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LESSON: CASH, CREDIT CARDS, OR CHECKS: A
Book About Payment Methods
Lesson
Summary:
This simple
book teaches children the basics about how to pay for goods and
services. Children learn about checks, credit cards, debit cards,
and ATM’s. Teachers can also use the book to discuss wise purchasing
decisions.
Concept: Trade and Money (emphasis on
credit cards and checks)
Definition: Money is anything commonly used
to exchange goods and services. A credit card is a tool which allows
people to receive a loan to purchase goods and services. A credit
card is not money, since the loan must be repaid. A check is a
written request for a bank to pay a specific amount of money to a
particular person or organization. A debit card is like a check,
instructing the bank to pay money out of a checking account.
Comprehension Questions:
What is a
check?
A check tells the bank to take a certain amount of money
from a checking account and pay it to a person or store.
How is a
check different from a debit card?
A debit card acts like a check,
instructing the store to take money from a checking account and pay it to
a person or store. It is faster than a check and involves less
paperwork. But you must remember to mark your purchase down in a
check resister!
What is a
check register?
A check register is where you record deposits and
check or debit card payments. Keeping an accurate check register lets
you know exactly how much you have in your checking account.
What is a
credit card?
A credit card is basically a loan. It is not
money. If you pay back the loan within 30 days, no interest is
charged. Interest payments can be significant.
When a
credit card is used, who pays the store?
The credit card company
pays the store, and the cardholder pays back the credit card
company. The credit card company also charges the store a fee for the
service of allowing customers to use the credit card.
What are
the benefits and dangers of using a credit
card?
Benefits: Credit cards are easy, convenient, safe to use
(money can be stolen), and allow you to purchase items before you have the
money saved.
Dangers: The primary danger is
going into too much debt, resulting in high interest payments. Using
a credit card requires significant spending discipline! One can lose
a credit card, but if it is reported, the cardholder has little or no
liability.
Why did
Amy purchase the expensive back pack?
It had wheels that helped her
carry heavy books. When making purchases, price is not the only
criterion to use.
When Amy
purchased the two pairs of regular jeans and the belt, what was her
opportunity cost?
The designer jeans
If she had
purchased the designer jeans, what would have been her opportunity
cost?
The two pairs of regular jeans and the belt
Other
Concepts: Opportunity
Cost |
