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Money 1 Matters about managing money

Your Money Can We Afford It? How Much Does It Cost? Advertising The Bank To Borrow or to Save Getting into Trouble Dreaming about Later

Your Moneyscope

VIRGO (Virgin) - 23 August – 22 September Virgoans tend to analysis, refinement, and discrimination seeking perfection and purification of the self. These are the signs of the craftsman. Keeping your things in good order, that’s what you like. You get irritated when others are not as correct as you are. If you loan money to your friends, you want it back! You are right! But you have to tell them loud and clear when you want the money back. You earned your money the hard way!

Here are just a few things you will learn as you read this Moneyscope: • Your overall personality and characteristics as revealed by your Money Sign • The way in which you express yourself, and how you appear to others • The way you think and feel, your personal energy and drive as revealed by Argentums, Oro and Platinum • Your ups and downs, your dreams and sorrows and what to do about them

LIBRA (Scale) - 23 September – 22 October Librans tend to balance, harmony and love of beauty seeking selfcompletion. You are in doubt for a long time before you decide to buy something. Do I really need it? Is it not too expensive? Is there a guarantee? All questions you ask yourself before you buy something. Is it difficult to make up your mind? Write down a checklist of pros and cons which will help you!

ARIES (Ram) - 21 March – 20 April Arians are very enthusiastic and not afraid to take risks. Full of pioneering energy and new growth seeking to emerge. You never have a dull moment always moving in action. You believe success is more important than money. You prefer to think more about today than about tomorrow. But it is important to pay more attention to your money situation. Do you need all those things to be “cool”? You take your friends anyway as they are, not for what they have!

SCORPIO (Scorpion) - 23 October – 21 November Scorpios tend to intense emotional power probing and penetrating into the unconscious. You make a mess of your financial affairs. But you can change it today. Stop your spending, repay the borrowed money and start saving. Make a list of your financial obligations. Keep yourself to your own planning. It is all about what’s important for you! Your friends will certainly understand you!

TAURUS (Bull) - 21 April – 20 May Taureans tend to deliberation and determination seeking practical productivity in this world. Putting your money matters orderly in a row is just a good task for you. This makes you ready for doing things which are really important for you! Don’t let your friends influence you!

SAGITTARIUS (Archer) - 22 November – 21 December Sagittarians tend to an expansion quest to discover truth and the interconnectedness of all things. You say all the things you have on your mind. On one hand that’s not always very clever. On the other hand you dare to talk about difficult topics. Therefore ask your classmates how they handle money matters. Maybe you can learn something from them. Look for a job in the communication area, you are made for it.

GEMINI (Twins) - 21 May – 20 June Geminians tend to abstract curiosity seeking to form a picture of the world, and to communicate those perceptions to others. You like to do all things at the same time. Making a choice for one thing or another you think is a chore. You are however creative and smart! You know very well that you can spend your money only once! So how are you going to set your financial matters straight?

CAPRICORN (Ibex Antelope) 22 December – 19 January Capricornians tend to self-discipline and austerity seeking integrity and moral courage. You don’t like problems. You would rather keep the money in your pocket than to spend it. This way you know for sure you’re not spending too much. Relax a bit! Just re-think what you want to do with your money! Make a list of your income and spending. Thus you get an overview of your financial scope and will be able to make the right choice.

CANCER (Crab) - 21 June - 22-July Cancerians tend to healing, nurturing, and sensitivity seeking psychological understanding, emotional self-expression, and the capacity to heal others. You feel yourself the best between all the things you collected. Do you realise collecting is the same as saving? That’s just what you excel in! But don’t get stingy! Think about something nice to spend your money on! Money in the bank doesn’t bring fun!

AQUARIUS (Water-Carrier) - 20 January – 18 February Aquarians tend to eccentricity and radical individuality seeking freedom of the soul and communication with the group mind. You do like the latest fashion and get crazy from new gadgets. Sorry you can’t buy all and everything! You have to make choices. How do you do this? Make a list of your wishes. What is really important? What could wait for a while?

LEO (Lion) - 23 July - 22 August Leonians tend to self-expression seeking confidence, ease, and honor in the social world. All right, you fell in love with clothes and beautiful things, but didn’t you overdo it a bit? You’re always broke and borrow easily from your friends. You seem anxious to get into problems. Start breaking the habit! Find out how much money you earn and have; then what your real “must” spending and obligations are. Repay your friends first!

PISCES (Fish) - 19 February – 20 March Pisceans tend to mystical dreaminess, warmth, and healing compassion seeking self-transcendence. He who saves money begets money! Just start to save a bit more in the coming months. Make sure you enjoy it and have fun. It is all right to say “no” to somebody who wants to borrow. Or to make a firm agreement about repayment! People tend to forget about loans they made. By putting things on paper you avoid a lot of problems!


CONTENT Your money How much does it cost? Advertising Can we afford it? The bank To borrow or to save Getting into trouble Dreaming about later About money What makes good money? What we have vs what we want Consuming goods and services Wasteful consumption Advertising to kids Budget Managing money Saving money The bank – Joe’s dilemma Bank and young people Opening a bank account Using an ATM Filling in a cheque Paying with plastic Understanding a bank statement Internet banking 3

4 6 8 10 12 14 16 18 21 23 25 27 29 31 32 33 34 36 38 39 40 42 43 46 47

YOUR MONEY Money on the Loose… How much money do you get? Do you get pocket money? Do you earn some of your money? Do you - sometimes - get a “clothes allowance”? Ask some friends of your age how much money they get. Write the information in the spaces below.

No money for Mother’s Day! Where has all the money gone? It is Saturday afternoon; tomorrow is Mother’s Day and Martin (13) wants to buy a present for his Mum. He opens his purse and - it is empty! “Oh no, how is that possible? I want to buy nice flowers for Mum; the shops are closing soon and I am broke! Tomorrow all the family is coming with presents, and I have nothing!! What has happened to my money?” Yesterday Martin got pocket money from his mother; in the afternoon he went to town with his friend, he bought a computer journal, on the way back he stopped for a hamburger and soon all the money was gone! Martin did not put any money aside for the present. He spent it all. “How silly of me! How will I get some money for flowers now?”

