Money Management SESSION #6 protecting yourself The Money Management sessions have been developed for the HSBC Opportunity Partnership in collaboration with Catch22, St Giles Trust, The Prince's Trust, Tomorrow's People and pfeg (Personal Finance Education Group)
6 Introduction Protecting yourself financially can range from making small changes in behaviour to help prevent identity theft, to making informed decisions about whether insurance is needed or not. This session examines some of the ways in which you can protect yourself from financial losses when something you own is stolen or damaged, and from financial scams, including identity theft. Learning Outcomes resources By the end of the session the young people will: Understand the principles behind insurance, and the compulsory nature of car insurance Be aware of measures to protect themselves against identity theft Know what to do in a range of financial security scenarios
Facilitator's Notes Starter Setting the scene 10 mins Show the young people the three different mobile devices in Resource 1 Mobile Device. Ask which, if any, of the devices they would think about taking out insurance for. Discuss the reasons for choosing to insure or not insure each of the devices. The young people may well conclude that, as the value of the item increases, so does the need to insure it as they may not be able to afford a replacement. This form of protecting the value of something is the whole concept behind insurance. Core Activity Types of insurance 15 mins Mind map with the young people all of the different types of insurance they have heard of. This may include life, pet, house, contents, car, phone and personal protection insurance (PPI) along with many more. Highlight that car insurance is slightly different from the others. Ask the young people why this is. Car insurance is the only legally compulsory insurance for all individuals who drive a vehicle on public highways (some mortgage providers may require buildings insurance, but this is not law). Driving without appropriate insurance cover is illegal. Highlight that when taking out any insurance you will be asked for certain information about yourself and what you are insuring. It is really important that this is as accurate as possible. Giving inaccurate or misleading information may mean the insurance company will not pay out if you have to make a claim. Equally, highlight how important it is that any claims made are also as accurate as possible. Exaggerating claims is classed as insurance fraud. Not only could the insurer decide not to pay out, but they could also choose to prosecute. You might want to highlight that when an individual s vehicle has appropriate insurance, this contributes to both their financial security as well as society as a whole. Insurance costs for many young people can be prohibitive and some may choose to risk it without. It is important to highlight both the financial and legal consequences of this action.
Facilitator's Notes Core Activity Security 15 mins Explain that whilst the internet can be a really useful tool it can also present opportunities for identity theft. Ask how many young people have a social media account. Explain that there is a trend for young people to put a copy of their driving licence onto social media sites when they have passed their driving test. Ask what the issues with doing this might be. Discuss the information that is on a driving license and how valuable this can be to criminals. Ask the young people to consider some of the situations in Resource 2 Financial Security Scenarios. For each one they should identify what the risk is and what they could do to prevent it. Feedback using the Facilitator's Notes and highlight the necessity to be cautious with financial security and sharing of identity. The security of using social networking sites is something which young people tend not to consider. If possible you may wish to expand on this section of the session to identify exactly what fraudsters are able to do if they gain your personal information. Core Activity Review 5 mins Recap on the learning objectives for the session and discuss with the young people whether they feel they now understand those learning objectives: Understand the principles behind insurance, and the compulsory nature of car insurance Be aware of measures to protect themselves against identity theft Know what to do in a range of financial security scenarios
Facilitator's Notes Core Activity Extension 15 mins Read Resource 3 Andrea s Story. This is based on a real incident. Ask the young people how they would feel in Andrea s situation? Andrea gives a little advice at the end of her story. How would they go about checking a company was legitimate? Take ideas, and then explain about checking using Company s House records. This is not the only check that can be done, but does indicate that the company is real and exists.
Facilitator's Notes Session Glossary Automated teller machine Bank statement The official name for a cash point, or hole in the wall. Usually abbreviated to ATM. A written summary of your income and expenditure over a fixed period of time. Insurance Internet banking Something that you buy to give you financial protection. The ability to access your bank accounts online. You are able to make payments, transfer money and apply for certain financial products. PIN Your Personal Identification Number is a four digit security number that allows you to use chip and pin cards. Always keep your PIN safe. Mind Map A mind map is a diagram used to visually outline information. A mind map is often created around a single word or text, placed in the centre, to which associated ideas, words and concepts are added.
