[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. >> Okay, so what are the main takeaways from this lesson? >> Well, I'll show you why a debit card excels for small, everyday expenses, while a credit card is useful sometimes for unexpected costs or purchasing expensive but useful capital goods >> So each card has its strength and weaknesses, is that what you're saying? >> Yup, and it'll help our students develop an idea of how you use these two together in harmony. >> All right sounds like a plan. Where do you want to start today? >> We'll start with debit cards. >> All righty. Now off you go. [MUSIC]