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

M - What does that mean?
E - Well when you buy something using a credit card, the credit card company actually pays
for it. At the end of each month the credit card company needs you to pay them back.
If you can’t pay the total bill back, they will charge you interest.
CC – So what?
M- So you can end up paying twice- once for the thing you bought and again for the
interest. Wow! That’s bad.
E - Well you don’t have those problems with me. With EFTPOS you can only spend the
money you have in the bank. There are no nasty surprises like getting a monthly bill.
M- How do you work?
E - You can get me at the bank where you keep your money. They will give you a plastic card
and a PIN.
CC – Ouch! A pin, that could hurt!
E - No! PIN stands for Personal Identification Number. EFTPOS users are given a secret
PIN number and you use it each time you buy something. Then you’re right to go.
CC – What happens if someone finds out your PIN?
E - Don’t give your PIN to anyone! If someone finds out your PIN a complete stranger can
spend your money from your bank account.
M- You don’t have any of those problems with me. Cash is easy to use, every shop takes
money and you don’t have to wait until you are 18 to use money.
E - What happens if your money accidentally falls out of your pocket?
M- That’s the problem with money. You’ve got to keep me safe.
E - And if you want to buy something over the internet you can't use cash.
CC – I forgot to tell you, each time you use me you have to sign your name. That signature
must match with the one on the card. That way no one can falsely use your credit card.
E - It sounds like a credit card can be good or bad. It depends how you use it.
M- We all have our good and bad points. Don’t we?
No age barrier
ADVANTAGES DISADVANTAGES
EFTPOS CREDIT CARDS CASH Make a list of the advantages and disadvantages of each method of payment.
CONSUMER AFFAIRS VICTORIA NEED CONSUMER HELP? 1300 55 81 81 www.consumer.vic.gov.au
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