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Basic banking Guidance for conversation on banking services

Trainers Notes for basic banking with clients

2 ©2015 Citizens Advice Basic banking trainer notes/Sep16/v2

Citizens Advice financial capability

This session pack has been produced as part of Citizens Advice Financial Skills for Life.

Copyright © 2015 Citizens Advice All rights reserved. Any reproduction of part or all of the contents in any form is prohibited except with the express written permission of Citizens Advice. Citizens Advice is an operating name of the National Association of Citizens Advice Bureaux, Charity registration number 279057, VAT number 726020276, Company Limited by Guarantee, Registered number 1436945 England. Registered office: Citizens Advice, 3rd Floor North, 200 Aldersgate Street, London, EC1A 4HD

Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, Citizens Advice assumes no responsibility. The user of the information agrees that the information is subject to change without notice. To the extent permitted by law, Citizens Advice excludes all liability for any claim, loss, demands or damages of any kind whatsoever (whether such claims, loss, demands or damages were foreseeable, known or otherwise) arising out of or in connection with the drafting, accuracy and/or its interpretation, including without limitation, indirect or consequential loss or damage and whether arising in tort (including negligence), contract or otherwise.



Basic banking The aim of this session is to help advisers to provide a session to clients that introduces basic concepts about bank accounts and associated products. This session is specifically aimed at those clients who may have bank accounts, but would benefit from learning much more about their various features and products. Objectives are that by the end of this session clients will be able to:

• Understand why a bank account is useful.

• Types of bank card that are available.

• Appreciate the importance of a good PIN.

• Read a basic bank statement.

General Guidance Notes on delivering a group financial capability session are available elsewhere on the Citizens Advice website. These notes are for the trainers use only. A separate handout pack should be used with every client in the group, which will include signposts for further information and guidance.

Trainers are encouraged to feedback to the Financial Skills for Life team with any feedback about training materials or resources. If you have any comments, please contact: [email protected]

mailto:[email protected]



Contents

Session Specific Guidance 5

Lesson Plan 7

1. Basic Quiz 8

2. What can a bank account do for me 9

3. Types of bank card 10

4. Remembering PINs 12

5. Reading a basic bank statement 13

6. Credit Unions factsheet 14

7. What else will help 15

Evaluation Guidance 16

Trainers notes 18



Session specific guidance Subject information Trainers do not need to have specialist money advice knowledge or experience but must have a basic understanding of the different types of bank accounts, basic bank account features and be able to signpost learners to sources of further advice and information. The pack contains all the key information for the topics covered. Any additional information that is given should be taken from an up to date and accurate source such as:

• the money management section of www.adviceguide.org.uk

• the Money Advice Service free leaflets at www.moneyadviceservice.org.uk including ‘borrowing money’, ‘credit cards’ and ‘credit unions’.

This session aims to help learners understand the basic financial products available to them. For this learners should be referred to their local Citizens Advice or other advice agency. Materials

• Blank flip chart paper • Marker pens • Note paper and pens for learners • Blu-tack • Calculators • Prepared cut-outs for word-matching activity

Manage expectations – Make it clear to clients that the session is a brief overview of banking products and the most essential elements of financial capability that relate to it. As a one-off session, there will not be the time to explore any single element in any great detail. Signpost and empower – Ensure that clients are aware that after the session they will have a clear idea where to go to answer outstanding queries and to get further assistance. Pacing – Due to the length of the session, it is recommended to allow at least one break for the clients. Be aware of this when planning total timings for sessions.

http://www.adviceguide.org.uk/

http://www.moneyadviceservice.org.uk/



Top tips



Lesson plan Red activities – Are essential to any session on this topic Amber activities – Are highly recommended but not essential Green activities – Are optional activities, if time allows The size of the bubble indicates roughly how much time, relative to the session, to spend on an activity.

This session is intended to take about 60 minutes to deliver. Activity One should be used to gauge the clients level, if it becomes clear that this session is too basic for them, the adviser should take this opportunity to find more suitable resources rather than continuing.

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Activity: Very basic banking quiz This exercise, using handout B1, is an extremely simple quiz that should allow advisers to gauge what areas of strength and weakness their client has with basic banking knowledge. Answers 1. You have to put the date on a cheque – True. 2. Your date of birth is a safe number to use as a PIN. – False.

3. A cash card is the same as a debit card. False. A debit card can be used in

shops and to buy things online or over the phone. A cash card is just to take money out of a cash machine. However, your card may act as both a cash and debit card – check with your bank.

4. Which of the following card payment types is the nearest equivalent to

paying by cash – Debit card. It takes money straight out of your account, whereas the others lend you money.