Where has the money gone? Does the story of Martin ring a bell? Have you ever had the same experience as him? You think you do have money but when you need it, it’s not there. And you do not even remember how you spent it.

Pocket Money How much did I spend? Make such a list for yourself, so you know where your money goes.


MUST and MAY Money can be spent on many things: sweets, snacks, drinks, clothes, mobile, a bike or later a motorbike. There are two types of spending: • Things which you MUST have. For example, you must buy the textbook for your English lesson. • Things which you MAY have but you may also do without them. For example, you may buy an ice-cream. You may also do without it. There are a whole lot of things to buy. Below there are some examples. Have a good look at the list. Which items would you spend your pocket money on? MUST you have them or MAY you have them? Write also how much money you would spend on the items per week. There are a few lines at the bottom for any other items you may want to add. Plan your spending for next week:

Make your choice If you want to handle your money well, you have to make choices. Making choices means knowing your priorities. Do you spend your money on jeans or do you buy shoes? Do you go with your friends for a burger or to the cinema? You can spend your money only once. Gone = Gone!


WHAT DOES IT COST? Are You Price Conscious?

What a shame! Katia is annoyed. Yesterday she bought the latest DVD in the shop near her school. It cost E20. She saw it in the shop window and bought it immediately. Today her friend Lucy came to school with the same DVD, only much cheaper bought in a different shop. Their friend Chloe stared to laugh: “That wouldn’t happen to me, I always shop around before I buy something.” “Sure, Chloe with all those fancy clothes of yours, you should keep your mouth shut!”

Comparing prices Every day we consume a lot of things: food, toiletries, clothes; we use transport; watch TV; buy petrol … We often complain that the cost of living is increasing. We therefore try to choose the products which represent the best value for money, but that takes a lot of time and energy. You can help your parents by going to different shops and comparing prices. Remember that you have to compare products of the same quality and the same unit of weight.

Task Go to two different shops and compare prices of the following items:


Is it expensive? Kevin (14) complains about his mother: “My mother nags all the time about all those smses I send. She says that our family will go bankrupt because of me. I don’t believe a word she says, smsing is much cheaper than calling! But my mother says the bill is far too high. She wants me to pay for my phone! Thus I should learn how much money my smsing costs.”

Are you price conscious? Do you know how much you have to pay for things you use? Do not look up these prices; write down what YOU think they cost:

What is “EXPENSIVE”? What is “CHEAP”? 7

ADVERTISING About Ads and Commercials You can see THEM everywhere; in the streets and on billboards, on TV, in the newspapers and magazines, at sport events, on the Internet and in many more places. They tell you what you should wear, how you should take care of your hair, how to get the nicest skin or the most athletic body, which mobile is the latest, which chocolate is the tastiest etc etc. In short, they tell you how to be in.

Adverts & Commercials Do you like them? Do you believe them? Do they give you ideas? Do you get influenced by them? Do you get this urge: “I must have this!�? Which ones do you remember?

Where did you see them?

Did they influence you? How?

Most of the companies use ads for their products. Advertisements are very expensive. A short television commercial costs thousands of Euro. The company wants these costs back. The company wants YOU to buy the product and thus pay for the advert. On the other hand advertising may have some positive effects. Can you think of some?


Task Cut out two ads from a magazine; one which you like very much and one which you do not like at all. Glue them on a piece of paper and answer the following questions: • Which products are advertised? • For whom were the advertisements made? • Do you find the products expensive or rather cheap? • Would you buy them?

Wrong shoes Eric’s mum bought him a new pair of shoes. “They are wrong,” complains Eric, “nobody has ever heard about this brand and the colour is wrong too.” Eric’s mum says she cannot afford to buy him brand name shoes, as those advertised on TV. She thinks these are the best she can afford. “No, they are not,” protests Eric. “They do not look like those on television. I can’t walk to school in them; I’d rather wear socks only!”

Slogans “Have a break, have a ...” Write down three slogans and the brand they represent.


CAN WE AFFORD IT? About Money and Spending Pocket Money? Job? Stipend? Clothes Allowance? What are the sources of your income? Do you BUY that T-shirt or do you SAVE the money? Can you decide about your money? Do you know how much you spend in a week? What do you spend your money on? Do you actually know how much money you have?

Introduce yourself: Nicholas (14) wants to become a computer programmer. “I spend a lot of time in front of my computer inventing computer games. That’s what I like most. Then my friends come over and we test the new game. If it works I write about it for a computer magazine. I am also a judoka; I have just passed my brown belt test. My parents do not give me any pocket money, but I earn some money on my own. On Wednesdays I give judo lessons to young children and on Fridays I deliver advertisement leaflets in my village. Most of the money I earn goes towards my computer stuff; there is so much to buy!”

Emma is 13 years old and would like to become a jeweller. She would like to travel a lot. “I buy a lot of books and magazines about foreign countries. I get inspiration for my jewellery from them. My uncle who is a jeweller taught me how to make simple costume jewellery like necklaces, bracelets, or rings. I enjoy making them and then I sell them to my friends at school. Sometimes even my neighbours come to buy something from me.”

Julia (14) wants to be a nurse. “I like to look cool. Unfortunately, my parents can give me only a small sum pocket money, as we are a large family. I save all the money and buy my clothes from the markets where I can find fancy and cheap clothes. Sometimes my older sisters pass on some clothing and accessories that they do not like anymore. As long as they look good I do not mind. I am looking forward to earning my own salary and being independent.”

André who is 14 years old is a DJ in a youth club. “Twice a month I play music in the club and often spend a lot of time making my own music mix. To get some money, I also work in the shop where my mother works. With the money I earn, I buy the latest CDs and all sorts of music accessories.”


TASK Now describe your income and expenditure per month.

