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Topic: Money and Finances F1.1 – Transferring Money

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Ontario Curriculum Expectation:

5.F1.1 describe several ways money can be transferred among individuals, organizations, and businesses


Read the Following Selection

Read the following selection, or click on the play button below to listen aloud.

Transferring Money

Making Money Move

buying something from a store transfers money from you to them

To spend money we transfer it, or make it move, from one place to another. For example, to buy something in a store people might pay the store by giving cash, writing a cheque, using a credit or debit card, or using a gift card. These are all ways of transferring money from the person who is buying to the business that is selling.

shopping online uses money from a card or online payment service

Shopping Online

Many people buy things online. This way of shopping is especially useful for people who cannot easily get to a store because it is far away—perhaps even in another country! To buy something online, people usually use a credit or debit card, a gift card, or an online payment service.

An online payment service takes money from the buyer’s credit card and sends it to the online store. Many people who often shop online prefer to use an online payment service. Why? Using an online payment service can help to keep a credit card number safe. Instead of giving a credit card number to many stores, people give the number only to the online payment service. The payment service does not give this number to the stores where people shop.

Money Orders

money orders and cheques are pieces of paper used to make a payment

A money order is similar to a cheque—it is a piece of paper used to make a payment. Why would people use a money order instead of a cheque? One possible reason is that a money order can be used by someone who does not have a chequing account at a bank. Another possible reason is that a money order keeps personal information safe. A cheque has the person’s name, bank account number, and sometimes their address printed on it. This information is not included on a money order.

Bank, Electronic, and Wire Transfers

Bank transfers, electronic transfers, and wire transfers are all ways of moving money electronically. People, businesses, and organizations often use these kinds of electronic transfers to move very large amounts of money from place to place. A cheque could get lost or stolen as it moves through the mail. Bank, electronic, and wire transfers usually send money directly to a bank account.

These types of transfers are often completed in one to three days, so they can be faster than mailing a cheque.

The Cost of Moving Money

It is not always free to move money from one place (such as a bank account) to another.

Some banks charge a fee after withdrawaling a certain amount each month

• Some bank savings accounts allow people to make a limited number of free withdrawals each month. A fee may be charged for additional withdrawals.

• Some bank chequing accounts offer unlimited free chequing, which means a person can write any number of cheques in a month without paying a fee. Other chequing accounts allow a person to write a limited number of cheques each month without any fees. A fee is charged for additional cheques.

• Fees are usually charged for money orders and electronic transfers of money.

Before deciding how to transfer money from place to place, people should find out about any extra fees that will be charged.


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