Contents
Chapter 1: Australian money
1
Chapter 2: Your money and the bank
9
Chapter 3: Taking care of your money in the bank 19
Chapter 4: Borrowing and saving money
27
What have you learnt?
35
Final activity
36
Answers
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Bankbooks
A bankbook (or passbook) is record of all the money deposited and
withdrawn from your account. It also shows how much money you
have left in the account, which is called your account balance. A
bankbook usually has your signature in the back; however, it is written
invisibly, which means only the bank can read. Your signature is your
identification, so no-one else can withdraw money from your account.
A bankbook can only be used at the bank or at a post office.
ATM cards
ATM stands for automatic teller machine. An ATM is a machine that
lets you withdraw or deposit money into your account, without having
to go into the bank. To use an ATM, you must have a card that is
linked to your bank account. There are two main types of card: a debit
card and a credit card. These cards are very useful as you can also use
them to buy things from shops and businesses.
Bank of
Australia
MONTH/YEAR
EXPIRES
10
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If you have a debit card, you can only withdraw as much money as
you have in your account. When you use a debit card, you need a PIN
as identification. This is a personal identification number, which only
you know, so only you can withdraw money from your account. When
you use an ATM to withdraw money, or buy something using your
debit card, you must enter your PIN. At the end of the month you will
receive a bank statement, which is a record showing how much money
you withdrew and deposited. These are called your transactions. The
statement also shows your account balance at the end of the month.
A credit card allows you to pay for things when you don’t actually have
the money. When a bank gives you a credit card, it is a bit like a loan.
They let you spend a certain amount (limit) on the card; for example,
$2000. At the end of each month, you get a bill for the amount of
money you have spent on your credit card. This is the amount of
money you owe and must pay back to the bank.
Activity 1
Compare a bankbook and an ATM debit card. Read the description
and then tick the box if it describes a bankbook or a debit card.
Description
Bankbook
Debit card
Can only be used at a bank in bank hours
Can be used in many shops at any time
Uses a PIN for identification
Uses a signature for identification
Can be used to purchase things or transfer
money
Shows the transactions and balance of the
account easily
Needs a bank statement to show past
transactions
Can withdraw both notes and coins
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Your bank accounts
Some people have more than one type of account. For example, a
savings account, a passbook account, a home loan account, a credit
card account or a cheque account. Some people have a joint account
with their husband or wife. And some people have both their own
account and a joint account.
Activity 2
1. What accounts do you have? Circle which accounts you have.
Passbook account
Savings account
Credit card account
Cheque account
Joint account
Personal account
Home loan account
2. What account do you use most for banking?
Answer:
3. Why?
Answer:
4. How do you find your account balance?
Answer:
12
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Withdrawing cash
There are many ways to withdraw cash from your account. You can go
into the bank (over the counter), you can use an ATM or you can use
EFTPOS. EFTPOS is short for Electronic Funds Transfer Point of Sale.
EFTPOS is most commonly used to pay for things. When you pay for
something using EFTPOS, money (funds) from your bank account is
transferred electronically to the shop’s account. To withdraw money,
you must swipe your debit card and enter your PIN at the point of sale
(counter). This allows you to access the money in your bank account,
through the shop you are using, without having to go to the bank.
These days, banks encourage people to use electronic methods – the
ATM or EFTPOS – to withdraw money, as it is a quick and easy
method. If you do go into the bank to withdraw money, be aware that
you may be charged a fee for this transaction.
Activity 3
Think about the different ways to withdraw cash. Read the description
and then tick the box if it describes withdrawing money at the bank,
using an ATM or using EFTPOS.
Description
At the bank
ATM
EFTPOS
Can be done at any time
A signature for identification
A PIN for identification
Can see how much money
left in your account
Lets you withdraw cash in a
safe place
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What have you learnt?
Put a 9 in the box when you have learnt these things.
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Australia uses decimal currency, where 100 cents = one dollar.
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The symbol for dollars is $ and cents is c. Australian dollars are
also written: A$1 or AUD1.
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Our currency is made up of banknotes and gold and silver coins.
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To calculate change, make the cent amount up to the next dollar,
then make up to the next 10 dollars and then add the remaining
dollars to add up to the amount you paid with.
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A bank account in your name is a safe place to keep your money.
You can deposit or withdraw money from your account.
‰
These days, most people use ATM cards, including debit or credit
cards, to make transactions.
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A PIN keeps your cards safe and allows only you to use them.
Make sure your PIN is not an easy number to guess.
‰
Always check the transactions listed on your bank statements, to
make sure you have been charged correctly for your purchases.
‰
Never carry lots of cash on you. Instead, try to use EFTPOS.
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A bank can loan you money; however, you must pay it back, as
well as an amount of interest. So what you buy with a loan ends up
costing you more.
‰
A savings account rewards you by paying you interest on the
money you have in your account.
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