Types of Payment
paying with coins or bills
what is cash?
You were given this as a gift, and you can only spend it at Indigo or Chapters.
what is a gift card?
You buy a book that costs $7.00. You pay with a $20.00 bill. How much change do you get back?
what is $13.00?
What is cash?
bills and coins that you use to purchase goods or services
What is one advantage and one disadvantage of using cash?
Advantage: accepted almost everywhere, no extra charges to use/ keep, can help to save money by limiting how much you spend
disadvantage: can't purchase things online, bulky to carry around in your wallet, don't always have cash on you, risk of losing cash
using a card with $50.00 on it that has already been purchased from a store
what is a gift card?
Your parents or caregivers want to pay rent from their bank account at the end of the month, so they give someone something they can cash later.
what is a cheque?
You buy a Blue Jays hat for $28.00. You pay with a $50.00 bill. How much change do you get back?
what is $22.00?
What is a debit card?
A debit card is a payment card issued by a bank that allows you to pay for goods and services or withdraw cash directly from your chequing or savings account.
What is one advantage and one disadvantage of using a debit card?
advantage: can be used almost everywhere to make purchases in store or online, they are secure as you need a PIN to withdraw money, your money comes directly out of your account, and you know exactly how much you can spend
disadvantage: if lost, someone can make small purchases using contactless payment
paying with a card that links to your bank account and the money comes out of your account immediately
what is a debit card?
Your brother is 20 years old and wants to buy a new computer. He doesn't have enough in his bank account right now, but he will be paid this week from his job and have enough. What could he use to pay?
what is a credit card?
You buy a soccer ball for $14.00 and a sweatshirt for $26.00. You pay with a $50.00 bill, how much change will you get back?
what is $10.00?
What is a credit card?
A credit card is a payment card that allows you to borrow funds up to an approved limit to purchase goods and services or withdraw cash.
It acts as a short term loan, you have to pay off the balance in full or in parts by a due date to avoid interest charges.
What is one advantage and one disadvantage of using a credit card?
Advantage: you can make purchases even if you don't have the money right away, building good credit is very important, it is convenient to use online and for large purchases
disadvantage: if you don't pay back on time, you will have to pay even more in interest, you can put yourself into debt if you are unable to pay off what you owe
using a card to pay for things with money you borrowed from the bank
what is a credit card?
You want to buy materials for making glow in the dark, butter slime. You want to pay for them from your bank account right now, but you don't have any cash.
what is a debit card?
You buy a set of headphones for $38.00, a new iPad case for $12.00, and a book set for $25.00. You pay with $100.00, how much change will you get back?
What is $25.00?
What is Electronic Money Transfer (EMT)?
EMT is when you send money through digital platforms from one account to another, between the same bank or different banks without having to go into a bank.
What is one advantage and one disadvantage of using EMT?
Advantage: you can send and receive money from anywhere at any time, you don't need to go into a bank, security - password protected to accept funds, digital record of all transactions online
Disadvantage: funds could be sent to the wrong person if the email or number is mistyped, once an EMT is accepted, the transaction cannot be cancelled, risk of hackers through email
Giving a piece of paper to someone that shows how much money you want them to take out of your bank account for them to put into their account
what is a cheque?
You owe your friend $50.00 for buying a pair of shoes from him, but he moved far away. How could you pay him?
what is EMT (electronic money transfer)?
You have $50.00 in cash. What are 4 different ways you could represent $50.00 with bills and/or coins
answers may vary:
- 50 dollar bill, 2 20 dollar bills and a 10 dollar bill, 10 5 dollar bills, 2 20 dollar bills and 5 toonies...
What is a cheque?
A secure, paper document that acts as a written order directing a bank to pay a specific amount of money from the users account to a specific person/ business.
What is one advantage and one disadvantage of using a cheque?
advantage: takes up less space than cash, payments can be cancelled if needed, cheques can be written at any time
disadvantage: depositing a cheque can take time, people without bank accounts cannot write or deposit cheques, purchasing a chequebook costs money