Mastering Credit and Debit Cards

Mastering Credit and Debit Cards

Learning Objective

At the end of the lesson, you will understand the differences between credit and debit cards, their usage, and the potential risks and benefits associated with them.

What do you already know about credit and debit cards?

Slide 1: Introduction to Credit and Debit Cards

Credit and debit cards are essential financial tools in today's world. They offer convenience and security for making purchases and managing finances.

Slide 2: What are Credit Cards?

Credit cards allow users to borrow money from the card issuer up to a certain limit to make purchases. Users are required to repay the borrowed amount with interest if not paid in full by the due date.

Slide 3: What are Debit Cards?

Debit cards are linked to the cardholder's bank account and allow direct spending of the available funds in the account. They do not involve borrowing money and are typically used for everyday transactions.

Slide 4: Usage of Credit Cards

Credit cards can be used for making purchases, paying bills, and even for cash advances. They offer rewards and benefits such as cashback, travel miles, and fraud protection.

Slide 5: Usage of Debit Cards

Debit cards are primarily used for making purchases in-store and online, withdrawing cash from ATMs, and paying bills. They offer the convenience of accessing funds without carrying cash.

Slide 6: Risks and Benefits of Credit Cards

Credit cards provide financial flexibility but can lead to debt if used irresponsibly. They also offer consumer protection, rewards, and the ability to build credit history.

Slide 7: Risks and Benefits of Debit Cards

Debit cards offer easy access to funds without the risk of accumulating debt. However, they may have limited fraud protection compared to credit cards and may not help build credit history.

Slide 8: Conclusion and Recap

Understanding the differences and features of credit and debit cards is crucial for making informed financial decisions. It's essential to use these financial tools responsibly to manage personal finances effectively.

Write down 3 things you learned in this lesson.

Have students enter three things they learned in this lesson. With this they can indicate their own learning efficiency of this lesson.

Write down 2 things you want to know more about.

Here, students enter two things they would like to know more about. This not only increases involvement, but also gives them more ownership.

Ask 1 question about something you haven't quite understood yet.

The students indicate here (in question form) with which part of the material they still have difficulty. For the teacher, this not only provides insight into the extent to which the students understand/master the material, but also a good starting point for the next lesson.