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Credit and Debit Cards

Total questions: 25

Worksheet time: 34mins

Name
Class
Date
1.

Your mom goes to the ATM at the bank and withdraws $300 from her checking account with her card. 

a)

Debit card

b)

Credit Card

2.

Your grandmother takes you out for pizza for your birthday. She pays with a card and the money comes out of her checking account. 

a)

Debit card

b)

Credit Card

3.
Your aunt buys you a new outfit for the first day of school. She pays with a card and tells you she’ll pay for it at the end of the month when she gets her bill. 
a)
Debit card
b)
Credit card
4.
Your family is on vacation and you need more cash. Your dad goes to the ATM and gets a $500 cash advance. He says, “Just one more vacation expense we’ll have to pay off when we get home.”
a)

Debit card

b)

Credit card

5.
You made the softball team. YEAH!!! Dad takes you to buy a uniform. He pays for the purchase with a card, enters his PIN and gets $20 in cash back from his checking account.
a)
Debit card
b)
Credit card
6.
Interest is charged if balance is not paid each month.
a)
Debit Cards
b)
Credit Cards
c)
Both
7.
Fees may be charged
a)
Debit Cards
b)
Credit Cards
c)
Both
8.

My credit history DOES affect my loan options for the future.

a)
True
b)
False
9.
To build a positive credit history, I should pay cash for all purchases.
a)
True
b)
False
10.
I need to first pay bills, such as a loan or a phone bill to establish credit history.
a)
True
b)
False
11.
Having a small amount of debt is good for my credit history.
a)
True
b)
False
12.

Why is it important to establish positive credit history?

a)

Higher credit scores result in lower interest rates on loans

b)

You are more likely to be offered a loan by a bank

c)

Positive credit history results in higher credit scores

d)

All of the above

13.

Users can earn rewards like cash back or points toward travel.

a)

Credit

b)

Debit

c)

Both

14.

Users can sometimes be responsible for an annual fee.

a)

Credit

b)

Debit

c)

Both

15.

Card balances must be paid on the due date to avoid high interest.

a)

Credit

b)

Debit

c)

Both

16.

What do you call the cost you pay each year to borrow money, expressed as a percentage?

a)

Interest

b)

Credit card

c)

Debt

d)

Balance

17.

When do you have to pay interest on purchases?

a)

When you do not pay your full balance when its due.

b)

When you purchase any items online

c)

When you pay it annually

18.

3 of these are advantages of Credit cards. Which is NOT an advantage?

a)

You can't go into debt

b)

You can earn rewards

c)

You can have better warrants on certain purchased items

d)

You can see your credit score for free

19.

3 of these are advantages of Credit cards. Which is NOT an advantage?

a)

There is better fraud protection than many debit cards offer

b)

Credit Cards are always free to have.

c)

You can build credit history to help with loans in the future.

d)

You may need one to rent a car

20.

3 of these are advantages of DEBIT cards. Which is NOT an advantage?

a)

You can't go into debt.

b)

There's no annual fee associated with the card.

c)

It may help you limit your impulse spending.

d)

You can get rewards like travel points.

21.

3 of these are advantages of DEBIT cards. Which is NOT an advantage?

a)

If someone makes purchases with your card, it's borrowed money so you have time to dispute the charges.

b)

Allows you to purchase goods and services.

c)

You can get cash back at the store

d)

You can get cash out of your bank's ATM for free.

22.

Mr. Granberg just loves to spend money! She wants to have every pants suit out there. A couple new cars wouldn't hurt while She's at it. What type of card would you recommend to her? Be ready to share why later.

4 lines
23.

Which is better? Debit or credit? Give at least one reason why.

4 lines
24.

Mrs. Jepson says ________ is the best choice for spending starting out.

a)

credit card

b)

debit card

c)

both

d)

neither

25.

Which card will prevent debt?

a)

debit

b)

credit