• Credit is necessary for large items such as houses or cars (why?)
• It is good for the economy, as it encourages buying, therefore increasing employment
• Buyer avoids having to carry large amounts of money
Saving
Savings means putting a certain amount of money aside each week or month. If you want to buy a computer or go on holiday, put aside a little from your budget each week until you have enough to pay for it with cash.
Savings Advantages
• Money is generally safe and secure • Savings earn interest • It avoids impulse buying and overspending • Good example for children • Cash buyers pay less
Where can you save? • Bank • Building society • Credit union • Post office
To choose the best option, consider the: • Interest rate • Ease of withdrawal • Safety • Extras, such as free banking
Discovery
Learning It is never too early to start saving, so investigate a suitable saving scheme for a teenager and feed your choice back to the class.
Disadvantages
• You have to wait until you have enough money
Disadvantages
• High interest makes items more expensive
• There is a danger of having too many credit repayments, leading to debt
• It encourages impulse buying and overspending
• Goods can be repossessed if repayments are not made
