Borrowing Wisely 2

Notes: 
  • Borrowing money can be a great way to invest in something that you need and that will help you get further in your career. However, there are important responsibilities that come along with borrowing money, and consequences for not paying it back.
  • The sessions on borrowing should only take place with older girls. Do not be seen as encouraging borrowing, rather you are exploring this is an option. These consequences are important, so this session should only be done along with Part 1.
  • You may want to invite a Standard Chartered volunteer to come in and discuss borrowing with the girls.
Materials: 
  • Role Plays
Time Required: 
One Hour
Objective: 
  • To identify the differences between using your own money and borrowed money.
  • To discuss the responsibilities of borrowing money and the consequences of failing to meet them.
Instructions: 
  1. Write the following eight situations on the board before the session starts. Do not write the answer on the board – this is just for you to know:
    SITUATION ANSWER (DO NOT WRITE ON BOARD)
    Sell netball to a friend Own money
    Friends lends you money for a drink Borrowed money
    Do laundry for a neighbour Own money
    Borrow from sister for movies Borrowed money
    Buy groceries on credit Borrowed money
    Work for aunt in market stall Own money
    Gift from uncle Own money
    Withdraw savings Own money
     
  2.  Begin the session by explaining the difference between your own money and borrowed money:
    • Your own money belongs to you – you have earned it and you don’t have to pay it back.
    • Borrowed money has to be paid back – it belongs to someone else.
  3. Ask the girls which of the situations is borrowed money and which is own money – explain why.
  4. The girls have covered the concept of interest in the previous game, but you may want to review what it is again:
    • A loan is money that a borrower can use temporarily. It has to be paid back to the owner, or lender, after a defined period of time.
    • Interest is a fee charged by the lender or owner for temporary use of the money.
  5. Divide the girls into pairs and ask them to discuss the following:
    • Have you ever lent something to someone that was not returned to you?
    • Have you ever lent someone something that was damaged when it was returned?
    • Have you ever borrowed something that you did not return?
    • How did you feel when those things happened?
    • What did you do?
  6. Divide the girls into three groups and give them each one of the role play scenarios on Handout 41. If the girls are low-literate, read the scenarios to them. Give each group 10 minutes to practice their role play.
  7. Invite each group to perform its role play. After each one, ask some of the discussion questions.
  8. Close by explaining to the girls that borrowing is a huge responsibility, and that they should understand the consequences of borrowing before they do it. They should also know they have the ability to pay back the loan.
Discussion Questions: 
  • How do you think all the characters felt in the situation?
  • Why do moneylenders charge interest?
  • What happens if someone fails to repay borrowed money?
  • If a loan is between family members or friends, how does that change the situation?