How to make sure that you always have enough money.

Lesson Plan

A resource for teachers and volunteers

Introduction

The aim of this workshop is to teach students that having enough money is less to do with how

much you earn and more to do with how well you manage it. In addition to the amount that you

end up earning; having enough money is affected by how you think about money and how you

treat money.

The workshop looks at managing your money in terms of being aware of where your money goes,

the importance of saving, sensible borrowing and shopping around for the best deals.

One of the most important factors for students when learning about financial education is to

understand how it relates to their current and future needs.

With this in mind, the session intends to provide students with some hints and tips that they can

start to use immediately to enhance their financial well-being.

Workshop Summary

The workshop begins with some real-life examples of millionaires that have gone ‘bust’ due to a

lack of money management and introduces students to the idea that they will already have formed

their own money attitudes and beliefs. As the average person will earn £1million within their life-

time, we ask students to start to think about how they will spend their £1million - looking at the real

costs of such items as a wedding, house, car and raising a child.

The workshop goes on to emphasise that it is never too soon to start to save and provides

examples of the amounts that can be saved by certain birthdays if you start saving £1 a day from

age 15/16. It briefly explains what is meant by compound interest (“The greatest mathematical

discovery of all time.” Albert Einstein) and how it works in your favour when saving and against

you when borrowing.

We introduce some top budgeting tips and go on to discuss how to get the best value for money -

with an introduction to some of the advertising tactics used by companies that are designed to get

you spending.

Students are left with a handout of handy money management hints and useful websites, including

information on where to seek help if they ever find themselves in financial difficulty.

Curriculum for Excellence Objectives

Skills focus: literacy, numeracy, skills for health and wellbeing, skills for enterprise and employability, thinking skills, working with others In addition this workshop aims to meet / build upon the following ‘Curriculum for Excellence’ objectives:

MNU 3-09b I can budget effectively, making use of technology and other methods, to manage

money and plan for future expenses.

MNU 4-09a I can discuss and illustrate the facts I need to consider when determining what I can

afford, in order to manage credit and debt and lead a responsible lifestyle.

Resources

For the workshop you will need

The use of a PC and screen (or interactive whiteboard).

Post-its (optional)

Students will need pen and paper

For most schools this is standard classroom equipment. The FEP office informs the school of

these requirements at the time that the workshop is confirmed and we recommend that you call the

school a few days in advance of your visit to ensure that the items will be made available.

However it is possible to run the workshop without a PC and screen and it is always a good idea to

take hard copies of everything that you need to run the session.... just in case of any problems on

the day.

The Workshop

Slide 1

How to make sure that you always have enough money.

Introduce yourself to the class. ‘Share who you are’. Spend a minute or two telling the students an

interesting fact about yourself – whether this be about your job, a hobby, or a personal experience

to do with money. Explain that you are not a teacher but are there as a volunteer.

Slide 2

• Being aware of where your money goes

• Saving a certain amount

• Borrowing wisely

• Spending wisely

Learning about financial education can result in you being up to £32,000 better off between the ages of 35-49. Scottish Government, 2008

This slide introduces the topics that you will cover in the session. It is always important that students understand how their learning relates to their current and future needs. Briefly tell

students what today’s workshop will cover using the ’ WALT & WILF’ format (which many students will be familiar with): ‘What Am I Learning Today?’ and ‘What Is the Learning For?’ ‘What Am I Learning Today?’ ‘What Am I Learning Today?’

Tell Students

Having enough money is less to do with how much you earn and more to do with how well you

manage it. In addition to the amount that you end up earning; having enough money is affected by

how you think about money and how you treat money.

This workshop looks at managing your money in terms of being aware of where your money goes,

the importance of saving, sensible borrowing and shopping around for the best deals.

‘What Is the Learning For?’

These points might sound quite obvious but every year thousands of people struggle with money

problems. This is because lots of people don’t bother to manage their money. They spend every

penny and never save; borrow and end up in debt; pay no attention to what things cost or whether

they are getting good value for money.

To give you an idea of the number of people who find themselves in financial difficulty; in 2011, the

Citizens Advice Bureau reported dealing with 8,652 debt problems every day. This is a staggering

amount. However, this finding by the Scottish Government shows just how much of a direct impact

learning to manage your money can have. We hope, by the end of this session, that you will have

a better idea of how this is possible.

