Checking accounts, debit cards and credit cards
Checking Accounts, Debit Cards and Credit Cards
Checking Accounts, Debit Cards and Credit Cards is the opening topic of Financial Literacy in the Texas Essential Knowledge and Skills. It is aligned to Standard 6.14(B), which requires students to distinguish checking accounts, debit cards, and credit cards.
A checking account holds spending money; a debit card spends your own funds while a credit card borrows money to repay.
Theory
A checking account holds money for everyday spending, accessed by a debit card or check.
Key difference:
How to choose and use
- Use debit to spend within your balance.
- Use credit to borrow, then repay promptly.
- Pay credit in full to avoid interest.
- Track every transaction.
Your own, from your account.
Borrowed money you repay later.
When the balance is not paid in full.
You may overdraw the account and owe a fee.
Common pitfalls
Frequently asked questions
What is a debit card?
A card that spends your own account money.
What is a credit card?
A card that borrows money to repay later.
When does credit charge interest?
When you don't pay the balance in full.
What is a checking account?
An account for everyday spending.