Understanding Banks & Societies

Overview

This 20-minute PSHE session is designed for a small group of 4 students, approximately aged 9-11 (Key Stage 2), aligning with the UK PSHE Association Programme of Study for Living in the Wider World (Economic well-being). The lesson focuses on helping students recognise the purpose of banks and building societies in everyday life and financial management.

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Curriculum Links

• PSHE Association (2020) – Key Stage 2:
  Living in the Wider World: Children develop an understanding of money, financial risks, and the value of saving.
• Mathematics National Curriculum (2021) – Money Unit:
  Recognise and use symbols of pounds (£) and pence (p) and combine amounts to make a particular value.
• Financial Education: Young Money Framework:
  Understanding financial products and services, including banks and building societies.

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Learning Objectives

By the end of the lesson, students will be able to:

1. Define what a bank and building society are and explain their main purposes.
2. Understand the role of banks/building societies in saving, borrowing, and keeping money safe.
3. Recognise basic differences between banks and building societies.

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Resources Needed

• Large flip chart or whiteboard
• Laminated cards with financial terms and pictures (bank, building society, ATM, mortgage, saving jar, etc.)
• Coin props or play money
• Paper and coloured pens for quick sketching activity
• A simple scenario story printed out

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Lesson Structure (20 Minutes)

1. Engage & Activate Prior Knowledge (4 minutes)

• Starter Question: "Can you name places where people keep their money safe?"
• Allow each of the 4 students to answer in turn to encourage participation.
• Show pictured cards of banks, building societies, and alternatives such as piggy banks/home savings jar.
• Write answers and linked ideas (saving, borrowing, interest) on the flip chart.

2. Introduction to Banks and Building Societies (5 minutes)

• Present a brief lively explanation:
  • Banks are companies where you can save money, get loans, and pay for things.
  • Building societies are similar but originally started to help people save money together to buy houses. They’re owned by members, not shareholders (engage here by asking students what they think member-owned means).
• Use a story example: “Imagine Lucy wants to buy a bike but doesn’t have enough money. She can save in a bank or building society, and sometimes borrow money to help her buy it.”
• Display term cards with short, clear definitions as visual prompts.

3. Group Mini-Activity: Sorting Purpose Cards (6 minutes)

• Hand out sets of cards describing activities (e.g., saving money, borrowing money, keeping money safe, paying bills).
• Ask students to work together to sort which activities are done at a bank, a building society, or both.
• Discuss answers briefly, encouraging justification of choices.

4. Quick Sketch & Share (3 minutes)

• Each student draws a quick sketch representing what they learned about banks or building societies. For example, a saving jar with a bank symbol or a building society helping someone buy a house.
• Students share their drawings with the group and explain their ideas in a sentence or two.
• This supports visual/spatial learners and consolidates understanding.

5. Recap & Plenary Discussion (2 minutes)

• Ask: “Why do you think it’s important that we have banks and building societies in our community?”
• Summarise: Banks and building societies help people keep their money safe, save for the future, and borrow when needed.
• Link to real life: Encourage students to chat with their families about banks/building societies and maybe visit websites or branches together.

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Assessment & Feedback

• Observe participation and reasoning during the card-sorting and discussion.
• Review comprehension through the sketch explanations.
• Provide positive feedback for ideas showing understanding.
• Identify any misconceptions (e.g., mixing banks/building societies with informal saving methods) and address briefly.

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Differentiation

• For more confident learners: Challenge to explain how interest could work with saving or borrowing.
• For learners needing support: Use more visual aids and one-to-one questioning during activities.
• Simplify language for EAL students and offer word banks.

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Extension Ideas

• Plan a virtual or real visit to a local bank or building society to see how they work firsthand.
• Create a class savings challenge linked to a communal goal.
• Introduce a role-play exercise where children act as customers or bank/building society staff.

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This bite-sized, interactive plan blends discussion, hands-on activity, and creative expression to meet UK PSHE standards and deeply engage young learners with fundamental financial concepts.