What’s a bank card, and the way does it work?


Bridget will get to know her new co-host Ryan, who has lots of enjoyable concepts however doesn’t know a lot about cash. They’ll work collectively on a query that fairly a number of listeners had been questioning about: What are bank cards, in addition to little items of plastic with chips in them? Collectively, we’ll find out how grownups use bank cards within the first place, and a few potential pitfalls of swiping. Then issues actually get out of hand when the ghost pirates present up.

A four-panel comic explaining the basics of credit cards with Ryan, Bridget and Ghost Black Beard.
Arnel Alinea

Cash Talks

Credit score and bank cards are a sophisticated subject, so listed here are some questions to seek out out what your baby has realized up to now:

  1. Why would somebody desire a bank card? On this episode, we noticed some accountable and not-so-responsible makes use of. Are you able to consider extra?
  2. Ghost Blackbeard stole Bridget and Ryan’s card and went on a spending spree. What occurs when a bank card will get stolen?
  3. Bank card corporations cost “curiosity” in case you don’t pay your full bank card invoice on the finish of the month. What’s curiosity?
  4. Bank card customers get a “rating,” displaying how accountable they’re with credit score. Why is that rating vital sooner or later?

Tip Jar

Dad and mom, listed here are some methods you may preserve the dialog about bank cards going at residence. This time, we have now assist from Joyce Serido, an affiliate professor and monetary skilled on the College of Minnesota. She provided the following pointers that work for bank card customers of all ages:

  • In case you use a bank card to buy on-line, verify for an “https” URL or a padlock icon in your browser. That signifies the location is safe and it’s protected to enter your card data.
  • Examine your bank card statements every month to be sure you truly acquired the gadgets or companies you acquire, and that every one the totals match your receipts. (Your child would possibly find a way that can assist you verify off your listing!)
  • Ryan threw away his bank card settlement, however you shouldn’t! Look it over and be sure you’re ready to carry up your finish of the deal. What’s your rate of interest? How a lot are late charges? In case your family has multiple card, how do the playing cards evaluate?
  • Examine your credit score report! Credit score scores will assist you to apply for residences or get a house mortgage, however errors are all too widespread. The College of Minnesota has a helpful information for ordering a duplicate of your report.
  • And one final thought: Some specialists counsel dad and mom ought to freeze their baby’s credit score rating till they arrive of age. Think about whether or not it’s proper for your loved ones.

Gimmie 5

If this week’s present felt too advanced to your child, that’s OK! Our free electronic mail publication course, Million Bazillion Academy, is an effective way to construct saving and sensible purchasing fundamentals. Every lesson is tied to an episode of our present and comes with an exercise that lets youngsters apply what they’ve realized in the actual world.

Lastly, we’d love to listen to your youngsters’ cash jokes, cash poems and greatest cash suggestions so we are able to characteristic them on the podcast! Ship them to us utilizing this on-line kind.


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