Barclays: Lesson 2 Banking and Budgeting Basics

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Banking and budgeting basics

Key learning outcomes
By the end of the activity pupils will be able to:

•	Understand some of the ways to manage money
•	Recognise how using a bank account keeps money safe and can help them save
•	Practise being responsible for managing their own money
•	Know how to keep track of their money, and set and stick to a budget

Session overview
This is one of five lesson plans, each designed to build upon teaching students how to form good money habits for the long term.
The activities in this session is used flexibly, as a standalone lesson or delivered as part of a series alongside the other four lesson plans. We recommend starting with Samir’s birthday budget challenge, as this sets the scene and helps young people relate back when carrying out the subsequent activities, which can be delivered in any order.

There is a range of topics covered including value for money, creating a budget, making payments and security and risks. All the sessions align to the Financial Education Planning Framework.

Contents
Page	Activities	Time
03	Challenge one: Banking vocabulary	20 mins				
04	Challenge two: Basics of budgeting	30 mins

Challenge one: Banking vocabulary	20 mins  

Tutor will show the pupils the banking terms on Slide 1.1 and ask them to see how many they can match up with the correct definition. Tutor will work through this as a class or ask pupils to work in pairs. The answers
Slides	are revealed on Slide 1.2.
1.1-1.2
Pupils should have completed Samir’s birthday budget challenge, Tutor links this activity back to Samir’s story.
Samir has had a bank account since he was 11 years old and has learnt quite a lot about banking. How many of these banking words do you know? Can you match them up with the correct definition?

Banking vocabulary: answers

Term	Definition
	
Account number	A special reference number which identifies your bank account	
Cash machine	Known by a variety of names including an ATM (Automated Teller
	Machine) or a cash point, these are machines where you can withdraw
	cash from your bank account	
Balance	The amount of money you have in your account	
Contactless payments	Paying using your bank card in shops without needing to punch in your
	PIN. Tip: hold your card up to the contactless reader and the money will
	be withdrawn	
Debit card	A plastic bank card that can be used instead of cash when making
	purchases, which withdraws money directly from your account when
	the payment is made	
Online banking	A way of accessing your bank account and carrying out financial
	transactions through the internet on your smartphone, tablet or computer	
PIN	You will need to know this confidential number, called a Personal
	Identification Number, when you want to withdraw cash or buy
	something using a bank card without using contactless payment. It’s
	important never to share this with anyone	
Transaction	Moving money to somewhere else, for example buying or selling
	something, or transferring money in or out of a bank account. This can
	also be called a payment	
Withdrawal	Taking money out of your account, either at a bank or an ATM, or
	making a transfer into another account
	

Challenge two: Basics of budgeting	30 mins  

This activity will be completed by showing the budget and items on the presentation slides or printed as worksheets. Tutor will work through the options as a class or ask them to work in small groups. Tutor  adds on own items, costs and overall budget if a lower budget and lower cost items are more
Slides	suitable for group.
2.1-2.2
Tutor reads out the information and look at the list of items on Slide 2.1.
Nia is Samir’s friend and she has £40 to spend during the summer holidays. She has thought about some different items she would like to spend her money on. Pick five things you think Nia could buy with her birthday money.

Cinema ticket	£7	Trainers	£20
			
T-shirt	£15	Drinks and snacks	£10
			
Book	£5	Toy	£15
			
Gaming app	£5	A football	£5
			
Pupils need to select five items from the list and consider the following questions. We may or may not use all of them. However we pick the ones most relevant for group:

•	Are these items things she wants or things she needs?
•	If she buys all of these items, how much will Nia spend?
•	How much money does she have left over?
•	If Nia has money left over, what could she do with it?
•	Could Nia buy different items and have more money left over?
•	If she has spent too much, how could she make sure this doesn’t happen next time?
•	What are the benefits of using a budget to plan your spending and bank balance?

Pupils use Slide 2.2 to calculate how much Nia spends and how much she has left over, or to create their own budget. This worksheet is available for students prior to starting the sessions and students are advised to download. This will also be shared with pupils digitally.
Tutor asks the class to think about the terms – spend, save and donate. Can they explain what these mean?
Which of these might they do if they had some money.