Hello learners! I am Fenrir.Hi everyone. I am Leda.Greetings! I am Aoede.And I am Charon. We are here to guide you through the forms and uses of money.Let us start with something we see every day. Cash. Even in a digital world physical money is still very important. We call physical notes and coins cash. But there is a special name for money that must be accepted for payment by law. It is called Legal Tender. In the Euro area the Euro is our single currency and legal tender. This means shops and businesses generally accept it for payment. However we must be careful. Sometimes bad actors try to make fake money which is called counterfeit money. Do you know how to spot a fake note? It is actually quite easy if you remember three actions. Feel. Look. And Tilt. First feel the note. It should feel crisp and firm. Run your finger across it. You can feel raised print on genuine notes. Second look at the note against the light. You should see the watermark and the security thread. Third tilt the note. The hologram image will change. If you ever think you have a fake note do not use it. Take it to a bank or the police. Using fake money is a crime so we must be vigilant.That is excellent advice Fenrir. While cash is great many of us use digital money now. This includes debit cards credit cards and mobile wallets on our phones. Let us look at the pros and cons of these payment methods so you can decide what is best for you. Here are the pros. First convenience. You do not need to carry heavy coins. Second record keeping. Digital payments leave a digital trail so it is easy to track where your money went. Third security. If you lose a card you can freeze it instantly. Now here are the cons. First technical issues. If the internet is down you might not be able to pay. Second overspending. It is psychologically easier to spend money when you do not see physical cash leaving your hand. Third security risks. You must protect your PIN and passwords from hackers. It is important to know that in the European Union you have specific rights. You have the right to a payment account with basic features regardless of where you live in the EU or your financial situation. This means you can open a bank account to receive your salary and pay bills even if you move to another EU country. Traditional banks and online banks can offer this.Knowing your rights is so powerful Leda. Now I want to talk about what happens when we travel or send money to a country that does not use the Euro. This involves Foreign Exchange. An exchange rate is simply the price of one currency expressed in another currency. For example how many US Dollars can you buy with one Euro. These rates change all the time every single day. When you exchange money or buy something from a foreign website you are usually charged a fee. Here is a big tip for you. Always compare exchange rates. Different providers like banks currency exchange kiosks at airports or online transfer services will offer different rates and different fees. A kiosk at the airport usually has the most expensive fees so it is often better to exchange money at a bank before you travel. Also be aware of dynamic currency conversion. If a card machine abroad asks if you want to pay in Euros or the local currency it is often cheaper to choose the local currency to let your own bank do the conversion. Always calculate the total cost which is the exchange rate plus any fees to know exactly how much you are spending.Mathematics is very useful for saving money Charon. My focus is on what happens after we make a payment. Keeping track of your payments is a critical skill for an adult learner. Have you ever bought something and realized later that you were charged the wrong amount? It happens more often than you think. This is why we must keep receipts. A receipt is your proof of purchase. If you buy a jacket and the zipper breaks a week later you will need the receipt to return it or exchange it. This is especially true for items with a warranty like electronics. You should also develop the habit of checking your bank statements. Set a time once a week to look at your list of transactions. If you see a payment you do not recognize investigate it immediately. It could be a mistake by a shop or it could be fraud. If you spot a mistake contact your bank right away. Being confident to double check is a sign of financial maturity. Also do not forget about invoices and bills. Make sure the details on an invoice match what you actually received before you pay it.I really like that routine Aoede. Checking once a week sounds very manageable. Another form of payment we are seeing more of is Instant Payments. These are transfers where the money moves from your account to another account in less than ten seconds at any time of day or night. It is super fast! But because it is so fast we have to be very careful. Once you press send the money is gone. You usually cannot cancel an instant payment. So before you send money to a friend or pay a bill instantly always double check the IBAN number and the name of the recipient. One small mistake in a number could send your money to the wrong person. Also be aware of anti money laundering rules. In many EU countries there are limits on how much cash you can use for a single purchase to prevent illegal activities. Using digital transfers for large amounts is often safer and more compliant with these rules. It protects you and it helps keep the financial system clean.Safety is everything. We also need to talk about borrowing which is a form of payment. When you use a credit card you are borrowing money from the bank to pay the seller. You have to pay the bank back later. This affects your future cash flow because you will have less money next month when the bill arrives. If you do not pay it back in full you will be charged interest which makes the purchase more expensive in the long run. So here is a tip for motivation. View a credit card as a tool for convenience not as a way to buy things you cannot afford. Only buy what you can pay back. This attitude will keep you free from bad debt. Also remember that you can switch banks. If you are not happy with the fees or service at your current bank there is a quick procedure in the EU for consumers to switch their account to another bank. Do not feel stuck. You are the customer and you have choices.Exactly Leda. You have the power to choose. Let us talk about remittance. Remittance is when you send money to family or friends in another country. This is very common. When you do this you must look at two things. The transfer fee and the exchange rate. Some companies say zero fees but they give you a very bad exchange rate so they hide their profit there. Always look at the final amount the person will receive. There are many online tools and apps that act as currency converters. Use them. Type in the amount you want to send and see exactly how much will arrive. Being confident in using these tools means more of your hard earned money goes to your family and less goes to the bank. It is about being smart and taking the time to research. A few minutes of research can save you a significant amount of money over a year.I agree completely. Being motivated to learn about these different forms of money gives you control over your life. Whether it is coins in your pocket a card in your wallet or an app on your phone each form of money has a specific use. Use cash for small purchases if you want to stick to a strict budget. Use a debit card for daily convenience. Use a credit card for online protection and travel. And use bank transfers for paying rent or large bills.That is a great way to summarize it Aoede. We want you to feel confident. Next time you handle a banknote check the watermark. Next time you make an online payment check that the website is secure. And next time you travel check the exchange rates.We hope this lesson has inspired you to take charge of your financial tools. Money is just a tool and now you know how to use it safely and effectively.Keep practicing these skills. Review your receipts and compare your options.Stay safe and smart with your spending. See you next time!
