Today Your Child Learned…
Dear Parent & Guardian,
We are excited to share that your child has completed the following PSHE lesson. Check out our overview and top tips to support their development…
Today’s PSHE Lesson
Borrowing Money (Loans And Mortgages)
Most of us don’t have enough money to buy our own house so we often turn to banks for a mortgage – a special type of loan that helps you buy a property. Sometimes we may need to borrow money for unexpected events like a flood or we may need money to fund a necessary purchase like a new car. It’s important for our children to understand how borrowing money can be problem-free and straightforward, providing we can afford to pay back the amount and the interest -the cost of borrowing the money from the organisation that lends it. It’s also important to know how borrowing money can cause stress, bring about bankruptcy and the loss of your home.
What We Covered In The PSHE Lesson
Here’s what we went through today…
- A loan is money that you borrow from a bank, building society, company or person.
- A mortgage is a special loan that helps you to buy a home.
- Loans need to be repaid and that interest is usually charged on these loans.
- Debt is owing money.
Go Above & Beyond
Here are some other ideas to support your childs PSHE lessons…
- Encourage your child to open a savings account and show them that having money of their own is always better than borrowing money from others.
- Talk about the pitfalls of borrowing money where interest rates can be out of proportion to the amount borrowed and the consequences of not being able to pay back borrowed money.
When it comes to your child’s development, teachers and parents are better together! By aligning our goals and education techniques, we can better realise our vision of positively preparing your child for their future.