Module 4: Using a bank account

Module objectives
• Highlight and provide effective activities that can
be used in the classroom to develop learners’
understanding of the ‘advantages and
disadvantages of using bank accounts, including
bank cards’.*
• Share information on the resources available to
develop learners’ knowledge of financial terms and
vocabulary.
• Provide a list of useful online resources and
games linked to developing learners’ knowledge of
money and banking.

* Year 6 and Year 7 learner outcomes from the ‘Manage money’ element
of the numeracy component in the National Literacy and Numeracy
Framework (LNF).
 Links to the numeracy
component of the LNF
• How does using a bank account link to the
numeracy component of the LNF?
• The following slides indicate where in the LNF
this module of work is targeted.
• The activities provided in this module can be
used to develop learners’ perceptions and
knowledge of bank accounts and bank cards.
• Teachers can access and decide which activities
can be used to suit their learners’ needs.
• The resources highlighted can be used in the
primary classroom and up to Key Stage 4.
Manage Learners are able to:
money
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.
 Places where we can
keep money safe
Purse or
Pocket wallet
Money
In a safe
box Under
Hands
the bed

Post
In a jar Office Bank

Task: Ask learners to rank the places using a

Diamond 9 approach (safest place at the top to least
safe at the bottom).
(See Resource 1.)
 Visit a bank
Schools may wish to take learners to visit a local bank or arrange for a bank
volunteer (possibly a parent/carer) to come into schools to talk to learners.
Talks or visits can provide learners with the opportunity to find out:
• how banks work
• how people might pay money in or take money out
• how deposits and withdrawals are recorded (such as bank statements or
savings books)
• information on how to open a bank account
• type of bank cards and accounts that are available to them at particular ages
• using an ATM and PIN numbers
• safe online banking.

Further information can be found at the Money Advice Service

(www.moneyadviceservice.org.uk), who offer free guides and a wealth of
information, and at www.pfeg.org/learningaboutmoney

Schools may wish to set up (or already have) a school bank. Some credit unions
have supported schools to set up their own banks which have been ‘run’ by the
learners. For more information about your local credit union visit
www.wales.gov.uk/topics/housingandcommunity/regeneration/debt/affordcredit/?l
ang=en
 What is the balance in a learners
‘financial word bank’?
• Use a card-matching activity to gain some insights
into learners’ understanding of financial
terminology and vocabulary (see Resource 2).
• Give learners an opportunity to carry out a
self-assessment for them to find out which
financial words they know and which they would
like to find out more information about (see Welsh
Government’s Personal Finance Toolkit which is
included as a download with this module).
• Differentiation can occur naturally depending on
which words you decide to give learners in both
activities.
Matching cards activity

Direct debit In credit Overdraft

Standing
Interest Account
order

In the red ATM machine Loan

Bank
Debit card Fee
statement

(See Resource 2.)

This activity is from the Welsh Government
Personal Finance Toolkit.

The toolkit consists of

a teacher handbook
with lesson plans,
resource sheets and a
glossary. The toolkit
structures learning across
six topics, and is a highly
flexible framework of
short, informal activities.

The resource sheet shown here asks

learners to self-assess their knowledge on
money words. The activity can be used to
create a discussion on what learners are
keen to learn more about.
 How do we pay for things?
Task A: With younger (or lower ability but older) learners, pose the
following questions to gain an understanding of their prior
knowledge. *
How do adults pay for shopping if they
don’t have cash or change?

What’s not so good about paying What’s good about paying without
without cash? cash?

Task B: Using a whiteboard, sticky notes or as a game, ask learners to

create two lists: one of all the available cash methods of paying for
goods (i.e. coins and notes (including foreign currency where
appropriate)), and the other of all the non-cash ways that items can
be paid for. Learners can be encouraged to include a wide selection of
non-cash payment methods, from supermarket savings stamps,
vouchers to bank cards.

Task C: Ask learners to sort the forms of payment into those that require
a bank account, and those that do not.
The stimulus
cards here can
be used as
discussion
points.

How old do you

need to be to
use each of the
forms of
money?

