[MUSIC]
Hi, Prof Navarro here >> And I'm Alex LaBon.
>> Okay, Alex.
What will we be covering in today's lecture?
>> Well today we'll be talking credit cards and debit cards.
We'll go into the differences between the two and
talk about what this beast called APR actually is.
And we'll also talk about how to best use these two types of cards to better
manage your money.
>> All right man, so what's the bigger picture here with these things?
>> Well, a lot of younger folks, like me, are hesitant to take on debt.
Why should we willingly put ourselves at the behest of huge banks?
>> Going off the grid, are we?
>> [LAUGH] Not quite, but credit cards can be dangerous.
They encourage you to spend less reasonably sometimes and
by their nature encourage debt to the man.
>> So, two thumbs down on credit cards?
>> Not exactly.
If you manage them intelligently,
you can reap the benefits of credit card without being neck deep in debt.
It's all about having a plan in mind for handling our money the best we can.