Question

List at least two advantages each of using a credit card and using cash.

Answer 1

Credit Cards: You don't have to worry about how much cash you have at hand. You can get money when you need it.

Money: You won't overspend. You won't have to worry about fees.

Answer 2

Advantages of using a credit card:

You can buy things without actually having the cash.

You can report the loss of your card to the card issuer, thereby minimizing any financial loss.

It helps you establish credit or build credit history.

Some credit cards offer rewards.

Advantages of using cash:

You see exactly what you are spending.

You are less likely to indulge in impulse buying.

You don’t have to pay any interest.