A credit card is a credit card in English, which is easy to understand and is based on personal credit. A credit card is also called a “credit card”.
A debit card is a debit card in English, also called a debit card.
Some people say that the money you store in the savings card is equivalent to lending to the bank, so it is a debit card. Although this makes sense, it is not a professional explanation. Because the “debit” and “credit” here are financial terms, from the double-entry bookkeeping method, and have nothing to do with the meaning of the two words themselves.
Double-entry bookkeeping means that the change of a sum of money is recorded in two accounts at the same time, which is different from the unilateral running account that only records the amount of income and expenditure.
Simple bookkeeping, if it is just salaried income and daily expenses, can be done with a unilateral running account, but complex bookkeeping, I don’t know how to keep it with a running account, even if it is recorded, it will be a confused account.
For example, if you have paid for your travel expenses with your own money, you need to be reimbursed. I borrowed 100,000 yuan from a friend to buy a house and bought skincare products for my friend, and my friend will pay it back in the future.
If you buy something by installments, is the total expenditure recorded in the running account at one time, or only the part that should be repaid each month? If the total expenditure is recorded, but the unrepaid part is actually in your own hands, give yourself a cash payment method. Lots of illusions. If you only record monthly payments, you owe far more than your monthly payments.
In stock trading, if your total investment amount is fixed, it is good. When you finally exit, you will be able to see at a glance whether you are making a profit or a loss. But in a bull market, most people invest as soon as they have money, and they don’t even hesitate to borrow money to invest in stocks or add leverage. When money is invested in stocks, what is the principal or what? Floating losses and floating profits, how is this account recorded? It is all confusing accounts.