Some tips how to earn or save money: Sell or buy your books secondhand Collect empty bottles Refill your printer cartridges Walk your neighbours’ dog Read your magazines in the library or online Find a job on the side Sell or barter your CDs 11

THE BANK About Accounts and Statements One day you will have a job and will get your salary. Maybe you already have a part-time job and receive a salary. In any case, you want your money safe in a bank account. The bank will credit your account with interest and issue a bank card. With your bank card you can manage your money. The bank keeps a record of all the transactions on your account. You can ask the bank to mail you this bank statement or you can see it online. You will see how much money you have at a certain date, e.g. in the end of the month. You will also see where your money went. Take good care of the bank statements. Keep them in a file.

Bank Account In case you do not have a bank account, ask your parents to open one for you. You can deposit some of your pocket money in it. Having a bank account is an advantage for you and your parents. You will learn how to control your money and how to save money.

Saving money For example if you want to buy a bike, start saving money for it in your bank account. You will not waste money on sweets, soft drinks and other not so important things. Coins and banknotes in your piggy bank or in your wallet are also important. You know exactly how much you have and it is easy to know how much you spent.


How much was Peter’s income? € How much did he spend?

How much did the computer game cost?

How much did Peter withdraw on the 12th of March 2009? € How much money was in Peter’s account at the end of February? €

Natasha has been saving money for a new TV. She keeps her money in a small piggy bank. What else could she do? Open a savings account, of course! Then she would earn interest and will be able to buy her new TV sooner!

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TO BORROW OR TO SAVE …That is the Question! How to make a purchase Natasha wants her own TV set and so does her brother. Their parents agree but they say that their children should pay for the TV set themselves. Natasha (14 years): ”I am looking forward to having a TV in my room. I will watch the programs I like! The TV I want costs €250.00. A year ago I started saving part of my pocket money; up to now I have saved €100.00. However considering that it is a slow process I somehow have to find a way to raise more money.” Natasha’s father suggested that she should take do some odd jobs or part time work. “Well, that’s a good idea,” said Natasha. “Our neighbours have a little daughter, I could try babysitting.” The neighbours were pleased with Natasha’s offer. Now she babysits once a week and earns €10.00 every time. Natasha’s mother came up with another idea. She suggested helping an elderly friend to weed the garden, so Natasha earns another €5.00 per week. Her father makes sure that she doesn’t spend the money on something else. “I think that in a few months I will have enough to buy the TV set,” says Natasha.

Natasha must save €150.00. Can you work out how many weeks / months will Natasha have to wait till she is able to buy her TV?

Sam (16 years) does not want to wait any longer; he has a different approach. “Somehow I have to raise the €250.00.” Here is how he plans to get the money: Sam wants to ask his grandfather for a birthday present in advance which is €50.00. There is also the possibility of borrowing €100.00 from his brother who has been saving for a scooter, and another €50.00 from his cousin who would make good use of the TV as he would surely want to come and watch films with Sam. What about the rest? His mum would be able to give him a ten week advance on his pocket money. With a bit of luck Sam should be able to buy the TV set this week. Of course, he has to repay all the borrowed money. In the coming months he has to watch his spending. He would also have to pay back his cousin on time; otherwise the latter may become very angry and decide to ask for interest… 14

Sam has to borrow €150.00. His brother agreed to lend him €100.00 which he wants back in 10 weeks’ time. His cousin is willing to lend €50.00 but wants them back within 4 weeks. Do not forget that Sam will not get pocket money for 10 weeks as he has already had an advance - so he has to wait! Sam has found a part-time job so that he can start paying back his debts. He works in a restaurant and earns €25.00 a week. The first four weeks will be difficult for Sam; he has to pay €12.50 to his cousin and €10.00 to his brother per week. Sam has only €2.50 a week left for his own expenses. The following six weeks Sam keeps paying his brother €10.00 a week and he is left with €15.00.

Task Compare the methods of buying a TV set. Which one do you prefer: Natasha’s or Sam’s? Why? Have you got any tips for Natasha? What about Sam?

Make your own saving plan Think of something you would like to buy but for which you do not have enough money. Draw up an action plan.

TIPS Put the money in a savings account; you will not spend it so easily! A bank loan costs money! Be careful! Learn more about it! Banks are usually happy to give you a loan. Why? The bank loan has to be repaid with interest. That’s how banks make money.


Getting into Trouble‌ About Debts and Solutions , Dear Auntie Sally . We have been in nd ie fr t s be y m is Karl e primary school. c in s s s la c e am s the money, I always f o t u o n ru I When e is very careful H . im h m o fr w o borr ost of the time m d an y ne o m is h with y saved. He has ne o m e m o s as h he me money when I o s e m nt le s ay alw en I had a parth w d an ke o br was him. But now I id pa re I b jo e tim d I owe my friend an b jo y m t s lo e hav in trouble. All my am I . 0 .0 25 ₏ Karl I owe Karl money; w o kn es at m s s cla school and face to go to id ra af I am do? him. What can I ld Nathan, 15 years o

Borrowing money from friends? Agree when you repay the money. Write the agreement on paper. Stick to your agreement.

Dear Nathan, The basic rule is: if you borr ow money, you repay it! No w that you have lost your part-time job, you had better talk to Karl about it. Together you mi ght think of a plan how to repay the mo ney. He is your friend an d will surely un derstand. Try to give hi m at least so me of the money, maybe yo ur parents can help with the plan. But there is st ill something else: How come you need to borrow money re gularly? You should be more careful with your spending. How mu ch money do you actually need every mont h? What are your expenses? Think about th em, do you real ly need to buy all those th ings? You should not spend more money than you have. Most important of all you must start looking for a new part-time job. Make sure you re pay Karl before you spend another cent! Wish you good luck, Auntie Sally

Task Write three disadvantages of borrowing money from friends.


Discussion • Imagine you have borrowed money from a friend, but can’t repay. Will you still remain friends? • Imagine you lent money to a friend, but he does not repay it. You need the money. What would you do?

