Ways to Pay (Module 3)

Ways to Pay

(Module 3)

1. Identify the pros and cons of using different payment types.

2. Categorize a purchase as either a debit or credit transactions.

Open Ended

Recall some of the payment methods Trevor used to make purchases.

Ways that Trevor paid:

• cash

• debit card (checking account)

• credit card

• prepaid card

Open Ended

Name some of the ways debit cards are different from credit cards.

Pros & Cons

There are pros and cons to using each payment type. 

Open Ended

List some of pros of using a debit card.

Pros of Using a Debit Card:

• It can’t be used unless you have the pin.

• You don’t have to carry around cash.

• The bank offers protection if someone steals and uses your card.

• You can use it to get cash.

Open Ended

List some of the cons of using a debit card.

Cons of Using a Debit Card:

• If you don’t keep track of your purchases you may overdraft your account.

• You have to remember a pin number to use it.

Open Ended

List some of pros of using a credit card.

Pros of Using a Credit Card:

• You can use is to pay for emergencies if you don’t have enough money.

• You are protected if someone steals and uses your card.

Open Ended

List some cons of using a credit card.

Cons of Using a Credit Card:

• If you can’t pay the balance in full you will be charged interest.

• You could end up paying more for purchases because of interest.

• You may have to pay a yearly fee.

• Missed payments may hurt your credit score.

Type of Transactions

In this activity you will receive a list of transactions. You must identify whether a debit card or credit card was used for each transaction. 

Multiple Select

For Example: Jamie used her card to purchase a new television. If she pays off the balance within 6 months she won’t have any interest added to her balance.

• CREDIT CARD

• DEBIT CARD

Multiple Choice

Your sister goes to an ATM and withdraws money from her checking account.

• Debit Card

• Credit Card

Multiple Choice

Last month Eric used a card to purchase a new computer from a popular electronics store. When the bill arrived he realized he only had enough to make the minimum payment.

• Debit Card

• Credit Card

Multiple Select

Jenna used her card to purchase a present for her friend’s birthday. When she received her monthly statement it was $15 more than she anticipated. She then realized that the card’s annual fee was added to her balance.

• Credit Card

• Debit Card

Multiple Choice

You’re out grocery shopping with your grandmother. When paying for the groceries the cashier asks her to enter her pin number into the kiosk.

• Debit Card

• Credit Card

Multiple Choice

Your mom returned a pair of pants she purchased that were the wrong size. A few days later she checks her online bank statement to see if the money had been returned to her checking account.

• Debit Card

• Credit Card

Multiple Select

Your parents have made you an authorized user on their account and have given you a card to use to get your back to school supplies.

• Credit Card

• Debit Card

Multiple Choice

The family car was in need of a few repairs. Your dad pays for the repairs with a card and says “We don’t have enough to cover the costs right now. I will have to put this on my card and pay the bill when I get paid.”

• Debit Card

• Credit Card

Multiple Select

Lynda gets an alert through her mobile banking app notifying her that the latest purchase she made has caused her account to go into the negative. The fee for over drafting her account is $35.

• Credit Card

• Debit Card

Multiple Select

Cameron has been putting his allowance into a checking account that his aunt opened for him. He decides to use some of the money to buy a concert ticket online.

• Credit Card

• Debit Card

Transaction Worksheet

Go to your Google Class Wall. Under the Future Smart category select Transaction Type Worksheet. COMPLETE IT NOW!