Consumer Stuff for kids (PDF, 6.2 MB) - Consumer Affairs Victoria

The "How to Pay" Role-play
NAME . . . . . . . . . . . . . .
This role-play has 3 characters shopping together and talking about how they purchase goods.
The characters are:
1. M - Malik Money = notes and coins
Notes and coins are also called cash.
2. CC - Carrie Credit Card = + signature
Credit cards are plastic cards issued by banks or other finance companies.
With a credit card you can buy goods and services without using cash.
This is how it works:
1. A consumer signs up for a credit card.
2. The consumer buys goods and services with the credit card.
3. The credit card company pays the store on behalf of the consumer.
4. The consumer will get a bill in the mail from their credit card company for the amount
they purchased. The consumer can either:
Pay back the credit card company the full amount of the bill.
•
•
or
If the consumer cannot pay back the credit card company in full, they must
begin to pay off the bill in small amounts. If they do this the consumer will
be charged interest.
3. E - Effie EFTPOS = + PIN number
EFTPOS means Electronic Funds Transfer at Point of Sale. This simply means money
(funds) from your bank account moves (transfers) to the shopkeeper’s bank account
automatically (electronically) while you are still in the shop (at point of sale).
To use EFTPOS, you must have a special plastic card and a Personal Identification Number, or PIN.
Carrie Credit Card, Effie EFTPOS and Malik Money are shopping ...
CC – Hey guys, have I told you how good it is to buy stuff with me?
E - What’s so good about a credit card?
CC – Well for starters, you can buy anything you want. You just “put it on” your plastic credit
card. And it’s easy to buy stuff off the internet too.
M - Yeah but with a credit card you still have to pay for everything you buy. It’s not like
some magic wand. The credit card company will just send you a big fat bill at the end
of the month and you have to pay them or else!
CC – I know that! My credit card company said it doesn’t matter if you can’t pay the whole bill
at once, you can just pay a little bit each month until you’ve paid back the whole amount.
E - Durrr! If you do that you’ll get charged interest! That’s how credit card companies
make money.
M - How does the credit card company make money?
E - By charging credit card users interest if they don’t pay the full amount on time.
42 CONSUMER AFFAIRS VICTORIA NEED CONSUMER HELP? 1300 55 81 81 www.consumer.vic.gov.au