Unit 2: Adding and Subtracting Decimals
Topic C: Bookkeeping
One everyday use of adding and subtracting decimals is the bookkeeping that we all must do with our money.
Here are some examples:
- Keeping track of online payments
- Figuring out how much money to take on a trip
- Stretching a pay cheque over two weeks
- Organizing the household budget
- Deciding how much you can spend on eating out
What are some other examples of bookkeeping that you do?
The bookkeeping that most of us do is straightforward:
- Add money received or deposited to our accounts.
- Subtract money spent or paid out.
The result of the addition or subtraction is the balance.
Methods of Payment
There are many different methods of paying for purchases. Some of the most common methods are:
- Cash
- Debit card
- Credit card
- Cheque
- Online payment (i.e., PayPal, e-transfer)
There are benefits to each method of payment. Each person chooses to do what works best for them depending on the situation. Here is a list of some of the benefits and drawbacks of each method of payment.
Cash
Advantages:
- It is quick and easy to pull money out of your wallet.
- You can see how much money you have left.
- It is impossible to overspend.
- It is a great method to use if you do not have a bank account.
Disadvantages:
- It is easier to loose.
- You may need to continue to visit the bank to get money out.
- You might run out of cash while trying to pay at the till.
Debit Card
Advantages:
- It is quick at the till.
- You cannot spend more than you have in your bank account.
- It is safe.
Disadvantages:
- There is often a service fee when using the card to pay for shopping.
- You cannot always use it for online shopping.
Credit Card
Advantages:
- You only have to pay the company money once a month.
- It is quick at the till.
- It is easy to keep track of what you have spent because the credit card company sends you a monthly statement.
- You can use a credit card for online shopping.
Disadvantages:
- It is really easy to overspend your budget because you do not have to pay any money up front.
- There are often service charges once a year that are expensive.
- You can get into debt with a credit card and it may be really hard to get out of that debt.
Cheque
Advantages:
- It can be convenient when you want to mail someone money.
- It is safe.
- The cheque book helps you keep a written record of your bank balance.
Disadvantages:
- Some stores do not accept cheques or require several pieces of identification, usually a driver’s licence and a credit card.
- Most banks and credit unions have a small service charge for each cheque that you write.
- If your account is overdrawn, your cheque will be N.S.F. (Not Sufficient Funds) for which you are charged extra by the store and the bank. To avoid this, keep careful, up-to-date records so you always know your balance.
Online Payment
Advantages:
- It allows you to shop online securely.
- You can pay directly online with money from your bank account or your c