LESSON 20: Choosing to borrow money

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Presentation transcript:

Can you identify the different types of borrowing products from the clues in the pictures?

LESSON 20: Choosing to borrow money TO KNOW: Reasons why people borrow money TO UNDERSTAND: The different borrowing products available on the market TO DO: Investigate and begin to recommend borrowing products

KEY TERMS Borrowing/debt/credit Loan Term of loan Getting money from a lender that must be repaid in the future (e.g. A mortgage) Loan Amount of money borrowed Term of loan Length of time over which it can be repaid

Why do people borrow money/take out some sort of loan? _____________________________________

Borrowing throughout the life cycle – annotate when people will borrow and what for:

The most common forms of personal borrowing Using the internet, research the following types of borrowing products and fill in the table Borrowing product Explanation (what is it?) What types of products would you buy with this borrowing? EXTENSION Q: What type of person would use this borrowing product? (what stage(s) of the personal life cycle Overdraft Mortgage Credit card Store card Personal loan Hire Purchase

LEARNING OUTCOMES “You must/should now be able to...” ALL MUST: Describe why people borrow money MOST MUST: Explain the main features of a range of borrowing products SOME SHOULD: Begin to recommend borrowing products for different consumer needs