Credit or Debit?

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What is a debit card?

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A debit card is a payment card that is directly linked to your bank account, allowing you to spend only the money you have.

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What is a credit card?

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A credit card is a payment card that allows you to borrow money from the bank up to a certain limit to make purchases.

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How does a debit card work?

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When you use a debit card, the money is immediately deducted from your bank account.

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How does a credit card work?

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When you use a credit card, you borrow money from the bank to make a purchase, which you must pay back later.

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What happens if you don't pay your credit card bill on time?

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You may incur late fees and interest charges on the unpaid balance.

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What is interest on a credit card?

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Interest is the cost of borrowing money, usually expressed as a percentage, that you pay if you don't pay off your balance in full.

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CCSS.7.RP.A.3

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What is an overdraft?

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An overdraft occurs when you spend more money than you have in your bank account, which can happen with a debit card if your bank allows it.

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What are the benefits of using a debit card?

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Benefits include avoiding debt, easy tracking of spending, and no interest charges.

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What are the benefits of using a credit card?

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Benefits include building credit history, rewards programs, and the ability to make larger purchases.

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What is a credit limit?

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A credit limit is the maximum amount of money you can borrow on your credit card.