Have students raise their hands if they have a bank account. Have students brainstorm all the banks they are aware of.

Purpose: Students understand the deductions on their payslip.

1. Students identify the difference between “net” and “gross” pay.

Have students identify the various parts of the payslip. Remind students that it is essential to check each payslip to ensure you are being paid correctly for the hours you have worked. Remember if you are over the age of 18 years, you must check the rules regarding superannuation contributions.

2. Students discuss the value of Superannuation.

Ask students what they think superannuation is. Lead them to understand that all employees in Australia are covered by the Superannuation Guarantee. It applies to full time, part time and casual workers.

Explain to students why it's crucial for them to comprehend and think about the benefits offered by an employer as they progress in their careers. In Australia, common benefits include health coverage through tax payer funded Medicare and employers contribution to your superannuation. Remind students to weigh up pros and cons to initiate additional voluntary deductions at various stages of life and career. Students can research when the Federal Government would match a portion of your additional Superannuation contributions.

Students explore the Money Smart Superannuation Contributions Optimiser Calculator. https://moneysmart.gov.au/grow-your-super/super-contributions-optimiser

Purpose: Students learn about bank accounts.

1. Students understand what a bank account is.

Ask students to describe a bank account. Lead them to recognize that a bank account is an agreement between a depositor and a bank that says the bank will keep their money in trust until it is withdrawn.

Ask students what a bank does with the money it keeps in trust. Lead them to understand that banks hold a portion of the money, invest a portion of it in bonds, and lend a portion to other people and businesses as loans for buying a car, purchasing a home, and more.

Explain that there are many types of bank accounts but the main account students will encounter are transactions and savings accounts. For example, students will receive their income into their personal transaction account which will receive little or no interest. It is then up to the individual if they want to put away money for savings. If they choose this option, they can open a savings account and earn with higher interest.

2. Students understand the value of bank accounts.

Explain to students the importance of research when opening a bank account.

1. Encourage students to research the different types of banks and what they offer.
2. Compare different transactions and savings account features, fees, and interest. Remind students to ensure the account they open does not have an attached credit card unless the student chooses to opt into that feature.
3. How often will you need cash? (Both checking and savings accounts will generally allow for withdrawals of cash. Savings accounts are designed to keep money with a bank for a longer period of time, so the number of monthly withdrawals may be limited or account holders might lose interest or be given a service charge if they exceed that amount.) 
4. How are you planning to pay your bills? (Two common ways to pay bills is BPAY or direct debit. BPAY does not incur any fees but direct debit may incur a payment processing fee.”)
5. What is the minimum balance your bank requires? (Some banks require you to keep a certain amount of money in your account and will charge a fee if you drop below that.)

Point out to students that banks vary greatly in the services they offer and that it is always a good idea to find the one that best fits their needs. Add that many banks offer accounts specifically for students.

3. Students learn to manage their bank accounts.

Tell students that having a bank account is a major responsibility. It is vital they check their accounts regularly ensure they have no unauthorized withdrawals. Explain to students that they must manage their money in order to avoid overdrawn fees.

Point out to students that one of the best ways to avoid overdraft fees is to make sure they keep track of their income and expenses. Say, “Most banks provide an app that allows you to view the amount of your available funds as well as any posted and pending transactions. There are also many free apps that help you categorize your spending and set savings goals.” Tell students that not everyone has access to a banking app, then ask volunteers to suggest other ways to keep track of spending. (Student responses may include viewing their account activity online, using a checkbook, and keeping receipts.)

Add that, in addition to helping track spending habits, these apps can also help identify incorrect or fraudulent transactions. Say, “It’s possible for another person to obtain your banking information and make unapproved charges. By checking your account activity regularly, you can catch suspicious charges and report them to your bank.”

Purpose: Students develop an understanding of credit.

1. Students understand how credit works.

Say to students, “I’m going to ask you a series of questions. If you agree with what I say, raise your hand.” Then, ask students the following questions, pausing for a brief moment between each to give them time to respond.

