The past few weeks we have been learning about being smart and understanding how money, cards and the bank works. We have learned:
Credit card:
A credit card is a card that holds money from the bank, if you spend this money you must pay the same amount back to the bank.
After pay:
After pay is where you purchase an item but you don’t have to pay straight away, you can pay later on.
Overdraft:
Overdraft is when you buy something that is more money than you have, like you buy something that is $50 but you only have $40, then when you look at your bank account it will have a $-10. After you get more money put in then you will have $10 automatically taken off.
Debit card:
The money that you own on a card that you can use online and offline.
Hire purchase:
Like after pay, you buy things and pay after, but this would normally be more expensive and bigger interest rates.
Personal loan:
A personal loan is money you get from the bank to buy houses or cars, but then you will probably have to pay more back to the bank.
Bankruptcy is when you have no money left and cannot pay your debts. In banqer, this can be initiated by the creditor.
Max overdraft limit is the maximum amount of money you are allowed to borrow.