Question

Let's say you have $ 1,000 in savings and are making 6 percent interest. That means that you make $ 60 a month in interest. Let's also say that you have $ 500 you need to pay off on your credit card. By not paying it off, they charge you 18 percent interest a month. That means you owe an extra $ 90 a month! It's just foolish to keep putting money in a savings account when you have credit cards to pay off. You'll save money if you pay off the credit cards and then start saving. Save It! I don't know why people don't try to save more. Now, it's smart to go ahead and work on paying off any debt you currently have on credit cards. But, it's even better to stop using your credit cards! Instead of constantly buying things on credit cards, put your money in a savings account and wait until you have the cash to buy what you want. That way you won't end up losing all your money to credit card debt! Try to stop spending and start saving. Where could a reader find this kind of text?

A. In an online course
B. In the financial advice section of the newspaper
C. In a parenting magazine
D. In the comics section of the newspaper

Answer 1

The text providing financial advice on paying off credit card debt before saving would typically be found in the financial advice section of the newspaper, which aligns with the context of personal finance management.

Step-by-step explanation:

A reader would most likely find the text encouraging people to pay off debt before saving money and advising against the use of credit cards in the financial advice section of the newspaper. This section often includes personal finance tips and would offer guidance on managing money, saving, and debt repayment. The provided narrative aims to highlight the importance of making rational decisions regarding one's finances: paying off a credit card that charges higher interest than one earns from a savings account. It also touches upon the concept of mental accounting, where people treat money differently depending on its source or intended use, which might result in seemingly irrational financial decisions to a traditional economist.