How Does Debit and Credit Explained So Even Kids Get It! Work?

Imagine your piggy bank is like a wallet that can have money added or taken out, that’s how debit and credit work!

Let's say you have 10 pieces of candy in your hand. If you give 3 to your friend, you’re doing a debit, you're taking away from yourself.

Your friend now has more candy, which is like a credit, something added to them.

Think of it this way:

Like a Toy Store

Now imagine you go to the toy store and buy a toy. You pay with your piggy bank, that's a debit because your piggy bank gets smaller.

The shopkeeper now has more money in their cash register, that’s a credit, like adding to their piggy bank!

It's just like sharing or buying, one person loses, and the other gains. That’s how debit and credit work together!

A kid spends $5 on candy, so their wallet goes down by $5 (a debit) and the candy store’s cash goes up by $5 (a credit).
When a kid gets an allowance, that's a credit to their savings jar, and a debit from the parent’s money.
If a kid lends a friend $10, it's a debit for the kid and a credit for the friend.