Slide 3

You don’t have to be rich to always have enough money.

Just a handful of Millionaires that have gone bankrupt. Do you recognize any of the names?

Michael Jackson - Singer

Walt Disney – Founder of Disney

William Fox - Cofounder of 20th Century Fox

Oscar Wilde – Poet and author

Rembrandt - Dutch painter

Mike Tyson - Boxer

Milton Hershey - Founder of Hershey’s chocolate

Lynne Spears - Mother of Britney

John DeLorean -Car maker

Henry Ford - Automobile manufacturer

Henry John Heinz - Condiment manufacturer

George Best - Football star

Donald Trump – Businessman

Charles Goodyear - Tyre manufacturer

Chris Eubank – Boxer

Abraham Lincoln - American president

This slide is to introduce students to the idea that, although how much you go on to earn can have

a direct impact on your financial well-being, it is not the only factor.

Tell students

There are many examples of footballers, lottery winners, pop stars, actors, business people etc.

who were once very rich, but didn’t get their budgeting right and ended up with nothing.

Whatever your income, you are not going to have a limitless supply of finance. You are hindered

by the amount of money you have at your disposal.

*Embedded within the slide is a list of real-life examples including names that students might

recognize (some of whom have gone on to ‘recover’ e.g. Donald Trump). *Bring up the list by

clicking on it. When you have finished, press Escape.

Michael Jackson - Singer

Walt Disney – Founder of Disney

William Fox - Cofounder of 20th Century Fox

Oscar Wilde – Poet and author

Rembrandt - Dutch painter

Mike Tyson - Boxer

Milton Hershey - Founder of Hershey’s chocolate

Lynne Spears - Mother of Britney

John DeLorean -Car maker

Henry Ford - Automobile manufacturer

Henry John Heinz - Condiment manufacturer.

George Best - Football star

Donald Trump – Businessman

Charles Goodyear - Tyre manufacturer

Chris Eubank – Boxer

Abraham Lincoln - American president

Information from http://www.becomingbankrupt.co.uk/famous-bankrupts.html

Briefly show the next two slides (slide 4 and 5) which tell the stories of two U.K. Lottery winners

who have gone bust. You may wish to read out some of the additional details provided below:

Slide 4

Became Scotland's biggest lottery winner in 1996, now bankrupt....

Cruises, ski trips, jewellery

£4million in donations to family & charity

Over £500,000 on supercars

Biggest investment - Livingston Football Club

The former nurse has not only blown his winnings but is said to owe around £2million.

John had split up from first wife Hazel and was sleeping on an airbed at his mum's council house in Shotts, Lanarkshire, when he hit the jackpot. He was even debating whether he could afford to put petrol in his car. All that changed when Camelot handed over a cheque for £10,055,900. John began to enjoy the high life straight away. There were cruises and ski trips and he spent small fortunes on jewellery for his wife, Sandra. He handed over £4million to family members, made generous donations to charity and spent more than £500,000 on supercars. John also bought his first luxury home, offering a Lanarkshire businessman £750,000 to buy his house in Bothwell lock, stock and barrel.

There were three more house moves, first to the plush Dalziel Park development in Motherwell. Then the family moved next door to a property he eventually sold to Celtic player Stephen Pearson for £500,000. John finally settled his family at the Old School House in Larkhall, a modern conversion of a Victorian primary, with his in-laws in a granny flat at the back. But his biggest investment was in Livingston Football Club. John, who married Sandra in 2003, spent millions to guarantee the club's loans - and millions more in legal wrangles when the club went into receivership. It was a car company which made John bankrupt in 2008 over an outstanding debt for £34,760 he owed on a Porsche sports car. http://www.dailyrecord.co.uk/news/scottish-news/2008/02/11/skint-lotto-winner-john-mcguinness-

wants-council-house-86908-20315775/

Slide 5

Won £9.7 million aged 19 in 2002.

Claimed he would not be tempted into spending his money lavishly.

Weeks after winning - fined £1,320 after boarding trains without buying tickets.

