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How to Teach Children the Difference Between Credit and Debit

By MyJobChart

Published February 11, 2016

Step 1

The best place to teach the difference between credit and debit is by actually having them slide the card for you.

 

 

Step 2

Next time you are at the store waiting in line to check out get out 1 debit card and 1 credit card.

 

 

Step 3

Ask them if they see any differences in how the card looks. Maybe one has a Visa logo and the other has a Mastercard logo. One of the cards might have a cool looking background and the other doesn't.

 

 

Step 4

Reinforce the differences that they mention. “Yes, you're right… this card has a bird on it and the other doesn't."

 

 

Step 5

Then explain the principle of the “Money Sucker”. When you use a debit card at the register this sucks money right out of your account at that very moment. With a credit card, they (the credit card company) keeps track of all your swipes and then sends you a list of them at the end of the month and THEN you have to pay them.

 

 

Step 6

Explain that if you don't pay the credit card company everything that you owe them at that time then there are penalties for doing that.

 

 

Step 7

Let them swipe the card when you get to the register and when they do reinforce that the money is either being “sucked out” or getting put on a list to send to us later.