When I read articles like this where people get scammed borrowing money, I say to myself, “we need to teach children the compound interest math.”
Even my dear wife does not get it, and she sends the children to me when they don’t get it. But beyond learning the math, a healthy skepticism of borrowing needs to be encouraged, especially for depreciating items like autos.
The compound interest math is really one of the more simple items of Algebra 2. Everyone should be able to calculate the value of a non-contingent annuity at a given interest rate.
Once people learn that, they might have more skepticism regarding the long-dated pension-like promises that the government makes, because they can look at the future payment stream, and say, “I can’t see how we fund that.”
All for now.