Page 173 - Revised Maths Wisdom Class - 6

11 Financial Literacy

(Electronic Payment System)

Somebody has rightly said, “Money is the medium of exchange for most goods and services.” Different coins
and paper money have different values.
Earners in the family analyze how the money they earned is spent. This analysis helps them to decide if they are
wisely spending their money.
You must have seen purchases done at home. Few of them are necessities like groceries, fees, house rent, etc. But
did you ever notice how your parents pay for them. Sometimes they pay in cash. Sometimes they pay through
banking cards. Nowadays, digital payments are very trendy.

TEST YOURSELF

Ask your mother how she pays for groceries? __________________________________________________
Ask your father how he pays for your fees? ____________________________________________________

Nowadays, government is promoting digital payments like mobile wallets, UPI, online transactions. They are
easy and secure till you don’t share your personal details with anyone. It is hard to carry cash or hefty amount in
hand everytime. Here, the digital payments play their convenient role for us.

We purchase products and services based on our needs and desires. You can easily pay ` 500 through cash. But to
pay ` 20,000, cash can be a headache for few people. It’s easy to pay hefty amount online or through other digital
modes. for eg - Paytm, Bhim UPI, Mobikwik etc.

History of Barter System

Bartering is the exchange of one object for another without the use of money. Usually, the items traded are worth
the same amount of money, but no money is exchanged.

When two people have something that the other desires, they can agree on a quantity of goods and then swap it.
This can also happen with services, such as when a plumber fixes a tap in a winery and is rewarded with a crate
of wine.
The issue with bartering is that one person might not want what the other person has. For example, Mukesh needs
new shoes, and Avi possesses those shoes. However, Mukesh has rice and Avi requires tea. Money becomes
beneficial in this situation since anything may be traded for a specific amount of money. Mukesh could pay Avi
for the shoes, and Avi could go shopping for tea.

TEST YOURSELF

Have you ever heard your parents talk about the house budget? __________________________________

What are the things that they mostly include in the budget? Name any five of them. __________________
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