Debit Card: Is a card directly linked to your bank account. Think of it as the equivalent of cash! You can use it to spend the money available in your account without facing interest.
Credit Card: With a credit card you are spending money that is not yours. They come with annual fees, very high interest rates, and flashy introductory offers. With a credit card you spend the banks money, and then need to pay it back with your own money (plus interest!). Since you are borrowing from the bank, you can begin to build credit (credit score). Building credit is beneficial if you're able to pay the bank back on time, and can hurt you a lot if you don't pay the bank on time. Having a good credit score will allow you to take out loans from banks in the future, for cars and houses etc. The best way to have good credit is to always pay the full balance on your credit card each month. Never miss a payment as it could hurt your credit!
Starting out, a debit card allows you to get used to spending with a card. It can be easy to overspend with a card because you don't see the physical cash exchanging hands. It's good practice to budget yourself as carrying around all your cash can be impractical/unsafe. When you are comfortable that you can handle spending using a debit card, a credit card can be useful in the long term due to the ability to build credit. To build good credit, try to only use a credit card for small purchases and set up automatic payments from your bank account.
Any time you borrow money, you’re creating debt. The more you borrow, without repaying, the deeper you go into debt. If you have the wrong attitude about credit cards, it could be easy to borrow more than you can afford to pay back. A credit limit should be thought of as a loan extended to you by a credit card provider as opposed to free money to spend. Credit card balances generally come with interest rates. Every time you add to your balance and don’t pay it off in full within the billing cycle, you’ll have to pay that much more in interest. This can make it difficult to get out of credit card debt. Once you’re in debt, reaching your other financial goals is much harder. Debt leads to a myriad of other problems, and not all of them are financial. It can lead to stress, depression, and other health issues, all of which can have serious impacts on saving for college.
Hope this is helpful Anita