Anyone who doesn’t understand compound interest should not be allowed to have a credit card or take out a loan, anymore than a blind person should be allowed to fly a plane or drive.
“Anyone who doesn’t understand compound interest should not be allowed to have a credit card or take out a loan...”
My friend......if that happened it would most assuredly crash the banking industry. Lol!
In a restaurant my wife and go to on a regular basis, we got into a discussion with the bartender/waitress and a customer who was a school teacher about compound interest and taking on debts like car loans, home mortgages, etc...
Neither one of them had any clue how interest was calculated on these types of loans and how much extra person pays if they pay the loan to completion...
Both were skeptical at first until I had them google a mortgage calculator and calculate the amounts, both were shocked, not sure it changed their minds but at least it was a start.
I never understood why they don’t teach compound interest in math.