Financial Literacy Credit versus Debit

You make a big purchase, and you use a card that loans you money, and must be paid back.

• A:

  Debit card

• B:

  Credit card

You can only spend what's in your bank account with this card.

• A:

  Debit

• B:

  Credit

With this card, you are using your own money.

• A:

  Debit

• B:

  Credit

This card is good for emergencies when you don't have the cash to cover the cost immediately.

• A:

  Debit

• B:

  Credit

Rosa's gas pump went out as she was driving her car to work.  Since she did not have enough money to cover the cost to replace the pump, she used a card that allowed her to pay $400. Two days later she gets paid $5,000. Is this responsible use of a credit card?

• A:

  No

• B:

  Yes

Tags

CCSS.RF.3.3B

CCSS.RF.3.3C

CCSS.RF.3.3D

CCSS.RF.4.3A

CCSS.RF.5.3A

Eric purchased a movie ticket with his card. This money will immediately be taken from his bank account. What card did he use?

• A:

  Debit Card

• B:

  Credit Card

When you use a DEBIT CARD, where does the money come from?

• A:

  Your bank Account

• B:

  The bank loans you the money

When you use a CREDIT CARD, where does the money come from?

• A:

  Your bank account

• B:

  The credit card company loans you money.

If you buy a $200 purse with a CREDIT CARD what happens if you can't pay the bill at the end of the month?

• A:

  You can have more time to pay but it costs more.

• B:

  You just pay the same amount next month.

Tags

CCSS.5.NBT.A.2

When you have a DEBIT CARD, you can spend MORE money than the money in your account?

• A:

  True

• B:

  False