Budgeting is an important skill to ensure that you are not in a perpetual cycle of debt. This section focuses on key terms associated with finances and prepares you to create a budget with a net positive balance.
Simple interest is the easiest way to understand interest. If you borrow money, you're going to have to pay back the amount you borrowed plus a fee that depends on the amount of time it takes you to repay it. The same should be expected if you loan out or invest money. Let's perform some calculations about these expectations using simple interest!