Lesson Note on Method of Payment: Meaning, Reasons and Cash Instruments for SS 2

Class: Senior Secondary School 2 (SS2 / SSS 2)
Term: Second Term
Week: 1
Age: 16 years
Duration: 45 minutes
Subject: Office Practice
Curriculum Theme: Financial Transactions
Previous Lesson: .
Topic: METHOD OF PAYMENT- MEANING
Subject Matter: Meaning of method of payment (ways money is transferred to settle transactions), reasons for making payments, methods of payment (cash, cheque, bank draft)

Specific Objectives

By the end of the lesson, pupils should be able to:

Cognitive Domain:

• Define method of payment.
• State at least three reasons for making payments.
• Explain cash, cheque, and bank draft as methods of payment.

Affective Domain:

• Appreciate the importance of various payment methods in business transactions.
• Recognize the security aspects associated with different payment methods.

Psychomotor Domain:

• Identify the key features of a cheque and a bank draft from samples.
• Demonstrate how a payment method is chosen for a specific transaction.

Social Domain:

• Discuss the benefits and drawbacks of using cash versus other methods of payment.
• Collaborate with peers to analyze different payment scenarios.

Reference Materials

The following resources were used in planning this lesson:

• Senior Secondary Schools Education Curriculum
• State Unified Scheme of Work
• Agada, R.C. (2018). Office Practice for Senior Secondary Schools 2. Learn Africa Plc.
• https://www.google.com/search?q=method+of+payment+meaning
• https://www.youtube.com/watch?v=payment+methods

Instructional Materials

The teacher will teach this lesson with the aid of:

• Sample cheque book
• Sample bank draft
• Sample receipts
• Cash voucher specimen
• Whiteboard/chalkboard and markers/chalk

Rationale for the Lesson

Understanding methods of payment helps pupils grasp how financial transactions are settled in daily life and business. This knowledge is important for managing personal finances and for future careers in any field involving money handling.

Prerequisite/Previous Knowledge

Pupils should have basic knowledge of business transactions, money, and the concept of buying and selling.

Lesson Content/Board Summary

Method of Payment

Meaning of Method of Payment

A method of payment refers to the medium or instrument used to transfer money or value from one party to another to settle a transaction, debt, or obligation. It is essentially the way money changes hands when goods or services are bought or bills are paid.

Reasons for Making Payments

Payments are made for various reasons, including but not limited to:

• Purchase of Goods and Services: To acquire items like food, clothing, electronics, or to pay for services such as transportation, haircuts, or medical consultations.
• Settlement of Bills: To pay for utilities like electricity, water, internet, and telephone services.
• Payment of Wages and Salaries: Employers pay their employees for work done.
• Rent and Lease Payments: For the use of property or equipment.
• Debt Repayment: To settle loans, credit card bills, or other outstanding debts.
• Taxes and Duties: To governments for various levies.

Types of Payment Methods

There are various methods used to make payments, each with its own characteristics. Some common methods include:

Cash

Cash refers to physical money in the form of banknotes and coins. It is the most traditional and widely accepted method of payment.

• Features:
  • Tangible and physical.
  • Instantly settles transactions.
  • No transaction fees (usually).
  • Anonymous.
• Uses:
  • Small everyday purchases.
  • Payments in informal sectors.
  • When other payment methods are not available or accepted.

Cheque

A cheque is a written, dated, and signed instrument that instructs a bank to pay a specific amount of money to a named person or entity (the payee) from the issuer’s (drawer’s) account.

• Features:
  • Requires a bank account.
  • Provides a record of payment.
  • Can be post-dated.
  • Can be crossed to ensure payment goes into a bank account.
  • Subject to clearing periods.
• Uses:
  • Paying bills, suppliers, or employees.
  • Making large payments where carrying cash is risky.
  • Sending money through mail (though less common now).

Bank Draft

A bank draft is a type of cheque where the issuing bank itself is the drawer and guarantees the payment. The funds are drawn from the bank’s own account, making it a very secure form of payment.

• Features:
  • Issued by a bank, not an individual.
  • Guaranteed payment, as funds are already held by the bank.
  • More secure than a personal cheque.
  • Requires payment upfront to the bank before issuance.
• Uses:
  • Making large, secure payments.
  • When a personal cheque might not be trusted (e.g., property purchase, international transactions).
  • Where guaranteed funds are required by the payee.

