cash goes mobile, grade 12 - inspire financial learning · minted coins, paper money, renaissance...

12GRADE

Cash goes mobile

From bartering to metal money, to paper forms of cash, currency has gone through many changes. What is the next evolutionary step in our financial future and what are some possible drawbacks of new electronic and mobile forms of money? In this lesson, students explore the pros and cons of new electronic banking technologies by looking at the features of the mobile/digital wallet.

Subject CHM4E – Adventures in World HistoryBAT4M – Financial Accounting Principles

Suggested timing 70 minutes

Financial literacy objectives

At the end of this lesson, students will:• use financial terminology fluently;• compare current and historical trends in money; • consider security implications for online information;• analyze changes to Canadian and international financial

laws and fiscal policy since the twentieth century.

Curriculum expectations

Canadian and World Students, grades 11 and 12 (2005) Adventures in World History (CHM4E)

Social, economic and political structures • Describe the development of currencies and credit systems, from early barter to

the modern Western consumer economy (e.g., wampum, weights and measures, minted coins, paper money, Renaissance banking and double-entry bookkeeping, stock markets, personal credit, electronic banking).

Business Studies, grades 11 and 12 (2006) Financial Accounting Principles (BAT4M)

Accounting cycle• Evaluate the impact of the evolution of technology on the field of accounting.• Analyze the effect of current issues on financial accounting.

GRADE 12Cash goes mobile

Assessment Teacher-guided discussion and student debate.Collect: Cash goes mobile worksheet.

What you need • The history of money: A timeline (Appendix A) • Optional: Computer, internet access, projector• Mobile currency (Appendix B)• Cash goes mobile worksheet (Appendix C)• Homework: Cash goes mobile worksheet (Appendix D)

Minds on Ask students to provide examples of places and methods whereby the nature of money transactions are changing. (Responses could include buses using automatic pay systems, gift cards, online shopping sites, cell phones and online payments, etc.).

Think-pair-shareShare the History of money timeline (Appendix A) and have students identify entries that surprise them.

To invite students to think about this change, share information about a new grocery shopping experience in subway stations in South Korea made possible through the use of smartphones: http://www.youtube.com/watch?v=fGaVFRzTTP4

Share information about the new e-wallet app:http://www.mobiledia.com/news/91674.html

Context for learningBill Fold is a character who is constantly getting himself into financial scrapes. Use the scenario below to provide students with a context for learning.

Bill Fold just bought a new smartphone because he has learned that its new “mobile wallet” features will allow him to make all purchases in stores simply by scanning his phone. What an amazing convenience! But then he starts to think about some of the security issues involved. He also realizes how much money he owes in fees for this service.


Action Read aloud• Hand out the story, Bill Fold’s mobile wallet (included in Appendix B).• Read the story by involving members of the class. Explain how the exchange

of money (and, in turn, accounting practices and billing) is changing for both businesses and consumers.

• Ask students if, based on what they currently know, they would consider using a digital or mobile wallet.

Three corners• Using a 3 corner strategy, post signs around the room in 3 distinct areas:

“Would Use”, “Would Not Use” and “Undecided”. Have students sort themselves into 3 groups based on their personal beliefs/responses.

• Instruct groups to discuss the rationale behind their choice.• Following the discussion, each side tries to convince the other side of their

position. Students use a debate format in which pros, cons, risks, benefits, security issues and effect on consumers and retailers are brought to light.

At the end of the debate, canvass students by asking the same question: Would they use digital wallets based on what they have now discussed and considered through the debate?

Distribute the Cash goes mobile worksheet (Appendix C) and instruct students to complete the pros and cons of electronic banking methods by conducting Internet research.

Consolidation/ debrief

Discuss the following questions with the class: 1. What are the benefits of using a mobile phone to make purchases? 2. Do you have any concerns about using this new technology? 3. How comfortable would you be with having all of your personal information stored

on a mobile phone? 4. What do you think is the motivation driving this new technology? 5. What do you predict is the next step on the timeline in terms of the evolution

of money?

HomeworkHave students reflect on the lesson by answering questions on the handout (Appendix D) for homework.


What is money? Money: A generally accepted medium of exchange that has evolved through the ages.

Let’s look at some points on the timeline:

Note: CE means Common Era (also known as Current or Christian Era), which is an alternative designation for Calendar Era, traditionally identified as AD.

BCE means Before the Common Era and is sometimes written as BC (also known as Before Christ). Thus, “2012 CE” corresponds to “AD 2012”, and “299 BCE” corresponds to “299 BC”.

9000 – 6000 BCE Livestock, particularly cattle, are used as forms of exchange.

3000 – 2000 BCE Banking originates in Babylonia with initial deposits of grain, followed by cattle, agricultural implements, and precious metals.

2250 – 2150 BCE The State of Cappadocia guarantees the quality of silver ingots, increasing their acceptance as money.

687 BCE King Alyattes of Lydia (present day Turkey) is the first to mint coins.

640 – 630 BCE The Lydians coined the first modern form of money by producing metal disks made out of electrum, a naturally occurring alloy of gold and silver.

550 BCE Lydians begin producing gold coins.

390 BCE In Rome, cackling geese alert authorities against those intent on stealing the city’s money reserves. Thankful Romans build a shrine to Moneta, the goddess of warning. The words “money” and “mint” originate from the name of this goddess.

