Why does money matter?
We use money to pay for things we need such as The services that people pay for monthly e.g. electric and gas. and food.
We also use it to pay for the things that we want, but don't necessarily need.
Watch - Explore why people need money
Learn more about how people earn money and explore budgeting and saving.
VOICEOVER: Money, money, money! People need it to pay for things like our homes, bills, food or travel. What are some of the different ways people can get money?
CHILD 1: There are lots of different ways people can get money like getting a job and also selling things that you don’t want or need anymore.
CHILD 2: By doing some chores around your house.
VOICEOVER: When you’re older, earning an income by working helps you to have money.
Some people don’t earn as much money as others, so it can be harder for them to be able to pay for things. Our government can help people in this situation by supporting them with money in the form of 'benefits'.If we have money left over from what we earn, it can be saved. Not everyone can save money as it’s a privilege, but if you are able to, you can save to buy things that you want rather than what you need.
Can you think of something that you have saved for? How did you save up the money to buy it?
CHILD 1: At Christmas I did chores around the house and also went carol singing around my neighbourhood. I saved up the money for Christmas presents for my family and friends.
CHILD 3: I saved up for a gaming console and it took me 5 months and I saved up for it by doing chores around the house.
CHILD 2: I have saved up to buy a gift for my best friend and I felt happy and I also felt that I’ve achieved something.
VOICEOVER:We can afford to spend money on different things more easily by ‘budgeting’, which means making sure the money coming in can be divided up to pay for each of the expenses going out. We then make sure we don’t spend more money than we have, while saving any leftover if we’re able to.
Learning to budget is part of what we call being ‘financially responsible’ so that we don't waste money.
How do you think you’ll need to be ‘financially responsible’ in the future? What would you like to spend money on?
CHILD 2: If I just spend the money on clothes, or like, other things that I don’t need I won’t have any other money to pay for my taxes or for food.
CHILD 4: I’d like to budget up for a house.
CHILD 5: My bills.
CHILD 4: An electric scooter.
CHILD 5: Some cars.
VOICEOVER: Budgeting our money is a good skill to learn. We regularly need to pay for different things, and might even need money in an emergency for something unexpected. Saving money can be very helpful, if we’re able to.
Is there something that you would really like to buy?
Having money helps us to live comfortably and can give us freedom to decide how we want to live.
Sometimes people may be able to save some of the money they earn. This is usually in a bank account.
However, this is not always possible.
How do we get money?
To buy the things we want, we need to earn money. People can earn money in various ways.
Image caption, Having a job
Having a job is how lots of people earn money. Every job can pay differently and some people may earn more than others, but it is a good way to have a regular income.
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Why do people save and budget money?
Having The money that has been collected over a period of time. can be very helpful but it is not always possible as people need to spend their money on all the things they need.
To help, some people may choose to budget.
When someone works out how much money will be spent and earned during a certain period. is a way of planning ahead. It is a plan that balances the money people earn, with the money people have to spend.
It can be a great skill to learn as people need to pay for different things and may need to pay for something unexpected.
Did you know?
There are five values of British banknote: £5, £10, £20, £50 and £100 in Scotland and Northern Ireland.
Each has its own design.
There are over four billion Bank of England notes in use today!
What are financial responsibilities?
Financial responsibility means knowing how to spend money wisely, in order to be able to pay for different types of things.
At different stages in life, people may have more or less money which can effect how we manage the money that we have.
Over time our financial responsibilities can change.
Image caption, Children
Children may choose to spend their money on the things they 'want', such as games and toys, rather than the things they 'need'.
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Activities
Plan a party
Imagine you are planning a birthday party.
You have a budget of £25.
Click on the activity below to see a party item price list to help you get started.
Quiz
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