Know your debit cards from your credit cards

Debit cards and credit cards might look almost identical, but they work in very different ways. Understanding the difference can help you make informed money decisions now and prepare for managing your finances in the future.

In our short film, you'll discover:

• How debit cards use money you already have in your bank account.
• How credit cards allow you to borrow money and repay it later. 
• What interest and APR mean, and why they matter. 
• How credit cards can help build a credit history when used responsibly. 
• The risks of overspending and taking on debt. 
   

As you watch, think about:

• Why might someone choose a debit card over a credit card?
• What are the advantages and risks of borrowing money?
• How could missing repayments affect someone's future financial options?
• Why is it important to only borrow money you can afford to repay?

While most young people won't be eligible for a credit card until they're 18, learning how credit works now can help you feel more confident when making financial decisions later in life. Whether you're shopping online, managing your first bank account or thinking about future goals, understanding the difference between debit and credit is an important money skill.