Lesson Note on Method of Payment: Postal and Money Orders, Transfers and Vouchers for SS 2

Class: Senior Secondary School 2 (SS2 / SSS2)
Term: Second Term
Week: 2
Age: 16 years
Duration: 45 minutes
Subject: Office Practice
Curriculum Theme: Financial Transactions
Previous Lesson: Method of Payment: Meaning, Reasons and Cash Instruments.
Topic: Method of Payment Cont.
Subject Matter: Postal order (post cash), money order (western union, money gram), standing order, credit transfer, telegraphic transfer

Specific Objectives

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

Cognitive Domain:

• Define postal order, money order, standing order, credit transfer, and telegraphic transfer.
• Explain how each method of payment works.
• State the advantages and disadvantages of each payment method.

Affective Domain:

• Appreciate the importance of choosing appropriate payment methods for different transactions.
• Recognize the convenience and security features of various payment instruments.

Psychomotor Domain:

• Identify the key details required on specimen vouchers for different payment methods.
• Fill out a dummy voucher for a chosen payment method.

Social Domain:

• Discuss the roles of financial institutions in facilitating these payment methods.
• Collaborate in identifying suitable payment methods for given scenarios.

Reference Materials

The following resources were used in planning this lesson:

• Senior Secondary Schools Education Curriculum
• State Unified Scheme of Work for Office Practice
• Okonkwo, A. (2018). Office Practice for Senior Secondary Schools. Learn Africa Plc.

Instructional Materials

The teacher will teach this lesson with the aid of:

• Specimen vouchers
• Sample postal order forms
• Sample money order forms (e.g., Western Union/MoneyGram)
• Sample credit transfer forms
• Whiteboard or chalkboard
• Markers or chalk

Rationale for the Lesson

This lesson helps pupils understand various methods used to make and receive payments, which is important for managing personal finances and conducting business transactions effectively. Knowledge of these methods enables pupils to choose the most suitable and secure option for different situations in the office and daily life.

Prerequisite/Previous Knowledge

Pupils should have a basic understanding of financial transactions and some common methods of payment such as cash, cheques, and bank drafts from previous lessons.

Lesson Content/Board Summary

Methods of Payment

1. Postal Order (Post Cash)

A postal order is a financial instrument issued by a post office for sending money through the postal service. It is a safe way to send small sums of money by post.

How it works:

• The sender purchases a postal order from a post office, specifying the amount.
• The sender then mails the postal order to the recipient.
• The recipient presents the postal order at any post office to cash it.

Features:

• Issued and cashed at post offices.
• Suitable for sending small amounts.
• Has a face value and a commission charge.

2. Money Order (e.g., Western Union, MoneyGram)

A money order is a payment order for a specified amount of money, usually issued by a financial institution or postal service, allowing the recipient to receive cash on demand. It is often used for sending money quickly, especially internationally.

How it works:

• The sender pays the amount plus a fee to an agent (e.g., Western Union, MoneyGram).
• The agent provides a unique transaction number (MTCN).
• The sender shares this number with the recipient.
• The recipient presents the transaction number and valid identification at an agent location to collect the money.

Features:

• Fast and reliable, especially for international transfers.
• Requires a fee for the service.
• Recipient does not need a bank account.

3. Standing Order

A standing order is an instruction given by a bank account holder to their bank to pay a fixed amount of money to a specified beneficiary at regular intervals (e.g., weekly, monthly, quarterly). It is primarily used for recurring payments.

How it works:

• The account holder instructs their bank with details like beneficiary account number, amount, frequency, and start/end dates.
• The bank automatically debits the account and transfers the money as per the instruction.

Features:

• Used for regular, fixed payments (e.g., rent, subscriptions).
• Automated, reducing the risk of missing payments.
• Can be cancelled or amended by the account holder.

4. Credit Transfer

A credit transfer is an electronic transfer of funds from one bank account to another. It is a common method for making one-off or bulk payments.

How it works:

• The sender provides their bank with the beneficiary’s account details, bank name, and the amount to be transferred.
• The bank debits the sender’s account and credits the beneficiary’s account.

Features:

• Can be used for single or multiple payments.
• Faster than cheques for inter-bank transfers.
• Requires accurate beneficiary details to avoid errors.

5. Telegraphic Transfer (Wire Transfer)

A telegraphic transfer (TT), also known as a wire transfer, is an electronic method of transferring funds from one bank to another, often across international borders. It is typically used for large sums and urgent payments.

