Philip’s money – a week in December One week in December . . .
Philip struggled to make it through November without using his overdraft. In the event, his bank opening balance was £12.45 in the red on the 30 November.
However, Philip had done loads of overtime in November and got paid nearly £1,000 on Friday 1 December.
He was so pleased that he went into his local travel agents on the next Sunday morning and bought and paid for a last-minute holiday for Christmas on his debit card, even though it cost him over a third of the wages he had just earned!
A couple of days later he was in town with a friend and picked up some cash from the local cashpoint. He wanted £115, but the cash machine only had £20 notes, so he got a bit more. Although he did not realise it, the £30 cheque he had written to pay for a theatre ticket got cleared at the bank on the same day.
On Wednesday, Philip’s monthly standing order of £65 to his savings account went out of his account. He was in town that day with his debit card and took the opportunity to buy a new shirt in the sale, with £7.50 off. It had been £20. He also topped up his mobile phone with £20.
The next day, the bank paid in the interest that Philip had earned on his balance for the preceding three months – it was under a pound! His monthly standing order to a local children’s hospice charity went out that day too. He would like to give 5% of his income to charity each month. This month he was just under that. Also that day, another cheque got cleared to cover his gas and electricity bill for October to December – how those bills are going up – well over £100 this time.
Finally – on Friday, Philip was able to pay a bit more money into the bank – Katie had paid
him back for the new shoes he had helped her buy. His balance was now just over £165. Unfortunately, Philip had forgotten that the direct debit for his car insurance was due out
that day . . .
Task: Create Philip’s bank statement Read the story of Philip’s week and then use the information to assemble his bank statement from the information given.
Don’t forget to write the date and code for each transaction next to it.
Then use a calculator to find the balance at the end of each transaction.
All the transactions have a code depending on what type they are.
Holidays: 25 Christmas Day, 26 Boxing Day
Teachers’ notes This resource has been written for a Year 8 middle ability maths group.
Suggested ways to use the resource could include the following.
Read through the story with the whole class. Ask learners to highlight any words that they think are to do with banking and finance. Write the words on the whiteboard. Ask learners to give explanations.
Working in pairs or groups, learners cut out the transactions and the numbers then fit into the blank statement. They then write in the date and code next to each transaction.
Discussion of the results might include open questioning such as:
Is Philip living within his means? (How much money does he have at the end of 8 December? How long will this need to last?)
Are there any ways he might make life easier for himself? (Think about paying for gas and electricity on monthly direct debit to get a discount and spread the load, or run the account online to save even more. Maybe he should not book holidays he can’t afford just before Christmas – use his savings later instead. Also, can he afford to save £65 each month?)
What do you think about the interest he is earning on his account? (He might want to consider an account with higher interest payments.)
Support for lower ability
Read the story and talk about some of the technical banking language.
Use the solution page and delete a few numbers.
Ask learners to fill in the missing numbers and then calculate balances.
If the bank is giving him 0.5% interest on his average balance, how much money is Philip keeping in his account – on average? (£0.21=0.5%, so £42 on average)
Can the learners make up a bank statement for someone their own age?
Can they write a story to go with it too?
Research different current bank accounts – how much interest do the best ones pay?
Links to further lessons This activity could lead into further work on savings and borrowing – focusing on simple interest rates. The Quality Marked resource, Talk Money, Talk Maths, has some ideas. Talk Money, Talk Maths is available on pfeg’s website at www.pfeg.org.
Further work on financial statements using the Nuffield resource Spot the Errors would be appropriate. This resource is available on the Nuffield website at www.fsmg.org.