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Description

source: https://www.scouts.org.uk/activities/debt-detectives/
Spot good and bad debt and learn how to borrow responsibly for a smarter financial future.

Resources

Stopwatch or phone
Equipment for your stations
Station 1: rope or string; jigsaw puzzle/picture cut up; paper; pegs
Station 2: paper; coins and plastic cups; rolled up socks / paper, bucket; 10 plastic cups
Station 3: pegs/small objects; kims game; paper with word scramble
Station 4: balloons; rope

Instructions

Before you begin
Use the safety checklist to help you plan and risk assess your activity. There's also more guidance to help you carry out your risk assessment, including examples.
Make sure all young people and adults involved in the activity know how to take part safely.
Make sure you have enough adult helpers. You may need some parents and carers to help.
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Planning and setting up this activity
Set up each activity in an open area, such as on tables, making sure there’s lots of space for people to move freely between stations. We’ve included some ideas for stations on this page.
You may wish to write out or print out what to do for each challenge and leave it next to the station.
Each station will need a challenge and a loan card for young people to collect once theyve completed the challenge.
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Aim of the activity
The aim of this activity is to help young people learn the difference between good debt and bad debt through hands-on experiences. Participants will take part in challenges and real-life borrowing scenarios where they decide when it’s smart to borrow money and when it can be risky. By making these choices, they’ll understand how to manage debt responsibly and make better financial decisions in the future.
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RUNNING THIS ACTIVITY
1. Gather everyone together and let them know that today you’re going to be learning about debt.

2. Explain that debt is when you borrow money that you promise to pay back later, there is good debt and there is bad debt.
• Good debt is when you borrow money for something important that will help you in the future.
• Bad debt is when you borrow money for something you don’t really need or can’t afford.

3. Read out the statements one by one and ask the group if they think it is good or bad debt.
• Buying a bicycle to get to a Saturday job (good debt)
• Buying the latest video game with money you don't have (bad debt)
• Borrowing money to pay for a course that helps you get a job (good debt)
• Taking out a loan to buy expensive concert tickets you can’t afford (bad debt)
• Borrowing to fix your phone so you can stay in touch with family and friends (good debt)

4. Show them the five stations have been set up.

5. Tell them that each station has a challenge to complete. Once completed successfully, the team will collect a loan card. This will describe either a good or bad loan.

6. Divide the group into teams, each starting at a different station.

7. Once they finish one station, they move to the next. You can use a timer to help everyone rotate at the same time if needed and Offer support at any stations that seem tricky or take longer than others.

8. Once all the teams have completed the stations and collected their loan cards, bring everyone back together.

9. Choose one space for good debt and one for bad debt – this could be two tables or two spots on the floor.

10. Ask each team to place their loan cards into the pile they think is correct.

11. The activity leader or a volunteer from the group should pick up each loan card and read it aloud.

12. For each one, discuss the following questions together:
• Is this loan in the right pile?
• Was it a good reason to borrow money?
• Could you pay it back easily?
• What would happen if you couldn't pay it back?
• What choice would you make next time?

13. Remind the group:
• Good debt helps with essentials, can be planned for and paid back, and often saves money or helps you earn money.
• Bad debt is for things you don’t really need, can trap you into borrowing more, and may cause stress or damage your finances in the future.

14. You could add points to this activity and turn it into a competition, giving 1 point per right classification and a bonus point for strong explanations.

Tags

• Finances
• money

Badge Links

• Money Skills - Saving & Borrowing