Business Insider: Debit cards come with purchase limits to ensure safety. Here’s how much you can spend depending where you bank.
January 22, 2022, Business Insider: In today’s interview with Margarita Cheng, CFP® Pro, reporter Sophia Acevedo explains: “Debit cards make for an easy way to make purchases — you’re not borrowing credit, and your money is all safely stored at a bank. While debit cards are beneficial to use, they may not be ideal for all purchases, though. Debit cards have limits for how much you can spend daily. Sometimes, it also might be better to use a credit card instead.”
Sophia turned to Marguerita for insights into: What is a debit card good for?
“Debit cards are ideal for beginners learning to budget and manage money independently,” Marguerita explains. “I think debit cards can be really helpful when people are starting their first job, or they’re a young professional, and their finances aren’t as complicated.”
However, debit cards may not be the best option for purchases that need additional security, like electronics.
“If you’re making a big purchase, a credit card often serves as a more suitable option instead of a debit card,” Marguerita says. “Credit does give people more security if you don’t get your goods. It’s also easier when you’re you’re buying things online.