Module 4: Managing Debt and Saving

Instructor Notes

Section 1: Warm-Up – "Debt or Save?" Quiz
Show a list of money situations and ask learners to vote or move around the room:
Example: “Need to buy new work boots – borrow or save?”
Use as a fun way to introduce the topic and spark debate.

Section 2: What Is Debt?
Define debt as money you owe.
Explain good debt (planned, affordable, long-term benefit like student loans) vs. bad debt (high interest, short-term panic).
Ask: “Have you or someone you know ever been stuck with a difficult repayment?”

Section 3: Group Discussion – Borrowing Traps
Highlight common high-risk borrowing:

• Payday loans
• Rent-to-own shops
• Overdrafts
• Store credit cards
  Encourage discussion on hidden costs and real-life experiences. Use a supportive tone—no shame.

Section 4: What Is Saving? Why It Matters
Define saving as setting aside money for future needs.
Stress that any amount counts.
Saving builds resilience, reduces stress, and supports independence.
Ask: “What helps or stops people from saving?”

Section 5: Activity – Saving Scenarios
Hand out a short list of mini case studies.
Examples:

• “Emma earns £100 a week and wants to save for a phone.”
• “Sam gets paid monthly but keeps running out of money by week three.”
  Learners discuss: What could they do? Is saving realistic?

Section 6: Credit Cards & Credit Scores
Explain how credit cards work: useful for payments only if paid off in full.
Highlight the risks of running up debt.
Briefly define a credit score and why it matters for future borrowing.

Section 7: Standing Orders, Direct Debits, Online Banking & Overdrafts
Explain:

• Standing Orders – regular fixed payments (e.g., rent)
• Direct Debits – variable payments to companies (e.g., phone bill)
• Online Banking – managing your money digitally
  Discuss when and why these tools are helpful.

Section 8: Debt and Work Stress
Ask: “How could debt or lack of savings affect your job?”
Discuss issues like:

• Missed shifts due to no travel money
• Stress affecting concentration
• Turning to payday loans
  Reinforce: Financial confidence supports employability.

Section 9: Summary & Reflection
Prompt: “What’s one idea about debt or saving that stood out to you today?”
Reinforce the message: small, steady steps make a difference.
Offer practical suggestions (e.g., auto-saving, using cash envelopes).

Section 10: Careers Link

Iggy is a Team Leader at Thames Water. Iggy discusses what he does in his role. What job within the water industry might you be interested in exploring?