Over time, our society moved away from paying for goods and services with gold and silver to paying for things with cash. In the last two decades, we have been transitioning from paying for things with cash to credit and debit cards.
While these 2 cards may look the same, their features and uses are very different.
Knowing the differences between them and knowing when to use them appropriately is an important part of personal banking.
Did you know using one builds up your credit score and the other doesn’t?
Did you know if someone steals your card you may have liability on one card but not the other?
Click on the image below to learn the differences between credit and debit cards in terms of how they work, how they affect your finances, and the inherent security of each.
A short Pop Quiz follows below the article.
This lesson is part of the PersonalFinanceLab curriculum library. Schools with a PersonalFinanceLab.com site license can get this lesson, plus our full library of 300 others, along with our budgeting game, stock game, and automatically-graded assessments for their classroom - complete with LMS integration and rostering support!Learn More