Post a Meme, any Meme! (no politics)

[ibglowin]

 

[winemaker81]

When my sons were ages 9 and 10, they asked me the obligatory "Where do baby's come from?". I told them that one was a Blue Lights Special at K-Mart and the other was in the "Free" box at the pet store.

Given that they inherited the family sense of humor (MY side, not my wife's!), they thought that was hilarious.

 

[Gilmango]

 

[Boatboy24]

 

[bstnh1]

 

[bstnh1]

 

[jswordy]

View attachment 101151


Many moons ago a friend happily told us that she traded in her car and purchased a newer one, and it saved her $25 per month!

She had 2 years of payment left on her old car, but the dealer cheerfully rolled the balance into her new loan, which was for 6 years. Yup! She saved $25 each month.

I started to explain how math works, but quickly realized I'd have better luck convincing a brick wall, so I shut up.

In the late 80's I knew a service manager for a VW dealership. He told me that people would have 3 to 5 year loans, but trade the vehicle in after 2 years, adding the old loan to the new one. Folks had $25 K loans on a $10 K vehicle ...

Person: I am so BROKE!

Me: Is that an iPhone in your hand?

Person: Yeah, it's cool! But it was FREE!

Me:

 

[jswordy]

 

[jswordy]

 

[jswordy]

 

[ibglowin]

 

[ibglowin]

 

[ibglowin]

 

[Jovimaple]

Person: I am so BROKE!

Me: Is that an iPhone in your hand?

Person: Yeah, it's cool! But it was FREE!

Me:
View attachment 101161

My mom did/does the finances in their household, so I learned from her that things had to be balanced to the penny. But I never learned about compound interest and how credit cards can get you in the hole (beyond the "always pay off your credit cards each month" but no explanation of WHY, at least not that sunk in).

In my 2nd job out of college, I worked as an admin in an accounting department and got to be friends with some of the accountants. One of my friends bought a house, and he was the first person to point out to me (or the first time the lesson really stuck anyway) that paying more than the minimum payments can make a huge difference, especially on a 30 yr mortgage. All of a sudden the lightbulb went off, the heavens opened up, and I understood!

I think more high schools are teaching personal finance classes these days, but I really think the classes should be mandatory. And actually, I think the classes should start in middle school.

 

[jswordy]

My mom did/does the finances in their household, so I learned from her that things had to be balanced to the penny. But I never learned about compound interest and how credit cards can get you in the hole (beyond the "always pay off your credit cards each month" but no explanation of WHY, at least not that sunk in).

In my 2nd job out of college, I worked as an admin in an accounting department and got to be friends with some of the accountants. One of my friends bought a house, and he was the first person to point out to me (or the first time the lesson really stuck anyway) that paying more than the minimum payments can make a huge difference, especially on a 30 yr mortgage. All of a sudden the lightbulb went off, the heavens opened up, and I understood!

I think more high schools are teaching personal finance classes these days, but I really think the classes should be mandatory. And actually, I think the classes should start in middle school.

The thing about the miracle of compounding is that it benefits us greatly when we use it to invest and it can hurt us deeply when we use it for acquiring things at a deficit. One should only mortgage one's future earnings for very major purchases like a house and (maybe) a car. I have not had a car loan since 1981, though, so that one is iffy for me. I just start saving for my next one when I buy the current one.

You're so correct about paying principal in advance on real estate loans. Must be careful to designate your overpayment as "for principal only," too, as some banks won't apply it that way unless specifically instructed. We paid off the 15-year farm loan in 9, then bought more land on a 10-year loan and paid that off in 6.

I hate owing anybody! My motto is: "The more you owe, the more you're owned!"

Two things my mom always said: "Pay yourself first," (meaning put your savings/investments at top priority) and "Take care of your things and they will be there for you."

I agree about mandatory personal finance classes. Students should be required to get a "C" minimum to graduate. Add mandatory classes in civics and government, with the same minimum grade requirement, and you truly are building better Americans, in my view.

 

[jswordy]

 

[cmason1957]

I think he made a very good choice.

 

[cmason1957]

 

[Gilmango]

 

[winemaker81]

My mom did/does the finances in their household, so I learned from her that things had to be balanced to the penny. But I never learned about compound interest and how credit cards can get you in the hole (beyond the "always pay off your credit cards each month" but no explanation of WHY, at least not that sunk in).

Many moons ago one of my roommates made minimum payments of $32 USD on his credit card for a year. At the end of that year the principal had been reduced only $30. He was totally mystified, and asked me if I understood how CC worked. I reviewed his statement -- of the $32 payment, $2.50 was principal and the remainder was interest. At that rate, it was going to take 400+ years to pay off the card. [This was before US CC reform.]

I had to explain twice, but he got it. He reviewed his other debts, realized how far in the hole he was (making minimum payments on everything). He was military, got permission to get a part-time civilian job, and retired all his debts in just over a year.

This stuff should be required school work -- I agree, start in middle school and refresh it every other year. Not everyone learn from it, but the wise ones (like my former roomie), will benefit.