Learn about issues surrounding money MONEY MATTERS Learn about issues surrounding money

Why do we have money? Discuss and answer the question above in pairs What is the value of a Dollar Bill Can money make you happy? Discuss with your partner and feedback What would you do if you won the lottery? Would it make you happy? Discuss in pairs and feedback Lottery winners

Which is Better- Being Rich or Poor? Discuss the question above in your pairs and feedback to the class Why do we look down upon low earners

Work and Money The History of Work Which one of the following jobs pays the most income? Discuss in pairs and feedback Hairdresser Doctor Builder What made you make your decisions? Can we be sure what people earn?

What is an Income? An income in Britain is defined as wages, benefits, pension and savings interest. How do we earn an income? What is the average salary in the UK? £28,000 How is an income determined? Who decides how much of our income in Britain is paid in taxes? The Government What taxes do we pay in Britain? Council tax, Income tax, VAT, National Insurance

What is income tax? How much do you pay? This depends on what you earn- most people pay 20% of their wages in income tax. People earning over £32,000 pay 40% on their income above this amount- and the super rich pay 45% on any earnings over £150,000. If you earn the average salary (£28,000) how much income tax approximately will you pay on this? 20%= £5,600

What does our income tax get spent on? Income tax in the UK is spent on the following, Transport 4 Business and Industry 2.4 Government admin 2 Environment 1.7 Culture 1.6 Housing and utilities 1.4 Overseas Aid 1.2 UK contributions to EU budget 1.1 Tax description % of income tax Welfare 25 Health 19.9 State Pensions 12.8 Education 12 National Debt 5.3 Defence 5.2 Policing 4.3 Discuss with your partner what you would change about this spending if you were in charge- and why- feedback your thoughts to the class. How much money do you think the government gets from income tax per year? Approx.- £170 Billion

What is National Insurance? You pay National Insurance on your income in the UK- why? You pay National Insurance contributions in the UK to receive certain benefits- can you think what these might be? State Pension, maternity/ paternity allowance, bereavement benefits How much do you pay? This depends on how much you earn- most people pay 12% of their earnings.

When you are 16 you will be sent a National Insurance number- you need this number to work in the UK.

VAT- what it this? What does VAT stand for? Value Added Tax What do we pay this on? We pay VAT on all products and services we buy What products are exempt from VAT? Children’s clothes and shoes are exempt- why? What is the rate of VAT in the UK? 20%

Consumer Purchasing Power What is meant by ‘Consumer Purchasing Power’? What we decide to spend our money on can influence the products that make it or don’t. Every Purchase Matters- Fair Trade What is Fair Trade?

Economic Demand Economic Demand Why is it important to a government that people spend money on buying products? It can stimulate the economy- how? If there is a recession why do people spend less money?

What is a Mortgage? Answer the question above A mortgage is a loan from a bank or building society in order to buy a house. Why are homes so expensive? What happens if you can’t make your mortgage repayments? Your home will be repossessed after missing 2 repayments

Borrowing Money Banks will loan money to it’s customers- how does this benefit the banks? They receive an interest on the amount that you’ve borrowed and they end up getting more back than they paid out! WONGA Why do people use companies like Wonga? What is the danger/ problem with using these types of ‘Payday’ loans? They charge a very high rate of interest and some companies are not very transparent about their fees- people can end up paying back twice as much as they borrowed, if not more.

Will we always have Money? In your pairs discuss the question above and feedback to the class What could replace money? Could you live without money? The Money Myth