Which of these
forms of
payment
require a bank
account?
Which forms of
money might
each place
accept?

Why might we
use money in
so many
different forms?
Safety,
convenience
and ease of
purchasing are
some reasons.

Which form
might be best
for different
purchases?
 Bank accounts

Discussion Discussion idea:

idea: What does a
Why do we use savings or current
bank accounts? account offer its
customers?
 Identifying the features of a
savings account

Task: Present the

learners with a flyer from
a fictitious bank (example
shown here).

(See Resource 3.)

 Discussion ideas
Read the flyer then answer the questions.

• Which bank is this flyer from?

• How much money do you need to open an account?
• What type of account is being offered?
• Who is the account for?
• Who can open the account?
• What do you need in order to open the account?
• What is the interest rate being offered?
• What is interest?
• How do you open an account?
• Can you think of the advantages of opening a savings
account?
• What is in the starter pack?
• Why do you think the bank is offering a starter pack?
 Bank accounts for young
people
Research has suggested that many teenagers are increasingly
keen to swap their ‘money boxes’ for plastic cards so that they can
have financial independence, and banks are providing teenage
accounts to address this. Many learners may have some sort of
basic savings account, probably operated by their parents/carers.

Here are some ideas of what a variety of banks offer young

people.
• From the age of 11, they can have a cash card to withdraw
money from an ATM (provided there is money in the account).
• From the age of 13, they can have a debit card to purchase
items in shops and online (provided there is money in the
account and a limited spending amount per day).
• From the age of 16, they can have access to their account
through mobile and online banking.
 Opening an account
Task: Ask learners to investigate (online or visit their local
bank) the key features of the types of accounts that can be
offered to them.

How old must Is any

you be to What does
parental
open the the account
permission
account? offer?
required?

Explain to learners that young people need to provide ID

when they open an account. Why?
What can
What can you use to
you use to prove where
prove who you live?
you are?
 Discussion activity
Learners will have a variety of experiences of having or
using a bank account. They may or may not have savings
accounts. Some may have a current account and have
access to their money, others may actively use a bank
account on a weekly or monthly basis, whereas some
learners in the group may not have any of this experience.

Task: Gareth is 14 years old. He has a paper round and

has recently been given almost £100 for his birthday. He
plans to save for a moped that he would like to have
when he is 16. Which bank account is the best option?

(See Resource 4.)

 Discussion activity
Gareth is 14, he has a paper round and has recently been
given almost £100 for his birthday. He plans to save for a
moped that he would like to have when he is 16. Which
bank account is the best option?

The Square Bank ‘Card Account’
• A card to withdraw money.
• Free CD voucher.
• No interest.
The Square Bank ‘Savings Account’
• No card.
• Interest of 5%.
• Must keep at least £100 in the account.
• Withdraw money over the counter at
the bank.

The Town Bank ‘Teenager Account’ The Town Bank ‘Savings Account’
• 3% interest. • 6% interest.
• Must keep at least £1 in the account. • The money must be kept in the
• Card to withdraw cash. account for 3 years.

(See Resource 4.)

 What does ‘interest’ mean?
Which account should I Is it something the bank
choose? gives me, or something I
have to give to the bank?

Should I go for an
account with a low or
What does it mean when
high interest it says the account
percentage? comes with a ‘card’?

This activity can:

• raise discussions about types of cards, such as debit card,
cash card, credit card
• provide an opportunity to do calculations involving simple
interest
• can lead on to doing work on compound interest
• raise discussions about how the interest rate on a savings
account differs from the interest rate on a loan.
Types of credit and debit
cards
Credit cards
Cards that let
you borrow
money and pay it Debit cards
back later
Store cards
Cards that let
you spend Prepaid cards
money you
already have or Charge cards
within an agreed
overdraft facility
 Information on the types of
credit and debit cards
The following slides provide information that can be shared
with learners in order to discuss bank cards and to help
them decide the advantages and disadvantages of the
types of credit and debit cards.