Immediately bought four houses, a holiday villa in Spain, two convertible BMWs, two Mercedes-Benz cars & several quad bikes.

He spent all his money and returned to work as a binman.

Michael Carroll (born 29 March 1983), born in Norfolk is a former binman who won £9.7 million on

the National Lottery in November 2002, aged 19. His biography entitled Careful What You Wish

For was published in October 2006. He enjoyed a celebrity status in the British media as the self-

proclaimed King of Chavs, a phrase that he emblazoned on his black Mercedes van. He spent his

multi-million fortune on things such as illegal drugs and gambling over the next few years before

going back to the £42 a week in jobseeker's allowance he had been claiming before.

Soon after winning the jackpot, Carroll claimed he would not be tempted into spending his money

lavishly and only wanted to buy a 3-bedroom house near a lake, where he can go fishing. He also

claimed the many criminal offences of his past would not happen again and his anti-social

behaviour was behind him. Weeks after winning the lottery, Carroll was fined £1,320 after boarding

trains without buying tickets. As a multi-millionaire, the self-proclaimed "king of chavs," known by

the press as the "Lotto Lout", immediately bought four houses, a holiday villa in Spain, two

convertible BMWs along with two Mercedes-Benz cars and several quad bikes.

In 2006, he was the subject of the documentary Michael Carroll: King of Chavs. He has now spent

all his money and is currently working as a binman in England. (He expressed no regrets!)

Slide 6

Think yourself rich

Having enough money to do what you want in life is affected by:

How you think about money

How you treat money

How much money you are likely to end up having

Tell students

These three points all have a direct bearing on your financial well-being. They might sound

obvious, but many people end up in financial difficulty as they don’t understand their own money

beliefs. Without necessarily being aware of it, you will already have developed a number of money

attitudes.

Your own beliefs and attitudes will have been affected by:

Your own experiences to date.

Your parents / carers’ attitudes to money – whether you agree with them or not, it will affect

you.

The mystification of money – there seems to be general consensus that dealing with

finances is complicated.

Society’s attitude to money – in Britain there seems to be consensus that it’s rude to talk

about money!

Perform the following short quiz with students (embedded within the next slide) to help them

identify their own attitudes to money:

Discuss the answers. Mention the following:

Money beliefs tend to be strongly held and can be hard to break. This is why money can

frequently be the source of arguments between family, friends and especially couples. Indeed

money is cited as one of the main causes of relationship problems. One of the first reasons that

money causes problems in a relationship is because we each have different views and

perspectives on how to actually spend it.

Certain beliefs are going to make it harder for you to manage your money well.

Being aware of how you have developed your beliefs will make it much easier for you to change

them.

Slide 7

A. Ask someone to lend you the money so you can buy them now and hopefully they won't ask for the money back.

B. Ask someone to lend you the money and agree that you will pay them back a set amount each week.

C. Save up for a couple of weeks, adding to some money that you have already saved. When you have enough money you will go and buy them.

Which is most like you? Answer A, B or C

You are out shopping with one of your mates and you see an expensive pair of trainers that you really want but can't afford. Do you.....

Quiz to test students’ attitudes and beliefs about money. Allow 5-10 minutes.

The quiz is embedded within the slide. Hover the mouse over it to open it.

Give students a post-it or scrap paper, bring up each question in turn and ask pupils to record their

answer; A, B or C. A printable copy of the quiz is also provided on the CD-ROM.

At the end of the six questions, go over the answers “If you answered mostly A, B, C ...”Allow time

for a discussion at the end if the students raise any points.

N.B. Although most pupils will be happy to share their general results it may not be appropriate to

single out individuals or individual answers.

You may want to say what your answers would have been at that age or, if you have children, what

your son or daughters would have been.

Quiz

You are out shopping with one of your mates and you see an expensive pair of trainers that

you really want but can't afford. Do you.....

A. Ask your parents/carers to lend you the money so you can buy them now and hopefully they

won't ask for the money back.

B. Ask your parents/carers to lend you the money and agree that you will pay them back a set

amount each week.

C. Save up for a couple of weeks, adding to some money that you have already saved. When you

have enough money you will go and buy them.

You get £50 pounds for your birthday. Do you...

