Navigating Debit and Credit Cards in Personal Finance

What is personal financial literacy mainly about in this video?

• Saving money

• Debit and credit cards

• Investing in stocks

• Budgeting expenses

What is directly linked to a debit card?

• A savings account

• An investment fund

• A credit limit

• A checking account

What happens if you try to spend more than what's in your checking account with a debit card?

• You receive an error message

• You go into debt

• The bank loans you money

• Nothing, the transaction goes through

Why might a debit card be considered safer than a credit card?

• It has no interest rates

• It is not accepted internationally

• It offers better rewards

• It directly uses funds from a checking account, preventing overspending

What is a negative aspect of using a debit card according to the video?

• High interest rates

• Limited acceptance worldwide

• Cannot spend more than the account balance

• Annual fees

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At what age do students start receiving credit card offers?

• 16

• 25

• 21

• 18

What is the typical credit limit range for a new credit card?

• $10,000 to $15,000

• $5,000 to $10,000

• $15,000 to $20,000

• $1,000 to $5,000

What is the main way credit card companies make money from cardholders?

• Annual fees

• Transaction fees

• Exchange rate fees

• Interest on unpaid balances

How long would it take to pay off a $5,000 charge at 18.9% interest with minimum payments?

• 25.5 years

• 11.5 years

• 20 years

• 5 years

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What is the total cost of a $5,000 charge at 24.99% interest with minimum payments?

• $8,119.16

• $10,000

• $12,000

• $15,576.52

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