Editor’s note: This story was published through a partnership between KSAT and noun, an educational platform designed to provide engaging content online for students and teachers.
Hello parents, teachers and students!
Who doesn’t love money? And who doesn’t like to buy things? Well, each time you deal with money, you are actually dealing with MATH! Math is important because so much of our world, like finance and business, use it.
In this week’s KSAT Kids edition of “Kids Wanna Know,” Rachel Clinton, an investment analyst, shares what she knows about finances with students. In this episode, she explains the history of money, what a credit score is and what’s involved in borrowing money 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.
See important money tips and facts below!
Interested in bringing noun to your school or classroom and take part in an interview? You can do so by clicking here. The animated class interviews will be shown online and in our free KSAT Kids newsletter and may also be seen in future newscasts!
Important Money tips/facts
1. Pay yourself first – When you get paid, put some of the money into a savings account before buying anything with the money.
2. Set a savings goal – Calculate a dollar amount of what you want to buy, divided by the amount you can afford to save each week to determine how long until you can buy what you want. For example, to buy a $60 video game you could save: $5 per week and you’ll be able to buy in 3 months (12 weeks). Save $6 per month and you’ll be able to buy in 2 1/2 months (or 10 weeks). Save $10 per week and you’ll be able to buy in 1 1/2 months (or just 6 weeks)!
3. The Rule of 72 is a simple formula to calculate how long it takes for your money to double. The number of years to double = 72 / interest rate. Using the formula, you can solve for either interest rate or time period.
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 know as “letting your money work for you”. Start with # of Years Interest Rate Total $ Earned.
$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 make and save money
- Ask for more chores around the house
- Save cash from gifts
- Deliver newspapers
- Mow a neighbor’s lawn
- Wash car
Check out the full interview below!
Noun enables students to explore their school subjects and interests using 20-minute live online interviews with subject-matter guests. Find more information here.
Find more money advice on KSAT’s Money: It’s Personal section.