The fundamentals of money management for us as consumers exist in two important financial accounts: credit and debit. While credit and debit accounts/cards are necessary to the financial well-being of all consumers, there are misconceptions and unclear distinctions between these.
Credit and debit are two very different things. Watch the video below to get a quick overview of the differences and a short list of some pros and cons. Then use the resources found on this page to get yourself more well-versed on how you can be a smart consumer.
|AccountingCoach’s “Debits and Credits” guide|
|This self-paced, four-part course offers helpful guidance through vocabulary words, charts, quizzes, puzzles, and more* to make sure you know the basics of debits vs. credits and what each entails.
*PRO and PRO Plus versions ($$$)
|Credit vs. Debit? Here’s What You Need To Know|
|Many people grapple with whether a debit card or a credit card is right for them, but before making this decision, it’s important to know the fundamental differences between the two.|
|What to Know About Choosing “Credit” When Paying With a Debit Card|
|Choosing ‘credit’ when making a purchase on a debit card can affect your benefits, the merchant’s fees and how the transaction gets processed.|
|When Should I Use Credit and When Should I Use Debt When Shopping?|
|When you use credit versus debit at the checkout counter, the transaction is handled very differently behind the scenes, regardless of whether the money comes out of the same bank account. If you’re curious whether you should use a debit card versus a credit card, there are some serious differences there too that you should know about before you pull out the plastic.|
|The Cheat Sheet for Debits and Credits|
|This overview provides insight through a mathematical perspective to hone into the complementary differences of debit and credit. The role of equity, liability, and assets in relation to debit and credit can also be found here.|
|Your Map to the Maze of Debits & Credits|
|Debits and credits are two of the most basic principles in accounting, but most people nevertheless find them pretty darn confusing! The Wallet Hub will help clear things up so you can get back to the business of making – and responsibly managing – money.|
|Rules of Debit and Credit|
|Here you will find overview rules for using asset accounts, liability accounts, other debit and credit-related accounts, and examples to contextualize the material presented.|