Consumer Stuff for kids (PDF, 6.2 MB) - Consumer Affairs Victoria

Ask students:
“What is the diagram showing us?”
Look at the arrow going from the “saver” to the bank.
"What do we call money that the consumer puts in the bank?" Answers might include deposits,
investments, savings, income or salaries.
"Why would a consumer put their money in a bank?" Answers might include security or so consumers
aren’t tempted to spend it all at once.
"In return what does the bank give to consumers who put their money in their bank?" Probe for “Interest”.
Interest on savings is illustrated in the arrow returning to the saver with a dollar sign.
In their workbooks students define Interest:
The bank allows consumers to store money with them. In return consumers will earn extra money from
the bank for doing this called Interest. This is another way people can earn money.
Look at the borrower consumer.
Ask students:
"If a consumer wants to buy something like a car or a house and they don’t have all the money to buy it,
the bank will lend them money. What do we call this type of service where consumers can use the bank’s
money to buy now and pay back later?" Answers might include borrowing or loans
"Banks are happy to lend consumers money. But what changes to the amount of money when
consumers begin to pay back the bank?" Possible answers may be “the bank charges interest”, the
amount you have to pay back increases.
This is represented by the additional dollar sign on the arrow going from the borrower to the bank.
In their workbooks students can define this Interest as:
There is another type of Interest. When consumers borrow money from banks, the bank charges
the consumer an extra fee for using their money. So the amount the consumer pays back actually
increases. This extra amount is also called interest.
Task - Which Interest is Which?
Distribute the Which Interest Is Which? activity sheet. Students design a way to communicate the difference between:
• interest from savings and,
interest from borrowings.
•
The students’ communication tool could be a cartoon, role-play, poster or computer animation.
Based on the Which Interest is Which? activity sheet, students:
share with the class their “Interest” communication tool. Students identify which
tools communicate the different meanings of Interest most effectively and then assess
their peers.
categorise banking advertisements into two types of interest.
Early Finisher/Extension Tasks for the Money, Money, Money Unit
The ARTS
Find advertisements in newspapers and magazines which list the price of an item.
The advertisements are re-created with a barter price.
For example: Frozen chickens on special for only 6 large potatoes and a small fish.
CONSUMER AFFAIRS VICTORIA NEED CONSUMER HELP? 1300 55 81 81 www.consumer.vic.gov.au
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