I was having a conversation recently about financial literacy, and it got me wondering how many teenagers actually understand the difference between a debit card and a credit card. With so many young people using cards for online purchases or even day-to-day spending, it seems like a pretty important concept, but I wouldn’t be surprised if a big percentage don’t really know the distinction.
Debit cards pull directly from money you already have in your bank account, while credit cards let you borrow money that has to be paid back (often with interest if you don’t pay on time). It sounds simple enough, but for someone new to managing money, I can see how it might be confusing.
Does anyone know what the stats look like on this? Or even from personal experience, if you’ve talked to teens in your family or community, do they usually understand the difference? Curious to hear thoughts and any studies people might know of
Debit cards pull directly from money you already have in your bank account, while credit cards let you borrow money that has to be paid back (often with interest if you don’t pay on time). It sounds simple enough, but for someone new to managing money, I can see how it might be confusing.
Does anyone know what the stats look like on this? Or even from personal experience, if you’ve talked to teens in your family or community, do they usually understand the difference? Curious to hear thoughts and any studies people might know of