The credit file is the third module in the MoneySense programme.
Using case studies relevant to young people, it teaches students aged 12 to 20 about different ways of borrowing, debt, the importance of saving and the expense that moving away from home entails.
All the modules are provided to teachers free of charge.
There are six topics to work through: Saving and borrowing, Lenders, Dealing with debt, Adam’s story, Jessica’s story and Future plans.
In topic 1, Saving and borrowing, which is primarily aimed at 12 to 18s, students are introduced to Ben, 15, and his band.
They want to raise some money to hire a sound studio. The students consider the pros and cons of saving up until they have the money, or borrowing money from friends and family. The activity introduces the concept of interest and APR.
The students find out about what debt means to a range of characters and decide whether or not the characters are really in debt.
Topic 2, Lenders, is aimed at 12 to 18s.
It introduces students to a range of money-lending organisations and their different rates and conditions through four video adverts for a bank, a finance company, a doorstep lender and a credit card company. Each lender tells how they differ from other lenders, what they can do for a borrower and what their APR rates are.
Topic 3, dealing with debt, is aimed primarily at 12 to 15s – four characters who have each run up a debt are presented.
The students discuss whether or not the characters have a problem with debt.
The students are asked to design a leaflet which gives clear information about how to get out of debt.
In topic 4, aimed at 15 to 20s, students meet Adam, who is considering moving out of home.
The students work on a budget planner, calculate Adam’s projected costs and are introduced to the different types of expenditure involved when living independently.
In Topic 5, aimed at 15 to 20s, students meet Jessica, who applies for a loan to buy a laptop, but is in debt already and is turned down after she fails the credit check.
The students are given the opportunity to help Jessica apply for her loan, work out her monthly budget and are introduced to the implications of debt and credit scoring.
Topic 6, Future plans, is aimed at 18 to 20s.
Here students are presented with a list of expensive items or things they might like to buy or do. They are provided with a spending planner, and get to work out how much money they will need to borrow to fund their choices. This also includes advice on reading the small print, especially relating to APR and repayment periods.
At the end of the module, students are asked to match definitions and terms associated with lending money, and to complete a quiz relating to what they have learned throughout the module.
Comprehensive teachers’ notes are provided detailing lesson plans, activities, curriculum links and glossary. They also include key skills, activity sheets and print resources. Detailed timings are included on each topic.
You will need to register to access the teacher’s notes area of the website.