work skills facilitator guide for money skills · readytowork 2015 4 facilitating face-to-face...

1© ReadytoWork 2015

Work skills

Facilitator guide forMoney skills


Table of contents

An introduction to ReadytoWork 3

Facilitating face-to-face ReadytoWork sessions 4

Tips for facilitators 6

Overview: Module 3 – Money skills 9

Topic 1. Spending and saving wisely 10

Topic 2. A step-by-step guide to creating your own budget; and sticking to it

14

Topic 3. Understanding and using credit to your advantage 18


An introduction to ReadytoWork

Thank you for your willingness to facilitate the ReadytoWork programme. We appreciate your expertise and the time you will be taking to help upskill young people.

ReadytoWork provides a valuable bridge between the worlds of school, college or university and that of work. This job preparation initiative enables school leavers and college or university graduates to explore and develop the skills required for a successful transition into employment or self-employment.

ReadytoWork is uniquely African. With stories and examples from an array of young people in Africa as well as learning material that is tailored to the needs of a vibrant, young and ambitious African market, this curriculum is written by Africans for Africans.

With learning modules that address work, people, money and entrepreneurial skills, young people will be able to broaden their employability skill set. In each module there are learning topics written in the form of articles that have been designed to speak to young people – the information is bite-sized, the learning is short and to the point and the material is young, trendy and engaging.


Facilitating face-to-face ReadytoWork sessions

Face-to-face sessions give facilitators the opportunity to engage and interact with young people by sharing stories, introducing activities or encouraging discussions. Using the learning topic as a supportive learning tool, the facilitator can expand on and enrich the learning material.

These workshops are intended for young people to:

• Meet others who are in similar circumstances as their own• Share ideas with peers• Be inspired by insight from the facilitator • Receive guidance and support• Ask questions and clarify understanding

Facilitating a face-to-face ReadytoWork session requires preparation.

When you are standing in front of a room full of young people to facilitate a topic, you are seen as a representative of ReadytoWork. A broad understanding of the ReadytoWork initiative, its objectives and the learning material design approach will enable facilitators to conduct effective sessions, drawing further interest from young people.

The following preparation steps are key:

Preparation step 1: Read through the ReadytoWork background information, facilitation tips and other information contained in the facilitator guide well in advance of the sessions.

Each topic has its own facilitator guide, which is broken up into two main parts.

Part 1 provides an overview of the topic and learning objectives, as well as the resources required to facilitate the session effectively.

Part 2 provides practical facilitation guidelines and suggested activities.

Preparation step 2: Where possible, ensure that young people have access to the learning topic in advance and are encouraged to read through it before the face-to-face ReadytoWork session.

Preparation step 3: Work through the learning topic(s) you will be facilitating very carefully, taking care to highlight key learning areas or important points. Reading through other related learning topics and visiting the ReadytoWork website is also encouraged, to ensure a contextual understanding of the skills being imparted.


Learning design approach

In order to facilitate the material effectively, it is helpful to understand the approach used in developing it. The ReadytoWork learning topics are designed to engage and inspire young people. The way in which the learning information is crafted into the topic articles is different to traditional learning material, but it follows a clear, simple and effective format.

Use a learning topic to identify this format.

Remember: Young people who are attending a face-to-face ReadytoWork session should read the learning topics on their own, prior to attending the workshop. However, you may take a few moments at the beginning of your workshop to create context and refresh their memories by giving an overview of the main points.

Format guideline Explanation What you may see in the topic

Youth mentor personalisation

A youth mentor or young person who is knowledgeable and experienced in this matter, shares his/her views.

There is a youthful African narrator who is more experienced and tells the story.

Discovering the topic

Participants are allowed to discover this topic, look at how it could influence them, why it is important, and what could happen.

Real-life exploration of each topic opens the topic and explains why it is important and relevant.

Learning Some basic learning points are presented.

Learning points, definitions and steps to follow are shared.

ApplicationUsing the discovery and learning to the advantage of the participant.

There are always activities and ways in which the participant can apply or use the information that has been provided.

