Lesson sheet · Module 4 # The mechanics of money ## The aim of the lesson > **Every loan is money that appears today and disappears when you repay it — with interest. Borrow from your future self only if that future self would agree.** - 👧 Child: "If I borrow now, what will I have to give back, and when?" - 🧑 Teenager: "Buy now, pay later" is also credit. How much will you pay in total? - 🧔 Adult: what will the thing you are borrowing for give back to you? More than it costs with the interest (Module 7 — the APR)? **Your step in Pecuvo:** record every loan as a "debt" account and set a "repayment" goal. See how many months it stays in your life and how much interest it costs. ## The topic (chapters of the module) 1. Chapter 1 · Who makes money 2. Chapter 2 · Lending creates money 3. Chapter 3 · Two myths 4. Chapter 4 · What holds banks back 5. Chapter 5 · Interest — the price of money 6. Chapter 6 · Inflation 7. Chapter 7 · Hyperinflation ## For the youngest · ages 6–7 🐣 **The youngest:** Most money today cannot be seen. It is written in a big notebook at the bank. When someone borrows, a new line is written there. What is borrowed is given back — often with a little extra. **Play together (5 minutes):** Make a "bank notebook" from a sheet of paper. The child lends 5 buttons to a teddy bear and writes: "Teddy owes 5." When Teddy gives them back, cross out the line together. **A question for the evening:** "Why do you think people believe what is written down?" ## Questions for the class — 3 per level - 👧 1. Who makes banknotes? 2. What does the bank write in its notebook when it makes a loan? 3. What is inflation? - 🧑 1. What happens to the money when you repay a loan? 2. Which two myths does the Bank of England reject? 3. Why is the ECB's target "symmetric"? - 🧔 1. What limits banks' lending? 2. Why did the huge reserves after 2008 not produce huge lending? 3. What do Germany 1923, Zimbabwe 2008 and Bulgaria 1997 have in common? ## A 45-minute plan - **5 min:** The question for the evening or one from “Check yourself” — what do the pupils think? No right or wrong answers. - **15 min:** One or two chapters of the module at the level of the class (the “child · teenager · adult” buttons on the page). - **10 min:** The game or the calculator for the topic — in pairs or on the board. - **10 min:** The questions for the class. If you like, the open test — everyone writes down only their code. - **5 min:** The iron principle in the pupils' own words and one small step for home. ## Tools for the lesson - [The whole module on the website](https://pecuvo.eu/en/modules/the-mechanics-of-money/) pecuvo.eu/en/modules/the-mechanics-of-money/ - [Calculator: Inflation](https://pecuvo.eu/en/calculators/inflation/) pecuvo.eu/en/calculators/inflation/ - [The open test (9 questions) — pupils write down only their code (e.g. K4B11), no names; the class distribution is shown on the same page](https://pecuvo.eu/en/test/) pecuvo.eu/en/test/ - [The Glossary — terms explained simply](https://pecuvo.eu/en/glossary/) pecuvo.eu/en/glossary/ No personal data of pupils. Children under 14 — with a teacher or a parent. Do not compare individual pupils. Knowledge, not financial advice. The sheets may be freely printed and copied for lessons, clubs and families, with the source pecuvo.eu. They may not be sold.