Cash, Credit Cards, or Checks

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.

Interested in using this resource in your classroom? Check out the posters that go along with this book: Trade & Money, Opportunity Cost.

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 register!

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.

Author: Nancy Loewen

Illustrator: Brad Fitzpatrick

Published: 2005

Grade Level: 3

Accelerated Reader Level/Points: .5

Publisher: Picture Window Books