Warm-up What are the three reasons why money is important? Medium of exchange (trade easier) Store of value Measure of value (compare values) What are the three characteristics of money? Durable Portable Divisible

Which of the following is the most likely to be widespread in 25 years?

The Future is Already Here! More and more, we are heading towards a cashless society

Other than cash, what can you use to buy things in this country?

Other than cash Gift Cards/Certificates Cons? Can be restricted or expire

Other than cash Debit Card—allows you to withdraw directly from your bank account

Other than cash Debit Card Pros? Don’t have to carry a lot of cash (Possibly) safer than cash

Other than cash Debit Card Cons? Can’t use it everywhere Overdraw—If you don’t have enough money in your account, you can be charged a fee

Other than cash Prepaid Debit Card—allows consumers without credit card or bank account to make purchases

Other than cash Prepaid Debit Cards Pros? Just like debit cards Cannot overdraw

Other than cash Prepaid Debit Card Cons? Sometimes have fees Some places need special authorization (restaurants)

Other than cash Personal Checks—allows you to withdraw from your own personal checking account

Other than cash Cashier Checks—allows you to draw on banks’ funds

Other than cash Money Order—payment order for an amount. You pay for it when you get it, so the person accepting the order knows the check is good.  

Other than cash Credit Card—the credit company pays for you, but then you owe them the money within a certain amount of time (possibly with interest)

Other than cash Electronic Transfer (EFT) You can give groups permission to take money directly from your bank account for bills

Credit Cards and Teens