Cash or Credit?

I had a recent conversation with our 7 year old regarding credit.
We had been to the dentist and he had a bit of a traumatic experience.
I stopped by the ATM to take out some cash and get him a Jamba Juice.

"Mom, can I ask a question?"
"Sure son"
"Was that our money you just got or money that belongs to someone else?"
"It's our money, why do you ask?"
"Well did you know there is something called credit, and if you use the banks money then they charge you more money. But mom, if you keep your money in the bank for a long time you earn something called interest and the bank actually pays you. I think that's what we should do with our money."


What a smart boy!
And I am so glad I must say that he's learning about things in 1st grade that I for one didn't even know about my senior year in high school!