Meet Bobby, Chloe and Elisha…
They’re three school kids that have been set some pretty tricky homework, they have to write a song all about money.
Have a listen to this episode in which they’re talking about digital money…
What’s the internet got to do with money?
The internet is super important to money!
There are loads of situations in which people rely on the internet to buy something.
I’m sure you’ve seen your parents buy stuff online – well that’s one way but you might have used the internet to spend too.
Have you ever paid for anything in a game for example? You’re not holding that money and you can’t really see it – that’s digital money you’ve spent using the internet!
Another massive reason the internet’s so important to money is because of credit and debit cards.
How do credit and debit cards rely on the internet?
When your parents buy food at the supermarket you’ve probably seen them pay using a card – probably a credit or debit card.
That card relies on the internet!
All that’s happening is that card is taking money from your parents bank account and putting it into the shops bank account.
Watch this video where Techno Mum explains how the cards work…
So the internet is great when it comes to money. It lets us pay for things without having to carry coins and notes around and lets us spend money in places that would have been impossible to spend money before like in games or on our phones.
What’s the difference between a credit card and a debit card?
They look almost identical and you’ll see people using them to pay for things in the shop in basically the same way but there are a few differences.
Credit cards
Banks give people credit cards and when you spend money using a credit card you’re not spending your own money, that’s money the bank has given you that you need to pay back.
Debit cards
Your bank gives you a debit card but when you spend using these you are spending your own money. It comes straight out of your bank account.
Some kids bank accounts give out debit cards – you might even have one!
Your mission is to complete this quiz…
What does 'digital money' mean?
- Money you can spend using computers or phones
- Money made out of paper
- Money you can only find in a bank vault
- Money that is shaped like a coin
When you pay with a debit or credit card in a shop, what happens to your money?
- It moves from your bank account to the shop's bank account
- It stays in your pocket as coins
- It disappears completely
- It turns into a paper receipt
Which of these is a way to spend money using the internet?
- Buying something inside a game
- Counting coins in a jar
- Drawing a picture of a bank
- Writing a shopping list
What do you need to use a credit or debit card in a shop?
- A machine that connects to the internet
- A pair of scissors
- A pencil and paper
- A ruler
Why is the internet important for money?
- It lets us pay for things without carrying coins and notes
- It makes coins heavier
- It stops shops from opening
- It turns money into paper
What is a bank account?
- A safe place where your money is kept and looked after
- A type of shoe
- A kind of sandwich
- A game you play outside
Which of these is true about paying online?
- You can pay for things without touching coins or notes
- You must always use coins
- You can only pay on a Monday
- You have to pay with a drawing
What does a debit card do?
- It takes money from your own bank account to pay for things
- It gives you free sweets
- It makes your money disappear forever
- It turns into a bus ticket
What does a credit card do?
- It lets you pay now and pay the money back later
- It gives you money for nothing
- It only works in toy shops
- It makes coins out of plastic
Which of these can you do with the internet and money?
- Send money to someone far away
- Turn a coin into a butterfly
- Make a bank out of cardboard
- Grow money in a garden
