2/5: Credit vs. Debit Cards

What is the primary difference between debit and credit cards?

• Debit cards withdraw money directly from a checking account, while credit cards charge to a line of credit.

• Debit cards are used for online purchases, while credit cards are used in physical stores.

• Debit cards require a PIN, while credit cards require a signature.

• Debit cards are issued by banks, while credit cards are issued by retailers.

As of 2021, how many Americans held a credit card?

• Over 175 million

• Over 200 million

• Over 150 million

• Over 100 million

What is a benefit of using a credit card?

• Building a credit history

• Immediate access to funds

• No risk of debt

• Helps in budgeting

Why might parents choose a debit card for their children?

• To teach budgeting skills

• To build a credit history

• To allow for emergency expenses

• To defer payments

At what age can individuals typically obtain a credit card on their own?

• 18 years old

• 16 years old

• 21 years old

• 15 years old

Which do YOU believe should be used more often for purchases - debit or credit?