Captivating theme

A story or theme that underscores the learning and is repeated or referred to during the article.

Written and visual referral to the theme of the article, creating interest with the young audience.


Follow these handy facilitation tips:

• Set ground rules upfront• Remember participants’ names; it is easy if you have a sketch of the room

setup. As individuals introduce themselves, add their names to your sketch• Begin to use participants’ names as soon as they introduce themselves.

It helps participants to feel welcome and helps you to remember their names• Tell participants that this is their learning room and that you want it to be

comfortable for them (temperature, lighting, noise, distractions and so forth)• Set a goal that everyone will speak at least once during the session• Act upbeat, even if you are not up to par on the day• Never underestimate the power of enthusiasm;

it is infectious. Humour adds to an enthusiastic atmosphere• Facilitation requires good communication skills: attending,

observing, listening and questioning• Be aware of your non-verbal behaviour• When participants share stories or problems, take note

and remember to use them as examples later on in the session

Add fun to function during large group discussions:

• Encourage repeated audience responses, such as cheers • Get participants involved to demonstrate your point • Ask for a show of hands in response to questions • Ask for people to sit or stand in response to questions • Use a humorous anecdote or read a cartoon that brings your point across • Tell a story, recite a poem, or quote someone important

Follow these questioning techniques to enhance your facilitation:

When facilitating, it is useful to use questioning to involve participants in the learning process. One-sided learning, where people are just listening and nodding, is less effective than an interactive, discussion-rich learning experience.

When we ask questions and give participants the opportunity to reflect and discuss, the following benefits are experienced:

• Participants learn as you involve them on mental, sensory and emotional levels• A group discussion gets participants to collaborate and share• Participants have the opportunity to listen to each other’s insights • Meaningful, interesting discussions take place

Tips for facilitators


Below are the types of questions you can use to facilitate learning – remember them by using the acronym ORID:

• Objective questions• Reflective questions• Interpretative questions• Decision questions Objective questions: Facts, data and senses

Objective questions are used to draw out the facts and data about a particular situation or event. These types of questions teach participants about the different perspectives of reality relating to the senses. Examples of objective questions are:

• What do you remember about the scenario?• Which people or ideas stuck with you?• What caught your attention and why?

Reflective questions: Head, heart and hands

Reflective questions relate to the emotional domain – the affective responses. Examples of reflective questions include the following:

• What effect did this have on you?• Were you worried at any time?• Were you shocked at any time?• How did the group react to this situation?

Interpretative questions: Critical thinking

The participants are invited to consider the worth, significance or meaning of an event for them. Examples of questions that allow them to do this include:

• What was your key thought?• What is the most meaningful part of this activity?• What can you take away from this experience?• What have you learnt from this activity?• How does this relate to your workplace/current reality?

Decision questions: Now what?

This type of questioning can be used where individuals and groups have to make decisions about outcomes and determine future resolutions and/or actions. Examples of such questions include:

• What will you change about your behaviour as a result of this experience?• Has this experience changed your thinking?• What was the importance of this experience in your life?• How will you apply what you have learnt in future?

Through using the ORID questions you can encourage participant discussion, involve them on multiple levels and keep sessions interesting, involved and fun.


Overview: Module 3 – Money skillsReadytoWork Module 3 provides young people with the financial skills to manage their own money.

As young people enter the world of work, they are tasked with not only earning an income, but managing the money they earn correctly. Getting a job could mean financial independence from parents and other providers, but it also means an increase in expenses and self-discipline with money. Poor management of money can have a significant impact on their financial future and employability. Young people who fall into the trap of reckless spending or excessive use of credit are unable to pay their bills or may be challenged by the harsh reality of running out of money long before the next pay cheque, both situations that place unnecessary stress on them.

The Money skills module addresses these and other learning needs, helping young people to discover, learn and apply the knowledge and skills they need to manage their money properly.

