2.6 Online and Mobile Banking

Instructions

OBJECTIVES & STANDARDS
Math Objectives
Analyze graphs
Common Core Math Standards
Not applicable
Personal Finance Objectives
Analyze the prevalence of online and mobile banking as compared to analog banking options
Set up online bill pay as one-time and recurring payments
Enumerate the benefits of direct deposit for their paychecks
Navigate an online bank account
Differentiate between person-to-person apps, messenger-based payments, and digital wallets
Identify ways to protect your money in a digital world
Assess the prevalence and conveniences of various mobile banking products
National Standards for Personal Financial Education
Spending
9c: Research financial technology options for financial record-keeping
Saving
3a: Research mobile payment account alternatives
3b: Compare and contrast the features of mobile payment accounts, cryptocurrency accounts, and checking/savings accounts
3c: Explain why storing money in a mobile payment account can reduce the ability to grow savings
DISTRIBUTION & PLANNING
Distribute to students
Student Activity Packet

DATA CRUNCH: How do Consumers Use Mobile Banking?
Analyze the data and answer the questions on this worksheet to complete the Data Crunch.

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Which 3 mobile banking features do consumers consider to be critical?

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What percentage of consumers rated depositing checks as an “important” or “critical” feature?

1

ARTICLE: Online Bill Pay: What It Is and Why You Should Use It
In the previous resource, you saw that many people are utilizing online and mobile banking with their checking accounts. They love the convenience and time-saving features of online banking, including the ability to do all of their bill paying online, even as recurring payments so they don’t have to remember the bills themselves Skim this article and answer:

1

In your own words, how does one get set up to use online bill pay?

1

Picture yourself moving out living on your own or maybe with a roommate, and going to school or working your first full-time job. List four different people or companies you might want to pay using online bill pay.

VIDEO: What is Direct Deposit?
Another time-saving feature you should set up is Direct Deposit, where you can choose to have your paycheck deposited directly into your checking account. Watch this video to learn what some of the benefits of direct deposit are. Then, answer the following questions.

1

In your own words, explain what direct deposit is.

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What two pieces of information about your account do you need to provide to set up direct deposit?

1

Out of the benefits of direct deposit, which seems the MOST useful to you? Why?

ARTICLE: What Are Peer-to-Peer Payments?
Peer to Peer mobile payment apps are becoming an increasingly popular way to send money. Popular options are Venmo, Cash App, or PayPal to send money to friends and family. Read this article and answer the questions.

1

Summarize how the P2P payment process typically works.

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Which of NerdWallets safety recommendations do you think is MOST important for protecting your money when using P2P apps? Why?

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If you’re not careful, it can become costly to use P2P payments. Name at least 3 ways you could LOSE money using person-to-person apps.

ACTIVITY: INTERACTIVE: Online Bank Simulator
Refer to this link.  Printed out for inclass instruction. 

RESOURCE 1 - VIDEO: Apple Pay VP: Why We're Different than Venmo
The examples above are of standalone P2P apps. More recently, messenger-based apps have launched, with Apple, Google, and Facebook all allowing users to send cash through their normal messaging product. Watch this video that shows how Apple Pay Cash works and details on Apple’s digital wallet. Then, answer the questions.

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What is the difference between Apple Pay and Apple Pay Cash?

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What prevents someone who randomly picks up your phone from sending money to themselves using a messenger-based payment?

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Where is the Apple Pay Cash recipient’s money stored?

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RESOURCE 2 - VIDEO: The Technology Behind Apple Pay, Samsung Pay, and Google Pay
Apple, Samsung, and Google each offer similar mobile payment services Pay in stores and with online merchants, too, not just to pay other people. Watch this video through 3:40 and answer these questions about the technology behind mobile payment services.

1

What is the technology that allows these devices to work?

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How do Samsung devices allow MORE access than the other two phone manufacturers?

1

If you’re at the grocery store, how is checking out with one of these mobile payment methods different from paying with a traditional credit card?

1

RESOURCE 3 - ARTICLE: 10 Online and Mobile Security Tips
With any mobile or online banking options, you should take safety precautions to protect your identity and your money. Plus, recovering from fraud or theft can be expensive and time consuming. Review this website’s tips for online and mobile banking safety.

1

Write 5 tips that are particularly relevant to a high school student and why.

1

Fill in the blanks: Direct deposit typically refers to your _____ sending your _ electronically to your bank account.
employer, bills
parents, allowance
credit card company, bills
employer, paycheck

1

Each of the following is a convenience of online banking EXCEPT…
Avoid the service charge associated with doing your banking in person at a bank branch
Set up automatic alerts for low balances, suspicious activity, etc
Transfer money between your checking and savings accounts
Monitor your account balances to try to avoid overspending or overdrawing

1

Which person-to-person payment activity will likely result in your paying a fee?
Linking P2P to your credit card
Linking P2P to your bank checking account
Sending money to a P2P member who is not in your contact list
Receiving money from another member of the P2P app

2.6 Online and Mobile Banking

Which 3 mobile banking features do consumers consider to be critical?