Information obtained is from the Money Advice Service. For

more information visit www.moneyadviceservice.org.uk
 Credit cards
Credit cards
A credit card is a way to buy things now and pay later. You can run up a bill
to an agreed limit and pay it off afterwards, usually once a month on a
particular payment date.

Who are they for?

Only for people with very organised finances – otherwise there is a real risk
of spiralling into debt. Even if you set up a direct debit to pay the full amount
monthly, if you are not on top of your bank balance you could go overdrawn
when the payment comes out. They are available to over-18s only.

• Credit cards give good protection against fraud.

• Credit cards provide extra protection if you have problems with goods
and services you have bought that cost between £100 and £30,000.
• Credit cards provide an easy way to pay for the unexpected.
• If you don’t pay back the full amount there is interest on the money
you’ve borrowed.
 Debit cards
Debit cards
A debit card is like a direct link to your bank account – when you shop or
buy services the money is taken out of your account right away.

Who are they for?

Almost everyone with a standard UK current account, though if you plan
to use it overseas you should check the charges first. Debit cards are
now offered with some deposit accounts too.

• Debit cards have some fraud protection, but not as much as credit
cards.
• There is no borrowing involved, except if you go into (or over) your
overdraft.
 Store cards
Store cards
Store cards are a type of credit card you can only use in one chain of
shops.

Who are they for?

Only a good idea for people who often spend a lot in a particular store,
and are absolutely sure they’ll pay off the bill every month.

• They come with deals and discounts in-store.

• There’s a very high interest rate if you run into debt or only pay off
a small amount each time.
 Prepaid cards
Prepaid cards
A prepaid card works a bit like a gift card – you top it up with money and
you can only spend up to that amount.

Who are they for?

Often used by travellers to carry holiday money, and by anyone without
a normal bank account – generally children, teens and people with poor
credit ratings.

• They are safer than cash, since you can cancel the card if it gets
lost or stolen.
• They’re not accepted everywhere, and you may pay fees for using
them or for topping them up.
 Charge cards
Charge cards
Charge cards work a lot like credit cards – you buy now and pay the
money back on your monthly repayment date – but with a charge card
you absolutely have to pay off the balance every month. You can’t run
up a bill and pay it back later.

Who are they for?

Generally only for people on high incomes or for business use. There
are also a few basic charge cards, but they don’t have much advantage
over credit cards.

• They often have no spending limit and come with extra perks.
• If you don’t pay your bill the fees can be higher than credit card
interest – and your card may be cancelled.
 Discussion activity
Lisa is 18 years old. She has a job and her employer would
like to pay her wages direct into her bank account. Lisa
would like to move into a flat and this requires rent. (She will
also be expected to pay the utility bills.) The landlord wants
a £500 deposit.

Question ideas
• Why does Lisa need a bank account?
• Who will have access to Lisa’s account?
• What are utility bills?
• What other bills does Lisa need to consider?
• How would Lisa be able to have £500 from her bank for
the deposit for the flat?
• What can Lisa do to find out more information on bank
accounts?
 Bank account options
Lisa is 18 years old. She has a job and her employer would
like to pay her wages direct into her bank account. Lisa
would like to move into a flat and this requires rent. (She will
also be expected to pay the utility bills.) The landlord wants
a £500 deposit.

Consider the bank account options available to Lisa.

(See Resource 5.)
Aims
The aim of this activity is for learners to have an opportunity
to discuss the vocabulary used in the four examples
(Resource 5) and to consolidate their understanding of the
terms in the previous matching cards activity (Resource 2).
It provides learners with a scenario that enables them to
identify advantages and disadvantages of bank accounts.
 Bank statements

Discussion Discussion idea:

idea: Why might it be
What do bank important to keep
statements show records of
us? spending?
 Activity 1: Understanding the
transactions on a bank
statement
See Resource 6 (pages 1–2).

The activity states transactions that have occurred on Lisa’s bank account
using any of the following means:
• card
• direct debit
• cheque
• ATM
• credit.

Task: Use the information given to complete the paper bank statement.

