WorksheetsHow Does a Credit Card Work? (from YouTube video)
Total questions: 10
Worksheet time: 20mins
A credit card is a way to get...
free money
a loan - it must be paid back
things for free
money from your bank account
When you buy things with a credit card, do you have to pay for them? (there may be more than 1 correct answer)
yes, it's a LOAN
no, it's free money
yes, the sooner the better
yes, but you can do it years later
What 3 important things does a credit card statement tell you? (pick 3)
Total Amount Due (owed)
Minimum Payment Due (owed)
The DATE when the Minimum Payment is Due
Your birthday
How much you should be spending
When you get your credit card statement, you should do 1 of 2 things: _____________________ OR ______________________
(pick 2 from the list)
Pay the FULL AMOUNT DUE
Pay the MINIMUM AMOUNT DUE, or more if you can
GET ANOTHER credit card
IGNORE the statement
Pay a couple of dollars to get them off your back
If, each month, you pay ONLY the Minimum Amount Due, the bank will....
charge you INTEREST on the rest that you owe
charge you NO INTEREST
ignore you
ask you to pay more
Credit card interest rates in Australia are higher than shown in the video, around 21% per annum for most banks. This is a very high interest rate, which means....
it's easy get into more debt (owe the bank more and more)
nothing
you don't owe the bank much
you can spend as much as you want with a credit card and not do anything about it
Banks charge INTEREST on loans, including credit cards. This means that...
you have to pay back MORE than you borrowed
you have to pay back LESS than you borrowed
you have to pay back the same amount that you borrowed
you don't have to pay anything back
Using a credit card to buy things is like...
getting them for free
paying cash for them
taking out a loan to buy them
getting a friend to buy them
If you don't pay your credit card off on time, it...
(pick 2 items)
costs you more money
costs you less money
gives you a better credit rating (credit score)
gives you a worse credit rating (credit score)
Credit cards can be very handy, but also dangerous. Every month, you have to be careful to... (pick 3)
pay on time
pay off as much as you can
don't let the debt get too high
switch banks
spend as much as you feel like
