Welsh Baccalaureate Intermediate

PSEPreparing Lifelong Learning

Personal Finance:

Personal Finance word search

Starter

To explore the difference between gross and net income

To examine the cost of living

WALT

Your wage every month is your Gross Income

From your wage you will need to make income tax contributions usually between 20% and 50%.

You will also need to pay National Insurance. Why? After these deductions you will have a Net

Income.

Income

You earn £20,000 If income tax is 22% work out your net

income. Build a spider diagram with what type of

monthly bills you may have.

Task

You buy a car for £5000 at 7% interest. How much will you pay back in total? How much will you pay per month? What costs does running a car have?

Car loan

Make a table showing what living expenses you have and how much you think they are roughly each month.

How much of your net income do you have left?

Make a pie chart showing your monthly expenditure.

Cost of living

These loans are becoming more and more popular. Why?

What do you think the interest on these loans are?

Read the article and summarise what has happened to each person

Discuss

Pay Day Loans

What does net income mean? Name three things you would have to pay

for every month What do some people do if they can’t afford

their monthly bills? Why is this dangerous?

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