Idea 21of 23Builds onCredit is borrowed money
A debt is paid back over time
What does a debt do to your budget in the weeks after?
Today you'll discover
- how a debt shrinks as it is repaid
- how many payments it takes
- what is left to spend meanwhile
Think firstNoah borrowed $60 from his sister
Noah repays his sister $10 a week. How many weeks until he owes nothing?
Decide first, then press Next. Watch the bars get shorter, row by row.
A record: Noah borrowed $60 from his sister. Columns for when, in, out and still owed, with a bar on each row. Rows appear: start $60, week 1 −$10, $50, down to week 6, $0, the bars shrinking. At the bottom: $60 ÷ $10 a week = 6 weeks to owe $0, and each week $15 allowance − $10 repaid = $5 to spend. The last step shows Priya's $45 debt.
See the whole ideathe big idea and the key word, in one place
The big idea
A debt is money owed; paying it back takes part of every budget until it is gone.
When borrowing makes senseIf winter boots wear out in January, borrowing to buy new ones now can be a good choice, with a plan to repay.
Easy to get wrongOwing family is still a debt. It needs a plan: how much each week, and for how many weeks.
Key word
- repay
- pay back money that was borrowed
Ready to use it?
- Find how many weeks it takes to repay a debt.
- Find what is left to spend while repaying.