Calculation Nation

Monday, April 22, 2013

Dangers Of Credit Cars and How To Overcome Them

Ever thought you had an endless supply or amount of money? You might think it's all fun and games because the only thing you do is swipe a plastic card and it's paid for. But the real answer is that people don't know that they are spending someone else's money, who is the credit card company who gave you the credit card. I want to let you know that you are in danger when you use money that isn't yours. Especially when it's a credit card company's, because they will charge a high interest rate to the money that you spent.

For example: you go to Walgreen's and you purchase a pack of Scooby Doo band aids. It costs $3.20 and you paid with a credit card, and your credit card company sees it show up and gives you a month to pay it off. You don't so they decide to add 20.99 % interest annually until you pay it off. If you decide to not pay it off they will charge you $35 a month. After one month with a $35 fee and the 1.75 % monthly interest rate you will owe $38.87 (the monthly interest rate is the annual rate divided by 12).   After two months of not paying the fee you will owe $75.16; after three months of not paying the fee you will owe $112.09. After one year you will owe your credit card company $431.75.  If this was me , I would want to use that money to by something useful, like an iPad,  but instead you are left using that money to try and pay someone back for using their money to purchase band aids. :(

So now we have learned the dangers of credit cards, now we can be more prepared intellectually with our money. It's your money and you should use your way.

 
 
Here's what you could watch on your iPad if you could afford one:
 
 
--Leon D.

Monday, April 15, 2013

DEBT!!!


OH MY GOSH!!!!YOU'LL NEVER GUESS WHAT I FOUND OUT TODAY?!?! I found out about debt.What is it? Debt is when you owe something. I bet I know the first thought that pops in your head when you hear the word debt, and that's money. Not always is debt money.

There are so many different types of debt, for example: money,overdue books homework etc. If you owe someone money and you don't pay them, you are in debt because you didn't pay them! The more you put off paying the other guy his/her money, the more debt you build up. If you owe three books to the library and don't give the books to the library by the due date, you are in debt. You'll have to pay a small fee for each day you put off giving the books to the library and that could grow into a lot of money you'll have to owe.  Debt!!!!!!!!!!                                                                                         

Last is homework. If you don't turn in your homework by the due date, you are in debt. The more you put off doing that homework, the fewer points you earn for that assignment which puts you in more debt than you were in from the beginning. If you don't do your homework, your grade goes down. If your grade goes down, you fail that class. If you fail that class, you get in trouble with your parents and it goes on your record and that's not good when you're getting ready to apply for high school or college. So it would be good to say that it is IMPERATIVE for you to do your homework.

Here is how to stay out of debt.Well with money, just pay when you suppose to pay. Already have that money ready to pay to that person/place you owe.With overdue books, take care and keep up with them so when it is time to get them back to the library you'll have them in tiptop shape and you'll have them on time. With homework, just do it. It is not going to hurt you to do it. It is just going to make you smarter. You're not going to die, get in trouble or none of that sort. It helps you instead of hurts you.

So, all in all this is what I have learned today.  Debt is important, and you should try everything you possibly can to stay out of it.Why? Because it can hurt you badly in the long run.

 
Like you and I, the government can be in debt too. The government can owe money to other countries and people. The video explains how.