3. How can we pay for our shopping? Lucy paid for her shopping using cash from her savings. Anna used a gift card. However, when their parents go shopping they often use debit cards or credit cards to pay for their purchases. When shopping, consumers can pay with their own money or use borrowed money.
Pay with our own money using… Cash Debit cards Gift cards Pay with borrowed money using… Loans Hire Purchase Credit Cards
Loans, Hire Purchase and Credit Cards are covered in Chapter 8: Borrowing Wisely
Use cash Paying with cash means using notes and coins. In Ireland, the Euro is used as the currency and is the legal tender. Legal tender means that the notes and coins must be accepted as payment by retailers if offered by a customer. Paying with cash allows payment to pass immediately to the seller and the customer becomes the owner of the goods straight away. Paying with cash is very common. The main benefits of paying by cash are: You know how much you have available to spend and how much you have left over. Since you can only spend the money you have, you cannot get into debt.
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Did you know?
In developed countries like Ireland, only about 10% of money takes the form of banknotes and coins. Over 90% is ‘electronic money’ that only exists as numbers in bank accounts.