Teaching Methods/Instructional Techniques

Discussion, Lecture, Demonstration, Question and Answer, Visual Aids

Instructional Procedures

Step 1: Introduction

Time: 5 minutes
Teaching Skill: Set Induction
Teacher’s Activity: The teacher greets the pupils, reviews the previous lesson briefly, and then asks pupils how they pay for things they buy or how their parents pay for school fees or bills. This leads to the topic of methods of payment.
Pupils’ Activity: Pupils respond to the teacher’s questions and share their experiences with different forms of payment.
Learning Point: Pupils are engaged and introduced to the topic of payment methods.

Step 2: Meaning of Method of Payment

Time: 7 minutes
Teaching Skill: Explanation/Definition
Teacher’s Activity: The teacher explains the meaning of “method of payment” as the ways money is transferred to settle transactions, providing simple examples.
Pupils’ Activity: Pupils listen attentively, ask clarifying questions, and take notes on the definition.
Learning Point: Pupils understand the fundamental concept of a method of payment.

Step 3: Reasons for Making Payments

Time: 7 minutes
Teaching Skill: Discussion/Brainstorming
Teacher’s Activity: The teacher leads a discussion on various reasons why individuals and businesses make payments, prompting pupils to give examples like purchasing goods, paying wages, and settling bills. The teacher then lists these reasons on the board.
Pupils’ Activity: Pupils actively participate in the discussion, contributing different reasons for making payments and taking notes.
Learning Point: Pupils identify and understand the common reasons behind financial transactions.

Step 4: Explanation of Cash Payment

Time: 6 minutes
Teaching Skill: Elaboration/Demonstration
Teacher’s Activity: The teacher explains cash as a method of payment, highlighting its features and common uses. The teacher may show actual cash (banknotes and coins) as a visual aid.
Pupils’ Activity: Pupils observe the cash, listen to the explanation, and note down the key points about cash payment.
Learning Point: Pupils understand cash as a direct and immediate form of payment.

Step 5: Explanation of Cheque Payment

Time: 7 minutes
Teaching Skill: Demonstration/Explanation
Teacher’s Activity: The teacher explains what a cheque is, using a sample cheque book to show its features (drawer, payee, amount, date, signature). The teacher also discusses its uses and advantages.
Pupils’ Activity: Pupils carefully observe the sample cheque, listen to the explanation, and note the important details and uses of cheques.
Learning Point: Pupils learn about cheques as a written instruction for payment through a bank.

Step 6: Explanation of Bank Draft

Time: 6 minutes
Teaching Skill: Comparison/Explanation
Teacher’s Activity: The teacher explains a bank draft, differentiating it from a personal cheque by emphasizing that the bank guarantees payment. A sample bank draft is shown to illustrate its appearance and features.
Pupils’ Activity: Pupils observe the sample bank draft, listen to the explanation, and understand its secure nature compared to a personal cheque.
Learning Point: Pupils understand bank drafts as a highly secure method of payment guaranteed by the issuing bank.

Step 7: Evaluation/Review

Time: 5 minutes
Teaching Skill: Questioning/Assessment
Teacher’s Activity: The teacher evaluates the learning by asking the following questions:

1. What is a method of payment?
2. State three reasons why payments are made.
3. Explain cash as a method of payment.
4. Differentiate between a cheque and a bank draft.

Pupils’ Activity: Pupils answer orally and in writing.
Learning Point: Pupils demonstrate understanding of the lesson.

Step 8: Conclusion

Time: 2 minutes
Teaching Skill: Summarization
Teacher’s Activity: The teacher summarizes the key learning points, emphasizing the importance of understanding different payment methods in daily transactions. The teacher then assigns homework, asking pupils to find out about other methods of payment.
Pupils’ Activity: Pupils listen to the summary and copy the homework assignment.
Learning Point: The lesson is concluded, and pupils are given a task to reinforce learning.

Lesson Keywords

• Method of Payment – The way money is transferred to settle a transaction.
• Cash – Physical money (banknotes and coins).
• Cheque – A written order instructing a bank to pay a specific amount to a named person.
• Bank Draft – A cheque issued by a bank, guaranteeing payment.
• Transaction – An instance of buying or selling something; a business deal.

Differentiation

For pupils who grasp concepts quickly, the teacher can encourage them to research and present on other payment methods like direct debit or electronic funds transfer. For pupils needing more support, the teacher will provide simplified definitions and more visual aids, ensuring they understand the core concepts of cash, cheque, and bank draft.

Note for teachers using this lesson plan

Encourage pupils to share real-life examples of when they or their families used different payment methods. This will help them connect the lesson to their experiences. Ensure the sample cheque book and bank draft are clearly visible and explain each section in detail. Emphasize the security features of each method.