Grade: 6 Lesson # 15
What are different methods of paying for goods and
services?
SS.8.FL.2.3 Describe the variety of payment methods
people can use in order to buy goods and services.
www.acuitycomplete.com
Correlated Literacy Standards:
LAFS.6.RI.1.1 Cite textual evidence to support analysis of what the text says explicitly as well as inferences
drawn from the text.
LAFS.6.L.3.6-Acquire and use accurately grade-appropriate general academic and domain-specific words
and phrases; gather vocabulary knowledge when considering a word or phrase important to comprehension
or expression.
LAFS.6.RI.3.7Integrate information presented in different media or formats (e.g., visually, quantitatively) as
well as in words to develop a coherent understanding of a topic or issue
SS.8.FL.2.3 Describe the variety of payment methods people can use in order to buy goods and
services.
Credit or Debit: How Shall I pay?
Lesson Number 15
Correlated Florida Standards (See Full Text on Cover Page)
 LAFS.6.RI.1.2,LAFS.6.L.3.6,LAFS.6.SL.1.1
Essential Question
 What are different methods of paying for goods and services?
 How are credit cards and debit cards different?
 What are the pros and cons of using credit or debit cards?
Learning Goals/Objectives
 Understand the difference between credit cards and debit cards
 Explain the advantages and disadvantages of credit cards and debit cards
 Compare the similarities and difference of credit cards and debit cards
Overview
In this lesson, adapted from Debit Cards vs. Credit Cards econedlink, students will explore the use of debit
cards vs. credit cards. They will compare their similarities and differences and be able to explain the costs
and benefits of each. After investigation through video presentation and activities, students will demonstrate
understanding by creating a Venn Diagram comparing debit cards and credit cards.
Materials
 Computer with internet access
 Promethean or Smart Board
 Video: Two Very Different Cards https://www.bettermoneyhabits.com/personal-banking/bankaccount-information/credit-debit.html (8:10)
 Note-Taking Guide for Video: “Two Very Different Cards” (Included in Lesson Plan)
 Handout # 2 Costs and Benefits of Debit and Credit (Included in Lesson Plan)
 Handout # 2 Costs and Benefits of Debit and Credit Answer Key (Included in Lesson Plan)
 Handout # 3 Making a Venn Diagram (Included in Lesson Plan)
 Handout # 3 Making a Venn Diagram Answer Key (Included in Lesson Plan)
Time
 55 minutes
Activity Sequence
INTRODUCTION/HOOK ( 8 minutes)
Ask students how they pay for purchases at the cash register. (Most will probably say “cash”) Then ask how
their parents pay for purchases? (credit cards or debit cards) Explain that, other than cash, some people use
credit cards or debit cards to pay for purchases. Ask students if anyone knows the difference between a credit
card and a debit card. Discuss answers.
Explain to students that credit cards and debit cards look very similar, but are actually very different. Using
a debit card withdraws money from your own account to pay for your purchase. You are paying with your
own money. On the other hand, using a credit card is like making a temporary loan. You are paying with
someone else’s money (the bank or credit card issuer). Using a credit card is “buying now, paying later.”
You will pay the money back to the lender (plus interest) at a later date.
For clarification on credit card lenders, make sure that everyone understands the term “bank.” Ask students
to give you the name of a few banks. Tell students that there are also credit card companies that issue credit
cards to customers. They make a profit by charging you interest to use their cards. Ask students if they can
name a few credit card companies (Master card, Visa, American Express, etc)
ACTIVITY (39 minutes)
1. Tell students that in today’s lesson, they will be exploring credit cards and debit cards, their similarities
and their differences. We will begin by watching a video entitled “Two Very Different Cards” ( 1
minute)
2. Explain that quite a bit of information will be presented in the video and that they will be required to take
notes. To help organize and remember the information, they will be given a note-taking guide.
Distribute Handout # 1 Note-Taking Guide for Video: “Two Very Different Cards”(included in Lesson
Plan) Review Handout # 1 and answer questions regarding note-taking. ( 2 minutes)
3. Show the video Two Very Different Cards https://www.bettermoneyhabits.com/personalbanking/bank-account-information/credit-debit.html (8:10) Provide time for students to complete and
organize their notes (12 minutes)
4. Review and discus the video. After watching the video, reinforce acquired information by using the
following questions from http://www.econedlink.org/teacher-lesson/1282/Debit-Cards-vs-Credit-Cards :

What characteristics are the same for both debit and credit cards?
(Convenient, accepted everywhere, fraud protection, secure, replaces cash, plastic)
 What are credit card benefits/advantages?
(Great for emergency situations, may improve credit score, extra perks such as grace periods,
reward points, travel insurance, purchase protection)
 What are credit card costs/disadvantages?
(Could pay interest, could be hit with late fees, higher interest rates and a lower credit score if
miss a payment, pay fees if go over credit limit, may overspend and have unnecessary debt)
 What are debit card benefits/advantages?
(Keeps track of what you spend, get cash at ATM, get cash at register if have PIN, won’t pay
interest on purchases, protects you from spending money you don’t currently have)
 What are debit card costs/disadvantages?
(Card can be declined if not enough money in your account)
 Which card requires money to be taken automatically out of a checking or savings account?
(Debit card)
 Which card requires money to be borrowed and then repaid at a later date?