5. When a cheque is paid in to an account, you can take the money out

straight away – False. Cheques take time to clear. 6. A bank statement always gives you the right picture of your bank account

– False. There may be transactions after the statement date which are not shown (such as cheques which have not cleared).

7. On a bank statement ‘ATM’ means you have taken cash out from a cash

machine – True. ATM stands for automated teller machine, often called a “hole in the wall”.

8. Banks are allowed to charge for their services – True. However you

shouldn’t have to pay charges due to mistakes and charges should not be unreasonably high.

AIC 20 - A



Activity: What can a bank account do for me? Using handout B2 as a platform to launch discussion with the clients, discuss the following: Overdraft – The bank lets you spend more money than you have in your account, up to a fixed limit. Instant Access – The ability to access your money straightaway. Online Banking – Being able to access your account over the internet. Standing Order – Ordering your bank to make a regular payment from your account. Direct Debit – Allowing a company to collect payments from your account. Debit Card – A plastic card that allows you to spend money in your account (or overdraft). Credit Card – A plastic card that lets you spend money that the bank will loan you, but you have to make regular payments. Chequebook – A written instruction from you to your bank to pay out a single sum of money. Late Payment Fees – Charges the bank adds to your account if you do not make your repayments on time. Provide the second handout as an answer sheet for clients that they can take away.

AIC 20 - A



Activity: Types of bank card Advisers should introduce the activity as a quick way to learn about types of cards and also about identifying which of them come with bank accounts. Provide a copy of handout B3. Ask the client to read through the list of cards and their descriptions, then draw lines matching up the name of a card to its description. Ask them to also, as a final step, tick the cards that come with bank accounts.

Hand out the answer sheet after any discussion, for the clients reference. Advisers should remember that this activity is just to see how much the learners already know about ‘plastic cards’. Don’t get bogged down in detailed discussions about the various types of cards at this stage.

If this was useful, why not try…

Banking – What is a debit card? Credit – Store cards factsheet

AIC 20 - A



Which is which? – Answers

Takes money straight out of your account when you use it to pay.

Use to buy goods on credit. Can only use in particular shops.

Use to buy goods on credit. Get a monthly bill.

Use to take money out from cash machines.

‘Loaded’ with money to spend.

Debit Card

Store card

Credit card

Cash card

Pre-payment card



Activity: Remembering and using PINs Advisers should introduce this activity, using handout B4, as being about using PINs. Advisers should explain what the letters stand for, Personal Identification Number, and that it is needed to take money out at cash machines and often to use a debit or credit card. If learners already use PINs, they should not give details of the actual numbers in this session. Ask the client (or groups of clients) to come up with at least two ideas around remembering PINs. Reiterate that different ways will suit different people. The aim is to share tips and then for individuals to decide what helps them. If prompts are needed, suggest:

• Try making up a pattern on the keypad e.g.1397 • What about significant dates? • Is there another number you already remember?

Other tips could include:

• Use a day and a month e.g. 25th Dec = 2512 • Think of four words with up to nine letters and make up a sentence

e.g. the bank is closed = 3426 Ideas for keeping your PIN safe could include:

• Don’t write it down • Don’t tell anyone else the number • Don’t use a number that can easily be guessed like your date of birth • Try to make sure no-one can see it – use your hand as a shield

The attached handout is a representation of a standard keypad – clients can use this to try different techniques such as remembering a pattern of buttons rather than the numbers.


Banking – Financial Acronyms Banking – Ways to pay

AIC 20 - A



Activity: Reading a basic bank statement Give out the basic bank statement, handout B5, before giving clients a minute or two to look at it. Then ask them to do some detective work about the account holder.

1. How does she pay for her fuel? 2. Does she use the same supplier for gas and electricity? 3. When was her benefit paid in? 4. Where did she take cash out on 12 June? 5. How did she pay for her shopping at the Co-op? 6. Does she always use the same cash machine? 7. What would have happened if she had taken out an extra £20 on 26

June? As a secondary activity, go through the abbreviations on the statement, discussing what each one means.

DD Direct Debit CR Credit (money put in) ATM Cash machine (Automated Teller Machine) SWT Switch card (debit card)

Prompts for reasons to check a statement might include:

• Do banks or companies taking direct debits, ever make mistakes? • Might someone forget what direct debits they have? What day they go

out? How much they are? • Could a bank statement give a picture of your overall spending – what

on and when?

Prompts for the drawbacks or limitations of statements might include: • Would a statement give an up to date picture of your bank account? • What about the time from posting it to you receiving it? • What about any cheques that can take a few days to come out or go

in to your account?

AIC 20 – A B D



Activity: Facts about credit unions Using handout B6, ask the client to highlight the three most useful points about credit unions. This can then be opened up into a discussion where the various features can be discussed, and knowledge of credit union services consolidated.


