Credit vs. Debit

Credit Vs. Debit

As money plays a major role in our society, it is very common for most adults to use a credit card more often than a debit card. However, these same adults find it difficult to trust their teenagers with this same form of payment, therefore this idea is reversed. Teenagers tend to use debit cards as a primary source of payment rather than credit. According to NGPF, around 19 percent of teenagers between the ages of 13 and 17 own a credit card while 40 percent of this same age group own debit cards. What is the major difference between credit and debit cards? Why is this trend laid out the way it is?

Difference

The major benefit with a credit card is the idea that all expenses are paid at the end of the month. This allows for the owner to save up money for his/her expenses and gives more time to collect all of the money for immediate purchases while borrowing money from the bank. However, with debit cards, the money for the purchase comes straight out of the owner’s checking account, where all money for expenses lie. Along with this, credit cards also rely on a system called credit score. Each individual is responsible for keeping their credit score in the green and making sure their expenses and loans are all paid off with no debts remaining. This credit score is crucial for an individual’s life as buying a car, home, and making other big moves all depends on this. If the credit score is unhealthy, then the bank will not allow this individual to make these next big purchases as this trust between the bank and individual is now broken due to the individual not paying off their debts in time or at all.

Debit Cards for Teenagers!

Therefore, the statistics of 40 percent of teenagers owning debit cards more than the 19 percent owning credit cards makes absolute sense as credit score is a huge responsibility given to these teenagers at such a young age which can possibly mess up their future. Debit cards allow for more reasonable expenses to be made, no later responsibility to clear debts from the individual, and lastly, no credit score to be taken care of.

Works Cited

Ngpf blog. Question of the Day: What percent of 13-17 year olds have a debit card? - Blog. (n.d.). Retrieved November 27, 2021, from https://www.ngpf.org/blog/checking-accounts/question-of-the-day-what-percent-of13-17-year-olds-have-a-debit-card/.

Pritchard, J. (2021, July 12). Should you spend with debit or credit cards? The Balance. Retrieved November 27, 2021, from https://www.thebalance.com/should-you-spend-with-debit-or-credit-cards-315480.