A. Hit the shops straight away and spend it.

B. Spend some of it and save some of it.

C. Save all of it by putting it into you bank account until you know what you want to spend it on.

Do you always know how much money you have, how much money you have spent and

what on?

A. No I haven't got a clue. When I get some money I tend to just spend it.

B. Yes, I've got a fair idea about what I spend my money on.

C. Yes. I’m pretty organised and keep track of my spending.

You've borrowed some money from a friend and don't think that you will be able to pay it

back by the time you said you would. Do you...

A. Hope your friend will forget about it.

B. Speak to your friend and explain the situation telling them that you will pay them back but it

might take a bit longer than you first thought, working out a new deadline.

C. Speak to your friend and explain the situation telling them that you still intend to pay them back

and suggest that you could maybe repay them in smaller installments rather than one big lump.

You have a friend who is always borrowing money off you and never paying it back. Your

friend asks to borrow £5 to go to the cinema. Do you…

A. Lend them the money. You can afford it and it doesn't matter if you get it back.

B. Lend them the money but explain it is the last time until they have paid some back.

C. Say no, they owe you too much already.

And lastly, how would you describe yourself?

C. Good with money

A. Bad with money

B. Sometimes good / sometimes bad

You answered mostly A's:

You could probably do with a bit of support to help you to manage your finances better. There is

some excellent advice on-line. This will help you to make your money go further and stop you

getting into debt.

You answered mostly B's:

You have a good understanding of managing your money but sometimes you need to be a bit

more organised. Try setting yourself a weekly or monthly budget and sticking to it. You will then

know how much money you have, and what you spend it on and how much you can save.

You answered mostly C's:

Congratulations - It sounds like you really know what you are doing when it comes down to

managing your money. You know how important it is to keep track of your spending and are

responsible with your money.

Tell students

There isn’t a right or wrong way to think about money, but certain attitudes and beliefs will make it

harder for you to manage your money well.

Slide 8

Managed properly you should be able to...

Buy a decent home (or two)

Buy several cars

Take dozens of overseas holidays

Buy lots of luxuries like nice clothes and meals out

Pay all your regular bills

Retire early

Build up some savings

Give to charity..

Tell students

If you earn a huge salary or win the lottery it will be a great help but it isn’t vital.

If you add up all of the money that you will earn throughout your life, on average it will come to £1

million before tax. £1 million is a lot of money.

(You are all aged 15/16. State retirement age is 65. You have 50 working years ahead. If we take

an average salary of £20k p.a., this is an income of £1M over your lifetime.)

Activity HOW ARE YOU GOING TO SPEND YOUR ONE MILLION POUNDS?

Ask students to write down everything that they would like to be able to afford by the time that they

are, say, 30 years old. Possible answers include a home, car, wedding, have children, holidays

abroad.... Then ask them to guess and write down, on average, how much each of these items

might cost.

Next play the ‘Who Wants to be a Millionaire’ game which introduces students to the average costs

of such items. The game is embedded within the slide. Hover the mouse over it to open it. A

printable copy of the game is also provided on the CD-ROM.

Discuss the answers. How accurate were the figures provided by the students? Were there any

surprises as to the real costs?

Slide 9

At 25, your £1 a day will be worth £3,461At 30, your £1 a day will be worth £7,362At 35 ......... £13,093At 40 ..............£21,513At 45 ................ £33,886At 50 ..........£52,066At 55 ........... £78,777At 60 .............. £118,025

Savings

Briefly show students this slide which shows them the amount of money they can save if they start

saving £1 a day now.

Tell students

When you are young it’s quite tempting to think that there is no rush to save your money and that

you have plenty of time. But the longer you leave it, the more difficult it will be.

Ask students if they can estimate how much they would have to save every day from now on if they

wanted to have £10,000 in savings by their 30th birthday. For S5/6 students the answer is about £2

a day.

The following appears on the student handout:

You could save £1.96 a day from the age of 16.

You could save £2.11 a day from the age of 17.

You could save £2.28 a day from the age of 18.

You could save £4.47 a day from the age of 25.

You could save £27 a day from the age of 29.

Tell students

Every day counts when it comes to making the most of your money, and it’s never too soon to

start.

