Issue link: https://viewer.e-digitaledition.com/i/1267142
F O U N D A T I O N Laying the groundwork for fi nancial success 4 | SUMMER 2020 Debit vs. credit cards: What's the diff erence? Teach kids the important diff erences between the plastic cards they carry in their wallets. ***CREDIT CARD*** ----------------- Works like a loan ----------------- Use signature/identification to verify ----------------- Borrows against a line of credit ----------------- Must be paid back with interest, fees, penalties Benefits: Perks like airline and hotel points Reserved for larger purchases: car repairs, new appliances, furniture, Hotels, Air travel ***DEBIT CARD*** ----------------- Works like cash ----------------- Deducts money from an account of money you already have ----------------- Free to use any time Benefits: Not owing interest Recommended for everyday purchases: groceries, restaurants, entertainment, gas Kids know how to shop online. Method of payment? They start typing in that 16-digit number. But do they know the diff erence between a debit card and a credit card? — Bridget McCrea