Understanding Cash, Credit & Checks Economics 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: Watch this short video:

How Credit Card Payments Work

Credit Card Processing m/watch?v=ugcBKfbjmC k m/watch?v=ugcBKfbjmC k m/watch?v=ugcBKfbjmC k

How Checks and Checking Accounts Work m/watch?v=D9wq_5JrYc Y How Checks and Checking Accounts Work m/watch?v=D9wq_5JrYc Y m/watch?v=D9wq_5JrYc Y m/watch?v=D9wq_5JrYc Y

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