities
Should I consider more than price when I buy a product?
1 2 3
Should I consider more than price when I buy a product?
The Ethical Trading Initiative works with global companies to develop ethical trading practices
Are there benefits to me of globalisation?
What is the quality of the product?
How fairly are workers paid and what are their working conditions like?
Where is it made? What else could be considered?
3
1
1
1
2
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Suggested activities
1
2
Where does your money go?
Would you pay more for a product you know has been produced ethically?
Ask students to work in small groups to complete the
activity in resource sheet 10. Discuss the outcome
of the activity with the students. Are they surprised at
how the costs breakdown?
Answers: Labour (£2), Distribution (£4), Advertising
(£4), Manufacturers Profit (£6), Profit (£6), Raw
Materials (£7), Retail Outlet Staff (£8), Retailer Profit
(£9), Rent and equipment costs (£10).
Looking at the correct figures (answers above), are
there any ways the students can see to increase the
amount paid for labour at the manufacturing level (in
most cases this will centre on reducing retailer and/or
manufacturing profit)?
they know has been produced ethically, or whether
the lower price is more attractive despite how it
has been produced. Take feedback focusing on the
reasoning behind the decisions.
Ask the same groups of students to consider an
individual living on benefits with very limited income.
Does this affect the choice they would make?
An extension to this activity could be for pairs
of students to develop a poster or leaflet which
highlights the importance to society of choosing
ethically produced products over others.
The price we pay for the goods we buy has to be
split many different ways. The retailers will take their
share, the manufacturers theirs, and the raw material
providers theirs. Depending on the goods being sold
there could be many other parties all taking their
share of the sales price.
One of the issues with companies expanding into
global entities is centred on the use of cheaper
labour in order to manufacture their products. In
order to keep the final sales price as low as possible
some companies can end up paying very little to the
workers involved in the manufacturing process.
With the goods that we buy being manufactured in
one part of the globe, possibly constructed in another
and then sold in another how can we ever be sure
that what we buy has been produced ethically, with a
fair wage paid to all involved?
There are certain industry trade initiatives such as the
Ethical Trading Initiative (www.ethicaltrade.org/) and
the Fairtrade Foundation (www.fairtrade.org.uk/)
which aim to ensure that the companies which sign
up to their standards maintain an ethical approach. As
a general rule, the products produced by companies
that subscribe to an ethical code tend to be slightly
more expensive than others.
Ask students to discuss in small groups whether they
would be prepared to pay slightly more for a product
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3Where does your money go? What are the benefits of
globalisation to me?
Would you pay more for a product you know has been produced ethically?
Lastly, ask pairs to find a currency conversion website
such as www.xe.com/currencyconverter/. They
can use this to convert the amounts they have in US
Dollars to Pounds Sterling. Having done this they
should be able to compare the cost of the same
products bought in the UK and the US. Are there any
significant price differences?
Whilst there may be some very tempting benefits to
buying products from other countries there may also
be additional issues. Ask pairs to research what issues
there may be when buying products from overseas
and take feedback. This activity could also link to the
consumer rights activities.
The internet has made accessibility to global
companies extremely easy. With just a few clicks
you can buy goods from around the globe from
recognised and trusted brand names.
For this research based activity students will require
access to the internet.
Explain to students that they are going to work in
pairs to research a range of popular products through
a global online retailer – Amazon.
Firstly they should explore the site to find the best
price of the following brand new items:
• SonyPlaystation4(PS4)
• KindleFireHD7”8Gb
• DrDrePowerBeatsheadphonesinred
Once they have a price in pound sterling for each
product ask them to go to the United States version
of the Amazon website (there is a link at the bottom
of the UK website). Pairs should now try to find
exactly the same products on the US Amazon site and
note down the cheapest price for each in US Dollars.
Important note: It is pfeg’s policy not to mention specific brand and company names in resources and activities
for young people, however in this instance it is necessary in order to achieve the learning objectives. Please
do explain to your class that there are other retailers and brands that offer similar and often exact products and
services to those above.
Who earns what?
Resource sheet 1a.
A Practical Guide to Financial Education within Citizenship
Job role a) Your guess gross annual salary (£)
b) Actual gross annual salary (£)
Airline pilot
Ambulance staff
Bar staff
Chef
Doctor
Financial advisor
Footballer (Premier League)
Headteacher (Secondary)
Lollipop lady £3,178
Machanic
Member of Parliament (MP)
Nurse
Nursery School Assistant
Photographer
Plumber
Police officer £39,346
Postman/woman
Prime Minister
Shop worker £11,174
Solicitor
Teacher (Primary)
Train driver
Vet
£31,000 £73, 000 £45, 489 £142,500 £44,787
£7,317 £70,646 £17,391 £46,797 £26,158
£23,178 £78, 482 £32, 374 £22,854 £676,000
£25,238 £66, 396 £24,242 £11,163 £27,832
Who earns what?
Resource sheet 1b.
