How minimum payments can mean maximum financial pain.

Answer: 5 years and 10 months

Questions:

1. The calculator shows you would pay roughly $525 in interest (on top of the $750 cost of the PS5). What are some other purchases you could have made with that money had it not gone toward interest payments?
2. What big-ticket items or once-in-a-lifetime experiences do you think are worth spending money on?
3. How could you reduce the amount of time required to pay off this credit card bill?

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (from Bankrate):

The PS5 may be the hottest video game console of the year. Sold out basically every store, you find a PS5 bundle for $750 and buy it on credit. Did that impulsive purchase to knock another item off your holiday shopping list still feel like a good one? 

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About the Author

Ryan Wood

Ryan is the Partnerships and Adoption Manager for Next Gen Personal Finance’s midwest region. He brings his experience as a former teacher, curriculum designer, and sales and marketing professional to state organizations and school districts in supporting the implementation of their personal financial education efforts. He graduated from the University of Wisconsin-Green Bay and earned his teaching credential from Saint Mary’s University in Winona, Minnesota. He proudly taught at two rural high schools in Wisconsin before transitioning to curriculum design at NGPF, and is now excited to be on the front lines in delivering the best possible financial education in the midwest. He and his wife have three beautiful daughters, each of which inspire him to share the impact of being sound financial stewards both at home and as lifelong learners.