
Economics for Kids
Credit and Debit
For Kids:
Credit and Debit are simply two ways of buying things.
Debit is when you make a purchase and money is withdrawn from your bank account. Debit is the closest thing to cash. Debit cards are issued by the bank who is holding your money in a bank account. See this site for a clear explanation of debit.
Credit is an agreement between a creditor (lender) and a borrower (debtor). The debtor promises to pay back the lender for the money borrowed, usually with interest. If you don't pay it back as agreed, you could be in a whole bunch of financial trouble. See this site for a clear explanation of credit.
In brief, what is the difference between a debit card and a credit card?
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A debit card is linked to your bank account and gives you access to money you already have. You do not have to pay this back since it is your own money.
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A credit card is NOT linked to your bank account and is money that is loaned to you by the company (bank or store) who issued the credit card. You do have to pay this back, usually with interest, since it is not your money.
For Kids - Free, Online, Interactive
Frankie Finance - Understanding Debit and Credit (cartoon video for kids)
Shady Sam Loan Shark (interactive game)
Credit Clash game - online, interactive
Hit the Road - a financial adventure, online, interactive
The Uber Game - Can You Make It?
How many years will it take to pay off a credit card?
(use this site's calculator)
For Teachers - Free Use Lesson Plans and Classroom Activities
Learning About Credit Card Use
Playing a Credit and Debit game, classroom activity
Credit worksheet with activities
Free to Use Original Clipart for Economics for Kids and Teachers
See Also: Banking, Money, Personal Finance, Economics