Money skills consists of three learning topics, namely:

• Spending and saving wisely • A step-by-step guide to creating your own budget and sticking to it• Understanding and using credit to your advantage

Consider these tips about the size of the group:

For effective facilitation of a topic, there should ideally be no more than 15 people in a group. However, if there are more than 15 people, consider using the following facilitation techniques:

• With larger groups, small errors are overstated. Therefore, if you are not adequately prepared, you could be setting yourself up for failure. Ensure that you have prepared an agenda for yourself and follow the instructions for managing each activity meticulously

• You may have more than one facilitator present. Sharing the workload and the group interaction may be helpful and should encourage participation

• Walk around the room, ensure that participants understand the directions and are not getting side-tracked, and determine how much more time they need to complete a specific task

• Create opportunities for participants to discover knowledge by themselves• Debrief all activities; consider using the “what?”, “so what?”

and “now what?” model.


Topic 1: Spending and saving wisely

Part 1: Prepare

Topic summary

Financial control starts with a plan that outlines what to pay, what to buy and how much to save. Instead of having our expenses wreak havoc and powerlessly standing by while money is being spent, financial control urges young people to set a financial plan that begins with knowing exactly where their money is going and why. By prioritising and deciding ahead of time exactly how money will be spent and why, the young person is placed back in control of their money. This topic outlines steps to be taken to regain financial control and then provides the opportunity for young people to evaluate their financial control mechanisms and identify areas for improvement.

Learning objective

By the end of this topic, young people should be able to evaluate how effectively they are controlling their money.

Key learning points

• Five steps to take control of your money

Practical facilitation guidelines

Time required It will take approximately 50 minutes to facilitate this topic, allowing for activities, discussions, group work and sharing of examples.

Resources required

• Printed or electronic version of ReadytoWork learning topic 1. Spending and saving wisely, made available to all young people for reading well before the face-to-face session

• Information, pictures or reference material to support the facilitator• A collection of coins in the lowest possible denomination• Pen and paper for young people to complete the icebreaker and activity

Preparation required

• Prepare for the session by reviewing the topic and steps suggested in this facilitator guide• Think back on your own experiences with the control of money. Use these examples as real-life experiences to share during the facilitated session

Application or assessment overview

• At the end of this topic, learning is applied through an activity• This activity requires young people to evaluate financial controls and identify areas for improvement

1


Step 1: Break the ice with idea 1 or 2

Icebreaker idea 1:

Empty a bag of money in front of the group. Make sure the money is a collection of low-denomination coins, with a few bank notes. Ask the group to guess exactly how much money there is. Allow young people to write their guesses down on a white board or flipchart paper. Then task the group with counting the money and identifying whose guess is the closest to the correct amount.

Learning lesson: Guessing how much money we have in our account will not be accurate. We need to know exactly how much money we have or we could get into financial trouble by getting it wrong.

Icebreaker idea 2:

Tell the group that you are going to read out a list of groceries and they need to jot down what they think the items on the list might cost.

Prepare a list of five items which could include bread, milk, oil, eggs, butter, rice etc. that everyone should know the prices of. Find a shopping catalogue or flyer that indicates the correct prices of the products.

Read the list out loud.

Once you have given them an opportunity to write down their answers, read the prices of the products to them and ask them to check how close they were.

Ask one or two volunteers to share how they fared and where they got it right or totally wrong.

Learning lesson: Financial control is about being clear about the money we spend and what we spend it on. Strong financial control means being clear about the cost of products.

Step 2: Introduce yourself and provide a brief overview of the topic 5 Min

Introduction

Introduce yourself to the participants by sharing the following:

• Introduce yourself to the participants by sharing the following: • Your name and surname• Your current position and what it entails• The reasons why you volunteered to facilitate a ReadytoWork session• Your personal reflection – how your financial control has grown

Overview

Provide a brief overview of the learning topic by touching on the following:

• As part of the Money skills Module of ReadytoWork, this learning topic will assist young people in applying financial skills to the management of money• In particular, this topic will help young people to manage their own money• This topic helps young people to evaluate how effective their financial controls are and to identify areas for improvement

Part 2: Facilitate2

Topic 1:


