Borrowing Money

Understanding loans and interest

 *Know that borrowing money
comes with both risks and benefits

What Influences Our

Decision to Borrow
Money?
Our ability to repay

Impact on budget

Intended purpose
 Where Can Loans
Come From

Friends
Financial
Institutions
such as Credit
Union

Non traditional
Family lenders such as
Money Mart Banks
What Influences the
Banks Decision to
Loan Money
Your ability to repay

Previous loan history

Other existing debts

What Is Interest?
As the borrower you are charged a fee by
lender to be able to borrow the money
 can be
The decision to borrow money go Activity Time!
based on the ability to repay, als,
impact on budget etc.
Loans can com e from friends,
family, banks etc. Now that we have given a brief
Ban ks ca n de cide to give y ou loan s ba se d introduction to borrowing lets
on ability to re pa y, loan histo ry , existin g see how much you’ve learned!
debt etc.
Inte rest is a fe e pa id to the ban k or
institu tion tha t loa n ed y ou mon ey
Go to: kahoot.it
And wait for the Game PIN
 Rationale
fun and engaging
easy to set up and free to use
great way to test understanding of what
was just taught
Discussion