A Practical Guide to Financial Education within Citizenship
Job role a) Your guess gross annual salary (£)
b) Actual gross annual salary (£)
Airline pilot £78,482
Ambulance staff £22,854
Bar staff £7,317
Chef £17,391
Doctor £70,646
Financial advisor £46,797
Footballer (Premier League) £676,000
Headteacher (Secondary) £73,000
Lollipop lady £3,178
Machanic £25,238
Member of Parliament (MP) £66,396
Nurse £26,158
Nursery School Assistant £11,163
Photographer £24,242
Plumber £27,832
Police officer £39,346
Postman/woman £23,178
Prime Minister £142,500
Shop worker £11,174
Solicitor £44,787
Teacher (Primary) £31,000
Train driver £45,489
Vet £32,374
What’s on a payslip
Resource sheet 2.
A Practical Guide to Financial Education within Citizenship
Salary How much you earn in a year for doing a particular job.
PAYE Tax Pay as you earn: income tax deducted by your employer.
National Insurance A tax which pays for benefits and the State Pension.
Payment period How often you are paid.
Tax code A number to tell your employer how much tax to deduct.
Payment method How your wages will be paid to you.
Net pay Your pay after all deductions.
Pension Your payment to the employer’s retirement scheme.
Overtime Earnings for extra hours you have worked.
Bonus A special performance-related payment.
Union Fees paid for membership of a professional body.
Student loan repayment Deduction that goes towards paying off a student loan.
Tax credit A Government payment either for parents or the low paid.
Rate The hourly rate of pay.
Hours The number of hours you have worked.
Items on a school budget
Resource sheet 3.
A Practical Guide to Financial Education within Citizenship
Utilities (including, water, heating, electricity) Cleaning contract
Teaching staff salaries Building and grounds maintenance
School trips and the school prom ICT equipment
Insurance services Sports equipment
Text books Stationary
State Pension Q&A sheet
Resource sheet 4.
A Practical Guide to Financial Education within Citizenship
How much is the full basic State Pension per week? How much does this work out as per year?
How many qualifying years of making National Insurance payments do you need to get the full basic State Pension?
What is the current State Pension age for men? And for women?
What will the State Pension age for men and women be in 2028?
Why is the age of the State Pension increasing?
Emma is 19 and is planning to move out of her parents’ house and into a flat
share. She has found a room in a flat that she likes and has saved up enough
money for the deposit with a bit to spare for some new furniture and bedding,
but before making a final decision she needs to work out whether she can afford
the ongoing costs of living independently. The rent works out at £55 per week
and she has been told by the current occupants of the flat that her share of the
bills (for water, gas and electricity) costs £15 per week and that the council tax
is £10 a week.
Emma works in a supermarket earning £200 per week, and she also babysits
once a week earning an extra £20. She pays around £18 a week to travel to work
and back on the bus, and she enjoys shopping around for bargains and spends
around £10 a week on clothes. As Emma has been living with her parents she
is not 100% sure how much her weekly food bill would be but £40 seems a
reasonable estimate.
Emma enjoys going out with her friends and tries to do this as much as possible, spending around £50 a week going out. There are other smaller
costs that she will need to pay for things like cleaning products, phone top up credit, and insurance which add up to around £25 a week.
Emma’s budget planner
Emma is really keen to move in to the flat share, but is not sure if she can afford it, especially as she also wants to start saving a little money
each week. She needs to write a budget planner to get an idea of how much money she has coming in (her income) and how much money is
going out (her expenditure), to see if saving any money is possible.
Use the information above to fill in her budget planner. Once you have worked out her total income and expenditure see if you think Emma
can afford to move into the flat share?
Emma’s budget
Resource sheet 5.
A Practical Guide to Financial Education within Citizenship
Income Expenditure
Total: Total:
Scrutinising payday loans
Resource sheet 6.
A Practical Guide to Financial Education within Citizenship
Statements Agree Not sure Disagree Comments
The person taking out a payday loan needs to be more responsible – they know the consequences of not paying it back quickly.
Advice for customers when struggling with payday loans should be more easily available or more heavily promoted.
Payday lenders offer a very useful service, providing money quickly for people who can’t get money elsewhere.
There is not enough protection for customers against the pitfalls of payday lending.
Payday lenders should not be allowed to advertise on television.
Payday lenders should not be allowed to charge interest rates above 50%.
There are worse forms of lending than payday loans.
Payday lenders should make sure customers do not take out several loans.
Lexi is 19 and following two years at catering college is going to travel around Spain
for six months working in different kitchens. She will be earning money, but there may
be times that she’ll need to use an overdraft. One of her biggest worries is how to get
her money whilst she is in Spain – it can be expensive to withdraw money from cash
machines overseas.
Jake is 22 and has not managed his money well in the past; as a result his credit rating
is poor. Jake would love to have an account which lets him have an overdraft and debit
card, but recognises that he needs to start getting his spending and borrowing under
control first.
Chelsea is 21 and has been working part time for three years, but has now got a full time
job. With this her income has increased and she is looking for an account which will pay
a higher amount of interest. An overdraft is not really needed as Chelsea’s income will
more than cover her spending.
Choosing a current account
Resource sheet 7a.
