Minds On
Banks
Adults can keep cash and other valuables at home in an adult piggy bank called a safe, but today most people, including children, have a bank account at a bank.
Explore the following episode of TVOK News to learn a bit more about bank accounts.
Like Shannon shares with us in the video, we can deposit (or put) money into our bank account(s) and withdraw (or take out) our money from our bank account(s).
Also, an individual can have more than one account with a bank and have accounts with several banks if they wish.
In this learning activity, you will be learning about other ways to pay for an item or a service other than using cash. These alternatives require having a bank account and a bank card.
Action
The bank card
In the early 1990s, six of Canada’s largest banks started introducing the bank card, also called a debit card.
Before this time, the most common way people could put money into their bank account would be to go to their bank branch in person. They would be completing deposit transactions. If they were taking cash from their bank account, they would be completing a withdrawal transaction.
People might wait in line for their turn to go up to the bank teller with a bank book.
You can still go to a bank branch to deposit and withdraw money using your bank card (also called your debit card) for your bank account. However, bank cards and automated banking machines (ABMs) provide options to do transactions outside of branch hours, without requiring the service or help of a bank teller.
A bank card is made from a kind of plastic and looks like a credit card, but they are not the same and have a separate set of banking conditions or rules.
The bank card’s PIN
Each bank card is assigned a personal identification number (PIN) for security. Only the person who is assigned the bank card knows the PIN. A cardholder can use the PIN to access the money or funds in their bank account.
Swipe to tap
Since the end of 2015, all bank cards come with a chip that has the option to insert or tap. Before 2015, bank cards would be swiped.
Student Success
Think-Pair-Share
Consider the following questions:
- Why shouldn’t you put your PIN on your bank card?
- Should you share your bank card’s PIN with your best friend?
Note to teachers: See your teacher guide for collaboration tools, ideas and suggestions.
Parent/guardian(s) can create a bank account for their children. Like Shannon shared in the “TVOK News” video, having a bank account as a kid can help you learn about managing your money, and help to develop healthy and responsible financial habits.
No cash on me!
So far, you have learned that a bank card can be used at a bank branch. However, today you can also use your bank card to make purchases to pay for goods or services in most stores or businesses if you do not have any cash on you.
Cash back
Some stores will also supply a service called “cash back,” which means when you make a purchase using your bank or debit card, you can ask the store to also withdraw a cash amount to take from your bank account. You can get “cash back” at certain grocery stores or superstores like Costco or Walmart.
Cash or debit scenarios
With a partner, if possible, work through the following scenarios together. Record your thinking using an audio recorder, on paper, or on a computer, in an organized way.
Scenario 1
A
fitness centre owner is looking to buy an elliptical machine for their new small gym. They are
starting with $5,000 in their bank account. They walk into a sports equipment store to check out
what is available. They find one they like priced at $696, and without going to other stores,
they decide to buy it.
Which form of payment would be suitable? Paying in cash or using a debit/bank card? Explain your reason(s).
Estimate about how much change the fitness centre owner should receive if they pay:
- with $1,000 cash using mental math (use rounding as part of your strategy)
- if they pay with $800 in cash
- if they pay with $750 in cash
Do you need a hint on rounding numbers? Press the ‘Hint’ button to review rounding.
Round the price of the elliptical
Rounding to the nearest hundred:
Look at the number in the tens column. If it is a 5, 6, 7, 8, or 9 then add 1 more to the number in the hundreds column. If the number is 0, 1, 2, 3, or 4, leave the number in the hundreds column the same.
Rounding to the nearest ten:
Look at the number in the ones column. If it is a 5, 6, 7, 8, or 9 then add 1 more to the number in the tens column. If the number is 0, 1, 2, 3, or 4, leave the number in the tens column the same.
For each estimated answer, calculate the exact change, and compare your calculation to your estimation.
How does rounding help with mental math?
Scenario 2
Four friends go for walks outside together and come across a vegan ice-cream shop. One friend gets a double scoop of vanilla on a regular cone for $6, another friend gets a fruit sorbet with fresh strawberry toppings on a waffle cone for $8, and the other two friends each get a mocha chocolate extra-large cup to share for $10.
Which form of payment would be suitable, paying in cash or using a debit or bank card? Explain your reason(s).
Estimate how much change the friends should receive for their vegan ice-cream treats if they pay in cash with:
- a 50-dollar bill
- a 20-dollar and 10-dollar bill
- two 20-dollar bills
What strategies did you use to answer these questions?
For each estimated answer, calculate the exact change, and compare your calculation to your estimation.
Based on these two scenarios, when is it more suitable to use debit instead of cash?
Consolidation
Practice
Demonstrate what you have learned by completing the following task.
Task
Create a poster, journal entry or an oral presentation to share what you have learned in this learning activity.
Be sure to include information about:
- bank accounts
- bank/debit card, PIN, tap
- at least 2 new specific examples where it would be better to use a debit card to make a payment in a store, and some situations where it might be better to use cash instead
- one solid financial tip about making large purchases or selecting an expensive service like having windows cleaned, or agreeing to pay for snow shovelling for 4 months
Reflection
As you read through these descriptions, which sentence best describes how you are feeling about your understanding of this learning activity? Press the button that is beside this sentence.
I feel...
Now, record your ideas using a voice recorder, speech-to-text, or writing tool.