Good Learning Co.
SavannahYear 8
← Citizenship
CitizenshipMoney and budgeting25 min★★ difficulty

Credit, debt and risk

Borrowing is not automatically bad. Borrowing without understanding the cost usually is.

Part of your national curriculum
  • Financial capability: Understand credit, debt, insurance and the risks attached to different financial products

Lesson overview

What you'll learn in this lesson

Understand credit, debt, insurance and the risks attached to different financial products

Key learning points

  • • What credit costs
  • • Kinds of borrowing
  • • Insurance and risk

This lesson at a glance

  • 25 minutes
  • 14 parts to scroll through
  • 3 quick checks
  • Marked quiz at the end
  • Gentle pace: short sittings with pauses

Words to know

creditinsuranceattachedfinancialproducts

Scroll down — the lesson carries on below

Part 1 of 14 · Discover7%
1

Watch & discover

Part 1 of 14

Watch first

Credit, debt and risk

An English teaching video on this topic from Learn Bright. Watch it, then scroll down for the lesson.

In a nutshell

Understand credit, debt, insurance and the risks attached to different financial products

2

Learning cycle

Part 2 of 14

Learning cycle 1 of 2

Part 1 · What credit costs

A short piece of teaching, then a check to make sure it has landed.

3

Explore the idea

Part 3 of 14

Learn

What credit costs

Interest is the price of using someone else's money, shown as an APR. A £500 balance at 30% APR left unpaid for a year costs about £150 extra.

4

Explore the idea

Part 4 of 14

Learn

Kinds of borrowing

A mortgage is secured against a house at low interest. Credit cards, overdrafts and buy-now-pay-later are unsecured and much more expensive if not cleared quickly.

5

Quick check

Part 5 of 14

Quick check

What does APR describe?

6

Reset break

Part 6 of 14

Pause

That's sitting 1 of 2 done

Stretch, get a drink, look out of the window. There is no timer and nothing is counting down — your place is saved, so you can come back in five minutes or tomorrow.

Stop here for now
7

Quick check

Part 7 of 14

Quick check

Which is usually the cheapest borrowing?

8

Learning cycle

Part 8 of 14

Learning cycle 2 of 2

Part 2 · Insurance and risk

A short piece of teaching, then a check to make sure it has landed.

9

Explore the idea

Part 9 of 14

Learn

Insurance and risk

Insurance swaps a small certain cost for protection against a large unlikely one. It is worth it where the loss would be unaffordable, and often not worth it for small items.

10

Quick check

Part 10 of 14

Quick check

When is insurance most worth buying?

11

Challenge round

Part 11 of 14

Game · Sort it

Which of these are true?

Drag each card into the right column. Tap a card first if dragging is fiddly.

True

Not true

12

Challenge round

Part 12 of 14

Game · Fill the gaps

Finish the sentences

Choose the word that belongs in each gap.

____ cards, overdrafts and buy-now-pay-later are unsecured and much more expensive if not cleared quickly.

____ swaps a small certain cost for protection against a large unlikely one.

13

Mastery quiz

Part 13 of 14

Marked quiz

End of lesson quiz: Credit, debt and risk

3 questions, marked with the reasoning shown. No timer.

  1. 1. What does APR describe?

  2. 2. Which is usually the cheapest borrowing?

  3. 3. When is insurance most worth buying?

14

Lesson round-up

Part 14 of 14

Lesson round-up

Ready when you are

Quiz score

Not sat

Games

Not played

Points this lesson

0

Best run

0 in a row

Luna: 0 out of 3 on the practice checks. Only if you feel up to it — one more?

Ask Luna

Do the work

Your written work for this lesson

This is the part you'd do in your book at school. Pick the pieces below, write here or on paper, and photograph anything you draw or work out.

Case study

Should the town centre have a curfew for under-16s?

After a rise in reported vandalism, Harbrook council proposed that under-16s should not be in the town centre after 9 pm without an adult. Police recorded 62 incidents last year, most between 9 pm and midnight. Shopkeepers signed a petition supporting the plan.

A youth council objected. They pointed out that most young people in town at night were going home from sports clubs or work, that the plan punishes a whole group for the acts of a few, and that the library and the bus interchange are in the town centre. They asked instead for a late bus and a youth space.

The council voted to trial the curfew for six months and to publish the crime figures at the end.

Written for Good Learning Co.

Reading questions

  1. Give the strongest point on each side of the argument, using a fact from the case.
  2. Whose rights and whose responsibilities are involved here? Explain both.
  3. Write your own view on the curfew with reasons and one example.

  • Reading and response

    Reading

    Read the case in the lesson again and write what you think should happen, and why it is fair. Use one fact from the case as evidence.

    2 paragraphs (PEE)

  • Extended writing

    Writing

    Write your answer to the lesson's big question in full: the strongest point on each side, then your own view with reasons and an example.

    250–350 words

  • Reading log

    Reading

    Find one news story this week that links to this lesson. Note the headline, where you read it, and how it connects.

    1 story, 4–5 sentences

  • Two sides of the argument

    Writing

    Write the strongest point for, the strongest point against, and then your own view with a reason.

    3 paragraphs

  • Poster or leaflet plan

    Diagram

    Plan a leaflet that explains this right or responsibility to someone your age, then photograph it.

    1 planned page

Saved as you type.

Part 1 of 14 · Watch & discover

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    Understand credit, debt, insurance and the risks attached to different financial products

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