Minds On

Different ways to transfer money

A girl with multiple thought bubbles, each with a type of payment in them (cash, credit, debit, etc).

Match the term to the definition that it belongs to.

Action

Factors for transferring money

Two people holding up their phones showing that they sent money through a digital wallet.

You just practised matching different ways of transferring money. Can you think of another way to transfer money that wasn’t mentioned?

Money is a medium of exchange for most goods and services and there are different ways to transfer it, which is quite important. This is because individuals, organizations, and businesses all have different needs when it comes to purchasing goods and services and receiving money for these, too.

Some methods of transferring money might work for some people and situations, but not for others. There are a variety of factors to consider. Here are a few:

  • What is the purpose of the transfer? Is it a casual or formal transfer? For example, financial transactions between friends and family can be casual: “You pick up coffee this time, I’ll pay for coffee next weekend.” Or “I’ll pay for our coffees with my debit card, and you can give me cash for the cost of your coffee.”
  • What or who is the transfer for? Context is important because while a person might use cash to buy groceries, they might want to be or be able to use cash to buy a larger purchase like a used motorbike.
  • What is the amount being transferred? Some transfer methods have a minimum and/or maximum transfer limit.
  • Where is the money going? Individuals, organizations, and businesses have to consider geography or where the money is going because only some transfer methods are meant for sending money overseas.

Examine the scenarios below. Select four scenarios from the list and explore what method of payment a person might use and why. For example,

  • A person might use e-transfer to pay back a friend who lives far away. E-transfer is convenient because you can send money electronically and you only need to know the email address or phone number of the recipient.

You can use what you know and any research that you may need to complete this activity. Here are the scenarios:

Scenarios:

  1. Purchasing video games from an online store
  2. Purchasing groceries for the week
  3. Sending money to an overseas vendor for a vintage vase
  4. Giving money to friends or family for a special occasion
  5. Making a quick payment without entering credit card information
  6. Donating to a local organization
  7. Making a cell phone bill payment
  8. Purchasing a used car

You can record your findings using the “Research Findings” graphic organizer in your notebook or by using the following fillable and printable document. Just be sure to indicate which scenarios you have selected and the method(s) of payment a person might use and why.

Press the ‘Activity’ button to access Research Findings. 

Consolidation

Consider:

  • How do you choose what method of payment to use?
  • Is there a “best” way to transfer money? Why or why not?

I used to think… now I think

Complete a “I used to think… now I think” exit slip. Reflect on your thinking about ways of transferring money and how it has changed. You can also add any questions that you still have.

Record your thinking using a method of your choice.

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.