The Most Popular Ways to Pay
Money comes in all shapes, sizes and colors. When it comes to using money to pay for things, there are many different ways to do it. Here are some of the most popular:
Using coins and bills is the most popular way to pay for things in the U.S. Cash is easy to carry around, and nearly everyone accepts it. When you carry cash, you must be careful not to lose it, because there’s no way to replace it.
You can always deposit cash into a savings account and withdraw it when you need it. This is the safest way to take care of your cash.
When you open a checking account, you are given checks to pay for things. A check is a note you sign that is worth the amount of money you write on it. The amount is then taken from your checking account and put into someone else’s account. Checks are good when you don’t want to carry cash.
You can only write a check for the amount of money you have in your checking account. For instance, if you have $50 in your account, you can write a check for $50 or less, and it’s always good to make sure you have a little room; always make sure you have enough money to cover the check.
Some people use credit to pay for things. Credit is a promise to pay later. One way to use credit is with a credit card. This is a plastic card lets you borrow money just by inserting your card into a machine. It sounds easy, but, when you use a credit card, there is sometimes a fee you have to pay. This is called INTEREST, and if you’re not careful, you could end up paying twice as much for as what you see on the price tag.
A debit card (also called a check card) looks like a credit card, but it’s very different. A debit card works like a check. Instead of writing a check, you simply slide your card at the cash register. Money is then taken out of your checking account.
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