The history of money, what is a credit score and how credit cards work



Editor’s Note: This story was published through a partnership between KSAT and name, an educational platform designed to provide engaging online content for students and educators.

Hello parents, teachers and students!

Who doesn’t like money? And who doesn’t like to buy things? Well, whenever you’re dealing with money, you’re actually dealing with MATH! Math is important because much of our world, like finance and business, uses it.

In this week’s KSAT Kids edition of “Kids Wanna Know”, Rachel Clinton, Investment Analyst, shares with students what she knows about finances. In this episode, she explains the history of money, what a credit score is and what borrowing money is and how it works. Rachel also explains the difference between a credit card and a debit card, and how they can be used and how transactions are processed for each of them.

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See below for tips and important facts about money!

Interested in bringing a name to your school or class and participating in an interview? You can do it by clicking here. The animated classroom interviews will be streamed online and in our free KSAT Kids newsletter and can also be seen in future newsletters!

Important Money Tips / Facts

1. Pay Yourself First – When you get paid, put some of the money in a savings account before you buy anything with the money.

2. Set a savings goal – Calculate a dollar amount of what you want to buy, divided by how much you can afford to save each week to determine how long you stay until you are finished. can buy whatever you want. For example, to buy a video game for $ 60 you could save: $ 5 per week and you can buy it in 3 months (12 weeks). Save $ 6 per month and you can buy in 2 1/2 months (or 10 weeks). Save $ 10 per week and you can buy in 1.5 months (or just 6 weeks)!

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3. The rule of 72 is a simple formula for calculating how long it takes for your money to double. The number of years to double = 72 / interest rate. Using the formula, you can solve the interest rate or the time period.

Examples:

10 years = 72 / 7.2% interest

14.4 years = 72/5% interest

8 years = 72/9% interest

4. Interest rate – this is how your money grows with compounding, also known as “letting your money work for you”. Start with the number of years Interest rate Total $ earned.

Examples:

$ 100 at 5 years at 2% $ 110.50

$ 100 at 5 years at 5% $ 128.34

$ 100. at 5 years at 9% $ 156.57

Ideas to earn and save money

  • Ask for more housework

  • Save money on gifts

  • Deliver newspapers

  • Mow a neighbor’s lawn

  • Wash the car

Check out the full interview below!

Noun allows students to explore their academic subjects and interests using 20-minute live online interviews with expert guests. Find more information here.

Find more money tips in the Money: It’s Personal section of KSAT.

Copyright 2021 by KSAT – All rights reserved.


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