Interest Rates
Interest Rates: What They Mean & Why They Matter
Interest rates affect almost every financial decision, from credit cards and loans to savings accounts and mortgages. This course introduces young adults to the concept of interest rates, breaking down how they work, how they’re calculated, and why they have such a big impact on money management.
Participants will learn how to:
Understand the basics of interest – Principal, annual percentage rate (APR), annual percentage yield (APY), and compounding.
See the difference between borrowing and saving – How interest works against you when you borrow (loans, credit cards) and for you when you save (savings accounts, investments).
Calculate interest costs – Comparing short-term vs. long-term borrowing to see how much extra is paid over time.
Recognize the impact of rates on loans – How even a small difference in an interest rate can change the total cost of a loan by thousands of dollars.
Understand variable vs. fixed rates – What they mean, how they change over time, and when each may be better.
Avoid common pitfalls – High-interest debt traps, payday loans, or only making minimum credit card payments.
By the end of the course, participants will have a clear understanding of how interest rates shape financial decisions and the tools to make smarter choices when borrowing, saving, or investing.