What percentage of consumers rated depositing checks as an “important” or “critical” feature?

In your own words, how does one get set up to use online bill pay?

Picture yourself moving out living on your own or maybe with a roommate, and going to school or working your first full-time job. List four different people or companies you might want to pay using online bill pay.

In your own words, explain what direct deposit is.

What two pieces of information about your account do you need to provide to set up direct deposit?

Out of the benefits of direct deposit, which seems the MOST useful to you? Why?

Summarize how the P2P payment process typically works.

Which of NerdWallets safety recommendations do you think is MOST important for protecting your money when using P2P apps? Why?

If you’re not careful, it can become costly to use P2P payments. Name at least 3 ways you could LOSE money using person-to-person apps.

What is the difference between Apple Pay and Apple Pay Cash?

What prevents someone who randomly picks up your phone from sending money to themselves using a messenger-based payment?

Where is the Apple Pay Cash recipient’s money stored?

What is the technology that allows these devices to work?

How do Samsung devices allow MORE access than the other two phone manufacturers?

If you’re at the grocery store, how is checking out with one of these mobile payment methods different from paying with a traditional credit card?

Write 5 tips that are particularly relevant to a high school student and why.

Fill in the blanks: Direct deposit typically refers to your ___________ sending your _______ electronically to your bank account.employer, billsparents, allowancecredit card company, billsemployer, paycheck

Which person-to-person payment activity will likely result in your paying a fee?Linking P2P to your credit cardLinking P2P to your bank checking accountSending money to a P2P member who is not in your contact listReceiving money from another member of the P2P app

Which 3 mobile banking features do consumers consider to be critical?

What percentage of consumers rated depositing checks as an “important” or “critical” feature?

Which feature is the least important to consumers? Why might that be the case?

Maha looks at this graph and says: “This survey shows that Americans really care about the security of their bank account” Do you agree or disagree with Maha’s conclusion? Explain your reasoning.

How do you think this data would look if it only looked at how Gen Z uses mobile banking? Why?

In your own words, how does one get set up to use online bill pay?

Picture yourself moving out living on your own or maybe with a roommate, and going to school or working your first full-time job. List four different people or companies you might want to pay using online bill pay.

In your own words, explain what direct deposit is.

What two pieces of information about your account do you need to provide to set up direct deposit?

Out of the benefits of direct deposit, which seems the MOST useful to you? Why?

Summarize how the P2P payment process typically works.

Which of NerdWallets safety recommendations do you think is MOST important for protecting your money when using P2P apps? Why?

If you’re not careful, it can become costly to use P2P payments. Name at least 3 ways you could LOSE money using person-to-person apps.

What is the difference between Apple Pay and Apple Pay Cash?

What prevents someone who randomly picks up your phone from sending money to themselves using a messenger-based payment?

Where is the Apple Pay Cash recipient’s money stored?

What else can a digital wallet be used for?

Do you think Apple will eventually meet their goal of becoming a replacement for a physical wallet? Why or why not?

What is the technology that allows these devices to work?

How do Samsung devices allow MORE access than the other two phone manufacturers?

If you’re at the grocery store, how is checking out with one of these mobile payment methods different from paying with a traditional credit card?

What does it mean to “authenticate” your payment? How do these payment systems authenticate?

Write 5 tips that are particularly relevant to a high school student and why.

Fill in the blanks: Direct deposit typically refers to your ___________ sending your _______ electronically to your bank account.employer, billsparents, allowancecredit card company, billsemployer, paycheck

Which person-to-person payment activity will likely result in your paying a fee?Linking P2P to your credit cardLinking P2P to your bank checking accountSending money to a P2P member who is not in your contact listReceiving money from another member of the P2P app

Which feature is the least important to consumers? Why might that be the case?

Maha looks at this graph and says: “This survey shows that Americans really care about the security of their bank account” Do you agree or disagree with Maha’s conclusion? Explain your reasoning.

How do you think this data would look if it only looked at how Gen Z uses mobile banking? Why?

What else can a digital wallet be used for?

Do you think Apple will eventually meet their goal of becoming a replacement for a physical wallet? Why or why not?

What does it mean to “authenticate” your payment? How do these payment systems authenticate?

Fill in the blanks: Direct deposit typically refers to your _____ sending your _ electronically to your bank account.
employer, bills
parents, allowance
credit card company, bills
employer, paycheck

Which person-to-person payment activity will likely result in your paying a fee?
Linking P2P to your credit card
Linking P2P to your bank checking account
Sending money to a P2P member who is not in your contact list
Receiving money from another member of the P2P app

Fill in the blanks: Direct deposit typically refers to your _____ sending your _ electronically to your bank account.
employer, bills
parents, allowance
credit card company, bills
employer, paycheck

Which person-to-person payment activity will likely result in your paying a fee?
Linking P2P to your credit card
Linking P2P to your bank checking account
Sending money to a P2P member who is not in your contact list
Receiving money from another member of the P2P app