Intro Quiz: Money, money, money

Video: Money, money, money

﻿This lesson we'll consider why we have money. What's the point of it? We'll also look at why saving is really important and the different ways of paying for things. Welcome Key Stage 2 to another RHE lesson with me, Mr. Bailey. Title of the lesson today is money, money, money. Well, they do say that money makes the world go round. But before we consider the lesson, let's look at the equipment we need, the success criteria and then the breakdown of the lesson. On the lesson today you'll need a pen or a pencil, some paper or a notebook. You'll also need a dice although if you don't have a dice, I'm sure we can come to an alternative arrangement later on. And then to make the moneybox that we're making at the end, you'll need some cardboard, some scissors, and some sellotape or glue and a ruler so you do some measurements. By the end of the lesson today, you'll understand why we need money. You'll be able to list the different ways that we can pay for things. You'll recognise the importance of saving money. And then finally our last task, we'll create a money box. So the breakdown of the lesson then today, the first thing we're going to consider is why do we actually need money? What's the purpose of it? Following that, we'll look at how we pay for things because there's many ways we can pay for things now. We'll move on then to the importance of saving and how important saving is for life. Then, I'll talk to my alter-ego Daniel, and we'll have a discussion about money before finishing off with a final task where we're hopefully going to be creating a money box. I'd like you to imagine that there's no money in the world and that I'm the owner of a clothes shop. You have seen a fabulous top that you'd like to buy. It's your favourite colour and style, and you would look great wearing it. How would you go about acquiring this top? Remember, there's no money. Okay. Okay. So, some of you said you can ask me for it but, I own a shop and I need to support my family so, that's not really going to work. I suppose you could take it when I'm not looking but that'd be wrong and you could get arrested. We don't want to do that. Some of you have said, and I've really liked the idea that we can potentially trade for what you've got. Maybe you could offer me something. And that's a great idea. So, let's say that you work as a florist. You work at a flower shop and you offer me some flowers in return for my top, but, I don't really want any flowers. I prefer to get some meat for my dinner today. So, you go to the butcher and you say to the butcher, "I'd like some meat and I'll offer you these flowers," but, I'm afraid the butcher doesn't want flowers. He needs some cream for his hands. So you go to the pharmacy and, can you see where this is going? Before the invention of money, people with different specialisms, or job roles would trade goods with each other so that they're able to get everything they needed because they might not have the skills or the abilities to personally make everything that they needed. And that sounds like a pretty cool way of doing things. And we still have trading present in today's society, but money makes the purchase of goods much easier. And just as importantly, it gives everything a value. A house for example, is more expensive than a pair of trainers and we know that because of the value of the house and the value of the trainers. On the next slide, we'll look at a mathematical problem, which explains the use of money. Onto the mathematical equation, I would like you all to imagine that we're all chicken farmers, we can breed chickens but, in an ideal world we'd like a cow for milk. The problem is that the cow farmer only wants to trade for sheep, he don't want our chickens and the sheep farmer only want ducks. But the duck farmer wants some chickens so we can trade them for ducks. And then we can trade the ducks for the sheep. And then the sheet we get we can trade for the cow. So, let's go through this information on the slide together. As ducks are more difficult to breed, the duck farmer wants two of our chickens for one of the ducks that he provides, is a ratio of two to one, two chickens for each duck. Once we get the duck, the sheep farmer will trade five of our ducks for one sheep, a ratio of five to one. And then finally when we get the sheep, the cow farmer will trade with us, but he wants three sheep for every one of his cows. So, forget all the hassle that you'd have to go through making all those trades. Let's look at the question. How many chickens will we need to breed in total to be able to purchase a cow? Pause the video and work out that problem and once you've got an answer, move on to the next slide and we'll look at what the answer is. So, how did you do with the task? Okay and what was your answer? What was your answer? Very good, well done. So, the trick to this was to work backwards, ultimately to get the cow we needed three sheep. So, because we needed five ducks for a sheep, we can work out how many ducks we needed by multiplying the three sheep by five. And that would tell us how many ducks we needed. We needed 15 ducks to get the three sheep. Now, to get the ducks in the first place, we had a ratio of two chickens to one. So if we multiply the 15 ducks by two, that would tell us how many chickens we needed. We needed a grand total of 30 chickens to be able to trade up for the cow that