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Borrowing & Debt

CONCEPTUAL
Life Skills›Money & Finance|Ages 9—11|ID: mt_bAy4dmP1-A

What borrowing money means; that loans must be repaid with interest; what credit is; why too much debt can be risky; responsible borrowing

Mastery Evidence

  • Explain what a loan is and that borrowed money must be paid back with extra (interest)
  • Give an example of when borrowing might be sensible (buying a house) versus risky (buying luxuries you can't afford)
  • Describe what happens if someone borrows too much money and can't repay it

Assessment Prompt

“Could [child] explain why borrowing money costs more than the amount you borrow, and why that matters?”

Prerequisites2

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  • Budgeting Pocket Money soft

    Budgeting awareness helps understand why overspending leads to borrowing

    • Needs & Wants hard

      Must understand needs vs wants to make budget trade-offs

      • What Money Is hard

        Must understand money exists and is limited before distinguishing needs from wants

    • Buying Things soft

      Buying experience helps with realistic budgeting

      • Coins & Notes hard

        Must recognise coins/notes and their values before practising buying transactions

        • Coin Values soft

          Curriculum coins/notes recognition (Maths Y1) underpins exploratory coin knowledge

          • Reading and writing numbers to 20 hard

            Recognising coin values requires reading numerals (1, 2, 5, 10, 20, 50)

            • How Many in Total? hard

              Reading/writing numerals 0–20 requires understanding that numerals represent quantities (cardinality)

              • One-to-one counting hard

                Cardinality principle builds on one-to-one correspondence — you must count correctly to know the last number tells 'how many'

            • Writing digits 0-9 hard

              Writing numerals requires the motor skill of forming digits 0-9 (taught in English handwriting)

        • What Money Is hard

          Must understand what money is before learning to recognise specific coins and notes

      • What Money Is hard

        Must understand money as exchange medium before practising transactions

    • Saving Money hard

      Must understand saving concept before budgeting a fixed amount

      • Needs & Wants soft

        Understanding needs vs wants helps motivate saving decisions

        • What Money Is hard

          Must understand money exists and is limited before distinguishing needs from wants

      • What Money Is hard

        Must understand what money is before learning to save it

  • Banks & Saving hard

    Must understand banks and interest before learning about loans and debt

    • Looking After Money soft

      Understanding money safety motivates why banks are useful

      • Coins & Notes hard

        Must know what coins and notes are before learning to look after them

        • Coin Values soft

          Curriculum coins/notes recognition (Maths Y1) underpins exploratory coin knowledge

          • Reading and writing numbers to 20 hard

            Recognising coin values requires reading numerals (1, 2, 5, 10, 20, 50)

            • How Many in Total? hard

              Reading/writing numerals 0–20 requires understanding that numerals represent quantities (cardinality)

              • One-to-one counting hard

                Cardinality principle builds on one-to-one correspondence — you must count correctly to know the last number tells 'how many'

            • Writing digits 0-9 hard

              Writing numerals requires the motor skill of forming digits 0-9 (taught in English handwriting)

        • What Money Is hard

          Must understand what money is before learning to recognise specific coins and notes

    • Saving Money hard

      Must understand saving before learning about banks as saving institutions

      • Needs & Wants soft

        Understanding needs vs wants helps motivate saving decisions

        • What Money Is hard

          Must understand money exists and is limited before distinguishing needs from wants

      • What Money Is hard

        Must understand what money is before learning to save it

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