10/23/2017

Basic Finance Skills - Who Needs 'Em

You know when it rains, you get wet.  Why, because water falls from the sky.  How did the water get up into the sky?  Evaporation.  The water dissolves from liquid to gas and poof, up it goes.  You can't actually see it, but they tell me its true.

Rain is sort of like money, without the getting wet part.  You have it, somehow it evaporates, right out of your wallet or checking account, and out it goes, poof.  Where does it go?  Hmm.  Not sure.  It goes a bunch of different places.  These bills keep showing up every month and it turns out if you don't pay them, then you have to pay interest or a penalty, on top of what you already owe.  Poof.

It seems that we should learn how to budget money.  School maybe, you know, there for 12+ years, might make sense to figure out how to balance a check book.  But I still have checks, how come the checks keep bouncing?  Law of physics, and gravity I suppose.

If you happen to have a few dollars saved up in an account, the financial institution will actually pay you interest to keep the money there.  Perhaps you'll earn five or six cents by the end of the year.  That's a pretty good return if I do say so myself.

I keep getting credit card offers in the mail.  So I send them back, and head to the mall.  After I max out the credit, I get new credit cards in the mail.  Got a dozen and a half shiny credit cards.  You don't have to be rich to afford nice things.  Only downside, you have to file bankruptcy every so often.  Oh, and the credit report goes in the tank, so chances are, you'll still receive those nice shiny new credit cards, but the interest rate will be three times higher.  Talk about consumerism, this is the greatest invention of mankind.

I say we don't need to understand compound interest or balancing check books.  The system is just fine the way it is.  I'd write more about it, but hey, another credit card showed up in the mailbox today, I'm heading to the stores.  Later!

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