Minds On
In store and online purchases
Explore the following image of items that a person might buy.
Which items do you think a person might be most likely to buy online and which ones are they more likely to buy in a store? Brainstorm your ideas and record your thinking using a method of your choice.
Action
Part A: Purchasing online
Amazon and eBay are online business giants and were the first companies to accept payment online or electronically. These companies are said to have begun the e-commerce sector.
Today, the five largest companies selling online are:
- Amazon
- Staples
- Office Depot
- Dell
- Hewlett Packard
Computers, electronic products, stationery, office supplies, music, and books are considered the most popular items that are purchased and sold online.
People used to need a credit card to pay for items online. Now, Interac debit cards, VISA or Master Card debit-credit cards, prepaid credit cards, and PayPal allow people to pay for goods and services.
People can also send payments through a service called “electronic funds transfers.” This means that they can transfer money from their own bank account to pay people or businesses all online!
People can even take a picture of their credit card, debit card or debit-credit card and keep it on their electronic wallet, which is right on their phone.
Protecting from online fraud (theft)
Banks and credit card companies now have chips on the cards, and a PIN (personal identification number) that is set by the card or account holder.
This means when someone has a debit card, they need to memorize their PIN and/or record it safely somewhere so they don’t forget it.
If anyone ever loses a card, they should immediately call the bank or credit card company to report it lost. The bank will cancel the card so it can no longer be used.
Also, everyone needs to be careful and only use websites and companies online that they trust when they do transactions.
Practice
Explore and think about the following quotes. What do you prefer? Record your responses in the format of your choice.
Quote 1
“Carrying cash is better than using a debit card because a debit card is linked to your bank account.”
Quote 2
“Using a debit card is more secure than cash because if you lose cash you can’t ever get it back.”
Repeat the exercise with the next two quotes:
Quote 3
“Purchasing items in a store is better than purchasing goods online because you can examine the items in person.”
Quote 4
“Purchasing items online is better because you don’t have to go anywhere to make the purchase.”
Record your responses in an audio recording, on paper, or on the computer:
- What are the pros and cons of using a debit or credit card?
- What are the pros and cons of making online transactions (purchases, payments) for goods and services?
- Why do you think online purchases are popular?
- What form of payment do you think you will prefer and why?
Part B: Financial habits
Think and respond to the following question:
Is paying online or through a smartphone the same as paying in cash?
Some people say that it is better to use money to purchase everything because once cash is all used up, it’s gone.
However, when people use cards or their smartphone, it doesn’t feel as if they are spending money because they are not interacting with it the same way.
Explore the following scenario. Record your thoughts and ideas together using an audio recorder, paper, or computer, in a way that keeps your ideas organized.
Scenario
Part A
Through hard work and coming together as a team, a class has carefully, and responsibly, saved $750.00 for a new computer. The money has now been placed in the school fundraiser bank account.
As a class, they have decided to purchase a new computer which costs $625.00. They also need some new software that costs $50.00 and a headset which costs $25.00.
Using mental math, estimate if this class has raised enough money for their new computer, software, and headset.
Calculate the total cost they must pay. How much will of their money will be left in the school bank account?
Part B
The class would like to buy more electronic equipment after making their purchase in Part A. They decide to purchase a speaker for $17.00 and a video camera for $43.00.
Is there enough of their money to buy this electronic equipment? What do you think will happen when the purchase is made?
Consolidation
Reflect on your learning
What you have learned about paying with cash and paying with debit or credit through this learning activity?
What was the most interesting part of this lesson for you? Why?
Record your thoughts in an audio recording, on paper, on the computer or in a visual way.
Questions
- Describe a situation where it might be more suitable or convenient to make purchases online.
- Describe a situation where it is more suitable or preferable to make purchases in person.
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.