Module 7: Managing your
money – saving
Module objectives
• Provide an opportunity to look at the learner outcomes in
the ‘Manage money’ element of the numeracy component
of the National Literacy and Numeracy Framework (LNF) to
identify where teaching learners about the ‘basic principles
of saving’ exists in the curriculum in Wales.
• Highlight resources and activities that can be used in Key
Stages 2 to 3 to develop learners’ numeracy skills in the
context of saving and investing money.
• Provide a list of useful websites for Key Stages 2–5 to have
access to classroom ideas for saving and investing money.
Note: Differentiation, extension ideas and effective questioning will often be
suggested in the notes within the PowerPoint for teachers/trainers to use as
required.
Learner aims
This module introduces the basic principles involved in the
process of ‘saving money’.
Learners will be able to:
• understand that there are different ways of saving
• appreciate the basic principles of saving money
• describe some short- and long-term benefits to saving
• identify the main features of a savings account and the
steps involved in opening an account
• understand that earning interest can help savings grow
• calculate and compare simple and compound interest
• appreciate the risks involved in different ways of saving
and investing.
The module is designed for use across key stages – not all
outcomes will apply to all learners.
An opportunity to look at the learner outcomes in
the ‘Manage money’ element of the numeracy
component of the LNF to identify where
‘understanding the principles of saving money’
exists in the curriculum in Wales.
Learner outcomes relating to saving are marked
in bold in the table.
Manage
money
Learners are able to:
Year 3
• use different combinations of money to pay for items up to £2 and
calculate the change
• order and compare items up to £10
• record money spent and saved.
Year 4
• use money to pay for items up to £10 and calculate the change
• order and compare items up to £100
• add and subtract totals less than £10 using correct notation,
e.g. £6.85 – £2.76
• manage money, compare costs from different retailers and
determine what can be bought within a given budget.
Year 5
• order and compare the cost of items up to £1 000
• add and subtract totals less than £100 using correct notation,
e.g. £28.18 + £33.45
• plan and track money and savings by keeping accurate records
• realise that budgeting is important.
Year 6
• use the terms profit and loss in buying and selling activities and make
calculations for this
• understand the advantages and disadvantages of using bank
accounts
• make comparisons between prices and understand which is best
value for money.
Manage money
Learners are able to:
Year 7
• use profit and loss in buying and selling calculations
• understand the advantages and disadvantages of using
bank accounts, including bank cards
• make informed decisions relating to discounts and special
offers.
Year 8
• carry out calculations relating to VAT, saving and
borrowing
• appreciate the basic principles of budgeting, saving
(including understanding compound interest) and
borrowing.
Year 9
• calculate using foreign money and exchange rates
• understand the risks involved in different ways of
saving and investing
• describe why insurance is important and understand the
impact of not being insured.
Extension
• use and understand efficient methods of calculating
compound interest
• understand and demonstrate the real-life process of
foreign exchange
• understand and calculate income tax.
The Personal and social education framework
for 7 to 19-year-olds in Wales also highlights
opportunities for learners to become competent
at managing their finances, planning for the
future and knowing where and how to access
financial advice. This module aims to address
this in the context of understanding the basic
principles of saving and investing money.
Personal and social education framework for 7 to 19-year-olds in Wales
Key Stage 2 learning outcomes
Range: Preparing for lifelong learning
Learners should be given opportunities to understand:
 that money is earned through work and can buy goods and services
 the importance of looking after their money and the benefits of regular saving.
Personal and social education framework for 7 to 19-year-olds in Wales
Key Stage 3 learning outcomes
Range: Preparing for lifelong learning
Learners should be given opportunities to understand:
 the economic and ethical consequences of personal financial decision-making
as a consumer, e.g. Fairtrade
 how to become competent at managing personal finances and recognise that
saving provides financial independence.
Personal and social education framework for 7 to 19-year-olds in Wales
Key Stage 4 learning outcomes
Range: Preparing for lifelong learning
Learners should be given opportunities to understand:
 their rights as consumers and their responsibilities in terms of managing a budget
 the importance of planning for their financial futures and how to access
financial advice.
The big question
What is saving?
Places we use to save our
money
Starter activity:
Can you name some places
where you can save your
money?
Places we use to save our
money
Building
society
In a safe
Purse or
wallet
Credit
union
Money
box
Under the
bed
In a jar
Post
Office
Bank
Advantages to saving
money
Starter activity:
Why do people save money?
Why is saving a good alternative
to borrowing money?
