What is credit card? A question that adults already know the answer for but it is something which kids are not still familiar with and they might even fail to know the difference between it and a debit card.
At some point, parents are faced with lots of different questions that their kids start shooting at them and during the journey of financial education, these questions are related to bank accounts, debit cards, credit cards, how to save money, etc. (https://www.youtube.com/watch?v=VxmTTvGezro).
The information that the kid's mind could get about credit cards and what they are is not that much but what they should understand is that credit cards are like the idea of borrowing money from the bank and this money should be paid back to the bank at the end of the month, which is not the same as debit cards that take directly from the money that the person owns in his/her personal account.
There are three different methods of payment known in general, the debit cards, the cash money and the credit cards. It is important that kids know what credits cards are and what are the differences between them and debit cards, it is also important that kids know why some people sometimes choose to use credit cards and not debit cards.
The money that a person spends while using the credit card goes into the form of a bill and this bill should be paid back at the end of the month and that is why it is considered like borrowing money or in other words it is sometimes seen as a loan. The thing about credit cards is that the person pays an interest over the amount of money that he/she spends and if the person is late to pay this money, the bank will also impose an interest on him/her, and this interest becomes bigger every single time the person is late for the payment. The credit card company only allows the person to spend a specific amount of money that it actually agreed on from the beginning and this means that the person will not be able to spend more than this amount in total.
Financial education for kids is important, it starts from giving them some tips and teaching them how to save some money and then it gets further with telling them more about bank accounts, credits cards, debit cards, etc. (https://www.youtube.com/watch?v=XHwcbRjWEds).
Talking about financial education for kids is one of the different things that parents should do when it comes to homeschooling, it is not just about maths and English and teaching them counting and letters, but parents should educate their kids and tell them more about finance, science and all the things which might be taking great part of their daily life (https://www.youtube.com/watch?v=QQgOJoZduRc).
When it comes to the financial education for kids and in addition to the different types of cards that are found out there, there are some other things to be talked about and shed the lights on, such as teaching the kids more about payslips (https://www.youtube.com/watch?v=a5Qu1YN43P8) as well as talking with the kids about earning money along with giving them some tips and tricks about how to save this money (https://www.youtube.com/watch?v=XHwcbRjWEds).
The kind of information that kids should know is not with the same amount as adults and this is the main reason why the information they should receive should be delivered in a very simple way in order to stay in their minds and at the same time make it easy and simple for their minds to grasp without losing themselves along the way.
Money talks for kids help them to understand that the money they receive should not always be spent on not-much-important things but they should instead make plans and save some money for any future needs, whether for buying something they have always wanted or just for any surprise needs.
What do your kids know about credit cards and about the differences between them and the debit cards? Did you teach them before about the world of banks and how important it is for them to save money?
Make a plan to teach your kids about credits cards and if you have any questions related to the world of banks, send them over and we will give you the answers you need.
Visit www.learningmole.com for more educational lessons and videos in Maths, English, Crafts and Cooking.
LearningMole focuses on educating children of all ages. We offer advice and practical, interactive ideas to help parents challenge, homeschool, teach and develop their children’s skills at home.
Help your child to explore the key concepts of number, counting, addition, subtraction, multiplication and division in Maths. Spelling, reading, writing and grammar in English. Help them to develop their imagination and creativity with crafts and to explore a range of skills to cook, bake and create tasty treats and snacks.
Easy to follow activities will support you and your child to learn and practice new concepts as well as enjoy spending time together. Help your child to progress and explore and most importantly - have fun!