Running into debt Susie (18 years): “I love nice things. I want to look good. Since I was 15, my parents have given me a monthly clothes allowance so I could chose what I wanted to wear. I have always spent all the money on tops, skirts, jeans and shoes. I have even found a part-time job to keep up with my spending. Sometimes I also had to borrow from my girlfriends. I am always broke. Since January I have been working as a hairdresser but after a few weeks I was in the red with my bank. In the meantime I bought a scooter on hire purchase. Last summer I went on a short holiday with my girlfriend, but I had to borrow from her to be able to make the trip. I don’t have any money to pay her back and she is mad at me. Even at home we always argue about money. I do not know what to do. I have just sold the scooter to pay my debts. I have to pay the bank, my mobile phone, my parents, my girlfriend and some other people from whom I have borrowed small amounts here and there. All together I owe €2450.00. I do overtime and also work on Saturdays. There is little left for me; all the money I earn goes to my creditors. I hope that by next year I will be free from any debts…”

Task: Make a Warning Poster “Problems arising from borrowing money and incurring debts”.

Debts: what then? You can’t sleep because you worry about the money you owe? Don’t keep the problem to yourself, share it with someone. Talk to your parents about the problem, or maybe a family friend you trust, or a school counselor. A problem shared is a problem halved. 17

Dreaming about Later About Your Future and Money “I would like to have a family and work in a flower shop,” says Amanda.

“I prefer an office job and I would like to lease a new car every two years,” thinks Jacob. “I want to become a famous football player, so that everybody will know me,” dreams Robert. “Working in poor countries and helping people, that’s very noble!” says Tamara.

What will you do in ten years’ time? Whatever you want to do, you will always need money. So - what is your choice? Write five wishes you have for your future:


Peter (24 years): “We have two small daughters. When we go shopping, we always buy things for them first. There is not much money left for us.” Darren (25 years): “I work as a baker in a small bakery. My girlfriend and I are saving money to get married and buy a house. We simply can’t afford a holiday.” Alex (23 years): “I have just bought a very nice car, that’s why I can’t move to a bigger place. I am on a very tight budget at the moment.” Emily (24 years): “I have a good job at the bank. A part of my salary goes to repay my study loan.”

What do we spend money on? Task Make a collage or a drawing of whom you would want to be in fifteen years’ time. Find illustrations based on the following ideas:

Sport Leisure Housing Holidays Eating and drinking Saving Clothing Work Health & fitness Hobby Going out Travelling Studying Transport And what about you? What will you do in the future? How much money will you earn? Everything costs money, even the nice things and interesting activities in your free time can be very expensive. You cannot buy all you want! It is difficult to make a choice. 19

money on the loose are you price conscious? ads and commercials money and spending accounts and statements debts and solutions your future and money making a purchase

Published by the Meducation Foundation as a public service Copyright Š 2009 Meducation Foundation ISBN 978-99932-0-722-1

About Money Money plays an important role in our lives. We need money to eat, buy clothes, take holidays, and later in life we need it to rent or buy a house and run our cars. Indeed, we will use many thousands of Euro in total. Because money plays such an important role, it is useful to know a bit more about it. Money has a long history and has developed over thousands of years.

What Does Money Do? 

Money can be exchanged for things we buy.

It has a clear value that is trusted by everyone and people accept it in exchange for What does goods Moneyor do??? services. We go shopping and we pay with money. 

Money represents value and thus can be stored for the future. So, we can save up our money to buy something in the future. We can store money in a piggybank or in a bank.

Finally, money can give a clear value to goods. So we can to give value to things in money and we can compare them easily.

History of money Barter Our European ancestors lived as hunters and farmers. They did not have banknotes and coins; instead they would exchange goods with each other: e.g. a hunter could exchange animal skins with a farmer for grain. This exchange is known as barter.

Barter involves the exchange of goods that have value, without the use of money. When our ancestors learned how to make metals then exchanges became easier. This is because metals, such as gold, silver, tin and iron, were valuable to everyone. So, a farmer could barter his cattle for a certain weight of silver, then later, the farmer could use some of this silver to pay his taxes.

The first European currencies In ancient Rome, coin production was done in the temple of Juno Moneta. Later, as the Roman Empire expanded, other mints were opened and the same Roman coins were accepted for exchange all across Europe.

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Later, when new nations appeared, each country kept control of its own coinage. These were often named after units of measure, such as the Italian lira and the Finnish markka, because the coins originally contained a fixed amount of gold and silver.



A coin contained a precise weight of a metal, such as gold or silver that had a known value. Around 2600 years ago, the first coins were made in Asia Minor by King Croesus. Coins were convenient because they could be counted rather than weighed. Because these new coins were a trusted and efficient 'medium of exchange' they helped increase trade in the ancient world. To guarantee the value of coins, kings and governments strictly controlled their production.

As trade increased, more and more money was needed as a medium of exchange. Therefore, banks and governments began issuing banknotes. Banknotes do not contain the value they represent. Instead, the issuer of a banknote – the government or the central bank - guarantees its value.

The names of Europe's old currencies often reveal something about their origins: 

 

The coin thaler first minted in the Czech Republic in 1518 is the origin of the term „dollar‟. The franc, meaning 'free' in French, was first minted in the 14th century to pay the ransom for the French King John the Good.

The schilling, used in Austria, was named after a mark on a stick used for counting.

Your Task 1.

Name all the countries using the Euro as their currency.


Mark these countries on the map and find their capital cities.


Which countries use these currencies: dollar, yuan, rubel, yen, rupee, real, kuna, forint?


Find some pictures showing :  Money being exchanged for goods  Money being stored for the future  Money showing value of things.

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What makes good money? In different countries of the world and in different times, a vast range of objects have been used as a medium of exchange. Beads, shells, stones, salt, tea, but also peppercorns and rice have been used as money. These objects were called commodity money because they were goods = commodities and had a value in themselves. Money as we know it today is a product of a long development. People have slowly discovered that some objects made better money than others.

So – what is “good” money? Here are characteristics which make good money. 

