Welcome to a look into our Year 6 club designed to get children thinking about “Me, my life and my money”.
Our focus for this session was on the UK Banking system.
This week, we found out how banks make their money from their two main functions: Savings and Lending.
Mrs Davies acted as ‘THE BANK’ and was glad to keep safe the money of half the girls in the club. For the £1,000 they saved with her, she promised to give them back all their money (after a certain amount of time), plus an extra £100 in interest as a thank you. She also lent £1,000 each to the other half of the girls in the club who needed it to buy things but didn’t have enough money to buy. These girls promised to pay back the full amount (by a certain date), plus give her an extra £200 for giving them the £1,000 loan in the first place. During our scenario, we talked about what would happen if people who borrowed money from banks didn’t or couldn’t pay it back. We realised banks must make sure they lend out money carefully! Everyone in the club got what they needed, and we learnt that ‘THE BANK’ made a nice tidy sum of money by organising these transactions.
Our extra discussions this week involved how we would choose the best bank for our needs, thinking about saving interest and lending rates, the reputation of various banks, the type of savings accounts they offer and how safe our money would be with them.
Our session ended with the girls seeing what their savings would buy them when they are 40 years old if they started saving now. They were all keen to start saving right away!
Next week, we are thinking about ‘want vs need’ and what debt is.
Excellent job girls.