(Credit card)
( 5 minutes)
5. Explain to students that they are going to be completing an activity called “The Costs and Benefits of
Debit Cards.” In relationship to credit and debit:
 Benefit refers to a gain received from using the credit or debit card (advantage)
 Cost refers to the actual money cost or negative factor from using the credit or debit card
(disadvantage) ( 2 minutes)
6. Distribute Handout # 2 Costs and Benefits of Debit and Credit (Included in Lesson Plan). Review
Direction and provide students with time to complete activity. When complete, review answers using
Answer Key included in Lesson Plan. (10 minutes)
7. Distribute Handout # 3 Making a Venn Diagram (Included in Lesson Plan). Review directions and have
students complete the Venn Diagram ( 5 minutes)
8. Review Venn Diagrams using Answer Key included in the lesson plan. ( 2 minutes)
CLOSURE (3 minutes)
Revisit and review the lesson’s Essential Questions.
OPTIONAL EXTENSION SUGGESTION/HOME LEARNING
Have students imagine that they work for the Consumer Protection Agency. They must develop a brochure
for consumers on the use of Credit and Debit Cards. They are to write it as if the consumer has no previous
knowledge of credit and debit cards. Include basic information as well as listings of the costs and benefits of
using credit cards and debit cards.
Sources/Bibliographic Information that contributed to this lesson
Better Money Habits.com Credit and Debit - Two very different cards (8;10)
https://www.bettermoneyhabits.com/personal-banking/bank-account-information/credit-debit.html
Council for Economic Education EconEdlink.org Debit Cards vs. Credit Cards
Better Money Habits Middle School – Council for Economic Education
Council for Economic Education Fitness for Life
http://fffl.councilforeconed.org/lessons.php?gradeLevel=6-8&lid=68246
Handout #1
Note-Taking Guide for Video: “Two Very Different Cards”
Name______________________________
Date_____________________________
Debit Card
What is a debit card?
Characteristics of debit cards:
Pros (advantages) of Debit Cards
Cons (disadvantages) of Debit Cards
Credit Card
What is a credit card?
Characteristics of credit cards:
Pros (advantages) of Credit Cards
Cons (disadvantages) of Credit Cards
Other important points to remember:
Name_______________________
Date______________________________
Handout # 2 Costs and Benefits of Debit and Credit Cards
Read the following statements about debit and credit cards. Based on what you learned in the
video, decide if the statement applies to a debit card, to a credit card, or to both cards. Put an X in
the appropriate column. Then decide if the statement is a cost (disadvantage) or a benefit
(advantage) when using that card. Use a (-) for costs and a (+) for benefits.
Statement
Debit
Card
Money is borrowed and repaid at a later date.
Money is automatically taken out of a checking or
savings account.
Great for emergency situations.
Card declined if not enough money in account.
Has extra perks.
May pay interest.
May receive cash from ATM.
Convenient.
Secure.
May pay late fees.
No interest.
Replaces cash.
Affects credit score.
Has fraud protection.
May cause unnecessary debt.
*Better Money Habits Middle School – Council for Economic Education
Credit
Card
Both
Cost/
Benefit
NA
NA
Name_______________________
Date______________________________
Handout # 2 Venn Diagram: Costs and Benefits of Debit and Credit Answer Key
Read the following statements about debit and credit cards. Based on what you learned in the
video, decide if the statement applies to a debit card, to a credit card, or to both cards. Put an
X in the appropriate column. Then decide if the statement is a cost (disadvantage) or a benefit
(advantage) when using that card. Use a (-) for costs and a (+) for benefits.
Statement
Debit Credit Both
Cost/
Card
Card
Benefit
Money is borrowed and repaid at a later date.
X
NA
Money is automatically taken out of a checking or
savings account.
Great for emergency situations.
X
Card declined if not enough money in account.
X
NA
+
X
--
Has extra perks.
X
+
May pay interest.
X
--
May receive cash from ATM.
+
X
Convenient.
X
+
Secure.
X
+
May pay late fees.
No interest.
+
X
Replaces cash.
Affects credit score.
X
X
X
+
+/--
X
Has fraud protection.
May cause unnecessary debt.
--
X
+
--
*Credit cards can have either a positive or negative impact on credit; it is positive for people who maintain
low balances and pay their monthly bills on time; it is negative for those who max out credit and have late or
skipped payments.
*Better Money Habits Middle School – Council for Economic Education
BETTER MONEY HABITS MIDDLE SCHOOL LESSON:
CREDIT AND DEBIT: TWO VERY DIFFERENT CARDS
Name_______________________
Date______________________________
Handout # 3 Making a Venn Diagram
After completing the table in Part A, use that information to create a Venn Diagram below. If
the statement describes a credit card, write the statement in the left circle. If the statement
describes a debit card, write the statement in the right circle. If the statement describes both a
debit card and credit card, write the statement in the overlap between the two circles. If the
statement is a benefit, draw a line under the statement. If the statement is a cost, circle the
statement.
Credit Card
Debit Card
*Better Money Habits Middle School – Council for Economic Education
BETTER MONEY HABITS: MIDDLE SCHOOL
8
Handout # 3
Answer Key
Making a Venn Diagram
After completing the table in Part B, use that information to create a Venn Diagram
below. If the statement describes a credit card, write the statement in the left circle. If
the statement describes a debit card, write the statement in the right circle. If the
statement describes both a debit card and credit card, write the statement in the overlap
between the two circles. If the statement is a benefit, draw a line under the statement.
If the statement is a cost, circle the statement.
Credit Card
Debit Card
Money borrowed;
Cash from ATM
repaid later
Convenient
Great for
emergencies
Secure
Replaces cash
Money automatically
withdrawn from
account
Pay interest
Card declined if not
enough money in
account
Late fees
No interest
Extra
perks
Fraud protection
Affects credit
score. +/May cause
unnecessary debt.
Note: Answers underlined in this key are benefits; answers not underlined are costs.
*Better Money Habits Middle School – Council for Economic Education
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