Banking – Overdrafts factsheet Banking – Travelling abroad factsheet

AIC 20 – A C



Activity: What else will help? Using handout B7 ask the client to pick which topics they think will help them improve their budgeting skills. Reassure the clients that all these topics are options that they can cover with their local Citizens Advice if they want to. Make sure you take the sheets in from the clients; these can then be kept on their records. They also provide valuable feedback for the Financial Skills for Life team and copies should be returned with the session’s feedback forms.

If the client finds the following interest, why not try… Having cheaper bills Budgeting – Maximise income reduce outgoings Energy and Water – Saving energy in the home Understanding how to budget Budgeting – Budget building guide Knowing where to get the cheapest gas and electricity Energy and Water – How to switch energy companies Understanding payslips and job-related paperwork Jobs and Employment – Payslips Knowing the best ways to save and to borrow Credit – Ten credit tips factsheet Tips to make more money from everyday things

Try the Consumer Education pages on the Citizens Advice website

Evaluation Guidance Areas that underpin client financial capability These are the Citizens Advice Financial Capability Areas that were carefully researched and developed by The Impact Team at Citizens Advice to help local offices measure client financial capability robustly and consistently across services. They were developed in line with the MAS UK Financial Capability Strategy Adult Outcomes Framework. Sample questions and scales can be found overleaf. An Impact Tool is available in Petra for recording responses and progress.

Keeping track of money Controlled spending

◉ Keep track of money going out, money coming in and calculate what's left over. ◉ Check my current balance and keep my papers in order.

◉ Spend or save only what I can afford after covering the basics I need to live, like food, housing and electricity.

Having enough money to live Planning ahead with money

◉ Have enough money to cover the basics I need to live like food, housing and electricity.

◉ Know when my bills and payments are due and keep on top of priority bills, like for electricity, loans and council tax. ◉ Put some money aside for big or unexpected costs.

Looking for the best deals Staying informed about money services

◉ Look at different options and buying the best deal for things like food, clothes, large items or services like phone, electricity or insurance. ◉ Get different opinions on what I am buying, like from reviews and comparison websites.

◉ Read the main information about money services I get like banking, benefits and loans. ◉ Stay on top of changes to these or get help when I don’t understand.

Mindset

◉ Confidence about taking action on my money matters.

Copyright © 2015 Citizens Advice All rights reserved. Any reproduction of part or all of the contents in any form is prohibited except with the express written permission of Citizens Advice. Please note these areas, questions and scales are owned by Citizens Advice and subject to copyright restrictions so reproduction must include the relevant copyright statement above and no changes to its wording, response categories or layout must be made. For further information please contact Satdeep Grewal on [email protected] or 03000 231 608.


Sample questions and scales for measuring client financial capability These questions can be used to ascertain how good someone’s financial capability is and so, what their level of need is. They also allow you to track progress by being used to follow-up with how someone is getting on after you have helped them.

Score 1 to 3 Score 4 Score 5 to 7

Low financial capability Average financial capability Advanced financial capability

High need Medium need Low need

Keeping track of money ◉ Calculate money going out, money coming in and what's left over. ◉ Check my current balance and keep my papers in order. Rate your knowledge about the above

No knowledge

No to some knowledge

Some knowledge

Some to good

knowledge

Good knowledge

Good to excellent knowledge

Excellent knowledge

Don’t know

1 2 3 4 5 6 7 ▢

How often do you do the above?

Never Never to sometimes

Sometimes

Sometimes to often

Often

Often to very often

Very often

Don’t know

1 2 3 4 5 6 7 ▢

Staying informed about money services ◉ Read the main information about money services I get like banking, benefits and loans. ◉ Stay on top of changes to these or get help when I don’t understand. Rate your knowledge about the above:

No knowledge

No to some knowledge

Some knowledge

Some to good

knowledge

Good knowledge

Good to excellent knowledge

Excellent knowledge

Don’t know

1 2 3 4 5 6 7 ▢

How often do you do the above?

Never Never to sometimes

Sometimes

Sometimes to often

Often

Often to very often

Very often

Don’t know

1 2 3 4 5 6 7 ▢

Mindset How much confidence do you have about taking action on your money matters?

No confidence

No to some confidence

Some confidence

Some to good confidence

Good confidence

Good to high confidence

High confidence

Don’t know

1 2 3 4 5 6 7 ▢

Copyright © 2015 Citizens Advice All rights reserved. Any reproduction of part or all of the contents in any form is prohibited except with the express written permission of Citizens Advice. Please note these areas, questions and scales are owned by Citizens Advice and subject to copyright restrictions so reproduction must include the relevant copyright statement above and no changes to its wording, response categories or layout must be made. For further information please contact Satdeep Grewal on [email protected] or 03000 231 608.




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