Everfi Vault - Understanding Money (4-6)

How is buying with credit different than paying with cash?

• With credit, you don't have to pay interest
• With credit, you borrow money and repay later, with interest
• No difference

Buying something with a credit card means you can make payments over time.

• True
• False

Adults usually use credit to buy things that are extremely expensive, like houses or cars.

• True
• False

Before letting someone borrow something, you need to know if that person is reliable and honest.

• True
• False

You can be reliable when borrowing things from friends by never giving those items back.

• True
• False

People should only lend things to friends who always return things on time and in good condition.

• True
• False

Buying with credit means that you can pay for the things from your checking account.

• True
• False

Credit is an endless supply of money.

• True
• False

An adult might use credit to pay for a car, a house, and a dishwasher.

• True
• False

Paying with a credit card is like taking out a loan that never has to be repaid.

• True
• False