Comparison: Credit Cards vs Debit Cards for Kids and Teens
This video does a credit card vs debit card comparison in a simple, concise way for kids and beginners. It could be used by kids & teens to learn about the advantages and disadvantages of each, or used as a money & personal finance resource by parents and teachers as part of a Financial Literacy course or K-12 curriculum.
Suitable for students from grade levels:
- Kindergarten
- Elementary School
- Middle School
- High School
The topics covered are:
- Differences between credit cards and debit cards
- Difference in the fees charged by them
- Which is better: a credit card and a debit card
Infographic: Click Here to Download
Is there any difference between a credit card and a debit card?
My friend told me that his credit card is better than my debit card. But is that true? Is there even a difference?
Yes, there are a couple of differences.
Well then, what are they?
First of all, for credit cards, you borrow the money from the bank. But with debit cards, you use your own money to make the purchases or for ATM withdrawals.
And also, with credit cards, you have to pay interest if you don’t make your payments in full for the month, or you don’t make your payments at all. But with debit cards, since the money is coming from your own account, you will not have to pay any interest.
Yay!! But…
Is there a difference in the fees that they charge?
Yes. With credit cards, many of them will have an annual fee.
But with debit cards – most of them do not.
Yay! But…
Are there any other differences?
Yes, there are.
With credit cards – well, at least with most of them – you can earn rewards (points, miles or cash back) that can be redeemed for cash or goodies. But with debit cards, usually you do not earn any points or other form of rewards.
Which is better: a credit card and a debit card?
You talked to me about all the differences, but which is better?
Well, if you’re disciplined and you make your monthly payments for the credit card – and make them in full – then credit cards are probably better for you, because you also get free credit and you can get rewards.
But if you don’t think that you’ll be able to make your monthly payment in full, and you don’t think you’re that disciplined, then a debit card is better for you.
Thank you very much for telling me the difference between a credit card and debit card, Wall Street Willy.
You’re welcome, Sooper Cooper. Remember, finance is your friend!
Video Featured in the Below Financial Literacy Course for Kids & Teens
Download Transcript: Ideal for Use by Teachers in their Lesson Plan to Teach Kids & Teens
Podcast: Credit Cards vs Debit Cards
Fun, informative and concise episodes by a 10-year old, breaking down complex financial concepts in a way that kids and beginners can understand. Episodes cover personal finance topics like saving, investing, banking, credit cards, insurance, real estate, mortgage, retirement planning, 401k, stocks, bonds, income tax, and more, and are in the form of a conversation between a cowboy (a finance novice) and his friend, a stock broker. Making finance your friend, only at Easy Peasy Finance.
A little bit about me: I have been fascinated with the world of personal finance since I was 6! I love to read personal finance books, and keep myself updated on the latest by reading various personal finance magazines. My friends often ask me questions about finance because they find it complex and intimidating. That’s what inspired me to start my YouTube channel called Easy Peasy Finance when I was 8, and this podcast 2 years later.
A comparison of credit cards and debit cards – their differences in terms of the way they work, their fees, rewards, etc. And whether a credit card or a debit card is better for you. Show notes and transcript at: https://easypeasyfinance.com/comparison-credit-cards-vs-debit-cards/