There are lots of things that are desirable to us and that we want – but what can we afford? In the

past people had to save up to afford most of these things but some of them would take a lifetime.

Now there is an option to borrow money so that you can own the item now and pay for it later.

Slide 10

Compound Interest“The greatest mathematical discovery of all time.” Albert Einstein

You invest £100 in a savings account that pays 10% interest per year.At the end of the year you have £110.

If you withdraw the interest but leave your £100 untouched,at the end of the next year you will be entitled to another £10.

If you don’t withdraw the interest (but leave it to ‘compound’) your £100 will be worth £110.

At the end of the second year you will receive £11 interest.

Your £100 is now worth £121.

£100 + £10 interest = £110 after one year. £110+£11 interest = £121 after two years.

Tell students

The word ‘percentage’ literally means ‘parts per 100’ – cent comes from the Latin word for 100.

Because percentages always deal with parts per hundred, they allow you compare things that it

would be hard to otherwise. You pay more interest to borrow than you receive on your savings

(this is how banks make their money).

Slide 11

Where you are earning it, it has the power to make you very rich.When you are paying it, it has the power to make you very poor.

When you invest money and leave it to earn compound interestit grows much faster.

If you save £50 a month for 10 years at 8% a year and leave it to compound, you would have £9,208. You would only have paid in £6,000.

However...... If you borrow £1,000 on a credit card with a 15% interest rate and you only make the minimum payment each month - 2% or £5 –whichever is higher...You will pay back £550 in interest overall plus it will take 10 years and 9 months.

Example taken from the Nationwide website ‘Teenagers guide to money’ pdf.

http://www.nationwideeducation.co.uk/www/downloads/parents/financial-capability-

education/teenagers-guide-to-money/teenagers-guide-to-money_p1_money-secrets.pdf

Tell students

When you borrow money, in addition to being charged interest you may well be charged other fees

too (eg. arrangement charges, admin charges). Before you agree to take credit (borrow money)

make sure you understand what it will cost you. Sometimes you will be offered discounts or perks

to take credit – don’t be fooled by this – look carefully at the small print. Borrowing money is

expensive. You may want to mention that the under 20’s are notoriously bad at choosing products

(according to research by the FSA and other organisations).

However, not all debt is bad debt. Sometimes it makes sense to borrow. If you wanted to save up

to buy a house it would take you years and you’d have to pay rent out at the same time. Most

people would rather get a mortgage so that they can own their own home more quickly and avoid

paying rent. Also, many houses increase in value as time passes so are a good ‘investment’. It is

okay to borrow money – and if you’re smart, borrowing can make financial sense – as long as you

can genuinely afford the repayments. You must make informed choices.

Be honest, ask yourself.

Do I have enough in my budget for this?

How will this purchase affect my day to day living,

Will this purchase only affect me? Will other family members be involved e.g. parents,

brothers, sisters, partner, room-mates, friends...

Should I wait until a better time? E.g. lower interest rates, next birthday, wage rise...

Only by being careful with the way you manage your money can you afford to pay for all this. A

sacrifice in one area may mean a benefit in another.

That is what good money management is about – making choices.

Slide 12

Work out what money you get (and when) and what money you need to spend (and when).

The process of budgeting will stop you from:

Spending money you don’t have

Wasting money on things you don’t really want or need.

The concept of budgeting is very simple so it is not necessary to spend too much time on this.

Tell students

The process of budgeting is nothing more than working out what money you get (and when) and

what money you need to spend (and when).

Budgeting will help you focus your mind on what you have to spend and what is really important to

you.

Because you are planning ahead, you are less likely to find yourself short of cash. You are also

less likely to worry about money.

The process of budgeting will stop you from:

Spending money you don’t have.

Wasting money on things you don’t really want or need.

Slide 13

Allow for unexpected expenses

Allow for bigger one-off expenses

Try to save a little each month to build your wealth.

If you spend more than you mean to each month, keep a money diary.

If you find out that your income is not high enough to cover costs – either work out a way to make some extra money or cut your costs.

If there is time, choose one (or more) of the following discussion points.

Use ‘Think, Pair, Share’ (Students work by themselves to jot down their own thoughts, then pair

with someone else to compile a single ‘list’ of ideas, then share the list with the class.)