• Say, “Imagine there is something you really want that costs $50, but you can’t afford it right now. What if I told you I’d lend you money so you can purchase it today? Would you accept it?
• What if you have to pay 20% more than what I lent you if you take longer than 30 days to repay me? For example, if I give you $50, you’ll owe me $60 if you don’t repay me in 30 days, and then $72, and so on.
• What if I said you didn’t have to pay me all back at once? Instead, you could pay me as little as $10 each month.
• What if I said that, even if you agree to a $10 per month payment schedule, you’ll still be charged 20% on your remaining balance each month? So, if you owe $50 and pay me $10, the next month you’ll owe me $48 instead of $40?”

Tell students that this is similar to how credit works. Lead students to understand that credit is the ability to borrow money to make purchases that you will pay back at a later date. Point out that one of the primary ways people make purchases using credit is through a credit card. Say, “Credit cards are an agreement between you and an issuer where you promise to pay back whatever they have lent you, plus other agreed-to charges.”

Emphasize that these other “agreed-to charges” are important to keep in mind when using a credit card. Tell students that credit cards can seem like “free money,” but they are not. Explain that every credit card has different terms, but generally, if cardholders pay the full amount of the credit card balance due every month, they will not have to pay interest. On the other hand, if they pay only the minimum payment amount, or anything less than the full balance due, they will pay interest.

2. Students learn about credit scores.

Divide students into three groups and say, “While it could make sense to delay a purchase until you have enough cash to cover the cost, there are times when that may not be possible. I’m going to present each group with a scenario in which someone wants to make a large purchase or is faced with a large expense, and your job will be to research the costs and the options to pay for it.” Then, assign groups with one of the following:

• A couple is looking to buy a two-bedroom house in your neighborhood.
• A high school graduate wants to attend college and is trying to determine whether to stay in-state or go out of state.
• A mother of three young children wants to purchase an SUV.
• A person needs knee surgery.

Inform students they have 10 minutes to gather as much information as possible. When doing their research, have them consider things such as what options are available to the purchasers, what the standard interest rates are, and how much (if any) cash they might need upfront. After 10 minutes have passed, ask volunteers from each group to share their findings with the class.

After each group has presented, stress that there are some purchases or expenses that may not be possible without receiving a loan. Say, “However, financial institutions will not just loan money to anyone. Banks and other institutions want to make sure that you have the ability to repay the money you borrow, and they determine this using your credit score. Teachers expand here if students have any further questions.

3. Students learn what to do if they have a credit problem.

Tell students to suggest some things that may happen if they are irresponsible with their credit. List student responses. (Students responses may include, their credit card gets revoked, they can damage their credit score, and it will be difficult to get loans in the future.)

Ask students, “What do you do when you have a problem that you can’t solve?” Suggest to students that they should ask for help. Explain that if they get into a situation in which they can’t make payments on their debt, the best thing to do is to talk to the people or companies to whom they owe money. Explain that sometimes, those companies will help develop an affordable payment plan to pay off the debt.

Have students consider what they discussed regarding credit cards and offer ways to avoid some of the drawbacks. List student responses. (Students responses might inclue: never put more on a credit card than you can pay every month, save money until you have enough to make a purchase, make sure you are comfortable with the minimum payment for loans, understand the terms associated with the money you are borrowing.)

Tell students that regardless of whether they get a debit card or a credit card, it is essential to avoid overspending. While money charged to a debit card is removed directly from the user’s bank account, you can still get into trouble by depleting your funds. As mentioned earlier in the lesson, many banks will penalize account holders whose funds go below a predetermined amount. Remind students that it is important to monitor their transaction account balance and credit card activity regularly in order to stay on top of their finances and avoid potential issues.

Explain to students that the best way to avoid financial trouble is to manage their money carefully. Remind students of the following key points that were taught in this lesson:

• It is important to keep check of your money and spend wisely.
• Credit cards have strengths, such as ease of use and safety, and drawbacks, such as annual fees and the danger of excessive debt.
• Establishing good credit is essential in order to make larger purchases in the future.