we needed. But, how could we make this simpler using money? Well, if we said that the cost of the chickens was one pounds, then that would mean a duck would cost how much? Yeah. The duck would cost two pounds. Now, if you needed five ducks to get a sheep, how much would the sheep cost? I agree, 10 pounds. And finally, if we knew that a sheep was 10 pounds, we needed three sheets to buy a cow. What price could we put on a cow? 30 pounds. Brilliant. So, now in theory, if I sold 30 chickens, I could use that money to pay the cow farmer 30 pounds for his cow. And that's much easier than having to do all the trades. Firstly, I don't need to multiply all the trades across numerous people. Well, mainly because everything's got a value because things have got a value. The cow, 30 pounds, the sheep is 10 pounds. The duck is two pounds. It makes things much easier to buy. And that's one of the real benefits of the existence of money. It gives things a value. Money has developed so much since it was first invented, but it's developed even more rapidly over the past 20 years. There's now so many ways to pay for items. Before you go on to the next slide, can you list five other ways other than the physical money that you can pay for items? Pause the video. See if you can note down five ways before you go onto the next slide. How many did you manage to name? Great work. So most of you could name at least five other ways of paying for things. On my slide, I've listed some of the most popular ways of paying for items. First, we got bank cards. Now with the debit cards the money comes straight out of your bank account. If they're credit cards then you put it onto a bill and you pay it off later on. Next, there's a check, now that's a little bit outdated now, but still used for gifts and things like that through the post and moving onto gift cards. Sometimes you might have had gift cards for your birthday. Maybe you had them for Christmas, or maybe just a friend decided to treat you one day and gave you a gift card. So, gift cards you can spend on stores but it's still like money, isn't? We can pay for things over the internet. For example, like PayPal. And nowadays we do lots of money transfers via a phone or telephone banking. Then we can pay for things by what we call direct debit. So mom or dad or parent or guardian or carer might have bills that they want to pay each month, such as the gas and electricity, and that will come out via something called the direct debit. We can even use our thumbprint via our phones to pay for things nowadays. I'm sure he might have even found some more ways of paying things that I didn't. Nice job. So, regardless of how we pay, the majority of times we're still using money. Pounds in our case in Britain. Which come out of our bank account or onto a credit card bill which you pay later. In the next few slides we'll consider why it's really important to save money. Saving money is really important in life so that we can consider the importance of saving on the next slide we're going to play a saving game. So get your note pad ready and your pencil and ready to play. Here's the game we're going to play. Firstly, you're going to receive 10 pounds each round, and there's 10 rounds in total. Each round you can choose to spend the money that you've got, or you can choose to save it. That's down to you. But, if you go to less than zero in the bank, i.e going to negative numbers then you've gone bust and you got to start the game again. In order to win, it's about trying to get the most number of items so try and buy as many items as you possibly can. And the items that you can buy are stationery set, which is five pounds, a calculator for 10 pounds, an arts and crafts set for 25 pounds, a designer t-shirt for 40 pounds, a computer game for 50 pounds or a reconditioned mobile phone for 70 pounds. But, you can only buy one of each item. So you can't buy 10 calculators or three stationery sets. You can only buy one of each item. Before you have each turn, you've got to roll the dice. So I've got my dice here and I'm going to roll it. And I got a two. Now, if you look at the rules in relation to the dice, if I get a one, I collect an extra bonus, 10 pounds. I didn't roll one, if roll two, three, four, or five there's no change. So I don't lose any money, but I don't gain either. If I was to roll a six, then I get an unexpected bill and I've got to pay 10 pounds. So 10 pound comes out my account. So those are the rules. To start the game, write down one to 10 on your page and make a note each round as to how much you've got in the bank and which items you bought. If you don't have a dice, don't worry about it. You can write the numbers one to six on a piece of paper, into a little ball and then select one at random. Just don't make that number one twice as big as all the others, no cheating. You can play the game as many times as you want. See how many items you can buy in 10 rounds. Once you've played the game, move on to the next slide and we'll see how Daniel does 'cause he's going to have a game too. How did you do with the game? How many things did you manage to buy and more importantly, were there any strategies that you used to ensure that you could buy more items or that you didn't have money left at the end of the game that you couldn't spend or that you didn't go into negative numbers? Daniel played the game too. Let's look at how he got up. How did you do in the game?