Note that no answers are provided – this aim is to get the students thinking about the scenarios

and to discuss their suggestions.

Mr and Mrs Right have £10,000 in the bank and have only their state pension. They

usually receive £500 per year in interest but now they get only £200. This is having an

effect on their income. They have a mobile phone, car insurance, home insurance and

home phone with internet connection. What can they do to cut their expenditure without

affecting their lifestyle?

A couple have three credit cards. They pay 29%, 20% and 18% per annum in interest and

they are up to their limit on all of the cards. What action should they take?

A lady on GMTV owes a lot of money on credit cards and has reached the limits the card

companied have given her. An advisor told her to write down everything she spends. How

will this help her?

The following information elaborates on the points on the slide:

Allow for unexpected expenses (suppose you have to replace something that gets lost or

broken or you find that you need a new pair of shoes).

Allow for bigger one-off expenses, e.g. Annual memberships, Christmas presents, car

insurance...

Try to save a little each month to build your wealth.

If you spend more than you mean to each month, keep a money diary and note down each

time what you spent, what you need it for and how much it cost. This will help show you

where savings can be made.

If you find out that your income is not high enough to cover your expenses then you have a choice

– either work out a way to make some extra money or cut your costs.

The next slide is to introduce the topic of getting value for money and spending wisely, using the

supermarket shopping experience as an example.

Tell students

Companies spend billions each year on researching shopping habits and advertising to find out the

best way to make us fill our trolleys and spend money.

You're buying products you need for the most part: food, beverages, toilet paper, however the

supermarkets hope to tempt you to buy more, newer and more expensive items. Being aware of

how this works will make you a wiser and savvier shopper.

Now ask students to spend two or three minutes thinking about different supermarket tactics that

they may have encountered / be aware of. E.g. BOGOF...

They can either;

Do this individually and ‘shout out’ answers.

Do ‘Think, Pair, Share’

Write three ideas each on a post-it and stick the post-it on the board when ready. Once all

post-its are up, read through and discuss the answers.

Show the next slide (containing answer suggestions) afterwards.

(Note, it is much more ‘powerful’ to ask students to provide the answers then show them that they

are correct – as opposed to just telling them the answers.)

Slide 14

Store layout

Place priciest items at eye level

Kids items at their eye level (sweets, toys, sweetest cereals)

Racks of sweets, magazines, flowers... At the till

Displays of seasonal items when you walk in (Valentine’s (from Jan.), Halloween & Christmas (from Sept)..

Hearing, smell & taste

Sales, coupons & Offers ...BOGOF

Briefly mention any other points, from those below, that students have not already covered.

Store Layout

Items that you buy regularly, like bread, butter and milk, are often at the back of the store, forcing

you to walk past magazines, confectionery and countless other distractions to pick up a pint of

milk. Just when you've mastered the layout of your local store, everything is rearranged.

If you think the items displayed at the end of aisles are being sold at a reduction, think again. The

eye-catching banners and signs are often just normal stock selling at regular prices. Often it just

looks like they're on sale. Read the signs and prices carefully.

Sales and Offers

Bright colours and the words ‘sale’ and ‘discount’ make us feel good and like we are getting a good

deal but in reality this might only equate to pennies or you might still find an equivalent product for

less elsewhere on the shelves.

Priciest items at eye level

Supermarkets often place the priciest items right at eye level. By taking a few seconds to scan the

prices and values of products found near the floor or on the top shelf, you could save a fair bit of

money. Kids' items, on the other hand, are place at their eye-level. Sweets, toys, the sweetest

cereals etc. are all there in reach of little hands!

Own-label ranges

Own-label ranges are unlikely to be made by the market brand leader but by reputable companies

that are often household names. According to ‘MoneySavingExpert.com’ percentage savings on

own labels against the market leader are considerable, typically: 12 x 330ml cans of cola (50%

less), pasta (50% less) and self-raising flour (40% less). Own-label goods are rarely prominently

displayed - they may be stacked on the top or bottom shelves.

Seasonal items

Stores often display items at the entrance of the store in the hope of enticing you in.

How many of you have bought chocolate in advance of Easter or Xmas and had to go back to

stock up on more? Supermarkets hope for this to happen!

