Understanding Payment Methods

The video tutorial explores various payment methods, including cash, credit cards, debit cards, checks, and alternative options like layaway and installment plans. It discusses the advantages and disadvantages of each method, highlighting the convenience and risks associated with credit cards, such as incentives and interest rates. The tutorial also touches on the traditional use of checks and the benefits of layaway plans for budgeting and discipline.

What is one of the main advantages of using cash as a payment method?

• It requires a credit check.

• It is universally accepted.

• It is difficult to lose.

• It earns interest over time.

How does a debit card differ from a credit card in terms of payment?

• Debit cards offer cash rewards.

• Debit cards require a monthly fee.

• Debit cards allow you to borrow money.

• Debit cards withdraw directly from your bank account.

What is a potential risk of using a credit card?

• You could accrue high interest if not paid on time.

• You cannot use it for online purchases.

• You will always have to pay a monthly fee.

• You might earn too many rewards.

What is one benefit of using a credit card over a debit card?

• Credit cards are linked directly to your bank account.

• Credit cards are accepted in fewer places.

• Credit cards offer fraud protection.

• Credit cards require a PIN for every transaction.

How is a debit card similar to a traditional checkbook?

• Both offer cash rewards.

• Both require a credit check.

• Both are used for borrowing money.

• Both allow direct access to bank funds.

Why might someone still use checks for certain payments?

• Checks can be used for direct transfers.

• Checks are universally accepted.

• Checks are faster than debit cards.

• Checks offer cash rewards.

What is a rent-to-own payment method?

• Renting an item with the option to own it later.

• Renting an item with no option to buy.

• Paying in installments without ownership.

• Paying rent to eventually own a property.

What is the purpose of a store credit system?

• To allow borrowing from any bank.

• To eliminate the need for cash payments.

• To offer universal credit across all stores.

• To provide discounts and rewards specific to that store.

How does an installment agreement work?

• Paying in smaller, scheduled payments over time.

• Paying only when you have the full amount.

• Paying the full amount upfront.

• Paying with a credit card only.

What is the benefit of using layaway?

• Immediate ownership of the item.

• Reserving an item while paying over time.

• Receiving cash rewards for each payment.

• Earning interest on the money paid.