Aim: The aim of this activity is for learners to have an opportunity to

identify the terms used on a bank statement and to use their numeracy
skills to keep a running balance.
 Date Type Description Paid out Paid in Balance
(current)

4 May £215.50

5 May

7 May

10 May

13 May

17 May
You may wish to provide
20 May learners with options for this
column, e.g.
23 May
• card
• direct debit
• cheque 000000
• ATM or cashpoint
25 May

• credit.
 Activity 2: Reading and
understanding an online bank
statement
See Resource 6 (pages 3–4).

Task: Use the printed online statement (on page 3) to

answer suggested questions (page 4).

It is not an exhaustive list of questions and the activity

can also be extended by allowing learners to create their
own statements or questions.
 Activity 3: Identifying
transactions and calculating a
running balance
See Resource 6 (pages 5–7).

Task: Use the information given (page 5) about the dates

when Lisa has spent money, and the direct debits that
have occurred, in order to complete the printed online
statement (page 6).
 Activity 4: Philip’s week
See Resource 7.
The following ‘hands on’ activity works best when learners work in pairs or
small groups rather than individually.
Aim: Learners read a story about the life of an adult and the financial
transactions that occur during a typical month.
Using the laminated transactions and money values, learners complete
an enlarged version (A3) of Philip’s bank statement, keeping track of the
running balance, codes used on bank statements and dates the
transactions occur.
Teachers may allow learners to use calculators, depending on the ability
of the group.
The task is aimed at more able and talented learners although it can be
differentiated by providing more information on the bank statement,
tweaking the story with money values and vocabulary that will support the
learning aims at the level required for the group.
 Philip’s money – a week in
December
One week in December . . .

Philip struggled to make it through November without using his overdraft. In the
event, his bank opening balance was £12.45 in the red on 30 November.

However, Philip had done loads of overtime in November and got paid nearly
£1,000 on Friday 1 December.

He was so pleased that he went into his local travel agents on the next Sunday
morning and bought and paid for a last-minute holiday for Christmas on his debit
card, even though it cost him over a third of the wages he had just earned!

A couple of days later he was in town with a friend and picked up some cash
from the local cashpoint. He wanted £115, but the cash machine only had £20
notes . . .

Task: Continue to read the story and complete the bank statement.
(See Resource 7.)
 Websites and resources
www.pfeg.org
• My Money Primary Toolkit (download)
• Learning About Money in the Primary Classroom (download)

www.barclaysmoneyskills.com/Information/Resource-centre/School-Children.aspx
• Four downloadable Barclays Money Skills Resource Packs for 4 to 7 year olds,
7 to 11 year olds, 11 to 14 year olds and 14 to 16 year olds

www.moneysense.natwest.com/schools/resources/
• Managing your money (online resource accessed by teachers and learners)

www.nationwideeducation.co.uk
• Finance Skills: games, factsheets and worksheets for learners aged
4 to 18+ (printable resources and online games)

www.learning.wales.gov.uk
• Numeracy: financial education
 Adding up to a lifetime
This is a free online resource entitled Adding up to a lifetime
which follows four characters and how they deal with financial
situations. It is suitable for Key Stages 3 to 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
• Relationships which can be
listened to in
• New life English or Welsh.
• Active retirement.
www.addinguptoalifetime.org.uk
 Online games
www.hwb.wales.gov.uk/cms/hwbcontent/_layouts/NGFLSolution/Materi
alDescription.aspx?LearningMaterialId=39431&lang=en
Money games

www.hwb.wales.gov.uk/cms/hwbcontent/Shared%20Documents/vtc/20
09-10/maths/financial-literacy/all-the-way-to-the-bank.html
An online game that encourages learners to keep track of the
incomings and outgoings and then asks them to deposit the remainder
in the bank.

www.funtosave.org
A simple-to-use multi-level interactive game to teach young children the
core principles of money and the benefits of saving. Support and
resource materials are provided for teachers and parents/carers.

www.moneymatterstome.co.uk/interactive-workshops/atm.htm
An interactive ATM that allows learners to familiarise themselves with
the features of using ATM, e.g. 4-digit PIN, balance enquiry,
withdrawing money in multiples of 10, having a printed balance, etc.