Acceptability – Anything can be used as money as long as people have confidence in it and accept it in exchange for goods and services. That is why an almost worthless piece of paper is accepted as a €10.00 banknote.

Durability – Anything used as money must be long lasting. Coins and banknotes must stand wear & tear of being in circulation.

Portability – money must be easily carried around and transferred from one person to another. Metal coins and banknotes are lightweight and fit easily into a walet.

Divisibility – we do not only have a €1.00 coin, we have several coins with smaller denominations. Divisibility means money has to be able to be divided into smaller units to make small purchases or to give change.

Scarcity – salt would not be good money in Malta because anyone can pick up some of it on the beach. Only if money is scarce people value it and accept it.

Also, money should be difficult to counterfeit (to make fake), therefore money contain a lot of security features.

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Euro security features: Feel it – Look at it – Tilt it 

Feel the raised print – special printing processes give banknotes their unique feel.

Look at the banknote and hold it against the light: the watermark, the security thread and the see-through number will then be visible. All three features can be seen from the front and back of genuine banknotes.

Tilt the banknote: on the front, you can see the shifting image on the hologram. On the back, you can see the glossy stripe (on the €5, €10 and €20 banknotes) or the colour-changing number (on the €50, €100, €200 and €500 banknotes).

Always check several security features on banknotes. It only takes a few seconds to check a banknote. Feel it, look at it and tilt it.

Your Task 1.

Explain what is meant by:  Money is a medium of exchange.  Money is a way to store value.  Money is a unit of account.


Explain what is barter.


Write a short paragraph about coins.


What are the differences between coins and banknotes?


Name the five characteristics of good money and write a sentence about each of them.


At home, use the “Feel – look – Tilt” rule and examine the banknotes.


Draw any banknote and point out the security features you are familiar with.

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What we have versus what we want Our means We all have TIME, SKILLS and most of us have some MONEY. Those are the ‘means’ we have. TIME We all have the same amount of time. There are 24 hours in a day, 168 hours in a week and 52 weeks in a year. We cannot increase the amount of hours in a day, or the amount of days in a year. There are: _____________ hours a day, _____________ hours a week.

SKILLS You may not be aware of it, but you have a number of skills. 

Learning skills – understanding the need for new information and for problem solving.

Listening skills – giving full attention to what other people are saying, asking questions when appropriate, not interrupting the speaker.

Mathematics – using mathematical knowledge to solve problems.

Reading comprehension – understanding written sentences and paragraphs.

Science – using scientific methods and rules to solve problems.

Speaking – talking to others to give information.

Writing – communicating in writing in a way suitable for the reader.

Training, correct practice, experience and education are some of the ways we can improve our skills or add some new skills. MONEY People who are rich have certainly have opportunity to do more than those with less money. Some people are obsessed with the idea of being rich; they enjoy hoarding money rather then spending it. But most people want money so they can do something useful with it.

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What we want What do we do with time, skills and money? We all want to satisfy our needs and our wants. NEEDS All people have the same basic needs to stay alive: food, warmth and shelter. Without these things we would starve, freeze or suffer from exposure. A lot of time each day is spent on earning money to buy food, preparing food or eating it. A lot of money is spent on our housing or on clothing; that means these are important. Needs are things we must have to stay alive: food, shelter and warmth are our basic physical needs. But there is more than these basic physical needs to live a happy and fulfilling life. These are:     

Physical needs Security, safety Social needs – friendship, love Self-respect Feeling of happiness and fullfilment

WANTS Once our basic needs are satisfied, how do we use the rest of our time, skills and money? Wants are all those things we would like to have but do not really need in order to survive. We all have a very long list of wants and we can always add some more! Consider the following options – are they needs or wants?  Time – watching TV  Skills – playing football with friends  Money – buying a new mobile

Your Task 1.

How do you spend your time on a weekly basis?


How much time do you spend: sleeping, eating, at school, travelling, doing your homeworks and studying, doing sports, playing, on the computer etc?


Make a chart showing how you spend an average week.


Write some proverbs about Time.


Make a list of food, clothing and housing items which are Needs and which are Wants for your family.

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Consuming goods and services Goods versus services We are all consumers and use goods and services every day. A large variety of goods and services satisfy our needs and wants. Children are consumers too, because they use goods and services. Children use goods each day when they eat lunch, get dressed or use the computer. Children also consume services, e.g. when they take the school transport or when they watch television.

Consumption is about using a product or service, not necessarily purchasing it. But, of course, consumption starts with purchasing a good or service so that we can use it.

Goods Goods are useful tangible objects that are used in production or intended for consumption, and that satisfy our needs and wants. In simple terms, a good is something that people use almost all the time. We use resources to manufacture goods. We – the consumers use these goods to satisfy our needs and wants. Three types of resources are needed to produce goods: 1.

Raw materials need to be transformed so they can be used as goods. For example, wood is needed to build a table.


Human resources are the people who work to make goods. For example, a carpenter builds a table in exchange for a salary.


Financial resources are the money used to buy the material and pay the workers needed to produce goods. For example, a furniture factory buys wood and other things - machines, tools, nails... that will be used to transform raw materials into furniture. It also pays the salaries of the workers.

Service A service is the effort that goes into satisfying the needs of an individual or group. A service is the work done by a person to help others, to meet the needs of other people. Some examples of services:   

Medical check-up or treatment Getting education Pizza delivery

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Your Task Decide whether the following images are a good or a service.

good – service

good – service

good – service

good – service

good – service

good – service

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good – service

good – service

good - service

Your Task 1.

Who is a consumer?


What is consumption?


What is a good?


And how would you describe a service?


Describe which types of resources are needed to produce – a book, a football T-shirt, a carton of milk. Find pictures showing them and stick them in your project book.

Wasteful consumption All the goods we consume are made of natural resources: water, oil, wood, fish, soil, plants, minerals… Goods and services are limited, and so are the resources used to produce them. We say that the resources are scarce. For example, look at a copybook. The sheets of paper of a copybook are made from trees. What would happen if there were no more trees in the forest? We have to use scarce natural resources wisely by not throwing away products that are reuseable or recyclable. By constantly demanding new and better goods and services we use more and more scarce natural resources. By wise consumption we take care of the environment. We have to be aware of the fact that production of goods and services leads to pollution. Factories, cars, mines, aircrafts, power stations... pollute the air, rivers, seas, make noise.

