Financial Literacy thing

Financial Literacy thing

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  • Oh, that’s a bad car crash. I hope that person has insurance.
  • What is insurance, and how does it even help?
  • Insurance comes in many different forms, including auto, home, and health insurance. It helps out if something bad happens, and you pay a fee to keep  it called a premium.
  • Oh, I understand now!
  • So what is the budget for our vacation?
  • Why is a budget even important?
  • A budget is important because you need to know what you are spending so you don´t waste all of your money on unimportant things.
  • That makes so much more sense!
  • Yes?
  • Hey dad?
  • What is the difference between a credit card and a debit card?
  • The main difference between them is that a debit card uses money right from your bank account, while you borrow money that you eventually have to pay back with a credit card. If you don´t pay your credit card debt in 25 days, they will charge you interest.
  • Ok, thanks!
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