Step 3: Discover and explore the topic 10 Min

Topic opening

Describe the topic opening theme

• The learning topic opens with the story a young woman who describes her mother’s tuck shop, which she ran from home• She explains how carefully her mother managed money by counting the money and planning her purchases

Facilitator opening

Pick up on the topic opening theme by using one or more of these ideas:

• Describe or discuss how people differ in the way they control their money – for some, tight controls and careful spending is natural, whilst others throw caution to the wind and spend excessively• Discuss how young people could always fall back on their parents when they needed extra money, but now this responsibility lies solely with them

Ensure that the topic discovery is completed by discussing the following:

• Managing your money properly from the first pay cheque will ensure that you don’t fall into financial mismanagement that takes years to get out of

Step 4: Facilitate learning 15 Min

Facilitate key learning point 1:

Five steps to take control of your money

• Refer the group to page 2 of the topic• Review the five steps to financial control and ask the young people present to underline or highlight keywords under each step• Ask young people to share examples of how effectively they have seen others, perhaps their parents or friends, apply the individual steps to financial control• Discuss reasons why people would choose not to take control of their money properly• Ask the group to share experiences about a time when they had no money because they did not control their money properly (perhaps pocket money given to them by their parents). What were the consequences of their financial mismanagement?

2

Topic 1:

Part 2: Facilitate


Part 3: Support the application of learning3

15 Min

Topic application

ACTIVITY

The activity at the end of this topic asks young people to identify the steps to implement financial controls and to identify areas for improvement. [Ask the following question.]

What steps can Sarah follow to ensure she has control of her money?

[Encourage the young people to name the five steps of financial control.]

Write each step and a short explanation of each on flipchart paper as they are named and discussed.

STEP 1:

A. Know exactly where her money is going: Sarah can record or track where her money goes, so that she knows exactly what she’s receiving and exactly what she’s spending.

STEP 2:

A. Find areas for improvement: Once Sarah is tracking her money carefully, she can see where she’s spending too much and can start cutting down to control her money better. STEP 3:

A. Prioritise: Once Sarah has control of how her money comes and goes, she can start thinking about priorities – payments she must make, wants to make, and needs to make.

STEP 4:

A. Look after herself: Sarah should be spending money on things that enhance her lifestyle and protect her future like healthcare, insurance, investments, or saving for her future and retirement.

STEP 5:

A. Go back to an allowance: If Sarah knows she spends small amounts of cash on drinks, snacks and her social life, she should give herself a weekly allowance for spending, ensuring that she carefully spends her own money and makes it through to her next pay day.

Topic 1:


3

15 Min

Facilitator application

Support the application of learning by:

• Allowing young people to participate in the activity as a group• Allowing young people to share their answers and the reasons for these answers with each other• Encouraging the discussion of answers and sharing of learning in the group

Topic 1:

Part 3: Support the application of learning


Topic 2: A step-by-step guide to creating your own budget and sticking to it

Part 1: Prepare

Topic summary

This topic lays out the meaning of a budget as well as a simple method to follow when creating a budget. Although the terms ‘income’ and ‘expenses’, ’budgets’, ‘saving’ and so forth may be common language, this topic places these terms in context.

With a handy budgeting activity, young people can immediately apply the financial skills required to create a budget.

Learning objective

By the end of this topic, young people should be able to create a budget.

Key learning points

• What is a budget?• Six steps of creating a budget


Time required It will take approximately 50 minutes to facilitate this topic, allowing for activities, discussions, group work and sharing of examples.

Resources required

• Printed or electronic version of ReadytoWork learning topic 2. A step-by-step guide to creating your own budget and sticking to it, made available to all young people for reading well before the face-to-face session

• Information, pictures or reference material to support the facilitator • A list of possible income and expense items, or perhaps pictures that

illustrate these• Pen and paper for young people to complete the icebreaker and activity


• Prepare for the session by reviewing the topic and steps suggested in this facilitator guide

• Consider your own experiences with budgeting, particularly how your self-discipline in this area has grown. Use these examples as real-life experiences to share during the facilitated session


• At the end of this topic, learning is applied through an activity• This activity asks young people to create a budget

1


Step 1: Break the ice with idea 1 or 2 5 Min

Icebreaker idea 1

Tell the young people in the group to pretend that you will be giving each of them a large sum of money (a million rand, a thousand dollars etc.).

