1. Economic Well Being
PSHE April / May 2016

2. What does it mean?
Economic well-being is a person's or family's standard of living based primarily on how well they are doing financially

3. What does it involve?
There are loads of factors that affect your economic well being;
Your job / career
Savings and investments
Businesses
Money Management
Skills and Qualities in relation to employers needs
Many more!...

4. Savings and Investments
Some of you will know about banks; some of you may already have bank accounts, and some of you won’t know anything about them yet!
Here is an example of a bank account for year olds with Natwest…

5. “Earn interest” on everything you pay in
Get your own Visa Debit card to use online and in shops
Manage your money on the move with our Mobile app
Use Online Banking to look after your money

6. What does ‘earn interest’ mean?
When you put your money into a savings account, it earns interest.
Interest is money the bank pays you so that they can use your money to fund loans for other people.
That doesn't mean you can't have your money whenever you want it, though. That's just how banks make money -- by selling money!
For example;
If you put £100 into an account that is at 5% interest you will earn £5 in a year if you leave the money in the bank.
Have a go at these interest rates…

7. Task 1(answers on slide 11)

8. Debit / Credit cards?
The bank account for year olds you saw earlier said you would get a Debit card – do you know what it does?
A Debit Card works using the money you have in your bank or building society account. So when you spend using a Debit Card it comes straight out of your account. You'll see the details on your bank account statement. You spend what you have!

9. These can be dangerous and result in people being in a lot of DEBT!
Debit / Credit Cards?
Credit cards allow you to purchase things without having the actually money in your account at first – HOWEVER – there will be a high interest rate you have to pay on top of the original amount in the future; so you end up paying more than the original amount! And if you miss a payment then the costs can start to add up quickly!
For example;
Your credit card has an interest of 10%.
You use your credit card for a new PS4 but don’t pay it straight away
Instead of just the £275 you end up having to pay another £27.50 = £302.50!
These can be dangerous and result in people being in a lot of DEBT!

10. [Remember – the interest is only added if you don’t pay the first payment off…]

11. Answers

12. Maths Competition!
Your form needs to nominate one mathematician who will become part of your house team in a maths competition next week!
The competition will be a team one where you answer some questions individually and as a team and then the scores will be added up to decide who is the winning house!

13. Heavenly Father, it is symptomatic of our life today that economics play a large part in it.
Teach me to live within my means while at the same time striving to increase those means. Let me never lose heart but continue to press on.
Most of all, inspire me to seek first Your kingdom in the knowledge that everything else will be given me together with it.
In Jesus Christ's name I pray, who lives and reigns with the Father and the Holy Spirit One God forever and ever.
Amen~

14. Economic Well Being 2
PSHE April / May 2016

15. What does it mean?
We looked at this last week – see if you can remember…
Economic well-being is a person's or family's standard of living based primarily on how well they are doing financially

16. Money Management
Part of economic well being is being able to manage your money.
Can you think of what people have to spend their money on?
Bills
Rent / Mortgage
Food
Personal / medical
Entertainment
Others?...

17. What do you do?
List the next 5 statements in rank order that most represents what you do…

18. Everyone is different…
Some people are good savers, some people aren’t!
However it is important that you learn to manage your money so that you do not get into financial difficulty…
As a young person you probably have less responsibilities and things to worry about paying for… however; at some point you will need to know how to Manage your Money…

19. Dealing with your Dollar!
You have £1000 to spend in the month
You need to prioritise and manage your money, making sure the essentials are covered first…What do you have left?
You will have to justify your choices after deciding what to spend your hard earned cash on! 

20. Results What did you find happened to your £1000 monthly budget?
Were you realistic with your choices? (did you not eat any fast-food in the whole month!?)
Did you manage to make any savings? If so how did you do this?

21. Importance of Budgeting
Budgeting allows you to create a spending plan for your money
It ensures that you will always have enough money for the things you need and the things that are important to you
Following a budget or spending plan will also keep you out of debt and lead to Economic Well-Being

22. Dear Lord, I come to you today, to ask you to help me financially and help me get through this time, and that I may do better at budgeting my finances.
Help me to learn to do without the things that are not necessary, and remember that they are only material, and they will not get me to heaven. I thank you for my family, my home, my friends, and my health, and for the many blessings I have that I take for granted I ask you Lord to help me and to bless me with your guidance and love
Amen