Reinforce the need to manage our spending. Credit entails someone lending you money in good faith that you will repay their loan. The lender will usually charge a fee, commonly referred to as interest, for the use of his money. Many people think of credit as a right. Credit is actually a privilege that must be earned.
People use credit every day.
Credit provides another way for us to obtain the things we want without having to carry cash around. Credit also allows us to buy things we might not be able to afford all at once, by allowing us to pay for the item over a period of time. Let's suppose you want to buy a car. You shop around and find a car that you like. If you agree to the terms the car dealer offers, you could drive the car home today.