PerFinLit: Payment Methods

Why is paying for goods and services in cash advantageous?

• cash can be stolen

• your less likely to spend compulsively or carelessly

• cash can be lost

• who doesn't have plenty of cash?

• none of these choices are reasons to pay in cash

___________________ can be considered to be a disadvantage to paying in cash.

• cash can be lost or stolen, with no consumer protection for you to fall back on

• with cash, you don't have to worry about paying special fees

• everyone always has plenty of cash on hand

• universally accepted anywhere you shop in the US

Using checks to purchase G/S is advantageous because

• you can always float a check for a week or more if you're short $

• safer when sending payment by mail and it works like cash for most purchases

• everyone accepts checks

• checks take longer when paying

__________________ is a disadvantage to using checks as a method of payment.

• Not all businesses accept payment by check

• there is no advantage to using a check to make a purchase

• everyone accepts checks

• checks are always quick & easy to use

A _____________ is a card issued by your bank that transfers money electronically from your bank account to a seller's bank account when you make a purchase.

• cash payment

• credit card

• check

• debit card

One reason why people like using debit cards is

• quick & efficient to use when making a purchase

• can only be used for online purchases

• can only be used for purchases in person in a store

• no protection against fraud

A disadvantage to using a debit card is

• no fraud protection

• you could loose or forget your pin number

• quick & easy to use

• there is no disadvantage to using a debit card

A ______________ is a small plastic card with a chip or magnetic strip that allows the card holder to make credit purchases.

• credit card

• debit card

• check

• gift card

• cash

An advantage to using a credit card is

• potential to improve your credit score

• can be used in person or online

• fraud protection

• some cards allow you to earn additional rewards

• these are all advantages to using a credit card

Disadvantages to using credit cards include

• a high balance will impact your credit score

• interest on purchases ties up future income

• can enable you to spend impulsively

• a slow payment history will impact your credit score

• all of these options can be disadvantage to using credit cards