How it works:

• The sender initiates the transfer through their bank, providing beneficiary bank details (including SWIFT/BIC code), account number, and amount.
• The sender’s bank sends a coded message (via SWIFT network) to the beneficiary’s bank.
• The beneficiary’s bank credits the recipient’s account.

Features:

• Fastest method for international money transfers.
• Generally more expensive due to speed and security.
• Often used for large value transactions.

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 and reviews the previous lesson on other methods of payment. The teacher then introduces the topic by asking pupils to mention ways people send money to others without using cash directly.
Pupils’ Activity: Pupils respond to the greetings and questions, recalling previous knowledge and suggesting possible answers.
Learning Point: Pupils recall previous knowledge and are introduced to the lesson’s topic.

Step 2: Postal Order

Time: 7 minutes
Teaching Skill: Explanation/Illustration
Teacher’s Activity: The teacher explains what a postal order is, how it is purchased, and how the recipient cashes it at the post office. The teacher shows a sample postal order form.
Pupils’ Activity: Pupils listen attentively, take notes, and observe the sample form.
Learning Point: Pupils understand the concept and process of a postal order.

Step 3: Money Order

Time: 7 minutes
Teaching Skill: Explanation/Illustration
Teacher’s Activity: The teacher explains money orders, highlighting examples like Western Union and MoneyGram. The teacher describes the steps involved in sending and receiving money via a money order and shows a sample form.
Pupils’ Activity: Pupils listen, ask questions for clarity, and take notes.
Learning Point: Pupils learn about money orders as a quick transfer method.

Step 4: Standing Order

Time: 7 minutes
Teaching Skill: Explanation/Discussion
Teacher’s Activity: The teacher explains the concept of a standing order as an instruction for recurring payments. The teacher discusses its uses, setup, and how it differs from other methods.
Pupils’ Activity: Pupils engage in discussion, noting the benefits of standing orders for regular payments.
Learning Point: Pupils understand standing orders for automated recurring payments.

Step 5: Credit Transfer and Telegraphic Transfer

Time: 7 minutes
Teaching Skill: Explanation/Comparison
Teacher’s Activity: The teacher explains credit transfer for one-off payments and telegraphic transfer for urgent, often international, large sum transfers. The teacher compares their features, speed, and cost.
Pupils’ Activity: Pupils listen, compare the two methods, and take notes on their characteristics.
Learning Point: Pupils distinguish between credit transfer and telegraphic transfer and their appropriate uses.

Step 6: Practical Activity (Filling Vouchers)

Time: 7 minutes
Teaching Skill: Demonstration/Practical Application
Teacher’s Activity: The teacher distributes specimen vouchers/forms for different payment methods. The teacher guides the pupils on how to fill out a dummy voucher, emphasizing the required details such as sender/recipient names, addresses, amounts, and account numbers.
Pupils’ Activity: Pupils actively participate by filling out the dummy vouchers with guidance from the teacher, asking questions where necessary.
Learning Point: Pupils gain practical experience in completing payment forms.

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. Define a Postal Order.
2. Explain how a Money Order works.
3. State two differences between a Standing Order and a Credit Transfer.
4. Mention two situations where a Telegraphic Transfer would be the most suitable payment method.

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 choosing the right payment method for different scenarios. The teacher assigns homework: research the typical fees associated with each payment method discussed.
Pupils’ Activity: Pupils listen to the summary and copy down the homework.
Learning Point: Pupils consolidate their understanding and are given further tasks.

Lesson Keywords

• Postal Order – A payment instrument issued by a post office for sending money through the postal service.
• Money Order – A payment order issued by a financial institution or postal service, allowing a recipient to receive cash.
• Standing Order – An instruction to a bank to pay a fixed amount to a beneficiary at regular intervals.
• Credit Transfer – An electronic transfer of funds from one bank account to another.
• Telegraphic Transfer – A fast electronic transfer of funds, often for large or international sums.

Differentiation

For pupils who grasp concepts quickly, the teacher can encourage them to research the security features of each payment method. For those needing more support, the teacher will provide additional one-on-one guidance during the practical voucher-filling activity and simplify explanations where necessary.

Note for teachers using this lesson plan

Ensure to have clear, legible specimen forms for demonstration. Encourage pupils to ask questions to clarify any confusion, especially during the practical session of filling out vouchers. Emphasize the security aspects and potential risks associated with each payment method.