pdic_UsapangPera_GuideBook
pdic_UsapangPera_GuideBook pdic_UsapangPera_GuideBook
Sonny and Tessie see their parents bringing out their checkbook, debit and credit cards. With a smile on her face, Aling Lorna explains. 12 Money is Important
Financial Expert’s Corner They say that in modern times, money has taken on new forms like checks, debit cards and credit cards. However, Aling Lorna is correct - checks, debit and credit cards do not have legal tender power. The acceptance of checks is only at the option of the creditor. In short, checks do not immediately pay in full the debt or financial obligation. This is also why even manager’s checks of banks are still not considered as having fully settled the financial obligation. This is because the payor of the check, who was supposed to have paid the bank the same amount reflected in the manager’s check, could always request for a stop payment, thereby halting the settlement of the financial obligation. Only when the payee of the check receives credit to his/ her account is the obligation fully paid. It is only upon special accommodation by banks that manager’s checks are sometimes immediately honored as cash. By the same token, debit and credit cards do not immediately settle the financial obligation. Only when the seller of goods or services is credited with the payment is the financial obligation fully settled. Money is Important 13
- Page 2 and 3: Copyright 2013 by the Philippine De
- Page 5 and 6: Foreword Through the Philippine Dep
- Page 7 and 8: insured deposits. This Guidebook is
- Page 9 and 10: Table of Contents A Brief History o
- Page 12 and 13: Just like in the United States of A
- Page 14: Table 1 1 Maximum Deposit Insurance
- Page 17 and 18: Money is Important 7
- Page 19 and 20: A Brief History of Money At the hou
- Page 21: Different Forms of Money Seeing his
- Page 26 and 27: The Different Life-Event Stages Six
- Page 28 and 29: “In our case, we are saving up fo
- Page 30 and 31: The next life-event stage is where
- Page 32 and 33: How to Save Mang Domeng, as if to r
- Page 34 and 35: Financial Expert’s Corner Saving
- Page 36: Why and How to Save 1. There are ma
- Page 39 and 40: A few minutes later, Tessie is alre
- Page 41 and 42: • Suspicious transactions are tra
- Page 43 and 44: Financial Expert’s Corner In acco
- Page 45 and 46: Banks may or may not issue an ATM c
- Page 47 and 48: He says that all that bank tellers
- Page 49 and 50: Tessie expresses some concerns. “
- Page 51 and 52: Aling Lorna smiles and continues,
- Page 53 and 54: Located on the upper left hand corn
- Page 55 and 56: Financial Expert’s Corner To avoi
- Page 57 and 58: Mang Domeng says to Aling Lorna,
- Page 59 and 60: Financial Expert’s Corner It shou
- Page 61 and 62: In closing the deposit account, you
- Page 64 and 65: It’s 5:30 AM on a Wednesday, and
- Page 66 and 67: The over-reliance on heuristics giv
- Page 68 and 69: Financial Expert’s Corner Money a
- Page 70 and 71: Financial Expert’s Corner It can
Financial Expert’s Corner<br />
They say that in modern times, money has taken on new forms<br />
like checks, debit cards and credit cards. However, Aling Lorna is<br />
correct - checks, debit and credit cards do not have legal tender<br />
power.<br />
The acceptance of checks is only at the option of the creditor.<br />
In short, checks do not immediately pay in full the debt or financial<br />
obligation. This is also why even manager’s checks of banks are still<br />
not considered as having fully settled the financial obligation. This<br />
is because the payor of the check, who was supposed to have paid<br />
the bank the same amount reflected in the manager’s check, could<br />
always request for a stop payment, thereby halting the settlement of<br />
the financial obligation.<br />
Only when the payee of the check receives credit to his/<br />
her account is the obligation fully paid. It is only upon special<br />
accommodation by banks that manager’s checks are sometimes<br />
immediately honored as cash.<br />
By the same token, debit and credit cards do not immediately<br />
settle the financial obligation. Only when the seller of goods or<br />
services is credited with the payment is the financial obligation fully<br />
settled.<br />
Money is Important 13
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