Resources for Courses

SAM

PLE

Resources for CoursesDecisions, Decisions

Teacher InstructionsDecisions, decisions is a resource that can be used to reinforce the need to make andjustify decisions, to practice financial calculations as evidence for those decisions,and therefore to develop student’s skills of analysis and evaluation.. This makes theactivity ideal for revision/ developing student exam skills. The activity works best inthree’s/ small groups and involves students making real life decisions based on ashort context.

The activity comes with two sets of resources:1 Scenario cards complete with questions for students to complete

2 Scenarios cards without the student questions (therefore allowing the teacher to set their own questions based on the scenario(s).

The following scenarios require some calculations:• A vehicle for decision making• Buy now, pay never• Date night dilemma• Puppy love

While the others listed here do not give data such as interest rates, they could be used as a research task to ask students to find out about the current rates ofinterest charged to borrowers and/or paid to savers, and to calculate the implications of those rates:• Share the risk• The property ladder decision

Teaching and Learning Strategy (A)

Using the resource to introduce opportunity cost

1 Split the class up into three’s/ small groups.

2 Give each group one (or more) of the scenario cards (it is up to the teacher to decide whether or not to use the set with the student questions). It is a good idea to give some of the same scenarios to different groups of students to compare and contrast the decisions (and reasoning) that each group of students has made.

3 Each group then needs to decide which option they would take (option A or option B) and complete the suggested questions (depending which resource is used).

SAM

PLE

Resources for CoursesDecisions, Decisions

4 Once this has been completed the teacher can then ask groups of students toread out their scenarios and explain which decision they have made and why. Theteacher can then facilitate a discussion with the rest of the class as to whether ornot other groups reached a different decision (if groups have been given the samescenario) or if groups would have made a different decision.

Teaching and Learning Strategy (B)

Using the resource to develop exam skills

Decisions, decisions can also be used to develop student’s exam skills by using thescenario cards to develop student’s evaluation skills. Students could be asked towrite an exam style answer or part of an answer based on individual scenarios.

For example, in the case of the ‘business proposition’ scenario, students could beasked to write an ‘exam style’ conclusion based on the decision that they have made,explaining:

• Why they made that decision (what was the most significant reason)• Why the rejected the alternative• What would their decision depend on

Alternatively students could be asked to analyse arguments for and against the decisions for an individual scenario.

SAM

PLE

A bidding WarAfter leaving school and moving to a sixth form several miles away you have decided to buy yourself some transport. Being a fan of all things 60’s you have always wanted a Vespa Scooter andhave saved £600 towards the cost. After an hour searching the internet you have managed to find the Vespa of your dreams on eBay. It has just been listed today and the auction runs for 10 days. The Vespa also has an option to ‘buy it now’ for £900. You know that you could borrow the moneyfrom your family and pay it back later but you also realise that potentially you could bag yourself a bargain by bidding.

Do you:A Borrow the money and click on ‘buy it now’?B Let the auction run its course to see if you can get the Vespa for cheaper?

1 Which option would you take and why?

2 Why did you reject the alternative?

3 What benefits have you given up by making your decision?

4 What would your decision depend on/what other information would be useful before making your decision?

SAM

PLE

1 Which option would you take and why?

2 Why did you reject the alternative?

3 What benefits have you given up by making your decision?

4 What would your decision depend on/what other information would be useful before making your decision?

A business propositionAfter leaving University with a degree in Business Studies and substantial savings you feel the time is right to set up your own business; an independent coffee shop. You have alwaysdreamed of running your own coffee shop and your part-time job in the University café has given you valuable experience. Your friends think this is a great idea and one of them has suggested that rather than ‘going it alone’ they would like to go into business with you. Your friend has money to invest and customer service experience.

Do you:A Reject your friends offer and go into business by yourself?B Accept the business proposition and form a partnership with your friend?

