
Debit & Credit Cards
Presentation
•
Other, Professional Development
•
9th Grade
•
Medium
Andy Zhou
Used 13+ times
FREE Resource
9 Slides • 17 Questions
1
Debit & Credit Cards
Street Finance
2
What's happening today...
Group brainstorming on debit & credit cards
Case study involving mock credit and bank statements
Classroom discussion on debit & credit cards: which one would you prefer?
3
Open Ended
Based on your own knowledge, define what a debit card is.
4
Open Ended
Based on your own knowledge, define what a credit card is. What do you think are the main differences between a debit card and a credit card?
5
Example
2 May: Jim uses his ANZ credit card to purchase Nike shoes for $100
14 May: Jim repays $80 to his ANZ credit card account balance, leaving $20 owing balance
31 May: At the end of the month, interest at 10% is charged on the remaining balance of $20 -> $20 x 0.10 = $2
Jim will now need to pay the interest of $2 plus the closing balance of May of $20, total of $22
At the end of the next month June, Jim's owing balance will open at $22.
What if he doesn't repay anything in May?
6
Video
Dangers of credit card debt
7
Diligent Credit Card use has its perks!
Improve credit rating
Cash back on purchases, sign-up bonuses
Some purchases made easier; hotel reservations, car holds, etc...
Credit card awards points can redeem gift cards, airline miles
Can be safer, avoid losses from fraud
Improved cashflow, not immediately deducted from bank account
Insurance and warranties
8
Case Study
In groups, analyse the credit card and bank statement
Answer a series of questions from Quizizz
9
10
11
Multiple Choice
How much is the minimum payment? What is the minimum payment?
$20, payment required to avoid paying interest on Alvin’s next period’s payment.
$900, payment required to avoid paying interest on Alvin’s next period’s payment.
$20, payment required to avoid paying late fees and interest on Alvin’s next period’s payment.
$900, payment required to avoid paying late fees and interest on Alvin’s next period’s payment.
12
Multiple Choice
What is the opening balance?
(select the most correct answer)
The amount outstanding that is still owed to Streetbank from 31 May
The amount Alvin Smith still owes to Streetbank from the last statement period
The amount Streetbank still owes to Alvin Smith from the last statement period
The amount outstanding that is still owed to Streetbank from 16 May
13
Multiple Choice
What is the closing balance?
(select the most correct answer)
The payment to Streetbank needed to earn awards points at the statement end date.
The payment to Alvin Smith needed to avoid interest charges on the next statement end date.
The payment to Streetbank needed to avoid interest charges on the next statement end date.
The payment to Streetbank needed to avoid any extra fees/payments on the next statement end date.
The payment to Alvin Smith needed to avoid any extra fees/payments on the next statement end date.
14
Multiple Select
What is the credit limit?
(select ALL correct answers)
How much Alvin has left to spend on his credit card
If Alvin goes over this, he may be charged an over-limit fee, or his purchase may be declined
It is the maximum outstanding balance Alvin Smith can have
The maximum amount of money that can be lent to Alvin by StreetBank on his credit card account
15
Fill in the Blanks
Type answer...
16
Fill in the Blanks
Type answer...
17
Fill in the Blanks
Type answer...
18
Fill in the Blanks
Type answer...
19
Fill in the Blanks
Type answer...
20
Open Ended
Building on last week’s budgeting lesson, which expenses do you think Alvin can reduce? Why?
21
Open Ended
Can you explain how minimum payments benefit the credit card distributor/bank? Are minimum payments costly for the consumer? Why/Why not?
22
Open Ended
Looking at the formatting of the credit card statement, how does it promote paying the minimum payment?
23
Open Ended
What do you think the purpose of the awards points are and what kind of spending habits does it promote?
24
Open Ended
In 2-3 sentences, evaluate Alvin’s spending behaviour.
25
End of Case Study
Well done!
26
Open Ended
What are 3 things you found valuable? What are 2 things you think could be improved in the lessson? Any questions you may have still?
Debit & Credit Cards
Street Finance
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