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Financial Education

Financial Education

'Our vision for Finance Education is for all students to leave our school financial capable. Empowering students to make confident choices from a secure knowledge of the skills and awareness of the risk that will enable them to make choices as adults which will maximise their satisfaction from using a limited resource. We will achieve this by supporting staff, students, parents and the wider community.'

At Chelmer Valley High School we are a Centre of Excellence in Financial Education, in fact, we were the first school nationally to sign up with this programme and currently the only school awarded this prestigious award in Essex.  It is important that young people learn the value of money and know how to manage money well.  We want to ensure that our students enter the world of independent living with an idea of how the financial world works.

From Year 7 to 13 our students explore several money related topics in citizenship, mathematics and other areas of the curriculum; these include:

Savings, banking and bank accounts, cost of living, earnings, resolving money problems, credit and debit cards, debt, forms of payment, interest, moral/ethical money dilemmas, borrowing, loans and credit, employment. consumer issues, tax, attitudes to money, financial risk, entrepreneurship, insurance, the economy, charities, global issues, investment, benefits and allowances, independent living, student finance, healthy eating, fair-trade and ethical investing, pocket money, gambling, pensions, credit reports and agencies, government spending, mortgages, and mobile phones.

Below are some websites that you might find useful sharing with your child or for use yourself:

 
 

 

Here are some financial games that students might find informative and fun:

 

Nationwide Finance World Game (14 -16)

Nationwide's Finance Skills Quiz (12-14)

Nationwide's Ultimate Finance Skills Quiz (14-16)

Nationwide's E-shop simulator

Nationwide's Cost of money game

Nationwide's Saving doing chores game

Nationwide's Explore the building-world of finance

 

Money Matrix Game 1

Money Matrix Game 2

 

Number Drop Test how quickly you can do the sums Level 1

Number Drop Test how quickly you can do the sums Level 2

 

Buying a Mobile Phone

 

 

Understanding the Jargon:

Account Balance

The money in your account at the moment you check it

AER

Annual equivalent rate used to compare interest you can earn when you save money

ATM

Automated Teller Machine (Cashpoint)

APR  

Annual percentage rate-used to compare interest you will pay if you borrow money

Bouncing cheques

When a bank does not cover a cheque you write because there is not enough money in your bank account

Budgeting

Keeping track of all the money coming in and out of your account so that you know what you can spend

Buildings Insurance

Insurance premiums paid to cover the cost involved in repairing your house after being damaged by fire, flood or some other accidental mishap

Credit

A deposit or payment into your bank account

Credit Card

A card used to pay for something before you have the money in your account. If not repaid by the due date, you will be charged interest on the debt.

Credit Status or rating

A rating applied to people to reflect how reliably they have been paying debts. A poor credit history, or no credit history at all means you may not get the loan you want

Credit Unions

Credit unions, historically, have been small, non-profit financial organisations set up by members with something in common to benefit their community. That common factor may be living in the same town, working in the same industry (e.g., the Police Credit Union) or belonging to a particular trade union. There are about 500 credit unions, with a local one on Gloucester. They are a financial community of savers and borrowers. Savers do not usually get the same rates as elsewhere, but for borrowers who can’t get access to ordinary bank products; they can provide a lifeline in less well-off communities for folks grappling with their finances. Plus, they can be a welcome alternative to payday loans or doorstep lending.

Debit Card

A card you can use to make payments or withdraw cash directly from your bank account

Debit

A withdrawal or payment made from your bank

 

 

Defined Benefit Pension

You’re most likely to have a defined benefit (DB) pension if you work in the public sector or for a large company.

This is a salary-related pension which pays out a secure income for life and increases each year. The pension you get is based on how long you’ve been a part of the scheme and how much you earn.

You might have a final salary type scheme where your pension is based on your pay when you retire or leave the scheme. Alternatively, you may have a career-average pension where your pension is based on the average of your pay while you were a member of the scheme.

Defined Contribution Pension

With this type of scheme, you build up a pot to pay you a retirement income based on contributions from you and/or your employer and investment returns. Defined contribution (DC) pensions include workplace, personal and stakeholder pension schemes. DC schemes might be run through an insurance company or master trust provider, or through a bespoke scheme set up by your employer.

The size of your pot depends on how much you and your employer contribute, the charges and how well your investments perform.

Direct Debit

An automatic way to pay bills- the amount can vary

Excess

The part of an insurance claim you must pay yourself before the insurance company covers the rest

Exclusions

Things that your insurance will not cover

IFA

Independent Financial Adviser is an expert who you can pay to help you with your financial affairs.

Insurance premium

Money paid regularly in case of a chance mishap. This can be in monthly instalments or once a year.

ISA

Individual Savings Account- a way to save money without paying tax on your income after you reach the age of 16

Insurance policy

A contract which determines the claims for which the insurance company is obliged to pay the policy holder in exchange for the premium

Life Assurance

A form of insurance that is paid out on the death of the policy holder to help cover debts, lack of income or cost of a funeral

Loan Interest

A percentage of the debt you pay for borrowing money

Mortgage

A loan to buy a house or flat

National Insurance

You build up your entitlement to the basic State Pension by making National Insurance contributions during your working life. In some cases, you can do this even when you’re not working, such as when you’re bringing up children or claiming certain benefits.

No claims discount

You pay less for your insurance if you do not claim for a year

Overdrawn

Spending the bank’s money when you have used up your own

Pension Pot

 

Refers to a type of pension you build up with pension contributions you and/or your employer make. You’ll have one if you have a ‘defined contribution’ pension which includes workplace, personal and stakeholder pension schemes.

Per annum (or pa)

Each year e.g. interest of 5% p.a. on a savings account means the bank pays you 5% of the total money you are saving each year. This is added automatically to your account

Savings Interest

A percentage of your savings you earn given by the bank

Security

A possession that the bank can claim from you if you do not pay a debt, e.g. your house, if you do not pay your mortgage

Standing Order

An automatic way to pay bills- the amount is fixed

Statement

An update on your account showing all the payments, withdrawals and any charges made by the bank- can normally be accessed online

State Pension

Most people get some State Pension. It’s paid by the government and is a secure income for life which increases by at least the rate of inflation each year.

Third Party Insurance

Insurance that pays if you damage someone else’s property, but not if you damage your own, e.g. crash your car.

Universal Credit

Universal Credit is a new type of benefit designed to support people who are on a low income or out of work. It will replace six existing benefits and is currently being rolled out across the UK. The new system is based on a single monthly payment, transferred directly into a bank account. At present Universal Credit only affects newly unemployed people in certain areas of the country.

 

Tax Credits

Tax credits are payments from the government straight into your bank account. There are two types – Child Tax Credit and Working Tax Credit.