Teaching Debits & Credits

Video Transcript

"Confused on your debit card? Hi, I'm Carrie Kukuda, the Someday Coach. Today, I'm just going to give you a little bit on credits and debits. Your debit card...a lot of people get confused on a debit card. The debit card has a logo that has either a Visa or MasterCard, so you think you can use it as a credit card. You can, but the difference is is any transaction that occurs through that card will be directly pulled out of your checking account, whether you choose debit or credit. If you choose...the advantage of picking debit is that you can get some cash back. A lot of times, there's a limit on that -- maybe 10...a minimum of 10 dollar...not a minimum, but it can be, you know, maybe 10 dollars to 50 dollars that you can get back from that account. But keep in mind that that money does come out of your checking account. It's not money that you're going to be getting from a credit card and be billed later. It's going to come directly out of your checking account. It is an advantage when you need quick cash, but make sure that you have the money to use. As well as some companies that you walk into or some places and stores and retail places, they're going to ask that you have a debit or credit. They may say that they don't accept credit or they don't accept debit, so you can use it either way in the stores. You also want to check with them also on the debit card because sometimes there is fees that are charged for the debit card -- a small...it's a very small fee, but check with your financial institution to make sure. And then, of course, if you're using it as credit, the only disadvantage of that is you can't get cash back. So just some things to consider that no matter what, the thing...the biggest thing to remember is whether it's debit or credit, that card is going to be directly taken out of your checking account. So just some little tips for you to remember. Again, I'm Carrie. Thank you very much."