Personal Finance: "Why Would You Spend Money You Don't Have?"

I am trying to teach my sons who are basically 14 and 15 years old about managing money. One son probably needs a little more help than the other son in that regard. But it was nice to go to the bank that was closing down and meet with the banker and close that account. Then we went to another bank near our house and opened up their accounts.

They are excited because now they can deposit checks with their app and check balances online and receive money from Dad (although that has not happened yet).

But how the question in the title came up was my youngest asked about the difference between a debit card and a credit card. And I said well one see if you have money in the bank and pays the bill based on you having money in the bank. And the credit card, you don't have to have the money in your checking account that you just agree to pay it back to the credit card company.

And that brought on "Why would you spend money you don't have?" question. Maybe I should have him start blogging too. That is such an interesting question.

At times I am guilty of it personally, certainly we used credit cards as a cheap and easy way to extend our credit with the business I owed. But you have to be disciplined to not spend and spend and spend.

So how do you use credit cards?

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