A Checking Account is a type of bank account that allows the flexibility to deposit and withdraw money at any time, while a Savings Account is primarily used for long-term investment. Checking Accounts are meant to have no limitations on transactions, however, they tend to have less interest than savings accounts.

Credit cards are meant to be loans, an asset and investment for credit companies, and a liability for you. Cars, homes, medical care, and even daily trips to the grocery store should not purchased with credit unless it can be repaid at the end of the month. The key difference between credit and debit cards is that credit affects your credit score, either building it or risking it, and debit avoids debt and credit altogether.

When it comes to credit cards, pay more than the minimum payment every month, and in full if possible. Although you are only required to pay a minimum balance of your credit card account, the remaining figures pile on interest and debt. If you are able to pay off your credit card in full every month, there will be no additional interest to pay.