Chapter III Borrowing Money736Please respect copyright.ＰＥＮＡＮＡC7CP2q9vM1
Borrowing money can be a great way to buy something now and pay for it over time. And there are ways for a teenager to borrow money. But there are some important thing to remember if you borrow money. One is that borrowing usually involves a cost called “interest,” which is the fee to cover the bank cost when you use their money. This is the opposite of what happens when the bank pays you interest to put your money in the bank.736Please respect copyright.ＰＥＮＡＮＡBgfLaW4Jo6
Also, when you borrow money you are promising to repay the loan on the schedule. If you don’t keep that promise, the results can be very costly either in late payments you’ll owe or in damage to your reputation, which means you could have a tougher time borrowing money in the future.736Please respect copyright.ＰＥＮＡＮＡgqeUN0LbsQ
For many teenagers, their first lenders are their parents. If your parents are willing to lend you money, they probably will set repayment terms. They also may require you to pay more money than you borrowed, as a bank would do when it lends people money and then charges interest.736Please respect copyright.ＰＥＮＡＮＡx1WsbA9uuU
I was talking to my dad the other day and I asked how he would borrow money from his parents. He said that it was fairly simple. He would ask for money, they would give it to him, and then he would pay them back. I asked my grandfather and he said that most of his money that he borrowed he would invest it in stocks. Though none of them charge any interest on their loans.736Please respect copyright.ＰＥＮＡＮＡWzgq9ITgTq
In short it is better to pay back what you owe earlier than later. The longer you take to pay back what you owe on a credit card or loan, the more you will pay interest charges. If you use a credit card to make a major purchase and you only pay back a little of what you owe each month, it will take you a very long time to pay off the balance.736Please respect copyright.ＰＥＮＡＮＡU9r5QX5nkX
