Wednesday, February 19, 2014

34: Bi-weekly Financing

From Kevin Shonk (via email)

Is it fair for car dealerships to advertise ‘biweekly’ lease prices (“It’s only $88 bi-weekly!”)

Should basic personal finance courses be mandatory in high school?

I'll add this: For a home mortgage, is it better to pay $1000 per month or $500 every two weeks?

1 comment:

  1. Definitely better to pay 500 every two weeks as opposed to 1000 per month. 1000 per month is 12000. But because paying by the fortnight takes into account the extra weeks in the year, you pay 13000 per year. Which saves you in the long run.

    I'm inclined to say that students need some sort of extended finance education...last year my students were convinced that an 18% credit card was better than a 4% interest savings account. So we had to spend a lot of time investigating the difference between credit and savings. I am also not aware if this is the same in other countries, but there has been some government research in Aus that suggests that it is 18-25 year olds who are most likely to declare bankruptcy because they sign contracts without understanding their financial obligations (this was a few years ago now, but I will have a look around and see if I can find the data) but that to me suggests that most kids need a better understanding