Credit card math

Considering the crisis taking place within U.S. financial institutions, it's a good reminder of how we MUST teach our kids how to work out the math with credit cards, mortgages, and any type of loans.

Murray Bourne from squareCircleZ has taken this matter to heart and has written a good lesson about math that goes into taking a loan. He's also analyzed several misleading credit card ads and figured out the TRUE interest rate (which you find out after reading the fine print).

First go here:

Credit Cards - a simplified discussion on how banks make money on credit cards. This is a must read for all people (young or old) who even consider taking a credit.

Then check these posts and warn your youngsters:

Misleading Credit Card Advertising. This ad advertises "a attractive interest rate of 5% p.a." (p.a. means per annum or yearly interest rate), but has a "small" administration fee of 6%.

And then check another misleading credit card ad which advertises a 0% p.a.*. Notice it has an asterisk... and the info in the asterisk can lead up to 24% annual interest!

Comments

Home loan said…
Kids should be taught on how to deal w/ numbers. So that when they grow up they'll know how to deal w/ their respective credit card.
9:08 AM, September 04, 2009
credit card said…
Not only kids must know how to deal w/ number as well as we the adults because we as an adult doesn't know how to manage our money simply because we are not that good w/ math.
9:28 AM, September 07, 2009
CUA said…
i agree that kids should be taught on how to deal with numbers so that when they grow up they will be knowledgeable with it.
8:31 PM, September 14, 2009
boracay island philippines said…
In my opinion both kids and adults should be taught in math. They can use it in facing financial problems later on.
11:42 PM, October 22, 2009
alyssa henry said…
in short,everyone must be taught maths so that in future they won't face any financial crisis.
******************
Alyssa
3:39 AM, May 21, 2010
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