Values, Money and Me helps you explore the world of money, and the choices we all have to make to look after the money we have.
Listen to the story below, then try each Consequence Challenge to see how your choices work out.
In this episode the telly’s broken and Dad says they can’t afford a new one.
Dale and Kyle are wondering if a loan might be the answer.
What is a loan?
A Someone with no friends
B Money that someone borrows and has to pay back
C An African animal
It’s B. If you take out a loan that means you are borrowing money which must be paid back. There’s usually an extra amount to pay too, called the “interest”
What is a loan shark?
A A sea creature
B A type of car
C Someone who it is very unsafe to borrow from
C is the correct answer. A loan shark does not live in the sea. Loan sharks lend money but demand much more money back, and can be threatening to the borrower. They are not safe people to borrow money from.
What does APR stand for?
A Annual Percentage Rate
B A Personal Record
C A Pink Rabbit
Did you choose A? Well done! The APR is the yearly interest rate on the loan. The higher the percentage rate – (the larger the number), the more you will have to pay back for your loan.
What type of loan is the safest?
A Bank loan
B Loan shark
C Lone wolf
A again! It’s safest to borrow money from a bank because the bank has to obey the lending laws. Loan sharks are people who can be dangerous to borrow from, and lone wolves don’t have any money to lend in the first place!
What is a debt?
A The deep end of a swimming pool
B Spending a long time on a computer
C Money that someone owes
It’s C. Debt is the amount of money a person owes to someone else.
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