SAM

PLE

1 Which option would you take and why?

2 Why did you reject the alternative?

3 What benefits have you given up by making your decision?

4 What would your decision depend on/what other information would be useful before making your decision?

Your sixth form studies are coming to an end and you have secured a place at University 180 milesaway from your home town. During your A level studies you have managed to save £2,000 for a second hand car. Your parents/ guardians have also agreed to give you a further £1,500.

Whilst visiting a garage one of the salesman has suggested that as you will be doing a lot of travelling it may make more sense to put the £3,500 towards a cheap new car costing £6,935 and take out a finance agreement to pay for the remaining balance. The monthly repayments work out at £62.50 per month over 5 years.

Do you:A Buy a second hand car for £3,500?B Put the £3,500 towards a new car and take out a small loan?

A vehicle for decision making

SAM

PLE

1 Which option would you take and why?

2 Why did you reject the alternative?

3 What benefits have you given up by making your decision?

4 What would your decision depend on/what other information would be useful before making your decision?

Buy now, pay never?In a few weeks’ time you will be leaving home and going to University. You need a new laptop and have your sights set on a £899 MacBook air. The question is how do you finance it? One option is to put the whole amount on a credit card and pay it off when you can. Alternatively you can finance the purchase via the retailer at a cost of £36.46 per month for 36 months (29.9% interest).

Do you:A Pay for the MacBook air on a credit card?B Finance it through the retailer paying £36.46 per month for 36 months?

SAM

PLE

1 Which option would you take and why?

2 Why did you reject the alternative?

3 What benefits have you given up by making your decision?

4 What would your decision depend on/what other information would be useful before making your decision?

Date night dilemma It’s just occurred to you that you have been to the cinema more times in the past 8 weeks than in the past 2 years! Your new ‘other half’ loves your weekly cinema dates together but your bank balance isn’t feeling the love. As you queue to buy tickets for your next film outing you see a poster advertising the cinemas unlimited annual pass. The cost of the pass is £196.80 per annum with an option to pay £16.40 per month. The price also includes 10% off all food and drink. This just could be the saviour your bank balance has been looking for.

Do you:A Purchase the unlimited pass for £16.40 per month?B Continue as you are and ‘pay as you go’?

SAM

PLE

1 Which option would you take and why?

2 Why did you reject the alternative?

3 What benefits have you given up by making your decision?

4 What would your decision depend on/what other information would be useful before making your decision?

Puppy loveMorag is one of your best friends and she just happens to live next door. In a kennel. Your neighbour’s doghas been a big part of your life and when Morag had pups you were the first one round to see them. You have fallen in love with one of the puppies, Hector and your neighbour has agreed that if you are allowed you can buy Hector for £150 (50% of the normal price). However, your parent’s/ guardians only share part of your enthusiasm. They have agreed that you can buy Hector on the condition that you pay for him yourself from your savings and contribute 60% of the monthly costs from your part-time job which your neighbour informs you is about £70. Significantly higher than you estimated.

Do you:A Buy Hector from your savings and contribute towards his upkeep?B Turn down your neighbours offer and let Hector live elsewhere?

SAM

PLE

1 Which option would you take and why?

2 Why did you reject the alternative?

3 What benefits have you given up by making your decision?

4 What would your decision depend on/what other information would be useful before making your decision?

Yesterday you turned 18 and on opening the card from your family you received far more than the usual £20 note. Inside was a cheque for £10,000; the result of a child savings account taken out when you were a baby. This, combined with the rest of savings means you now have £14,000. The question is where do you invest it? Your family are quite risk aversive and want you to put the £10,000 in the bank with the rest of your savings. However, your best friend’s Dad is a financial advisor who believes that you should put your money in a stocks and shares NISA (New Individual Savings Account) as interest rates are so low at present. He advises that stocks and shares NISA’s offer unlimited returns but the value of your investment may go down and the money needs to remain in the NISA for a minimum of 5 years.

Do you:A Put the £10,000 in the bank with your current savings?B Invest £14,000 in the stocks and shares NISA?