118 BCE Leather money made from deerskin, measuring about one foot (30.5 cm) square, is issued in China.

30 BCE – 14 CE Caesar Augustus reforms Roman monetary system by issuing gold, silver, brass, and copper coins.

806-821 CE Paper money is developed in China to overcome a copper shortage.

1232-1253 CE The Florin, a gold coin minted in Florence, Italy, becomes widely accepted currency throughout Europe.

1275-1292 CE Europe learns about paper money from Marco Polo’s travels in the Far East, including China.

The history of money: A timeline

A P P E N D I X A


The history of money: A timeline

1452-1519 CE Leonardo da Vinci’s drawings are used to create a press for producing coins using a water-driven mill. The new money is called milled money.

1661 CE Europe’s first bank notes issued in Sweden.

1792 CE United States issues its first coins under the Coinage Act.

1860 CE Western Union marks the beginning of electronic money with the electronic fund transfer (EFT).

1908 CE The official opening of the Ottawa Branch of Britain’s Royal Mint is commemorated with the striking of a fifty-cent piece.

1935 CE The Bank of Canada is established.

1950 CE The era of credit cards begins with the Diners Club card.

1967 CE The first automated banking machine is introduced in England.

1981 CE Online banking begins when four of New York’s largest banks offer home banking services using the Videotex system.

1990 CE New technologies include electronic cheques and embedded smart cards.

1999 CE European banks begin offering mobile banking through primitive smart phones.

2002 CE The circulation of Euro banknotes and coins begins.

2012 CE Canada stops minting the penny for circulation.

Further reading : http://projects.exeter.ac.uk/RDavies/arian/amser/chrono1.html

A P P E N D I X A


Mobile currency

First came the barter system, then various items (such as shells) used for monetary exchange, followed by the issuance of metal money, leather currency, paper currency, wampum and gold.

The latest technological innovation transforming consumer purchasing is called the “digital wallet”, also known as the “mobile wallet” or “e-wallet”. It is predicted that, within the next 10 years, many consumers and retailers will choose to facilitate in-store purchases through a mobile or smart phone. In many countries, mobile currency is already a reality. In North America, the use of online or electronic banking for making monetary transactions is increasing.

While some of us may be more familiar with using cash or cards for transactions, think of the digital or mobile wallet as having 3 components: There is the system (the electronic banking infrastructure); the application (the software that runs the program); and the device (the smartphone).

Read below to learn about Bill’s experience with this new technology.

Bill loves technology and always wants to be on the cutting edge. He saves up enough money to buy a smartphone and is excited to try out its new features. He likes the prospect that all of the paper, coins, and cards he carries around in his now-packed leather wallet will no longer be needed. With the swipe of his smart phone screen on the retailer’s interface, he will be able to automatically pay for everything from gasoline for his car to a bottle of orange juice in a vending machine.

To keep his accounts organized, Bill can choose a setting on his phone to determine which credit card or bank account he wants to use for the purchase. A simple mobile scan will automatically transfer money from Bill’s bank account to the merchant’s account. Bill also likes the fact that he can use his smartphone to search for and redeem online coupons at the point of sale.

It all sounds so efficient, doesn’t it? But with any new technology, there are always factors that every consumer must consider.

A P P E N D I X B


Mobile currency (cont’d)

Bill’s mobile mishapBill turns on his phone and programs it with all of his personal information, including his bank account numbers, credit card numbers, his driver’s license and health card. He has a hard time remembering multiple passwords, so he selects a password for his bank account information that he can easily remember. He decides to use his dog’s name, Dollar, for all of his entry points. Since this is the same password he’s used for years and for all his online services, including his email, he’s sure he won’t forget. Bill is eager to jump in and try out his phone, so he heads out to make his first purchase. All goes well.

The next month, he receives his mobile phone bill and notices many extra service charges related to the mobile wallet. His bank has charged him fees for this service, as has his mobile provider. Slightly annoyed by the cost of this new service, Bill wonders if it is worth using his mobile wallet.

To help him think, Bill takes his dog Dollar for a walk. In the park, he sits down next to another dog owner and they chat about how their dogs got their names.

On the way home from the park, Bill and Dollar stop at the local convenience store to purchase some gum. Bill reaches for his smartphone and realizes that he has left it on the park bench where he had been sitting watching Dollar play.

He puts the gum back on the shelf and rushes out of the store in a panic, realizing that all of his information is stored in that mobile phone.

Task Conduct research on the security features of mobile technology and electronic banking.

Discuss Should Bill be worried? Are there steps Bill can take to protect the information that he has stored on his phone?

A P P E N D I X B


Cash goes mobile worksheet

1. Based on today’s class discussion and debate, and any additional internet research you perform, fill in the benefits and risks associated with the new digital/mobile wallet.

CASH GOES MOBILE

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2. Would you use the digital or mobile wallet? All of the time? Sometimes? Never? Explain.

A P P E N D I X C


Homework: Cash goes mobile

1. How comfortable would you be using this kind of mobile/smartphone technology knowing that all of your personal information is stored in one location?

2. The companies driving this technology claim that it is for the ease and benefit of the consumer. What do you think might be another motivation behind the development of this new technology?

3. What do you think might be the next step in the evolution of money? Why?

4. What does this change mean for accounting practices?

A P P E N D I X D

cash goes mobile, grade 12 - inspire financial learning · minted coins, paper money, renaissance...

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