🏦 BANKS & DIGITAL MONEY · LESSON 3

What Is a Debit Card?

A debit card lets you use money from a bank account to pay for things.

An important difference

Debit card vs credit card

💳 Debit card

Uses money already available in your account.

💠 Credit card

Lets you borrow money from the card provider. We'll cover this properly later, in Borrowing & Debt.

How it works

Spending from your account

$30You have $30 in your bank account.
-$8You use your debit card to buy something for $8.
$22Your account balance becomes $22.

The card isn't creating new money — it's simply a way of accessing money already available in your account.

Two ways to pay

Cash vs a debit card

With cash, you hand over coins or notes. With a debit card, the payment happens electronically, and the money is deducted from your account instead.

Easy to lose track of

You're still spending it

Even though you don't physically hand over money with a card, you're still spending it. This matters because digital payments can make spending feel less obvious than handing over cash — the money still leaves your account either way.

Try it yourself

What's left after each purchase?

You start with $20. You spend $6, then $5, then $2. What's your balance after each purchase?

$20 − $6 = $14. Then $14 − $5 = $9. Then $9 − $2 = $7 left.

Staying safe

Card safety basics

Never share a PIN
Never share passwords
Don't give card details to strangers
Tell a trusted adult if a card is lost
Don't use someone else's card
For parents

For younger children, pretend examples work well. When your child eventually uses a real card, encourage them to check their balance regularly and understand that every purchase reduces the money they have available.

Keep going

Where to next

More on bank accounts and how banks work.

Ready to keep learning?

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