In my budgeting, I'm struggling to decide between using debit cards or credit cards. I find it easier to save with debit cards - I can limit my spending by only putting a certain amount from each paycheck into my checking account. However, given that I have been lost a card here and there and been a victim of fraudulent charges, I'm inclined to use a credit card for more robust protection. You mentioned that credit card reward programs cause us to spend more money, and I'm certainly a victim of that type of thinking. I also find it easier to control my budgeting when I'm "counting down" from a certain amount in my checking account rather than "counting up" my balance on my credit card.
What is your take on credit vs. debit cards for budgeting purposes?
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Hi Professor - thanks for doing this AMA!
In my budgeting, I'm struggling to decide between using debit cards or credit cards. I find it easier to save with debit cards - I can limit my spending by only putting a certain amount from each paycheck into my checking account. However, given that I have been lost a card here and there and been a victim of fraudulent charges, I'm inclined to use a credit card for more robust protection. You mentioned that credit card reward programs cause us to spend more money, and I'm certainly a victim of that type of thinking. I also find it easier to control my budgeting when I'm "counting down" from a certain amount in my checking account rather than "counting up" my balance on my credit card.
What is your take on credit vs. debit cards for budgeting purposes?
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