Savvy Swiping
Understand when to use debit vs. credit like a pro! Debit relies on your cash for everyday buys while credit borrows for bigger purchases you'll pay off quickly.
Savvy Swiping: Mastering Debit and Credit
Ready to level up your money skills? Let's dive into the world of debit and credit cards!
What's the Difference?
Debit Cards:
- Connected directly to your bank account
- Spend money you already have
- Great for everyday purchases
- Helps you stick to your budget
Credit Cards:
- Borrow money you'll pay back later
- Useful for bigger purchases
- Builds credit history (important for adulting!)
- Comes with responsibility to pay it back on time
When to Swipe What: Debit
- Buying lunch, snacks, or small items
- Getting cash from an ATM
- You want to keep track of your spending easily
When to Swipe What: Credit
- Making a big purchase you've saved up for
- Booking travel or shopping online (for extra protection)
- In emergencies (but be careful!)
- You can pay the full balance quickly
Learning when to use debit vs. credit helps you:
- Manage your money better
- Avoid overspending
- Start building good credit habits for the future
Get Ready to Test Your Skills!
On the next screen, you'll face real-life scenarios. Your mission? Decide whether to use debit or credit for each situation. Don't worry if you're not sure - this is how we learn!
Swipe Right: Debit or Credit?
You're grabbing pizza with friends. Swipe right for debit or left for credit?
These swiping skills make the difference between using plastic responsibly or overdoing it.
Swipe Right: Debit or Credit?
Taylor needs new kicks for basketball.
Swipe right for debit or left for credit?
These swiping skills make the difference between using plastic responsibly or overdoing it.
Swipe Right: Debit or Credit?
Malik is buying concert tickets that he saved up for.
Swipe right for debit or left for credit?
These swiping skills make the difference between using plastic responsibly or overdoing it.
Swipe Right: Debit or Credit?
Jayla's phone broke and she needs a replacement.
Swipe right for debit or left for credit?
These swiping skills make the difference between using plastic responsibly or overdoing it.
Meet Jayden, a savvy saver who just got his first credit card. He's excited to use it for his everyday purchases, like grabbing burgers with his buddies and snagging the latest video games.
But There's a Catch
One month, Jayden's expenses got a little out of hand:
But There's a Catch
Let's crunch the numbers:
- Balance:
$160 - Interest Rate:
18% APR - Minimum
payment: $25
If Jayden only pays the minimum, it will take him 8 months and cost an extra $15 in interest to clear his debt. Ouch!
The Key Takeaways:
- Always aim to pay your full credit card balance each month to avoid those sneaky interest charges.
- If you can't afford to pay for something outright, it's best to save up for it instead of relying on credit.
By paying off your balance in full, you can enjoy the convenience of credit cards without the added cost. It's all about responsible spending and smart money management!