Reasons to save money
School trip
For the
latest ‘must
have’, e.g.
smart phone
Driving
lessons
University
Purchase a
household
appliance
Buy
expensive
clothes
Deposit for a
house
Supermarket
saving stamps
Family
holiday
To buy a gift
for a special
occasion
Buy first
car/scooter
Wedding
Saving activities
Key stage
Activity
What’s it about?
Suitable for
lower Key
Stage 2
1. Saving up
Considers spending and
saving.
Suitable for
upper Key
Stage 2
2. Once upon a time
A fictitious but realistic
advertisement for a
children’s savings
account.
Suitable for
Key Stage 3
3. Did versus didn’t
Explores scenarios about
the spending and saving
of six young people.
Suitable for
Key Stage 3
4. Paying it in
Investigates the key
features of a savings
account.
Suitable for
upper Key
Stage 3
5. Savings and investments
matching cards games
Promotes vocabulary
which allows learners to
understand different
types of saving and
investing.
Activity 1
Resource:
Manage money activity sheet: Saving
up
Activity:
The activity is aimed at younger learners and
consolidates some of the previous starter/discussion
ideas. It encourages learners to think about what they
might spend money on, save up for and where they
can save their money.
Activity 2
Resources:
Manage money activity sheet: Once
upon a time
Activity:
Learners read a fictitious but realistic advertisement
for a children’s savings account and answer the
corresponding questions.
Activity 3
Resource:
Welsh Government Personal Finance
Toolkit
Download the resource at
http://wales.gov.uk/topics/childrenyoungpeople/publica
tions/resources/?skip=1&lang=en
Activity: Did vs. didn’t
Topic 2, ‘Saving for the future’ (pages 22–27), should
be used with the accompanying Resource sheet 1
entitled ‘Did vs. didn’t’ (pages 17–19).
Activity 3
Did vs. didn’t
The resource provides learners with six scenarios about
a group of young people spending and saving. It is
suitable for Key Stages 3 and 4.
The toolkit provides detailed lesson ideas of how to
deliver the activity with learners.
Savings accounts:
What to look out for
There are many different accounts with many different
features for young people. Working in groups, learners can
come up with information they need to gather about
opening a savings account.
Access?
Interest
rate?
Age?
Minimum
deposits?
Savings accounts:
What to look out for
Features
What some banks may offer
Age
•
•
Savings accounts with a minimum age.
Different saving accounts available for different age groups.
Access
•
•
•
•
Unlimited instant access to funds (by young person or adult).
Occasional access to funds.
No access to funds until young person is 18, for example.
A notice period may be required, such as 7, 30, 60 or 90 days.
Interest rate
•
•
Introductory interest rate.
Fixed/variable interest rate for a limited amount of time.
Deposits
•
•
•
Minimum deposit required to open the account.
Certain amount to be paid in regularly.
Unlimited deposits.
Operate
account
•
•
•
Online.
Branch.
Use of cash card or debit card.
Activity 4
Resource:
Welsh Government Personal Finance
Toolkit
Download the resource at
http://wales.gov.uk/topics/childrenyoungpeople/publi
cations/resources/?skip=1&lang=en
Activity: Paying it in
Topic 2, ‘Saving for the future’ (pages 22–27), should
be used with the accompanying Resource sheet 3
entitled ‘Customer cards’ (pages 21–22).
Activity 4
Paying it in
In this activity, learners discuss or role play opening a
savings account and identifying the key features.
The toolkit provides detailed lesson ideas of how to deliver
the activity.
Learners will need account leaflets or printed online
information for a range of savings accounts (or internet
access to investigate for themselves) from several banks or
other providers, such as building societies or credit unions.
Alternatively to carry out a savings comparison go to
https://compare.moneyadviceservice.org.uk/savings
Some types of savings
products for young people
Discussion activity:
What do you know about the following types of
savings?
Junior Cash ISA
Child Trust Fund
Children’s Bonds
For more information on Child Trust Fund and Junior Cash ISAs visit
www.direct.gov.uk/childtrustfund and www.direct.gov.uk/juniorisa
For further information on children’s bonds
www.moneyadviceservice.org.uk/en/articles/childrens-bonds
Save or invest?
Do you know the difference?
Saving
Putting money aside to
make a lump sum, for
a ‘rainy day’, or a
short-term goal such
as the purchase an
expensive item.
Investing
Using money by
buying things that
might increase in
value, like property,
stocks or shares in a
fund.
Activity 5
One of the Year 9 learner outcomes of the ‘Manage money’
element of the numeracy component of the LNF is
‘understand the risks involved in different ways of saving and
investing’.
Activity 5 shares some ideas you may choose to support this.
Starter activities:
Savings and investments
matching cards games
Print off Resource 1 and Resource 2 available within this module.
