Amanda Stanhaus

Tag: interest

Compound Interest

Think about how a snowball rolling down a hill gains snow. So too, can $$ grow exponentially. The initial investment is increased by an interest payment, which increases the amount invested, which increases the subsequent interest payments.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

 

Interest Rate

When using someone else’s money, this determines the associated fee.

(Originally published on Amanda Stanhaus’s  financial literacy vocab blog: XO, Bettie Vocab.)

Loan

I was spotted $$ and will have to pay back the $$ plus interest. Like loaning a library book, but more $$ is on the line.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Overdraft Protection

With this I can overdraft and not bounce a check. And I don’t pay a fee. Caution: interest will still need to be paid on the amount loaned.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Banking is a Business

Bankers are in business to make $$ off me and my account. They <3 fees.

(click on the bold-faced vocab words:))

Late feesAnnual feesOverdraft feesATM fees. Music to their ears… and $$ in their pocket.

It’s my responsibility to make sure their $$ made is the least amount possible.

I take the banking competition as seriously as they do.

I win when the sum of my fees< the sum of my interest payments. And I do a cartwheel each time I win.

image

(Originally published on Amanda Stanhaus’s financial literacy blog: XO, Bettie.)

Debit and Credit Cards are not Identical Twins

Can I pay for this now or later?

(click on the bold-faced vocab words:))

The answer for any purchase should always be NOW! Coulda, woulda, shoulda…

So what purchases should I put on what card? The cards are basically twins. Plastic, lots of numbers, my name, magnetic stripe etc.

When I purchase with debit, the bank takes my money at the time of purchase.

When I purchase with credit, the credit card company spots me and I have to pay them back. If not on time, then purchase price + interest.

I try to favor the former fraternal twin.

image

(Originally published on Amanda Stanhaus’s financial literacy blog: XO, Bettie.)