Ask them to think about how they will spend this large sum of money. Have them jot down some notes and calculations.

Ask those who are willing to share to tell the group about how they will spend their money.

Learning lesson: Each person sets different priorities for their money, but most people know what they’d like to spend it on. If we can plan this carefully for a large sum of money, how much more shouldn’t we plan for our limited income?

Icebreaker idea 2

Ask the group to reflect and try to write down every last cent they spent during the last week. They should remember when, where and on what, by retracing their steps for the week. Expect serious thinking and memory stimulation as young people try to remember!

Ask those who are willing to share how easy or difficult it was to pinpoint the amount of money spent. Did they find that they forgot amounts spent or that there was spending still unaccounted for?

Learning lesson: We cannot simply remember what we spend money on and why. We need to budget so that we plan our money spend more carefully and control our expenses.


Introduction


• Your name and surname• Your current position and what it entails• The reasons why you volunteered to facilitate a ReadytoWork session• A personal experience – what you enjoy spending money on

Overview


• As part of the Money skills Module of ReadytoWork, this learning topic will assist young people in applying financial skills to the management of money• In particular, this topic will help young people to manage their own money• This topic helps young people to create a budget

Part 2: Facilitate2

Topic 2:



Topic opening

Describe the topic opening theme:

• The learning topic opens with a story about a young man who earns cash only• He explains why he needs to budget and manage his money more carefully if he wants to afford his own place one day

Facilitator opening


• We cannot build a successful financial future if we are living hand to mouth• Budgeting helps young people to reach their financial goals


• Drawing up a written budget is more effective than planning it in your head. Referring to the budget and controlling expenses helps one to stick to a budget



What is a budget?

• Refer the group to page 2 of the topic• Emphasise the stability that a budget brings• Encourage discussion on the needs versus wants topic. Ask young people about their needs versus their wants. Discuss how a budget should address needs first, and then carefully plan to incorporate wants as and when it is feasible


Six steps to creating a budget

• Refer the group to pages 3 and 4 of the topic• Depending on the group’s age and/or financial literacy levels, you may wish to exclude the information on the bottom of page 4 (Useful calculations) from the discussion. These calculations are not essential for budgeting• Briefly summarise each of the six steps of budgeting• Discuss how a budget is a dynamic document that needs to be updated regularly, analysed and tweaked. Setting a firm, strict budget with no room to adapt will only lead to the budget not being adhered to!• Discuss how to handle moments of financial madness – guilty shopping pleasures, spending unbudgeted money on wants, or cheating your own budget. Explain that it is human to do so, but that you need to recover by adapting your budget!

Part 2: Facilitate2

Topic 2:


15 Min

Topic application

ACTIVITY

The activity at the end of this topic asks young people what the important steps are when creating a budget.

[Read each of the statements related to creating a budget and allow the group of young people to decide which option is correct for each step.]

[Use techniques such as ‘thumbs up for correct, thumbs down for incorrect’ as a way for the young people to indicate their choice of answer.]

[The ANSWERS are in bold.]

What should Felix do in creating a realistic budget that will help him manage his money and save towards moving out of his parental home? [Correct answers are in bold.]

STEP 1: FELIX SHOULD:

A. Keep a mental tally and record it when he does his budget each month.B. Keep a daily record of what he earns.

[Discussion point: He can add up all the amounts when he next does his budget. This will help him to start calculating what he earns on average each month.]

STEP 2: FELIX SHOULD:

A. Keep a record of what he spends daily (on lunch, transport etc.) as well as other weekly or monthly expenses. B. List only the monthly amounts that are important, for instance the money he pays to his parents.

