Money Matters| Building a Foundation for Financial Success
Empowering OIC Students with Real-World Mortgage Insights in Life Skills Lessons
At OIC, we are committed to equipping students with the practical skills they need to navigate their futures with confidence. This week, our Life Skills programme for Year 12 and 13 focused on an essential topic: understanding mortgages and the application process.
A Closer Look at Mortgages
During the lesson, students explored key aspects of home ownership and mortgages, including:
- What is a mortgage? An introduction to this essential financial tool and its importance in purchasing a home.
- Types of mortgages: Fixed-rate, variable-rate, repayment, and interest-only mortgages were discussed, helping students understand which options might suit different financial circumstances.
- The application process: Students learned the step-by-step process of applying for a mortgage, from initial inquiries to obtaining an official mortgage offer. They explored real-life scenarios, such as self-employment challenges, and discussed how to be financially prepared.
Interactive Activities
Students participated in hands-on activities to enhance their learning:
- UK housing market analysis: By examining average salaries, house prices, and homeowner statistics, they calculated how long it might take to save for a home without a mortgage.
- Case studies Scenarios like "Shivaughn's mortgage journey" helped students analyze challenges like credit usage, income stability, and savings.
- Financial planning for the future: Students discussed budgeting, saving habits, and other positive financial behaviors to prepare for home ownership.
Why It Matters
Understanding mortgages is a vital skill for any young person preparing for independence. These lessons provide students with:
- A foundation in financial literacy.
- Practical tools to plan for significant life milestones.
- Confidence to make informed financial decisions.
Support Beyond the Classroom
We encourage parents to continue this important conversation at home. Discussing family experiences with mortgages or exploring online resources together can further enhance students' understanding. Websites offering mortgage calculators, tips, and guides are an excellent way to reinforce these lessons.
As always, thank you for supporting our Life Skills programme and ensuring our students are ready to take on the future!
