Meet Bobby, Chloe and Elisha…

They’re three school kids that have been set some pretty tricky homework, they have to write a song all about money.

Have a listen to this episode in which they’re talking about digital money…

What’s the internet got to do with money?

The internet is super important to money!

There are loads of situations in which people rely on the internet to buy something.

I’m sure you’ve seen your parents buy stuff online – well that’s one way but you might have used the internet to spend too.

Have you ever paid for anything in a game for example? You’re not holding that money and you can’t really see it – that’s digital money you’ve spent using the internet!

Another massive reason the internet’s so important to money is because of credit and debit cards.

How do credit and debit cards rely on the internet?

When your parents buy food at the supermarket you’ve probably seen them pay using a card – probably a credit or debit card.

That card relies on the internet!

All that’s happening is that card is taking money from your parents bank account and putting it into the shops bank account.

Watch this video where Techno Mum explains how the cards work…

So the internet is great when it comes to money. It lets us pay for things without having to carry coins and notes around and lets us spend money in places that would have been impossible to spend money before like in games or on our phones.

What’s the difference between a credit card and a debit card?

They look almost identical and you’ll see people using them to pay for things in the shop in basically the same way but there are a few differences.

Credit cards

Banks give people credit cards and when you spend money using a credit card you’re not spending your own money, that’s money the bank has given you that you need to pay back.

Debit cards

Your bank gives you a debit card but when you spend using these you are spending your own money. It comes straight out of your bank account.

Some kids bank accounts give out debit cards – you might even have one!

Your mission is to complete this quiz…

Check back tomorrow for another mission