This week in primary school assemblies and classroom discussions, we are exploring a major topic from the news: the possible introduction of a digital pound in the UK and how the way we use money is evolving. The Treasury and the Bank of England are considering a new, safe, digital pound that could transform how people and businesses pay for things. Exploring the Digital Pound The digital pound, if introduced, would be a new form of £ sterling. It would work like a digital banknote or coin, issued by the Bank of England. This money would exist alongside, and be easily exchangeable with, existing cash and bank deposits. People and businesses could use it for everyday payments, whether shopping in stores, paying for a meal in a restaurant, or buying things online. Instead of holding accounts directly at the central bank, users would access digital pounds through 'digital wallets' on smartphones or smartcards. Understanding Cryptocurrencies and Digital Payments With thousands of cryptocurrencies now in existence worldwide, the idea of digital money is not new. Cryptocurrencies, such as Bitcoin (invented in 2008 by "Satoshi Nakamoto"), are forms of digital currencies that do not physically exist but have real value. They are stored in digital wallets and only exist virtually, which means we cannot see or touch them, but they can be used, stored, and transferred much like any other currency. An interesting fact: in 2013, an IT worker from Wales accidentally threw away a hard drive containing 7,500 bitcoins—worth over £200 million today! How Do People Pay for Things Today? People use a variety of methods to pay for goods and services nowadays. Here are some of the main ways: Cash: Some people still prefer cash or need to use it for certain events or places that don’t take electronic payments. Bank Cards: Debit and credit cards are widely used, both through chip and pin and contactless technology. Mobile Payments: Apps on smartphones can store card details for quick payments. Online Banking: People manage their money, send and receive payments, and even pay bills using digital platforms on computers, tablets, or phones. Personal experiences show a mix of methods. For instance, some use apps for most transactions and cash for community events. Others use cash for daily purchases but pay bills online. How Did People Pay in the Past? Payment methods have changed a lot over time. Before money, people bartered goods like grain or cattle. The first money appeared in China around 1100BC, starting as small bronze tools and evolving into coins in Lydia (modern-day Turkey) around 600BC. Some significant milestones in payment history include: 1659: Earliest known cheque 1694: Bank of England established 1728: First overdraft invented 1946: First ever credit card 1964: Direct Debit system introduced 1966: Barclays issues first UK credit card 1987: First debit card 1994: Introduction of online payments Reflection on Money and Its Role Money, whether physical or digital, plays an essential role in keeping society moving. As technology develops and society evolves, the ways we can spend, save, and use money will also change. Everyone should have the freedom to choose how to spend their money, and it’s important to consider the pros and cons of each method of payment, both for the spender and for businesses. Classroom and Assembly Discussion Ideas Here are some discussion points and activities to explore in the classroom or at home: What is a digital pound, and how could it change ways to pay? How do you or your families pay for things? Make a list (cash, cards, mobile payments, etc). What are the advantages and disadvantages of different payment methods? How did people pay for things in the past? Can you find out from parents or grandparents? Which types of items do you and your family consider as necessities or luxuries? Do you own a bank account? What do you know about interest and saving money? Predict how you think money will look and work in 50 years’ time. Role-play shop activities using cash, cards, or mobile phones. Vocabulary to Use and Discuss Here are some key terms from this week’s story: Currency: The money used in a country. Digital: Relating to computer technology. Evolves: Develops gradually. Exchangeable: Capable of being substituted for one another. Issued: Officially produced or supplied. Virtual: Created or simulated by computer. In the News: Other Interesting Stories Living in a Skip to Highlight the Cost of Living Harrison Marshall, an artist from London, has moved into a converted skip for a year to draw attention to accommodation costs in London. His home includes an insulated timber frame and barrel roof, and he hopes this creative project will get people talking about housing challenges in the city. World-Record Rowing Expedition Lisa Farthofer, an Australian sailor, has set 10 world records during a rowing expedition on the Southern Ocean and even rowed in polar open waters. Together with her team, they managed long shifts, faced tough conditions, and saw amazing sights like whales and penguins. Lisa says she would take more chocolate and shoes if she does another expedition! Rare Colourful Clouds Spotted Nacreous clouds, also called 'mother-of-pearl' clouds, have recently been observed in the UK. These rare, high-altitude clouds shimmer with vivid colours and are usually visible in places with very cold, dry conditions. Reflect and Share How people pay for what they need and want has changed greatly over time, from bartering goods thousands of years ago to using digital and virtual money today. As technology progresses, it is likely that the ways we use, save, and spend money will continue to change. Consider which payment methods work best for you now and which you might use in the future. * Explore the latest Picture News resources here: https://picture-news.co.uk/free-sample * Join our latest discussion here: https://picture-news.co.uk/discuss * Explore our recent events and training here: https://picture-news.co.uk/training
