Understanding Cash, Credit &

ChecksEconomics in Action

Credit Terminology

Total credit line – the maximum amount that can be charged.

Total available credit – Total credit line minus the new balance.

Cash limit – maximum amount that can be used as a cash advance

Cash available – cash limit minus new balance

Credit Terminology

Amount past due – any amount that was not paid on time

Statement closing date – the date of the last purchase billed on this statement

New balance – what is now owed

Payment due date – date by which the minimum payment must be made

Minimum payment – the least amount that must be paid to avoid penalty

Previous balance – last month’s balance

Credit Terminology

Payments – how much was paid in the last billing period

Other credits – any refunds posted to the account in the last billing period

Purchases – total amount spent in this billing cycle; this is itemized in another part of the statement

Cash advances – amount charged to this account for cash received

Other fees – late fees or other service charges

Finance charge – interest incurred on previous balance

Grace period – time when no interest is charged on new purchases if the new balance is paid in full by the payment due date

Use your note organizer

You are getting ready to view several short videos.

As you view the videos, be sure to take notes on the hand-out titled “Advantages and Disadvantages of Various Methods of Payment”

Listen carefully to each video so that you can take effective notes.

How Credit Cards Work

Watch this short video:

http://www.youtube.com/watch?v=qAQnIwSeih8

How Credit Card Payments Work

http://www.youtube.com/watch?v=8SQ3qst0_Pk

Credit Card Processing

http://www.youtube.com/watch?v=ugcBKfbjmCk

 

How Checks and Checking

Accounts Work

http://www.youtube.com/watch?v=D9wq_5JrYcY

NextLook at the rubric you’ve been given called “Assessment.”

You will become part of a panel where you will discuss the advantages and disadvantages of cash, credit & checks.

Your group will write a script, and you will record yourselves on the panel.

You will need to include all of the terminology given to you at the beginning of the power point.

You will need to include the advantages and disadvantages of each topic.

Your video will need to be an educational teaching tool.

Panel/Video Requirements

3-4 minutes in length

All terminology used

Disadvantages & Advantages discussed from each topic

Use information from 221-235 in your discussion

Each person has a clearly defined role

Each presentation has a script

DUE

December 18, 2013

You will present on December 20, 2013.

You may need to work on this at home as well through the use of Google Docs.