[Discussion point: These can quickly add up and take a large bite out of his budget. He can add up all the amounts when he budgets and record them as one amount.]

STEP 3: FELIX SHOULD: A. Subtract his earnings from his expenses. B. Subtract his expenses from his earnings.


Topic 2:


15 Min

Topic application

[Discussion point: Maths can be confusing, but remember that Felix can only spend what he has earned so he needs to subtract his expenses from his earnings and hope that there is still something left to save. Hopefully, once he has subtracted all his expenses, Felix will still have money left over. He can use this money to start saving towards moving out.]

STEP 4: Felix found that he was in fact spending more than he was earning… He needs to:

A. Ignore this. Next month will be better and he will cover all his expenses.B. Make small changes to his expenses. Maybe he can spend less on his lunch every day.

[Discussion point: Sometimes small adjustments can make a big difference. Felix could take lunch with him each day which will save him from buying expensive food from a restaurant or vendor.]

STEP 5: Saving is so difficult when there are fun things to buy but Felix should be…

A. Budgeting to save at least 10% of his earnings each month.B. Saving only when he has money left over. Life is for living, right?

[Discussion point: We should plan to save and create discipline for ourselves. Some experts say we should actually save first and then only budget what is left. While saving may be difficult when we have limited earnings, we really need to look to the future. Saving 10% of your earnings each month will soon add up to a nice amount which can then be used for something you need, perhaps a deposit on a car or home.]

STEP 6: Which statement is true? A. Once Felix has a budget set up, he can keep using it month after month.B. Felix should re-evaluate his budget each month and see what is working and where further cuts or savings can be made.

[Discussion point: That’s not the best response. Felix should not use his budget every month without making changes. Felix may find that he needs to budget less for clothes and more on his mobile phone or he may find that he can save more each month so that he can move to his own home sooner. Felix needs to set up a budget and try to work with it, and then make changes to it.]


Support the application of learning by:• Allowing young people to participate in the activity as a group• Allowing young people to share their answers and the reasons for these answers with each other• Encouraging the discussion of answers and sharing of learning in the group


Topic 2:


Topic 3: Understanding and using credit to your advantage

Part 1: Prepare

Topic summary

Credit is a very difficult thing to explain to a child. It is, after all, invisible. The child just sees the visible items as parents buy new clothes, a car or a house on credit, unable to fathom that these things are actually not owned by their parents yet.

When young people start working and qualify for credit, it is important that they are educated and well-informed about credit. When applying for credit, they need to think more maturely than the child they were, understanding the benefits and risks of credit.

Learning objective

By the end of this topic, young people should be able to explain credit terms, types and regulations.

Key learning points

• Credit terms• Credit types• Credit regulations


Time required It will take approximately 60 minutes (1 hour) to facilitate this topic, allowing for activities, discussions, group work and sharing of examples.

Resources required

• Printed or electronic version of ReadytoWork learning topic 3. Understanding and using credit to your advantage, made available to all young people for reading well before the face-to-face session• Calculators• An item that you wish to use for credit case studies. This item can be the actual item or a picture or an advert• Pen and paper for young people to complete the icebreaker and activity


• Prepare for the session by reviewing the topic and steps suggested in this facilitator guide• Research some of the most popular credit providers in your country or area. Consider some examples that would be suitable to share in the session• Research credit legislation in your country or area. Are there laws in place that protect users? Is there a central credit bureau that checks how well people handle their credit?


• At the end of this topic, learning is applied through an activity• This activity is made up of four questions about credit, which should be answered using the topic learning content

1


Step 1: Break the ice with idea 1 or 2 5 Min

Icebreaker idea 1

Ask the group to think about an item that they would love to own right now, but really cannot afford. Perhaps it’s a large item like a vehicle or a small item like a piece of jewellery.

Ask volunteers to talk about the item they want. In particular, encourage them to elaborate on why they want it so badly.

After a few examples, ask these volunteers whether they would buy the item on credit if you offered the money to them right now. They can pay you back over a year in small instalments.