Excessive use of goods and services leads to more pollution and waste.

Identify wasteful consumption  

Can you spot your own wasteful consumption??? Do you use some goods and services in a wasteful way? Give examples.

Wasteful consumption What are the consequences of such behaviour: for you, your country, for the environment? • • •

Do you ask for more food even if you are not hungry? Do you buy newer version of toys / gadgets which you already have? Do you leave lights on even when there is nobody in the room?

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Did you know that you can never really throw anything away? You can put your trash out for collection, but it doesn’t really go away. Actually, all you’ve done is simply had it moved from one location to another. It stays on the planet…in the land, in the air and in the water. And with every passing day it will become more of a burden in terms of air pollution, water pollution, and a toxic environment.

REDUCE – REUSE – RECYCLE  Consume less.  Buy things with less or no packaging.  Reuse or recycle things.  Compost food scraps and garden waste.  Buy second-hand objects.  Sell or donate stuff you no longer want.  Don’t buy new things if the old ones are still good.  Buy things made of recycled materials.

Your task 1.

What does the expression wasteful consumption mean to you? Give some examples.


Reduce means:


Reuse means:


Recycle means:


Does your family reduce – reuse – recycle? Describe how.

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Advertising to kids Here are some basic rules of advertising to children:


Advertisers should not use words like "new," or"introducing a product" for more than one year.

New products always seem more exciting, so advertisers shouldn’t promote a product as "new" for more than a year. 2

Advertisers shouldn’t exaggerate.

Some advertisers want to make you believe that their product is bigger or faster or better than it really is. 3

Advertisers shouldn’t promote craft and building toys that the average kid can't put together.

When you get a kit that is supposed to be for kids, you should be able to make it yourself. 4

Advertisers are not allowed to recommend that you have to buy their product, or that you should make your parents buy it for you.

Advertisers can't say things like: "Hey kids, tell mom and dad to run down to the shop and get you one now!" or "You must have our product, or you won't be cool!" But they are still going to try to make you want to do these things without telling you directly. 5

Advertisers can't make you believe that you're getting everything that's shown in the commercial.

Advertisers have to tell you exactly what you are getting when you buy the toy, and what it will cost. Advertisers often give false impressions about what is included with the product. 6

Advertisers are not allowed to show kids doing unsafe things with the product.

Unless it's part of a safety message about what not to do, advertisements can't show kids doing dangerous things that children might try to copy. 7

Advertisers can't suggest that using their product will make you better than other kids.

They also can't make kids think that people will make fun of them if they don't use the product.


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Budget Planning your income and spending Income Income is the money that a person or a household receives. It may be gained from working, from owning something or by being transferred from someone else. In your case it can be pocket money, money gifts, money for doing extra chores at home etc. Estimated income is money that you anticipate (expect) earning or receiving.

Expenditure / spending Many people think that after they have earned an income, spending it is easy. Spending money may seem to be a simple matter – but to spend it wisely is difficult.

Budget A budget is a savings plan or a record of actual and estimated income and expenses over a period of time. Needs are the very basic things that people must have to survive. Wants are the things that make life more interesting and fun. In other words, you could live without them if you had to. For example, you need food to eat, but you want to eat out with your friends rather than at home. You need a place to live, but you want a TV in your room. You need some clothes to wear, but you want those designer jeans. Budgets contain financial goals. Some goals are short‐term or long‐term while others can be intermediate goals. Examples of savings goals:  Short‐term – Saving €10 by the end of the month to buy grandma a birthday gift.  Intermediate‐term – Save €3 a week for the next three months to buy a new game.  Long‐term – Save €4 per week for the next six months to buy a new bike.

Peter’s Budget “Peter is 13 years old. He gets €10.00 pocket money every week and he usually earns another €5.00 a week by helping his neighbour in the garden. Every month he spends about €15.00 on snacks and sweets, another €10.00 on his mobile card and €10.00 on other things.”

Prepare Peter’s monthly budget.

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Your task 1.

What is a Budget?


Explain the term Income.


Give some examples of different incomes for you and your family.


What does the term Expenditure mean?


What does your family spend money on? On which items do you spend most money, on which less money?


Do you or your family have savings goals? Describe them.

Managing money What do you do with money? You get your pocket money or you get it as a gift... Do you run out and spend it straight away? You have many choices. You can:  spend it all  save all of it  save some of it and spend the rest. Actually, you can do even more with your money! Anyone can spend money. Spending money is easy.But then you don’t really have any money in your bank when you need it. The idea is not to spend money but to be money smart and learn how to manage it.

There are several things to consider when it comes to managing money: 

 

Little things. Want to buy a snack at school? Want to go to the cinema? If you have enough money saved up, you can. The more you save, the more things you can do. Bigger items. Would you like to get a new bike or buy a present for your brother Then you need to save more because these items cost more. Keep saving! Even small amounts add up. Giving. Do you feel that helping others is important? Then, save some money for giving, too. You can help those who are less fortunate than you are, or those who look for medical cures. Your money can help pay for this work. Emergency. You forget to lock up your bike, and it disappears. If you are careless, your parents will expect you to help purchase the new bike. So you should have some money set aside for such emergencies.

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Saving Money Tricks to help you save money Are you a good saver? Is it easy to save money or is it tough? Here are a few tricks to help you become a smart saver.


Have four banks, not one!

If you want a smart way to control your money, use four little banks labelled: SPEND, SAVE, INVEST, and GIVE.  A spending bank - for money to be used on everyday things.  A saving bank - money to be used later on larger items.  An investing bank - for money that will be used several years from now.  A giving bank - for gifts to help others.


