Session 5: Credit, Loans, and Buy Now Pay Later

Borrow smart. Know the cost.

Session 5 demystifies borrowing and introduces students to credit in its many forms. It begins with a breakdown of credit cards, personal loans, overdrafts, and Buy Now Pay Later (BNPL) schemes. Students explore how interest works, what APR means, and how repayment terms affect total cost. A scenario-based activity compares three borrowing options for a £500 laptop, prompting students to calculate and reflect on long-term costs. The myth-busting segment challenges ideas like “BNPL is free money” or “Credit cards are only for emergencies.” Students also learn about credit scores – what affects them, why they matter, and how to build or damage one. The reflection prompt – “When is borrowing helpful, and when is it risky?” – encourages personal judgment and ethical thinking. By the end, students will understand how borrowing works, how to compare credit options, and how to avoid common traps. This session blends maths, ethics, and real-world decision-making.