Share the risk

SAM

PLE

1 Which option would you take and why?

2 Why did you reject the alternative?

3 What benefits have you given up by making your decision?

4 What would your decision depend on/what other information would be useful before making your decision?

The job offerJob offers are like buses. You wait for one then two come along at once. Although this time you have accepted one without waiting for the outcome of the second. You have just accepted a part-time position in John Cooper Clarke Ltd which just happens to be owned by a very close friend of the family and is located only 2 minutes’ walk from your home. It was a close call and John waited until you accepted before informing the other unsuccessful candidates. However, before you have had time to sign the contract there is a message on your mobile with an offer for the other job youapplied for. This position is better paid, has better hours but is located 8 miles away.

Do you:A Reject the second job offer and take up the position in John Cooper Clarke Ltd?B Accept the second job offer and inform John of your decision?

SAM

PLE

1 Which option would you take and why?

2 Why did you reject the alternative?

3 What benefits have you given up by making your decision?

4 What would your decision depend on/what other information would be useful before making your decision?

You currently live with your parents/ guardians but are keen to get a foot on the property ladder andbuy a place of your own. You have looked at your income and outgoings and worked out that if youstay at home it would take you 4 years to save enough money for a deposit for a flat. Alternativelyyou could rent a small place of your own immediately. You would still be able to save some moneybut far less than if you stayed at home resulting in a 7 year wait to save enough for a deposit.

Do you:A Stay at home and wait 4 years to buy a place of your own?B Rent, save less and wait 7 years to buy a place of your own?

The Property Ladder Decision

SAM

PLE

1 Which option would you take and why?

2 Why did you reject the alternative?

3 What benefits have you given up by making your decision?

4 What would your decision depend on/what other information would be useful before making your decision?

The trip of a lifetimeAfter two years hard work at sixth form and a place secured on your first choice course at your local University the time has come to make one of the biggest decisions of your life. Your two best friends are planning to take a year out and go travelling and have asked you to join them on what will be the ‘trip of a lifetime’. Funding some of the trip won’t be an issue as you have managed to save some money from your part-time job. The question is, what are you willing to give up?

Do you:A Keep your place at University and turn down the ‘trip of a lifetime’?B Turn down your place at University and go travelling with your friends?

SAM

PLE

A bidding WarAfter leaving school and moving to a sixth form several miles away you have decided to buy yourself some transport. Being a fan of all things 60’s you have always wanted a Vespa Scooter andhave saved £600 towards the cost. After an hour searching the internet you have managed to find the Vespa of your dreams on eBay. It has just been listed today and the auction runs for 10 days. The Vespa also has an option to ‘buy it now’ for £900. You know that you could borrow the moneyfrom your family and pay it back later but you also realise that potentially you could bag yourself a bargain by bidding.

Do you:A Borrow the money and click on ‘buy it now’?B Let the auction run its course to see if you can get the Vespa for cheaper?

A business propositionAfter leaving University with a degree in Business Studies and substantial savings you feel the time is right to set up your own business; an independent coffee shop. You have alwaysdreamed of running your own coffee shop and your part-time job in the University café has given you valuable experience. Your friends think this is a great idea and one of them has suggested that rather than ‘going it alone’ they would like to go into business with you. Your friend has money to invest and customer service experience.

Do you:A Reject your friends offer and go into business by yourself?B Accept the business proposition and form a partnership with your friend?

Your sixth form studies are coming to an end and you have secured a place at University 180 milesaway from your home town. During your A level studies you have managed to save £2,000 for a second hand car. Your parents/ guardians have also agreed to give you a further £1,500.

Whilst visiting a garage one of the salesman has suggested that as you will be doing a lot of travelling it may make more sense to put the £3,500 towards a cheap new car costing £6,935 and take out a finance agreement to pay for the remaining balance. The monthly repayments work out at £62.50 per month over 5 years.

Do you:A Buy a second hand car for £3,500?B Put the £3,500 towards a new car and take out a small loan?

Buy now, pay never?In a few weeks’ time you will be leaving home and going to University. You need a new laptop and have your sights set on a £899 MacBook air. The question is how do you finance it? One option is to put the whole amount on a credit card and pay it off when you can. Alternatively you can finance the purchase via the retailer at a cost of £36.46 per month for 36 months (29.9% interest).