Note how easily many of the volunteers would say yes, but that there would be some who ask more questions, like: “What is your interest rate?” or “What if I don’t pay you back on time?”

Learning lesson: Everybody wants something. We will always find reasons to want to buy, and those reasons may compel us to take up credit without careful consideration.

Icebreaker idea 2

Take out an item that you will use as a case study example. You could show it in its physical form, in a picture or on a shopping brochure or pamphlet.

Ask the group to calculate what it will cost to buy this item on credit. Give a calculator to one or more of the group members.

• Give them a purchase price (e.g. R1000)• Give them a deposit amount (e.g. R100)• Give them an interest rate (e.g. 25%)• Give them an insurance amount, which will be added to the monthly instalments (e.g. R18 per month)• Give them a repayment period (e.g. 24 months)

Ask the group to calculate how much they would pay for this item if they bought it on credit.Once they have completed their calculations, reflect on how expensive credit purchases are.

Tip: Do your credit calculation beforehand so that you can help the group to get to the right amount. Learning lesson: Credit purchases are more expensive than buying cash.

Part 2: Facilitate2

Topic 3:



Introduction


• Your name and surname• Your current position and what it entails• The reasons why you volunteered to facilitate a ReadytoWork session• Your personal reflection – items you have purchased on credit

Overview


• As part of the Money skills Module of ReadytoWork, this learning topic will assist young people in applying financial skills to the management of money• In particular, this topic will help young people to deal with credit and debt• This topic helps young people to understand credit terms, types and regulations


Topic opening

Describe the topic opening theme

• The learning topic opens with a story about a young man who dresses well• Whilst his friends and family think he is buying clothes on credit, he assures others that he understands credit and uses it carefully

Facilitator opening


• Ask the group whether they know people who are using credit to keep up appearances• Discuss that we never really know when people are buying cash or on credit


• As credit is so difficult to see and discuss, it is important to have a deep understanding of credit which will guide decisions

Part 2: Facilitate2

Topic 3:




Credit terms

• Refer the group to page 4 of the topic• Highlight the types of credit and ask the group to come up with a relevant local example of each type of credit• Identify local credit types that are not mentioned in the list


Credit types

• Refer the group to page 4 of the topic• Highlight the types of credit and ask the group to come up with a relevant local example of each type of credit• Identify local credit types that are not mentioned in the list


Credit regulations

• Refer the group to pages 4 and 5 of the topic• Explain that it is the duty of a government to protect people from credit that is granted illegally or recklessly. If governments allow anyone to provide credit on any terms, people will be cheated, impoverished and unable to repay their debts• Highlight the typical credit regulations on page 5, mentioning that these are generally applied in most countries• Take a few moments to share the local credit regulations with the group. Based on your preparation, summarise any laws or rules for credit that apply• Discuss the concept of a central credit bureau – a rapidly growing trend in most western countries and countries where credit is being regulated. Discuss whether your country has such a bureau, and what information is held with this bureau. Discuss the impact of good credit management on future credit applications, as well as the impact of bad credit management on future credit applications

Part 2: Facilitate2

Topic 3:


15 Min

Topic application

ACTIVITY

The activity at the end of this topic asks young people to highlight points regarding credit, using what they have learnt through Joseph’s story.

[Read the following question to the group.]

Joseph shared some of his knowledge with you regarding credit. What are some of the points he raised?

[Write correct suggestions on to flipchart paper under a pre-prepared heading ‘Credit Points’.] ANSWERS

A. A creditor is the person or institution who has loaned you money.B. When you pay back on hire purchase, you agree to pay the same amount every month.C. A debtor is someone who has borrowed money.D. Your credit record shows how good you have been in paying back your debt.E. Creditors can charge interest. The rate of the interest is usually controlled by the government.


Support the application of learning by:

• Allowing young people to participate in the activity as a group• Allowing young people to share their answers and the reasons for these answers with each other• Encouraging the discussion of answers and sharing of learning in the group


Topic 3:

work skills facilitator guide for money skills · readytowork 2015 4 facilitating face-to-face...

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