Financial Literacy: Methods of Payment

Financial Literacy: Methods of Payment

Open Ended

What payment methods can we use to buy different things?

What is a bank account?

• A bank account is a place where people keep their money. When you get older, you will have hundreds, thousands, or maybe even millions of dollars. But you will need a bank account to store your money. You don’t want to keep one million dollars in your piggy bank in your bedroom! 

• There are different types of accounts that you can use to store your money and different types of banks that you can choose to look after your money.  

Poll

Do you have a bank account?

• yes

• no

• not sure

Canada's Big Five Banks

•  Canada has some of the strongest and safest banks in the world. You can find some of them in many different countries. All of their headquarters are in Toronto.

• Royal Bank of Canada (RBC) - 1864

• Toronto-Dominion (TD) - 1955  

• Bank of Nova Scotia (Scotiabank) - 1832 

• Bank of Montreal (BMO) - 1817 

• Canadian Imperial Bank of Commerce (CIBC)  

Cheques

• A paper that has your bank account on it. You can write an amount, give it to someone, and they can put the money in their bank account. You must go to the bank or take a picture using an app to change the cheque into money in your bank account. *Becoming used less frequently due to EFTs  

Multiple Choice

Cheques are now being used...

• everyday

• less frequently

• more frequently

• never

Cash

• Paper money and coins that can be used to instantly buy items at most stores.

Open Ended

What are some places you may be most likely to pay using cash?

Debit

• A card used to take money directly out of your bank account. You can swipe (or tap) it on a machine at the store. The money is transferred (moved) from your account to the store’s account. 

Credit

• A card that has money that you borrowed from the bank. Like debit, you can swipe/tap it at a store. Or, you can pay online for most things using a credit card. After you spend the money you borrowed, you MUST pay it back to the bank. Don’t forget that the bank will charge you more money the longer it takes for you to pay them back! 

• Popular credit card companies include Visa, Mastercard, and American Express (AMEX).

Electronic Funds Transfer (EFT or e-Transfer) -

• - Pay online by sending money to someone’s bank account using their email address. Use your phone or computer. 

• The money is moved from your account to their account. This payment method is becoming increasingly popular. 

• Can be used to pay for services (like small businesses), bills (like phone bills), or to pay back your friend after they bought you dinner. 

Multiple Select

What payment method would you use if you have to pay $153 for your groceries at Walmart. (Choose more than one answer)

• Cheque

• Credit

• E-transfer

• Debit

Multiple Choice

What method of payment would you be most likely to use if you bought a 99 cent frosty from Wendy’s?

• Cash

• Cheque

• Credit

• E-transfer

Multiple Choice

What method of payment would you be most likely to use if you owed your friend $26.75 for movie tickets?

• Credit

• Debit

• Cash

• E-transfer

Your Task

• In Assignments, you will find March 17: Methods of Payment. There you will answer these questions:

• Why can’t you use a cheque at a store like Walmart?

• Why are you likely to use cash to buy a frosty at Wendy’s?

• Which payment method do you think is the easiest to use?

• What are some challenges you might face when using cash?