Get saving goals

How much should you save each month? That depends on what you’re saving for. For example, you want to buy a new bike, but your parents say that you have to save €90 of the price before they will pay the rest. It is tough to earn or save €100 in a short amount of time. That’s why money-smart kids have savings goals – and stick to them. If you saved €15 each month (€3.75 a week), you could buy that bike in six months! Great! The more you save, the quicker you get the bike.


Save first, spend last

What’s the FIRST thing you should you do when you get your pocket money? You divide your money and put it in your four banks. If you want that bike, you have to be sure that money goes into the SAVE bank FIRST. Talk to your parents about your plan. Putting your SAVE money into your bank first is important.

A BIG RULE about money is: You can spend it only once. If you spend your SAVE money on snacks and sweets, that money is gone! You can’t use it for your bike or anything else.

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Cut your expenses

Write down any money you spend in a notebook. List what you bought, when you bought it, how much it cost. Your money diary will teach you something about yourself. You may find that you spend â‚Ź5 a week on snacks. Are those snacks worth that money? Or would you rather save that money for something else? Bring a proper lunch from home and stop buying snacks.


When you do spend, be a smart shopper

Now you have some money and you’re ready to buy a DVD. Remember to shop smart! Check out prices. You can buy that DVD in different places. Figure out where you can get the best buy for your money. Look for sales and coupons. If you save a Euro, you can spend it on something else. Or add it to your SAVE bank for your bike.

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The BANK Joe’s dilemma Joe is 14 years old. He got €100 for his birthday from his parents and grandparents. He is really keen on music and has had his eye on an MP4 player he has seen in the shops. What should he do with his €100?

Narrator: This is Joe. Today was his birthday and he was lucky enough to be given €100 from his family. Trouble is - he doesn’t know what to do with his money. DJ Girl: 100 Euro! How cool is that! He’s usually broke. He can get that mp4 player he’s been dreaming about. Skater Boy: Wait, wait, wait… Maybe he should wait a while. Why rush things? DJ Girl: Oh yeah, right. Hasn’t he waited long enough? Anyway what’s he going to do with the money, sit and stare at it for weeks on end? It’s not doing anything sitting in his pocket. Skater Boy: Well, if he waited he might get a better mp4 player in the sales. He could even open a bank account. You don’t need to be loaded to get one. You just stick the money in there and earn a bit of interest. Joe – waking up from his dream: But I don’t know anything about bank accounts!!!

Consider the pros and cons of Joe’s different options. Here are some ideas to get you started.

Option 1: • •

Joe buys the MP4 player he wants today:

He will use all his money in one go and later on when he may want to buy something else he won’t have the money. On the other hand he won’t have to bother to sort out how to open a bank account.

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Option 2

Joe decides to open a bank account:

His money will be in a safe place while he decides what he really wants to spend it on – the MP4 player or maybe a really good amplifier for his guitar instead.

He’ll earn interest – the bank pays you a percentage of however much you have saved with them – the amount depends on the type of account.

He should open a saving account which will get him some interest. The current account usually brings no interest.

Option 3

Joe stashes the money in a locked tin in his bedroom:

He might be tempted to spend the money on other things.

It might get stolen.

Joe needs help! Imagine you are Joe’s cousin and you received an email from him asking for advice about what to do with the money. Complete this email.

Dear Joe, I hope you had a very good birthday. My advice to you as what to do with your money is to __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________

because __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________

See you soon, _______________________

Page 37

Banks and young people What do other young people think about why we need banks and how banks help you manage your money?

Do you agree? Do you have a bank account?   

I have a bank account because I get quite a lot of money and need a place to keep it safe. I don’t have a bank account. I keep my money in my room because I don’t usually have too much of it.

Why do you think we need banks? • • •

I think we need banks because if you want to get a loan or save some money up then you put it in a bank account. If you have a lot of money at home it might not be safe all the time. People want a bank account so that they can save their money and the bank pays them a small interest on their savings.

How do you get your money? • • • •

I get some pocket money from my parents as well as some money fifts from my grandparents on special occasions. I get my money because I have a part-time job. Since I started my ITS course I’m getting a stipend each month and I save a good part of it. Well my mum doesn’t give me pocket money; she said she would but she doesn’t.

What do you spend your money on? • • •

I spend my money mostly on food or CDs or clothes or things like that. On shopping and going out. I could do with a lot more money, I spend a lot more than I get.

How do you save up for things? • •

I save up for things by not spending too much on sweets. I put it in my piggy bank.

What are the ways that you think a bank can help you in the future? • • • • •

I’ll probably end up getting a loan for a flat, just like my parents. When I’m older I would use my money to continue my studies abroad. My long-term goal is to get a well-paid job. So a bank account will help me to save my money and keep account of my finances. I would like to start my own business so I think banking will be very important for me because I’ll need a loan to get me started. First of all it would stop my little sister stealing my money out of my room! And it will help me organise my money a little better and get an interest.

Page 38

Opening a bank account Now we will find out what Joe decided to do with his money. We will also learn about ATMs, cheques and “plastic money”.

Joe opens a bank account Joe has decided to open a bank account to keep his money safe until he decides what he really wants to spend it on.

DJ Girl: So, what’s the big deal about bank accounts anyway? Skater Boy: Well, like I said, you can earn interest. Your money makes more money in a bank account because you get interest added on. DJ Girl: Whatever! Skater Boy: And you get a plastic card, so you can get your money at any time and almost anywhere. And they send you statements so you always know how much you’ve got. DJ Girl: Hmm…………. Skater Boy: But the best thing is that your parents can set up a standing order to pay money into your account every month so that they never ever forget your allowance. DJ Girl: Now - that is cool! Skater Boy: I thought you’d like that bit. Joe: A bank account, now that’s a good idea!!!

Current account

Savings account

A current account is an account with a bank from which money can be withdrawn without giving notice. Usually there is no interest on this account, but the account holder can get a cheque book to manage this account.

A savings account is an account in which money can be saved. The money will often earn interest, but notice may have to be given before withdrawing money. A savings account is often the best account to have if money is not withdrawn regularly.

