IXL | Identify advantages and disadvantages of payment methods

Which of the following is a disadvantage of using a credit card to pay for clothing?

Credit cards are easy to carry and use.

Credit cards are so easy to use that you must be careful not to spend more money than you planned.

If your credit card is lost or destroyed, you automatically lose your money.

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question

Which of the following is an advantage of using a debit card to pay for tickets to a theme park?

Debit cards are easy to carry and use.

You must have a checking account.

You must keep track of your spending so you don't try to spend more money than you have in your account.

key idea

A debit card lets you pay using the money you already have in your bank account. A debit card has a personal identification number (PIN) to keep it safe.

solution

Read each statement to see if it describes an advantage of using a debit card.

green checkmark, Debit cards are easy to carry and use.

Debit cards are small and light, and they are accepted at most businesses. This is an advantage of paying with a debit card.

red X symbol, You must have a checking account.

You must have a checking account with money in it to use a debit card. If you don't have an account, you must open one to get a debit card. This is a disadvantage of debit cards, not an advantage.

red X symbol, You must keep track of your spending so you don't try to spend more money than you have in your account.

A debit card only allows you to spend the money you already have in your checking account. So, you need to track your spending to avoid having your purchase denied. This is a disadvantage, not an advantage, of paying with a debit card.

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