Personal Finance / Unit 3: Banking
3.2 Debit Cards and ATMs
Notes
A debit card takes money directly from your checking account when you pay or withdraw cash.
- It is not a loan. You can only spend what is in the account (unless overdraft rules apply).
- A PIN (personal identification number) protects ATM and some purchases. Never share it or write it on the card.
- Using your bank's own ATMs usually avoids fees. Other ATMs may charge a fee.
- Check your balance after each purchase so it does not go negative.
- Example: balance $500, then purchases of $45 and $30. New balance $= 500 - 45 - 30 = 425$, so $425.
Practice
How is a debit card different from a credit card?
Debit spends your own money; credit borrows.
A checking account has $250. Dee spends $60 at a store and withdraws $80 in cash. What is the balance?
$250 - 60 - 80 = 110$.
Which is the safest way to handle your PIN?
A PIN only protects you if others do not know it.
Ready for more? Take the Unit 3 test.