Hearing, Smell & Taste

Stores motivate your buying impulses by affecting your hearing, smell and taste.

Hearing You probably tune out the music in the background and don't even notice that they are

often playing commercials to you while you shop. And it's not just ads. The type of music is

carefully selected. Research shows music in a major chord sells more than music in a minor

chord. Additionally certain beats of music slow shoppers down, making them more likely to spend

more time in the store looking at the goods on display.

Smell It has also been proved in studies that the smell of freshly baked bread coming from an in-

store bakery can make you feel hungry – enticing you to buy items from the bakery and elsewhere

in the store.

Taste Free samples also encourage you to buy the product – Often, if you like it, you don't ask

the price but pick up the item, put it in the trolley and move on.

Sales, Coupons & Offers

If it says it's a sale, people think it's a bargain.

Coupons

Flick through the supermarket's own magazine before you start shopping to judge whether you'll

use the money-off coupons or offers inside. The coupons will be in the same place in the magazine

each month. If you buy the products featured you could make substantial savings, in addition to

recouping the price of the magazine.

However, similarly, coupons can get consumers to buy products they normally wouldn't buy. In

addition, studies have shown that if people have coupons, they won't check if it is a bargain. A lot

of people don't check the unit price. Basically, we may buy something we wouldn't normally buy.

Another sales trick is the 2-for-1 deal. You end up buying more than you would have and possibly

wasting food. It's not a bargain for you if you're not going to eat that much.

For more info.

http://www.bankrate.com/brm/news/advice/19990402c.asp

http://www.moneysavingexpert.com/shopping/cheap-supermarket-shopping

http://www.readersdigest.co.uk/index.php?option=com_content&Itemid=172&catid=31&a

mp;format=html&id=702&view=article

Slide 15

Biscuits Butter Bread Crisps Cereal Toilet Roll

TopShelf

0.21 1.18 1.19 2.49 1.87 1.97

AboveMiddle

1.11 2.38 1.39 1.73 2.29-

Middle 0.99 1.38 0.99 1.73 2.29 2.18

Below Middle

0.55 1.38 0.75 0.48 0.72-

Bottom Shelf

0.64 1.50 0.75 0.48 0.72 2.13

http://www.thisismoney.co.uk

There is no need to spend long on this slide. It’s simply to provide a real-life example:

Tell students:

A survey was performed in March 2010 to see how a number of supermarkets stacked their

shelves and targeted shoppers. These are the results from one of the stores. Similar results were

found at each.

It found that the cheapest products were all stocked on the bottom or top of the shelves. The

bottom shelf was stocked with rows of white and orange basic packaging (the supermarket's own

brand low-cost range). The majority of expensive goods were on eye level.

Read more:

http://www.thisismoney.co.uk/money/bills/article-1690713/How-to-beat-supermarket-

tricks.html#ixzz1mYCbrIjq

Pairing up: the other positioning trick

Supermarkets will also pair up products which you go together, for example tea and biscuits are

often shelved closely together. Sometimes this can be helpful but often it will just result in you

spending more.

Slide 16

Don’t ‘bury your head in the sand’

Take decisive action.

Write down your income and outgoings; prioritise payments

See where savings can be made.

keep in touch with creditors.

There is lots of help available.

Tell students

Despite best intentions, things can sometimes go wrong. It is very important not to ‘bury your head

in the sand’ if this happens but to take decisive action such as writing down and working out your

income and outgoings, prioritizing payments, seeing where savings can be made and, very

importantly, keeping in touch with creditors so that they can work with you to identify alternative

payment arrangements where possible.

There is lots of help available. The student handout contains information about where you can go

for help if you ever find yourself in financial difficulty, such as The Citizens Advice Bureau, the

Money Advice Service and the National Debtline.

Slide 17

Thank students for their time and ask if they have any questions.

Workshop Evaluation (5 minutes) It is important to allow time for the teacher and students to provide feedback and comments on the session to ensure the continued effectiveness of the workshops. All feedback is considered and improvements continually implemented where identified. Handout the feedback forms for completion (to the teacher and students) and collect them back when completed. Please post all forms to the FEP office.