Pros and Cons Flashcards
Cash Advantages
Instant, Widely accepted, Prevents impulse buying, can’t overspend.
Cash Disadvantages
It is a physical item, May be heavy in large quantities, Not convenient, affected by inflation.
Credit Card Advantages
Allows you to pay it all off at once, can increase credit score, allows for buy now pay later.
Credit Card Disadvantages
Can cause snowballing debt, encourages impulse buying as you don’t have to pay short term.
Debit Card Advantages
It is instant as money is taken directly from an account, can only pay as much as you have, bank statements provided.
Debit Card Disadvantages
It is virtual meaning that you may not realize how much you have left, susceptible to fraud.
Cheque Disadvantages
Seen as old fashioned.
Electronic Transfer Advantages
Quick and easy, can be done from anywhere.
Electronic Transfer Disadvantages
An unsecure phone could compromise the account, could accidently transfer too much.
Direct Debit Advantages
Easy to set up, reduces pressure on you to remember to pay, can be stopped at any point.
Direct Debit Disadvantages
Must have sufficient funds in the account to cover the costs, Amounts paid may not be the same.
Standing Order Advantages
Easy to set up, reduces pressure on you to remember to pay, can be stopped at any point.
Standing Order Disadvantages
Must have sufficient funds in the account to cover the costs, Amounts paid may not be the same.
Pre-Paid Card Advantages
Prevents overspending, can teach financial stability, prevents theft.
Pre-Paid Card Disadvantages
Can only hold a limited amount, may run out when needed.
