CH7: Money and the Canadian Banking System

Source: http://www.advancetitan.com/news/new-credit-card-policies-are-now-being-implemented-1.1221429

Summary:

This article explains how there are going to be more rules for people who are holding credit cards or are planning to. Some of these include how a person must be 21 or older to obtain a credit card, or they could get one by having an adult family member giving permission to get one. In a survey, it is found that a lot of college/university students aren't in need of credit cards, therefore as of now, the promoting credit card on school campuses are disallowed and the "free gifts" that are used to entice consumers are also banned. According to some sources, the ban on promoting credit cards will ease the burden known as debt that is building up on students.

Connection:

The connection between this article and forms of money is change. Although a new form of money isn't being introduced, the money is being altered and restrictions are placed on it. This could prove to be a benefit to some people like students, but on the other hand, it decreases the services that banks perform, resulting in less profit. In an economic point of view, this could prove to be an improvement because as students are getting/staying out of debt, they will be more likely to use money to support the economy. Although the physical appearance of the credit card is unchanged, the restrictions and benefits that the credit card provide can be seen as a lot different from a few years ago.

Summary:

Being a student myself, I believe that many students aren't in need of credit cards. Being so inexperienced, yet holding something of such value can be a heavy burden. One swipe of the card can result in a devastating debt. From the bank's perspective, they might drop from world bank rankings due to this loss of customers. From what I can see, the newly implemented restrictions on credit cards contain no benefit for banks. A downfall for the students on the other hand is that until you turn 21, you won't be able to build up a good credit history which allows for more benefits with banks.