Risk and return
Risk
Risk is another name for
chance and uncertainty
Examples of types of risk:
• an agreed interest rate
may not be a good value
in the future
• an investment may fall in
value.
Return
Return is the amount of
money you get back on the
investment you have made.
A higher return often comes
with riskier investments.
Remember: ‘if it sounds too
good to be true it probably
is’.
Risk and return
Cerys and Rhys each decide to invest £400. From the
information below who received the best return on their
money?
After one year:
Cerys
£400
decreased by
5%
Rhys
£400
increased by
15%
Calculate the difference between the amount of money
each person has at the end of the year.
This type of question allows learners to see that money
is not always gained when invested.
Risk and return
Discussion activity:
Mr Jones invests his money by buying houses that are
cheap and selling them again for more than they cost
him to purchase and the cost of the improvements.
Mr Evans invests his money by buying gold and then
selling it when the price goes up.
Can you think of other ways to invest?
Can you describe an advantage and disadvantage of
each of the scenarios above?
Risk and return
One of the Year 9 learner outcomes of the ‘Manage money
element of the numeracy component of the LNF is
‘understand the risks involved in different ways of saving and
investing’.
One opportunity to support the delivery of this can be found
at the Risks and Rewards website that can be accessed at
https://hwb.wales.gov.uk/cms/hwbcontent/_layouts/NGFLSolution/MaterialDescri
ption.aspx?LearningMaterialId=50874&lang=en
The resource covers a range of material, from looking at the
role of banks to different kinds of investments. The material
is provided in a variety of forms such as cartoons, games,
video, audio exercises and written text. Teachers of
mathematics, PSE, history, business studies and economics
from Key Stage 2 to post-16 may find this resource useful.
The ‘Manage money’ element of the numeracy
component of the LNF includes the following learning
outcomes.
Year 8:
• Carry out calculations relating to [VAT,] saving [and borrowing].
• Appreciate the basic principles of [budgeting,] saving (including
understanding compound interest) and borrowing.
Extension:
• Use and understand efficient methods of calculating
compound interest.
Questions based on these learner outcomes are likely to be done
in mathematics lessons.
The next few slides introduce the definition of simple and
compound interest, calculations, and two interactive online tools
that learners can use to help them calculate compound interest.
Simple and compound
interest
Starter activity:
Fill in the missing words.
In a savings account the amount of money earned is
called …………. The original amount of money deposited
is the ………… Interest that is earned only on the
principal is called ……….……
In a savings account, …………..is when the bank pays
interest on both the principal amount and the interest
already earned.
principal
simple interest
interest
compound interest
Simple and compound
interest
Answers
In a savings account the amount of money earned is
called interest . The original amount of money
deposited is the principal .Interest that is earned
only on the principal is called
.
simple interest
In a savings account, compound interest is when
the bank pays interest on both the principal amount
and the interest already earned.
An introduction to calculating
simple interest
Sophie pays £300 into a savings account, and leaves it
there for 4 years to watch it grow.
The bank offers a rate of 5% simple interest per annum.
(This means the bank will pay Sophie 5% of the money she
has invested.)
Questions:
1. How much interest did Sophie gain?
2. How much money does Sophie have in her savings
account at the end of the 4 years?
An introduction to calculating
simple interest
1. How much interest did Sophie gain?
10% of £300 = £30
5%
= £15
Sophie gets £15 per year, so in 4 years
4 x 15 = £60
Sophie gained £60 interest
2. How much money does Sophie have in her savings
account at the end of the 4 years?
Total amount = principal + interest
= £400 + £60
= £460
Mathematics example
Nia has £600 to invest in a savings account. She intends to
leave the money in the account for 2 years, without adding
more or withdrawing any. She chooses between these
accounts.
2 year bond:
Pays 4% simple
interest each year
Simple interest
Savings account:
3% interest paid
each year and
added to the
savings amount
Compound
interest
2 year bond:
Pays 4% simple
interest each year
Savings account:
4% interest paid
each year and
added to the
savings amount
Solution
400 x 0.04 = £16
Solution
1st year:
£400 x 0.04 = £16
2nd year:
£416 x 0.04 = £16.64
interest earned = £32.64
In 2 years:
£16 x 2 = £32
interest earned
Nia should invest her money in the savings account
because it earns £0.64 more interest.
Interactive tools
Learners could use an interactive online savings calculator
to investigate the effect of compound interest.
