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

2. 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

3. 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

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

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

6. 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

7. 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