Year 3 PSHE: Summer 1 worksheet

“Borrowing and Debt” is free to print, with no account. It is the first sheet in the Year 3 PSHE unit “PSHE: Summer 1”, for children aged 7 to 8, and takes about 20 minutes.

Print it on A4. The child's pages come first; the answers, and what each wrong answer tells you, are on the grown-up page that follows. Weeks 25 to 30 of the year, 6 sheets in the unit.

Free sample · answers on the last page

Borrowing and Debt

Name: ____________ · Date: ____________
Year 3 · PSHE · about 20 minutes
Answers are on the grown-up page

Today I can work out how interest adds to a loan and why debt can grow.

A Look back3 min

1.
A class has £10 to spend on an event. Paper costs £4. How much is left?
2.
Ali has £5. Which one is a need, not a want?
breada new gamea sticker book
3.
A town pays for its roads, parks and schools. What is this kind of spending called?
public servicespocket moneyinterest

B Watch me, then you4 min

Ali borrows £20 from a lender. After one year, the lender adds £2 extra. That extra money is called interest. How much does Ali owe in total?

A corner shop counter with sweets on shelves behind it, seen from the customer side

Watch me

Ali borrowed £20. The lender adds £2 interest.

20 + 2 = 22

Ali owes £22 in total.

Now you

1.
Mia borrows £40. After one year she owes £4 extra. How much does she owe in total?

C Your turn6 min

Each loan adds extra money after one year. Find the total Ben owes.

1.
Ben borrows £10. After one year he owes £1 extra. How much in total?
2.
Ben borrows £20. After one year he owes £2 extra. How much in total?
3.
Ben borrows £50. After one year he owes £5 extra. How much in total?
4.
Ben owes £55 in total. He pays back £20. How much does he still owe?

Say it out loud: Which loan had the biggest extra? If Ben pays nothing back, the lender adds interest again next year. What happens to his debt?

D Spot the mistake3 min

Kit says: “I borrow £10 from a bank. The bank adds £1 interest after one year. I only owe £10 when I pay it back.”

1.
How much does Kit really owe after one year?

E Think deeper4 min

Sort these cards. You will never be in trouble for telling a trusted grown-up about a loan offer that worries you.

A kitchen table with a jar of coins and a folded piece of paper

1.
Write each card in the right column. Use the second column for things to stop and talk to a grown-up about.
Asking the total cost before saying yesSaving coins in a jar for a treatTaking a loan from a stranger onlinePaying back early to save interestKeeping a loan secret from home
Good money habit Ask a grown-up first

How did it feel?1 min

Look at the weather scale. Think about how it feels to learn that a small loan can grow.

I can do it Nearly Not yet

For the grown-up

Borrowing and Debt · 2 minutes to read

Answers, and what a wrong one tells you

A

1. 6 your child wrote 14, which is 10 + 4. The paper was spent, so the money left goes down, not up. Ask: did the money go up or down?

2. bread

3. public services

B

1. 44

C

1. 11 your child wrote 10, which is only the loan. The lender adds interest, so the total is more than 10. Ask: what did the lender add?

2. 22

3. 55 your child wrote 45, which is 50 − 5. The extra is added on, so the total goes up to 55. Ask: is the total more or less than the loan?

4. 35 your child wrote 75, which is 55 + 20. Paying back makes the debt smaller, so the £20 is taken away and 35 is left. Ask: did Ben pay money back or get more?

D

1. 11 your child wrote £10, which leaves out the interest. The bank adds £1, so Kit owes £11. Ask: what extra did the bank add?

E

1. Good money habit: Asking the total cost before saying yes, Saving coins in a jar for a treat, Paying back early to save interest · Ask a grown-up first: Taking a loan from a stranger online, Keeping a loan secret from home

1. Look for: A feeling word such as calm, curious, worried, unsure, or surprised, written by the child.

Words to use

Say“Before you borrow anything, what will it cost in total? Who will you pay back, and by when?”

Instead of“Money is too hard for you to understand yet, so leave it to the grown-ups.”

After the sheet

Save coins in a jar together for a week. Then lend your child a pretend £10, add £1 interest and work out the total together. If a loan offer ever worries your child, call the NSPCC helpline on 0808 800 5000. Childline is 0800 1111 for children.

Tick what your child got right in StudyDen. Anything missed comes back in a later Look back box, so there's no need to redo the sheet.

The rest of this unit

5 more sheets come with a StudyDen plan, in teaching order:

Stereotypes and fair guesses(with a plan)
Many Cultures in Britain(with a plan)
Spotting Unfair Treatment(with a plan)
Bystander or Upstander?(with a plan)
Our Planet, Our Choices(with a plan)

Every Year 3 PSHE worksheet

The worksheets plan opens a printable sheet for every lesson in Years 1 to 6, each with its answers on a separate page for you. It costs £6.99 a month or £59 a year for the whole family, with no free trial.

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