Yesterday Room 20 had a financial literacy lesson with Michelle from ASB. Some of
the questions she asked us were:
What are different ways to earn money? The main ways for us are pocket money from
chores and neighbourhood jobs.
Why it is better to save money in a bank account compared to
a money box? If we have money in our bank account and don’t touch it, it
collects free money called Interest. With Nafi, Kate and Lucy’s help, Michelle demonstrated
to us the difference between saving money in a money box compared to a bank
account.
How old do you have to be to get an EFTPOS card? You can be
any age with parents’ permission.
Each EFTPOS card has a PIN on it. What does PIN stand for?
Personal Identification Number.
Who should we tell our PIN to? No one. Anyone can use our
EFTPOS card if they know the PIN.
How old do you have to be before you can get a credit card?
18 years old. We also have to have a good job and prove we can pay it back.
Is interest good or bad? Both. Earning interest on money in
a bank account is good – it is a reward for having money in a bank account.
Earning interest on a credit card is bad – it is charging you for not paying
your credit card back.
We also discussed:
Sensible ways to spend our money.
Sensible things to
spend our money on.
The earlier we put money into a bank account,
the earlier we start to save.
