Methods of Payment (continued)

We continued where we left off yesterday... methods of payments.  We had covered cash, check, debit, and transfers, so we moved into automatic payments.

We discussed that signing up for automatic payments allows you to have a payment deducted from your bank account on a specified date.  However, you have to remember when this occurs and be sure to record the deduction from your account.  We also talked about the fact that you have to make sure to discontinue the service, otherwise they will continue to take the money until they are contacted.  It is also possible for you to be charged a fee for using this service.

Our last topic today was CREDIT.

I will admit that I wasn't very complimentary of credit.  While I did point out it is good to have in case of emergencies and to build a good credit profile.... I also made sure students understood that you are BORROWING money that you do not have.  Unlike the other methods of payment which limit the amount you can spend because there is only so much in your account, credit allows you to spend money that you do not have.  I also pointed out that you are charged a fee (interest) for borrowing that money.  I tried to make it perfectly clear that getting out of debt caused by using a credit card can take years and quite a bit more money than you may have thought.

That's it.... the methods of payment.

Homework tonight is 17.4 - Paying Bills from the math book.