Let's see... I've had the opportunity to read some comments here and there where college students quite frankly declare that they "don't know" what a default is, they dislike Financial Math because it is "boring", etc, however, adults "winning" the "Financial Illiteracy Award" (some of them credit card holders...), have also declared that they don't have the slightest idea as to how Time Value of Money and Compound Interest work.
If Compound Interest is the "soul" of debt making banks (and eventually Credit Collection Agencies) "happy" because of those interest rates they apply, How about if we talk just a bit in a simple (as much as possible) language about what Compound Interest is and how it affects people's ability to manage their money as carefully as possible particularly when they are indebted?
I invite you to read and think a bit (believe me, it's not as "difficult" as it seems; get a good calculator and do your own exercises) about how Compound Interest can affect your Money Management...
You'll find your study very enlightening... I can assure you that.
You'll find your study very enlightening... I can assure you that.
Have a comment? Feel free to share your thoughts...
Financial Culture / Financial Literacy ©
No comments:
Post a Comment