Resource #1 Mobile device 19.99 89.99 264.99 Insure Insure Insure
Resource #2 Financial Security Scenarios Scenario 1 Your new PIN arrives so you can use your debit card. The number is not easy to remember so you decide to keep it in your wallet so you can check it when you need it. Scenario 2 You re out in town and want to check your bank balance. You spot an internet cafe and start to log on and check the box saying remember me on this computer. Your balance is good and you log off and leave. Scenario 3 You re having a bit of a clear out and come across a stack of old bank statements and credit card bills. They re not needed anymore so you put them out in the recycling. Scenario 4 You ve got an email from your bank telling you that there has been a fault with their systems and they need you to email back your internet banking password so they can re-set it.
Resource #2 Facilitator's Notes Financial Security Scenarios Scenario 1 Your new PIN number arrives so you can use your debit card. The number is not easy to remember so you decide to keep it in your wallet so you can check it when you need it. A PIN should never be kept together with the card it is used with. If the wallet is stolen the thief could very easily use the card in a cash machine or payment device. The best advice is to try and remember the PIN and then destroy the slip. Nearly all cash machines have a facility which allows the PIN to be changed to something that might be more memorable. If a wallet is stolen one of the first things to do is contact the bank and/or credit card provider. Once contacted they are able to put a block on the cards which prevents them from being used. Scenario 2 You re out in town and want to check your bank balance. You spot an internet cafe and start to log on and check the box saying remember me on this computer. Your balance is good and you log off and leave. The remember me on this computer box should never be checked when using a computer that is shared by others. The computer will remember the first stage of the security process and may allow someone to make attempts to guess the remaining password and access the account. Illegal software can also be installed on shared computers which records keystrokes, and as such, security information could be recorded and used to access an account. If possible, accessing online banking and financial information should only be done on a personal computer and not on a shared device. Scenario 3 You re having a bit of a clear out and come across a stack of old bank statements and credit card bills. They re not needed anymore so you put them out in the recycling. There can be a lot of personal information within financial correspondence such as bank statements and credit card bills. Sometimes this information can be used by criminals to steal an individual s identity and begin taking out additional borrowing in their name. If possible, shred any documents that contain personal details and financial information. Scenario 4 You ve got an email from your bank telling you that there has been a fault with their systems and they need you to email back your internet banking password so they can re-set it. No bank will ever ask a customer to send them personal security information. Criminals can send out emails and letters that seem very convincing asking for such information. The scam is called phishing, and relies on people believing it is a genuine request from their bank and passing on the details. Once passed on the security information can be used to withdraw money from your account. The best advice for any suspicious communication from what looks to be a bank is to contact them directly and ask about it. Never send out personal security information.
Resource #3 Andrea s Story was eighteen when I passed my driving test and I wanted to get out on the road straight away. I d already bought myself a small car and made sure it had road tax and an MOT. All I needed to sort out was the insurance. Well, that was an experience and some of the quotes I got back were so high! Eventually I came across an insurance company that was offering the insurance I needed at quite a bit less than any of the others. I had never heard of them before, but I d never heard of many of the insurance companies that were coming up. I paid for the insurance online and they sent back my insurance certificate covering me to drive my car. About three months after passing my test I had an accident. Stupid really, but I didn t realise the person in front of me had put their brakes on and I ended up driving into the back of him. It wasn t a huge bump, but because it was blocking a main road the police arrived. They started asking me about my insurance, saying that they could find no record of my car on the insurance database. I knew I had insurance and showed them my insurance certificate. After quite a few calls the police told me that the insurance company on my certificate of insurance was a fake. They had set up a website and conned people into paying for fake insurance. The police were helpful, but explained that as my insurance was fake I was actually driving with no insurance and would be prosecuted for this. I ended up with six points on my license and because it was my first year of driving was banned for a year and ordered to take my driving test again. After the year had passed I took my test again and passed, but when I tried to get insurance the prices were so much higher than before because I had points on my license and a criminal conviction. I had to make the decision that I couldn t afford to drive. My lesson from all this is if something looks too good to be true then it probably is! Check out any insurance companies you ve not heard of just to make sure they are who they say they are. Sometimes the cheapest deal is not always the best! The link below highlights the story of one of the ghost brokers behind the fake car insurance websites: www.bbc.co.uk/newsbeat/24711241
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