Methods of Payment

Methods of payment

100

What is cash? 

Physical form of currency such as coins and bills.

200

What is cryptocurrency? 

A type of currency that exists only in digital or virtual form.

300

What are 3 methods of payment?

Cash, debit card and credit card

400

What is an electronic wallet? 

Modern methods of payment that involve using a smartphone or smartwatch.

500

Name 3 different apps that can be used to pay for things. 

1. Venmo

2. Cash app

3. Zelle

Debit Cards

100

How old do you have to be to get your own debit card? 

18 years old

200

How do you get a debit card? 

Open a checking account and the bank will give you a free debit card. 

300

What is a debit card? 

Card used to pay for purchases. Money comes from the cardholders checking account. 

400

What happens if you don't have enough money in your bank account? 

1. Bank will decline your purchase. 

2. May charge you a fee for not having enough money. 

500

Why do debit cards require a PIN number? 

To help reduce fraud

Credit cards

100

What is interest? 

Money paid at a particular rate for the use of money that is lent/borrowed.

200

What is a credit card? 

Card used to pay for purchases. The cardholder must pay back the money.

300

What are 2 ways to build credit? 

1. Sign up for a credit card and pay your credit card off on time

2. Buy a house and pay your mortgage on time.

400

Why should you always pay off your credit card in full, on time? 

To pay no interest and to help maintain/raise your credit score. 

500

What is a credit score used for?

1. To help them decide whether you get a mortgage (can buy a house)

2. To get another credit card or some other line of credit

3. To decide the interest rate you are charged for the credit (low credit means higher interest rate)