Simulation

Borrowing Costs! | Simulation | CambridgeOCR Level 3 Award in Personal Finance

Last updated 6 Aug 2026

Try this mini personal finance simulation activity to help deliver the CambridgeOCR Level 3 Award in Personal Finance.

Borrowing Costs is a free interactive tool that lays four short-term ways to borrow side by side: buy now pay later, a personal loan, a credit card and an overdraft. Students set an amount and a term, then watch the same debt priced four different ways, from cheapest to eye-watering. The headline lesson lands fast: what you pay depends far more on which product you use, and whether you keep up the repayments, than on how much you borrow. It also makes sense of APR, EAR and AER without the jargon. A few minutes, any device, and a real confidence-builder for young borrowers

Play the Borrowing Costs simulation here

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