Mortgage Matters: Understanding Mortgages
Mortgage Matters is a fun and practical financial literacy worksheet designed for children aged 13+. It introduces young learners to important money concepts they may encounter as adults, including mortgages, house prices, deposits, borrowing, salaries, interest rates and affordability.
Through a series of real-life style scenarios and calculations, learners will explore how much money someone may need to borrow when buying a home, how a deposit can reduce the amount borrowed, and how income can influence the amount a bank may be willing to lend.
With examples involving different salaries, deposits and property prices, Mortgage Matters encourages children to think about affordability and responsible borrowing while developing their confidence with percentages, multiplication and financial decision-making.
What will children learn?
- What a mortgage is
- What a deposit is
- How much money may need to be borrowed to buy a home
- How salary can affect potential borrowing
- How mortgage interest works
- Why borrowers may repay more than they originally borrowed
A great financial literacy activity for ages 13+, helping children develop practical money skills and understand one of the biggest financial commitments many people make: buying a home.
Description
Mortgage Worksheet for Kids – Learn How Mortgages Work
Help children understand one of the biggest financial decisions adults make with this mortgage worksheet for kids from My Iwe.
Mortgage Matters introduces children to mortgages, deposits, borrowing, affordability and interest through simple explanations and practical maths activities.
What is a Mortgage?
A mortgage is a loan commonly used to help buy a home. Because houses can cost a lot of money, people will often save a deposit and borrow the remaining amount from a bank or mortgage lender.
This worksheet helps children understand how this works before giving them practical problems to solve.
What Will Children Learn From This Mortgage Worksheet for Kids?
Children will explore:
- What a mortgage is and how it works
- What a house deposit means
- How to calculate the amount someone needs to borrow
- How to calculate a deposit as a percentage of a property’s price
- How salary can affect mortgage borrowing
- How mortgage affordability can differ between people
- Why borrowers usually repay more than they originally borrowed
- How interest affects the overall cost of a mortgage
Real-World Money Challenges
The worksheet moves beyond definitions and encourages children to apply their maths skills to realistic financial scenarios.
For example, children are asked to calculate how much someone may be able to borrow based on their salary and compare this with the price of a property.
They will also explore how different combinations of income and savings can affect whether someone may be able to afford a home.
The final challenge asks children to compare two people interested in buying a £1 million property, using their different salaries and deposits to work out who could potentially afford it.
Financial Education Through Maths
Mortgage Matters combines financial literacy and maths to help children see how percentages, multiplication and subtraction can be used in everyday adult life.
It can be used by parents, teachers and home educators as an introduction to mortgages, borrowing, saving and financial decision-making.
Explore the Mortgage Matters worksheet below and help children build their understanding of money and personal finance.
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