Handout 40 - Saving/Borrowing Game

In this game, you will play the role of banker, distributing loans and collecting repayments

You will need:
• Five fake bank notes for each pair of girls (eg, if you have 10 girls = 5 pairs = 25 notes).
• One container (can, box, jar, etc.) for each pair (eg, 10 girls = 5 pairs = 5 containers)
• Five large pieces of paper that say: Month 1, Month 2, Month 3, Month 4, Month 5

Participants will work together in pairs. If there is an odd number of participants, select someone to be an employer or parent, whichever is more appropriate for your group, who will distribute income. If there is an even number of participants, you will play both banker and employer.

Ask participants to find a partner and decide who will be Player #1 and Player #2.

Explain:
In this activity, we will have two players, #1 and #2. We will also have a banker and an employer (or parent). Each player will get 50 units. You and your partner will each collect the same amount of money separately, but you will work towards the same goal. With your partner, pick one reason, a goal, for which both of you need the money. Okay, you have one minute to pick the goal for needing 50 units.

After a minute, ask for two or three pairs to share their goals. Then say: “Raise your hand if you are Player #1. Congratulations, each Player #1 will receive a loan of $50 in cash! The banker will now lend you the money.”

Distribute $50 in counting objects to each Player #1. Then say: “Raise your hand if you are Player #2. Congratulations, you will each receive a can (or other receptacle such as a box or jar) from an employer or parent.”

Now explain: “Now, some of you have $50, others have a can. This might seem In this game, you will play the role of banker, distributing loans and collecting repayments

You will need:
• Five fake bank notes for each pair of girls (eg, if you have 10 girls = 5 pairs = 25 notes).
• One container (can, box, jar, etc.) for each pair (eg, 10 girls = 5 pairs = 5 containers)
• Five large pieces of paper that say: Month 1, Month 2, Month 3, Month 4, Month 5

Participants will work together in pairs. If there is an odd number of participants, select someone to be an employer or parent, whichever is more appropriate for your group, who will distribute income. If there is an even number of participants, you will play both banker and employer.

Ask participants to find a partner and decide who will be Player #1 and Player #2.

Explain:
In this activity, we will have two players, #1 and #2. We will also have a banker and an employer (or parent). Each player will get 50 units. You and your partner will each collect the same amount of money separately, but you will work towards the same goal. With your partner, pick one reason, a goal, for which both of you need the money. Okay, you have one minute to pick the goal for needing 50 units.

After a minute, ask for two or three pairs to share their goals. Then say: “Raise your hand if you are Player #1. Congratulations, each Player #1 will receive a loan of $50 in cash! The banker will now lend you the money.”

Distribute $50 in counting objects to each Player #1. Then say: “Raise your hand if you are Player #2. Congratulations, you will each receive a can (or other receptacle such as a box or jar) from an employer or parent.”

Now explain:
“Now, some of you have $50, others have a can. This might seem

Ask: “What is the main difference between the two groups?” (The Player #1s received the money up front as a loan, and made small monthly repayments to the bank. The Player #2s deposited their monthly income into a can, as a form of savings, and got the lump sum they needed at a later time.)

Say: “Player #1s are called borrowers, since they have borrowed money to reach their goals. Player #2s are called savers, because they saved money from their incomes to reach their goals. As you have noticed, the timing of when each group gained access to their lump sum of $50 is a key difference. But the game is not over yet. As the banker, I have to ask Player #1s, or borrowers, to pay me extra money for the privilege of borrowing $50 and getting it right away. For borrowers who still owe the bank money and do not repay, there are often serious consequences.”

Ask the #1 players for an extra object as payment to the bank for the money borrowed. Since no one is likely to have extra objects, they may protest. Explain that borrowing money usually costs a bit more than the amount borrowed. Tell them that today, players will be released from their obligation to pay this charge, but in real life, there are serious consequences for failure to repay the entire amount owed.

Ask: “What is the name for this payment of money above and beyond the exact amount of the original loan?” (This amount is the ‘interest’ that borrowers must pay in addition to the amount borrowed).

Ask: “Do the Player #2s, the savers, have to pay interest to the bank? Why?” (No, because they have accumulated their lump sum by putting aside money every month; the lump sum they have is their own money.)

Say: “Sometimes, if they save money in a bank rather than in a can at home, savers can earn a little interest. Some banks are willing to pay interest on savings because they need the money from savers to lend to borrowers. Whether a bank pays interest on savings deposits depends on the country, bank and type of savings account.”