Credit Shmedit

What do you know about credit cards? Are you old enough to have one? What is the difference between credit and debit? Do you know when to use which card? Hopefully! Do you know the importance of understanding a credit card? Let me give you a hint, if you don't, you can go bankrupt. Like that!

Credit is the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future. A Credit card provides a short-term loan, whereas debit is not borrowing any money and only using what you already own. Using a credit card correctly can be very hard for some as people tend to spend more than what they can repay at the end of the month. It is like having cash on you, if you have cash in your wallet, you know you're going to spend it. Well, now you have a card that you may be able to take a lot of money from, but remember, it eventually all comes out of your bank account. Terms like Grace Period, Cash Advances, and Credit Limit are important to know if you're going to get a credit card. Do you know how to build good credit history? Or what credit scores are? What are the 3 's? How about your rights and responsibility as a credit card owner. Didn't think so. The danger about credit cards are the interest that is accumulated on every cent that you do not pay back in time, and this is how you will lose a lot of money, very quickly. Make sure you talk to your parents, an older friend, an adult in your life, etc., about using credit cards because they might be the end of you....well, the end of your debt-free life.

This information was based on the high school class "Personal Finance" (IDC4UM) at Craig Kielburger High School, along with the website: https://lkueh.wordpress.com/.