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5.12: Savings and Credit Cards

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    Savings & Credit Cards

    Universal Generalizations

    • Savers help to make funds available to borrowers.
    • Saving today can make future purchases possible.
    • There are several forms of “money” that are accepted in exchange for goods and services.
    • There is “good debt” and “bad debt”

    Guiding Questions

    1. How can you develop the habit of saving?
    2. What is the difference between saving and investing?
    3. What is the concept of compounding savings?

    Savings and Investment

    Read the following article from Business Insider titled 8 Ways to Make Your Money Work for You to learn some personal finance strategies for saving money.

    Also read the article How to Save Money as a Teen for more savings advice.

    Video: How Does Saving Account Interest Work?


    Click on this link to a student module titled Borrowing - Use, Don't Abuse in order to understand the concept of borrowing.

    Video: Saving and Borrowing

    Video: Debit & Credit: 2 Very Different Cards

    Learning Extension

    3553678-1556673995-6904917-42-pencil-clipart-classroom-14.jpgComplete the Learning Extension activity on the EconEdLink website by following your teacher's instructions.

    Visit the lesson titled The Costs of Credit on the EconEdLink website. Follow your teacher's instructions for completing this activity.

    This page titled 5.12: Savings and Credit Cards is shared under a not declared license and was authored, remixed, and/or curated by CK-12 Foundation via source content that was edited to the style and standards of the LibreTexts platform; a detailed edit history is available upon request.