d1 1t 2-when-might-i-need-to-borrow-money-presentation-borrowing-money-v5
TRANSCRIPT
When might I need to borrow money?
Presentation: Borrowing money
My Money Management
Buying furniture
Buying a car
Why might you need to borrow money in the
future?
My Money Management
Once you turn 18 there are a number of options
available to you for borrowing money
My Money Management
Bank loanHire Purchase agreementCredit CardOverdraftFinance company
Bank of Mum and
Dad
But remember there are risks associated with borrowing money, so you need to be well-informed before you
sign any contract!
My Money Management
Beth needed to purchase a car to get to work.She weighed up a number of different options which all had their advantages and disadvantages.
Two key factors she needed to understand to inform her decision were the APR and the loan period.
What do ‘APR’ and ‘loan period’ mean?
Raising Money This is Harjinder, he started a band with three friends a few months ago. They have a few songs ready and they now want to record a demo.
They will need to hire a studio with a recording engineer for a day. That will cost them £500. They have managed to club together £80.
How will they raise the rest of the money?
How long will it take them if they save money earned from their Saturday jobs?
If they decide to borrow the money, how long will it take them to pay it back?
My Money Management
Consider the costs involved in setting up a home recording studio
My Money Management
Cost planner
Computer
Software
Midi keyboard
Any other predicted costs
Total borrowing required
Research potential loan options
My Money Management
Loan details APR Loan period Monthly repayment
Total cost of loan
Option 1
Option 2
Option 3
Option 4
My Money Management
Planned borrowing can be an option towards achieving certain goals at different stages in life
Which loan period would best suit my
circumstances?
What is the APR?
What are the risks or consequences if I miss a repayment?
Can I afford the monthly repayments?