1. Credit & Debit Cards Personal Finance Mrs. Brewer

2. Let’s Go Shopping…. Log on to the Internet Find something you just HAVE to BUY! Anything you want!

3. Things to Buy…

4. How Can I Pay for It?? Credit Card ◦ Plastic ◦ Make Purchases without cash in hand ◦ Future Payment ◦ With Interest Debit Card ◦ Plastic ◦ Make Purchases without Cash in hand ◦ Funds must be available in checking or savings account

5. Advantages & Disadvantages Credit Card ◦ Funds available to make purchases ◦ Don’t have to carry a lot of $$ ◦ Pay interest on purchases ◦ More convenient ◦ No pin # needed ◦ If lost or stolen not responsible for all purchases ◦ Rewards for using the card Debit Card ◦ NO INTEREST ◦ Funds need to be available ◦ Usually need a pin # ◦ Need to track purchases and amount of $$ spent ◦ Readily available to use ◦ Don’t have to carry a lot of $$ ◦ Card # can be stolen and used without your knowledge

6. Credit Card Video

7. www.creditcard.com Student Credit Cards Who is eligible? What card would you pick?

8. Terms & Abbreviations APR = Annual Percentage Rate V = Variable Annual Fee = the amount charged by the credit card company for you to have the card.

9. Terms & Abbreviations, cont… Cosigner = an additional person who agrees to have equal liability for the credit card debt. Creditworthiness = having an acceptable credit rating.

10. Terms & Abbreviations, cont… Balance Transfer = the transfer of debt from one credit card to another. Prepaid Debit Card = a plastic card that acts like an electronic wallet. Like prepaid gift cards.

11. www.nolo.com Let’s use the online credit card payment calculator….

12. Purchase Example $1,000.00 item 18.50% APR $25.00 minimum payment

13. Results!! 63 months to pay off purchase $569.27 paid in interest So…5 years and $1,569.27 later…

14. Was it worth it??