© Boardworks Ltd 20141 of 6

Personal Finance: Unit 3

© Boardworks Ltd 20141 of 6

Teacher’s notes included in the Notes PageFlash activity. These activities are not editable.

Accompanying worksheet

Icons key: For more detailed instructions, see the Getting Started presentation

Web addressesSound Printable activity

© Boardworks Ltd 20142 of 6

Learning objectives

© Boardworks Ltd 20142 of 6

Why is it important to save money?

What is a savings account?

What is interest and how does it work?

Is it better to save money or borrow money?

How do I create a budget for my income?

What is tax?

Which taxes are relevant to me?

© Boardworks Ltd 20143 of 6

Why is saving important?

© Boardworks Ltd 20144 of 6

Savings accounts

If you want to save money regularly or store away some spare money for later, it’s a good idea to use a savings account.

Unlike current accounts, you cannot access the money you put into a savings account whenever you like. However, you earn more interest on money in a savings account than you would if it were in a current account.

All banks and building societies offer savings accounts.

© Boardworks Ltd 20145 of 6

Budgeting

Budgeting is a way of controlling your spending and savings depending on your income.

Outgoings are things that you spend money on. They can be things you have to pay for, such as a mobile phone bill, or things that you choose to spend money on, such as a computer game.

When creating a budget you need to know:

Your incomeYour outgoings (expenses).

Do you have an income? Where from?List three of your regular outgoings.

© Boardworks Ltd 20146 of 6

Activity

© Boardworks Ltd 20146 of 6