Debit Cards V Credit Cards
When you’re under 18, you’re lucky! You can’t get into trouble with credit cards as you are under the legal age! But a lot of young people are encouraged to get credit cards when they turn 18! Beware as misuse of a credit card is one of the easiest ways to get into debt.
Let’s first look at the differences between the two. A debit card gives you access to your own money, so you are limited to withdraw or spend only as much as is in your account. When you turn 18...
Your PIN
When you have a machine spitting out your money it's pretty important to make sure the right person is getting it.
The only way an ATM or EFTPOS terminal can tell this is by reading your card and matching it up with the correct PIN, the four digit number you key in to get access to your accounts.
But if your card gets lost or stolen, and others know your PIN, then there is nothing to stop someone making off with your spending money for the week…or worse still your savings! Which is why financial institutions harp on and on about keeping your PIN a secret. It is actually a condition of having access to ATM's, so it's very important for your own financial protection.
If it is discovered for instance, that you had your PIN written down in your wallet or on your card, then the bank would see any theft as your fault. You did not protect your PIN sufficiently and they would not reimburse any stolen money.
Similarly, if you had told a friend or family member your PIN it would be considered to be breaking the rules. It's a big big secret. Not even the tellers at the bank can find it out.
So keep your PIN well and truly hush hush. If you absolutely must write it down (because you're scared you'll forget it) then don't keep it anywhere near your wallet or other financial information.
If you do find out that someone has somehow discovered your PIN, or you lose your card, be sure to contact your financial institution immediately and advise them. They will organise a new PIN and a new card for you, and cancel the old ones so they'll be useless to the dishonest!