A Practical Guide to Financial Education within Citizenship
Account A Account B Account C Account D
Interest None paid 1.5% 1% 0.5%
Cash card ✔ ✔ ✔ ✔
Debit card ✘ ✔ ✔ ✔
Overdraft Limit No overdraft No overdraft £50 £300
Cheque book ✘ ✔ ✔ ✔
Free gift on opening the account
Nothing £30 music voucher £50 added to your account
Free cash withdrawals abroad for one year
Lexi requires an account which can provide her with an overdraft for those periods she is
moving around Spain and not working. Her income is a little sporadic so a good overdraft
would be helpful to make sure she always has enough. The free cash withdrawals abroad
for one year is a great offer for her as she will make use of it during her six months away. She
can now withdraw her money from cash machines in Spain knowing she will not be charged
for doing so.
Although there are some facilities that Jake would like on his account he recognises that he
has a poor credit history, and as such Account A would be the most appropriate. The young
people in the group may recognise Account A as a basic bank account. This means that
whilst Jake will be able to access his money using cash machines, set up payments from his
account and pay money in whenever he needs to, he will not be able to access and forms of
borrowing such as an overdraft or using cheques.
Chelsea has recently increased her income and currently has no need of an overdraft. She
will be in credit on her account and therefore the idea of interest will be more appealing.
Account B provides the highest amount of interest along with a number of other common
current account facilities. The music voucher is a perk, but not something that made Chelsea
choose this account.
Choosing a current account – facilitator notes
Resource sheet 7b.
A Practical Guide to Financial Education within Citizenship
Lexi – Account D
Jake – Account A
Chelsea – Account B
You get the jeans home and realise that some of the seam is coming apart; this has
created a hole in the side of the jeans. They still have all of their tags on and you’ve not
even tried them on.
On unpacking the jeans you decide that they do not match the rest of your outfit and
think it best to return them and get a refund.
You did not try the jeans on in the shop as you were in too much of a rush. On getting
home and doing so you realise that they are just a bit too small so you’d like to take them
back to swap them for a slightly bigger pair.
You wore the jeans out to a party and the next day discover that there is a small tear at
the bottom of one of the legs. You are sure it couldn’t have happened at the party so
decide it must have been there when you bought them. You would like a full refund on
the jeans.
Can I return the goods?
Resource sheet 8.
A Practical Guide to Financial Education within Citizenship
Scenario 1
Scenario 2
Scenario 3
Scenario 4
Exploring Consumer Rights
Resource sheet 9.
A Practical Guide to Financial Education within Citizenship
Legislation and Regulation Summary or content Example of use
Sale of Goods Act, 1979 Goods must be ‘fit for purpose’ when
sold. They must not be broken,
faulty or damaged in any way. The
retailer must either repair or replace
faulty goods’ within a reasonable
time but without causing significant
inconvenience.
You notice that a new camera, straight
out of the box, has a scratch across the
lens, making the photos blurry. This
is a fault with the product and under
the Sale of Goods Act the retailer must
repair, replace or offer a full refund.
Consumer Credit Act
Distance Selling Regulations
Supply of Goods and Services Act
Small Claims Court
The cost of a pair of trainers
Resource sheet 10.
A Practical Guide to Financial Education within Citizenship
Raw materials
Labour
Manufacturers profit
Distribution
Advertising
Retail outlet staff
Retailer profit
Rent & equipment costs
The cost of the pair of trainers in the image to the right is approximately £50. This is made up of a number of different factors which have been summarised in the boxes:
1. Cut out the boxes and put them into the
order of the most expensive to least expensive
2. Estimate how much of the £50 is used
on each of the processes and write your
estimate on each of the boxes
pfeg (Personal Finance Education Group) is the UK’s leading organisation helping schools to plan and teach children and young people how to manage their money now and in the future.
pfeg’s vision is a society in which all children and young people have the skills, knowledge and confidence to manage their money well, now and in the future.
pfeg’s mission is to support education providers in giving children and young people the skills, knowledge and confidence to manage money. We do this by:
• Influencingpolicyandpractice
• Supportingeducatorsinteachingmoneymatterswithconfidence
• Providingeducationresourcesthatwillengageandinspire
About the CISI
The Chartered Institute for Securities & Investment (CISI) is the largest and most widely respected professional body for those who work in the securities and investment industry in the UK, and in a growing number of major financial centres around the world. Evolved from the London Stock Exchange, we have more than 40,000 members in 110 countries, and in the past year, we set almost 37,000 examinations in 66 countries.
The CISI promotes the advancement of knowledge in the field of securities and investment in schools and colleges by introducing students to the world of financial services and its many career opportunities through qualifications, work experience and insight days and events. Our partnerships with education centres enable educators and industry to work together to disseminate knowledge and offer real world learning experiences to encourage and develop the next generation of financial services talent.
pfeg is a registered charity. Registered number 1081639 pfeg is a company limited by guarantee. Registered number 3943766pfeg is part of Young Enterprise www.y-e.org.uk
T 020 7330 9470/ 0845 241 0925 E [email protected] follow us on twitter @pfeg_orgwww.pfeg.org
‘The UK’s leading financial education charity’