Personal Finance – Unit 302

Learning Objectives

By the end of the session you will:

1. Understand the advantages and disadvantages of borrowing money.

2. Understand the advantages of saving money.

3. Understand why it is important to keep personal financial information secure.

4. Have an overview of Universal Credit and how it will affect you.

Methods of Borrowing

Group 1

Family and friends

Bank loan

Overdraft

Credit card

Group 2

Building society

Payday lender

Pawnbroker

Universal Credit• A major change to the existing benefits system.

• Designed to help people on a low income or out of work.

• Consists of a single monthly payment which is transferred directly to a bank account.

• Currently being rolled out across the UK in phases.

Source: UK Government website

Universal Credit

What benefits will Universal Credit replace?

• Income-based Jobseeker’s Allowance• Income-related Employment and Support Allowance• Income Support• Child Tax Credit• Working Tax Credit• Housing Benefit

Source: UK Government website

Managing your Own Finance

Why is it important to manage your own finance?

• Housing benefit will be paid directly to you• Payments will increase or reduce depending on

whether you are working and the hours in work• Payments can be claimed singly or as a joint claim

where you would get 1 monthly payment• All previous credits will be replaced by Universal

Credit paid directly to you

Personal Finance – Unit 302