Two examples of an online tool that can be used are
shown on the next few slides.
www.hwb.wales.gov.uk/cms/hwbcontent/Shared%20Documents/VTC/ngfl/maths/r_davies/compound_c
alc/Compound%20Interest%20Calc.htm
www.moneymatterstome.co.uk/Interactive-Tools/GeneralInterestCalculator.htm
Learners can visit
www.hwb.wales.gov.uk/cms/hwbcontent/Shared%20Docume
nts/VTC/ngfl/maths/r_davies/compound_calc/Compound%20I
nterest%20Calc.htm
The bilingual interactive activity allows learners to change
four variables:
• initial value (principal amount)
• annual investment (yearly payments)
• period (length of time in years)
• annual increase (Interest rate).
Learners can use the interactive tool to compare the effect
that changing the variables has on the total amount of money
in the savings account. (Note: this final amount is rounded to
nearest one pound.)
Learners can visit
www.moneymatterstome.co.uk/Interactivetools/GeneralInterestCalculator.htm.
The interactive activity allows learners to change four
variables:
• lump sum (principal amount)
• interest rate
• savings period (length of time in months)
• monthly payments.
This interactive tool allows learners to be presented with the
same methodology as the previous online tool but using
different vocabulary. It allows using decimal values as
interest rates and the savings period is presented in months.
Calculating simple and
compound interest
Extension activity:
Use the interactive tools (or an effective calculator method
to calculate compound interest) to compare how the growth
in a savings account with compound interest is different
from the growth in an account with simple interest.
Encourage learners to present their workings in tables and
a suitable graph. Allow them to decide the principal amount,
annual investment (can be zero if no money is to be added
to the account) and interest rate. Learners can compare
how the two types of savings grew over five years.
This document is designed to
assist teachers to recognise
and promote higher-order
mathematical skills within
Key Stage 3 and through to
Key Stage 4. It provides
examples of learners’ work
accompanied by commentary
that identifies the
characteristics of higher-order
mathematical skills.
Pages 49–52 demonstrate an
example of learners’ work
comparing compound and
simple interest.
The Money Charity
The Money Charity (formerly Credit Action) is a UK money
education charity supporting young people to manage their
money. For further information visit
www.themoneycharity.org.uk
The website also presents modules of work for learners
from Key Stage 3 upwards specifically to help secondary
school educators teach their learners about financial
education.
To view the materials visit
http://themoneycharity.org.uk/workshops-training/schoolscolleges/
Adding up to a lifetime
This is a free online resource which follows four characters
and how they deal with financial situations. It is suitable for
Key Stage 3 to Key Stage 5. The package is approximately
25 hours of learning activities which learners can complete
online. It is presented as five modules:
• Life as a student (aged 14 upwards)
Each module has
• Working life
an audio tutorial
which can be
• Relationships
listened to in
English or Welsh.
• New life
• Active retirement.
www.addinguptoalifetime.org.uk
A whole range of managing money topics are included.
Module 1 has a section on savings.
Websites and resources
• http://themoneycharity.org.uk/workshops-training/schools-colleges/
•
•
•
•
Budgeting tools and advice for young people.
www.barclaysmoneyskills.com
Ideas, activities and resources for young people about saving and investing.
www.rbsmoneysense.co.uk/schools
A free interactive programme giving learners the skills to manage their
money.
www.nationwideeducation.co.uk
Finance Skills: games, factsheets* and worksheets* for learners aged 4
to 18+ (printable resources and online games).* Welsh versions available.
www.pfeg.org
pfeg (Personal Finance Education Group) an independent charity providing a
wealth of resources to support financial education in schools. See examples such
as ‘My Money Mathematics Resources’, ‘Money Works: It’s your business’ and
‘Learning about Money in the Primary Classroom’ which are relevant for this
module on saving and investing.
Websites and resources
• www.moneyadviceservice.org.uk/
Free online advice and guidance on all money topics. Free booklets available:
see the one relevant for this module entitled ‘Saving and investing’.
• www.direct.gov.uk/childtrustfund and www.direct.gov.uk/juniorisa
For more information on saving products.
• www.risksandrewards.org.uk
The site covers a range of material, from looking at the role of banks to different
kinds of investments suitable for learners in Key Stages 2 to 5.
• www.addinguptoalifetime.org.uk
Online interactive programme for learners Key Stage 3 to post-16.
• www.moneymatterstome.co.uk/Interactive-Tools/GeneralInterestCalculator.htm
Interactive online calculator tool to investigate the effects of compound interest.
• www.hwb.wales.gov.uk/cms/hwbcontent/Shared%20Documents/VTC/ngfl/maths
/r_davies/compound_calc/Compound%20Interest%20Calc.htm
Bilingual interactive online tool to calculate the effect of compound interest.