Applying for an account If, like Joe, you decide to open a bank account, you will be asked to fill in an application form. Remember – this is just for practice – it won’t actually open the account for you.

Page 39

Using an ATM ATM = automated teller machine If you have a bank account some banks will give you a cash card which will let you use an ATM (Automated Teller Machine) to get cash or to deposit some money into your account. When you use an ATM, you will be offered a range of options:  Display balance You can check how much money you have in your account, you can see this on screen or get a print out.  Cash You can withdraw some cash and may get a receipt. The receipt will tell you: how much was withdrawn, the location of the ATM, a balance of your account, the date and time of the withdrawal.  Mobile phone top up You can enter your mobile number and top up your credit.  Mini statement You can get a print out showing your recent transactions.  Other services These include requesting a cheque book or you may change your PIN.

Your Task Imagine you want to withdraw €20 and get a receipt. Put the steps you need to take in the correct order by numbering them 1-10. Read the screen prompt: PLEASE SELECT THE AMOUNT REQUIRED: €10, €100




Follow the screen prompt: PLEASE ENTER YOUR PIN NUMBER. Select €20. Follow the screen prompt: THANK YOU FOR USING YOUR BANK. Check the slot of the machine: it should not been tampered with. Select ‘CASH WITH RECEIPT’. Follow the screen prompt: YOUR REQUEST IS BEING PROCESSED, PLEASE WAIT. Follow the screen prompt: PLEASE TAKE YOUR CARD; YOUR CASH IS BEING COUNTED. Read the screen prompt: PLEASE SELECT THE SERVICE REQUIRED – e.g. display balance, cash with receipt, mini statement, mobile top up …). Insert your card into the slot.

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Your task: 1.

What does ATM stand for?


And what does PIN mean?


Why are the ATMs convenient?


What are the different options / transactions offered by ATM?


Why would you open a current account?


And why would you open a savings account?


Be safe using ATM. Give an advice to your friend about PIN and using ATM.

Page 41

Filling in a cheque There are many ways to pay for goods and services: by cash, bank transfers, electronic payment, using plastic money – different cards, or by cheques. Cheque is not really money; it is a written order which instructs your bank to pay a specific amount of money from your account to another person or organisation. Never send cash through the post. Sending a cheque is much safer, but make sure that all the details are filled in correctly. A current account allows you to have a cheque book.

Your task: Draw an image of a cheque and fill it in: Pay â‚Ź101.56 to Stella Maris College.

Page 42

Paying with plastic Once you have a bank account you can have certain cards that make paying for things easier. There are many different types of cards: cash cards, debit cards, credit cards, loyalty cards, smart cards. First we need to explain the meaning of two important terms:

Debit – Credit

Cash cards Cash cards are available with some accounts for young people aged 11 years and over. Using these cards you may deposit money in a bank or at an ATM, some banks will also allow you to withdraw a small amount of money.

Important: Alwasy talk to your parents before using your card!

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Debit cards Debit cards are plastic cards which allow you to pay for goods or services. If you are in a shop the cashier will insert your card into a machine and you will usually have to type in your PIN.

The money is taken almost immediately from your account. You can also use your debit card as a cash withdrawal card, to withdraw money from an ATM.

Important: A debit card is like your walet – if you want to buy something, you have to have money in your account.

Credit cards Credit cards are issued by banks who are members of an international payment organisation e.g. Visa, MasterCard or American Express. This card allows you to buy goods immediately and pay for them later. You will have an agreed limit on the amount you can borrow, and the time within which the money should be repaid. If you don't pay the total amount by the due date you will be charged high interest on the outstanding balance. You must be at least 18 years old before you can have a credit card.

Important: It is easy to buy using credit cards, but difficult to pay when the statement arrives!!! Use the credit cards wisely!

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Logos of International Payment Organisations

Front and back image of a debit card

Loyalty cards Loyalty cards are issued by supermarkets, fashion shops, etc. Every time a customer makes a purchase they get their card swiped and earn points. They can collect these points to earn discounts or rewards.

Smart cards Smart cards can be inserted into a machine, loaded up with money and used to pay for goods or services. When the money is used up, more can be loaded onto the card. In Malta, post-secondary students receive a stipend, part of which is given to students in the form of the smart card. The card can be used to pay for things related to education: books, computers, stationery etc.

Your Task Go to a bank and ask about all kind of cards issued by this bank. Make a short presentation about the cards in your project book.

Page 45

Understanding a Bank Statement If you have a bank account, the bank will send you a bank statement on a regular basis. It is also possible to see the bank statement online. Now have a look at this bank statement and try to understand it.

BEST BANK Account Statement Account: Current Euro Name: Joe Rich Address: St Albert Street, Gzira IBAN: MT 12345678900000000000 Date: 31 January 2011







Balance forward





ATM mobile top-up




EPOS Bargain supermarket




Part-time salary deposit


Transfer to savings a/c


Closing balance

€ 50.00

€60.00 €100.00


€105.00 € 5.00 ?

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Internet banking When using internet banking, you have to go through a log-in process. Different banks make the log in process secure in different ways e.g. by asking customers to enter only selected digits of their PIN / password or by asking security questions. Logging in might involve entering your customer number and then digits from your PIN and password.

You can use Internet banking to: 

see an account summary

check your bank statement

transfer money between your accounts

put money into someone else’s account

amend or cancel a standing order or direct debit

change your PIN or password A direct debit is an instruction to your bank authorising a company to collect money from your account to pay for something. For example, you could arrange to

A standing order means that you instruct your bank to pay

pay your mobile phone bill by

someone a specified amount of

direct debit.

money at regular intervals.

Important:  You should never give your log-in details to anybody.  Never use internet banking in a public place such as internet café. It is not safe!

Page 47

money on the loose are you price conscious? ads and commercials money and spending accounts and statements wanting and making a purchase debts and solutions your future and money

Copyright Š 2009-10 Meducation Foundation ISBN 978-99932-0-722-1

Money Matters 1  

Financial Education for 11-13 yrs old

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