Do you:A Pay for the MacBook air on a credit card?B Finance it through the retailer paying £36.46 per month for 36 months?

A vehicle for decision making

SAM

PLE

Date night dilemma It’s just occurred to you that you have been to the cinema more times in the past 8 weeks than in the past 2 years! Your new ‘other half’ loves your weekly cinema dates together but your bank balance isn’t feeling the love. As you queue to buy tickets for your next film outing you see a poster advertising the cinemas unlimited annual pass. The cost of the pass is £196.80 per annum with an option to pay £16.40 per month. The price also includes 10% off all food and drink. This just could be the saviour your bank balance has been looking for.

Do you:A Purchase the unlimited pass for £16.40 per month?B Continue as you are and ‘pay as you go’?

Puppy loveMorag is one of your best friends and she just happens to live next door. In a kennel. Your neighbour’s doghas been a big part of your life and when Morag had pups you were the first one round to see them. You have fallen in love with one of the puppies, Hector and your neighbour has agreed that if you are allowed you can buy Hector for £150 (50% of the normal price). However, your parent’s/ guardians only share part of your enthusiasm. They have agreed that you can buy Hector on the condition that you pay for him yourself from your savings and contribute 60% of the monthly costs from your part-time job which your neighbour informs you is about £70. Significantly higher than you estimated.

Do you:A Buy Hector from your savings and contribute towards his upkeep?B Turn down your neighbours offer and let Hector live elsewhere?

Yesterday you turned 18 and on opening the card from your family you received far more than the usual £20 note. Inside was a cheque for £10,000; the result of a child savings account taken out when you were a baby. This, combined with the rest of savings means you now have £14,000. The question is where do you invest it? Your family are quite risk aversive and want you to put the £10,000 in the bank with the rest of your savings. However, your best friend’s Dad is a financial advisor who believes that you should put your money in a stocks and shares NISA (New Individual Savings Account) as interest rates are so low at present. He advises that stocks and shares NISA’s offer unlimited returns but the value of your investment may go down and the money needs to remain in the NISA for a minimum of 5 years.

Do you:A Put the £10,000 in the bank with your current savings?B Invest £14,000 in the stocks and shares NISA?

The job offerJob offers are like buses. You wait for one then two come along at once. Although this time you have accepted one without waiting for the outcome of the second. You have just accepted a part-time position in John Cooper Clarke Ltd which just happens to be owned by a very close friend of the family and is located only 2 minutes’ walk from your home. It was a close call and John waited until you accepted before informing the other unsuccessful candidates. However, before you have had time to sign the contract there is a message on your mobile with an offer for the other job youapplied for. This position is better paid, has better hours but is located 8 miles away.

Do you:A Reject the second job offer and take up the position in John Cooper Clarke Ltd?B Accept the second job offer and inform John of your decision?

Share the risk

SAM

PLE

You currently live with your parents/ guardians but are keen to get a foot on the property ladder andbuy a place of your own. You have looked at your income and outgoings and worked out that if youstay at home it would take you 4 years to save enough money for a deposit for a flat. Alternativelyyou could rent a small place of your own immediately. You would still be able to save some moneybut far less than if you stayed at home resulting in a 7 year wait to save enough for a deposit.

Do you:A Stay at home and wait 4 years to buy a place of your own?B Rent, save less and wait 7 years to buy a place of your own?

The trip of a lifetimeAfter two years hard work at sixth form and a place secured on your first choice course at your local University the time has come to make one of the biggest decisions of your life. Your two best friends are planning to take a year out and go travelling and have asked you to join them on what will be the ‘trip of a lifetime’. Funding some of the trip won’t be an issue as you have managed to save some money from your part-time job. The question is, what are you willing to give up?

Do you:A Keep your place at University and turn down the ‘trip of a lifetime’?B Turn down your place at University and go travelling with your friends?

The Property Ladder Decision

SAM

PLE