I did okay I think, I managed to get the computer game and the designer t-shirt and the stationery set.

That's pretty good going. Did you get that in your very first game?

Yes. I mean, no. The first time round, I went bust. In the first round I about a calculator for 10 pounds. And then the second round I rolled a one and I went to negative 10 pounds.

Right. So what did that teach you then?

That I shouldn't spend everything I have. And actually I used that knowledge in the second game. I didn't buy the t-shirt when I had 40 pounds. I bought it when I had 50 pounds. So I knew it wouldn't go bust and I did this with all the items.

That is a great strategy. You can actually guarantee not going bust that way. Did you learn any other strategies?

Yeah, I did. I saved up for the first five or six rounds to see how I was doing and then I made a decision as to what expensive items I was going to buy. I went for the computer game because I thought that if I got the mobile phone I wouldn't be able to buy any of the other things. I didn't have enough money really. When my dice rolls and I didn't have enough of luck.

All right. So you had to make choices as to what you could afford even when you were saving up.

Yeah. I couldn't afford everything unless I roll the one every single time. If any of you guys at home say that you bought all the items, then I don't believe you.

Why do you think I made you lose 10 pounds if you roll the six?

That's pretty obvious. It's 'cause you're a mean teacher. No, I suppose that you got me thinking about the fact that in life you can't spend everything you've got because if something unexpected happens, you won't be able to sort it out and pay for it.

Good thinking. And how did you feel when you managed to save up for the computer game?

Yeah, it was great. I had my eye on that right at the very start. Saving money was the real key.

Well, I think you've done a great job. Let's move on to our final task. Today we're going to make a money box so that you can save all the money that you have. Did you have some of the same problems that Daniel did? Did you solve them the same way? Or did you use different strategies? Interesting. So, to our final task today. We're going to make a simple money box made out of cardboard. So make sure you've got all your equipment ready. As we mentioned at the start, the things that you're going to need are some cardboard, a ruler, a pencil, a pair of scissors, and either some glue or some sellotape, whatever you've got in the house. If you'd like to design it, you might also want to get some colouring pencils or some felt tips, but that's down to you. Let's how we're going to make it. To make your money box, you've got a number of options. If you want to do it the really easy way, and that's absolutely fine. You could just find a Plain's box, like this one I've got. Have an adult help me to place a slit into the top and then design it and there's your money box. If you've got a box like this lying around the house and you found to do it the easy way, that's great. Alternatively, you can use the 2D net like the ones on the slide to create your 3D shape. Which is going to be a cube. This is Daniel's that he created. He used net to be able to complete his money box. If you use sellotape to stick each edge together, then you're probably best using the net that's on the left. If you want to use glue, then use the net that's on the right. You'd be able to stick the flaps together for each side. Now I used glue to make Daniel's with him. So, let's get to it. Let's see how he did it. Here's a step by step guide as to how Daniel and I made his money box. The first thing that Daniel did is he raided the cupboard for some cardboard. He used the cereal box but, you can use whatever you've got in the house. Next, he did draw the net onto the cardboard, using a pencil. He made sure that all of his sides were equal because it was a cube. His was six centimetres. And he also drew the flaps on just like in the net, because we were using glue. Once you've done this, it was time to cut it out. Now, please make sure that you're extremely careful with the scissors. Please ask an adult to help you out or to supervise you for this part. I helped Daniel. In step four, you can see that we completely cut out the net and it was time to design it. Daniel designed his money box with a picture of a piggy bank, a money tree and some pictures of money too. Next thing we have to do was to glue the flaps down on each side to make the box. And that's what we did. With regards to the lid, you can either leave it so that you can keep on taking the lid off and on, or if you want, you can stick it down and then you won't be tempted to spend the money that you put in it. That's what we did. Finally, ask an adult to cut a hole into the top of your money box so that you can pour any money that you've got into it. And there you have it, just like Daniel's, a simple money box. Remember, if you walk after the pennies, the pounds will walk after themselves. It doesn't matter whether you put one pence, 10 pence or a pound at a time. It's about saving some money and treating yourself when it's full or saving it for that unexpected thing that you've got to pay for. I hope you really enjoy creating your money box and I'd love to see lots of photographs of the ones that you created.

Exit Quiz: Money, money, money

Completed: Money, money, money

This lesson will consider why we have money… what’s the point of it? We will also look at why saving is important and different ways of paying for things.

RHE (PSHE)

Money, money, money

Introductory Quiz

Video

Final Quiz

Lesson Complete