What can you do with your money?
Find out what you can do with money. It'll open up a world
of possibilities.
What can you do with money?
Whether you have 5p, £5 or £500, there’s
no shortage of things to buy. We’re spoilt for choice.
How can we decide what to buy?
We can try to split our purchases into two groups
– essential things and luxuries. Essential purchases are
the things we really can’t do without, such as food, clothing
and repairs (like getting someone 
to
mend a leaky roof).We need these things every day to live, work
(or go to school) and stay healthy. Luxury purchases are the
‘extras’ in life like jewellery and computer games.
We want these things because we enjoy them.
What else can you do with money?
As well as spending your money, you can save it.
You could put it in a piggy bank or give it to someone who will
put it to ‘work’. This is where banks come in. a
cheque book – filling in a piece of paper is an easy way
to pay for things.
Banks have lots of useful services. Cash machines
give you access to your money any time, anywhere. Using computers
allows you to move money electronically without even having
to touch it – great for ordering over the internet and,
of course, paying bills! Putting your money in a bank also means
you can use a cheque book - filling in a piece of paper is an
easy way to pay for things.
It
works the other way too. It is also possible to borrow money.
In the same way as banks pay out interest for saving with them,
they also charge interest for lending. For example, if someone
borrows £100 for a year at an interest rate of 10%, by
the end of the year they will owe £100 plus £10
interest. The total they have to pay back will be £110.
If someone wants to buy something they can’t
afford, they can either save the money to buy it later or borrow
the money to buy it now. But if they have to pay a lot of interest
to borrow the money, they might decide not to buy it straight
away.
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