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$87 for a serving of french fries

May 13th, 2006 at 08:43 pm

walked with mom for 55 minutes

Gave her her mother's day present. 3 strawberry glasses, with leomade and cookies plus the Chuck Norris biography she asked for.

Went to Taco Bell for lunch and dinner. Spent $8.63

Got a free Schick Quatro razor and travel case in the mail.

Finished reading the library book What Price Love? by Stephanie Laurens. Romance. Very Good.

I'm reading The Average Family's Guide to Finiancial Freedom by Bill and Mary Toohey. Here's a good quote from the book regarding debt. "In a seminar prepared for college students, we describe debt in terms of french fries. "Most of you are 19 or 20," we say to them. "Let's say you've got a hankering for a serving of french fries and it costs a buck at the local burger joint. Is it worth a dollar? Yes, it probably is. But what if you borrow the dollar at 9 percent and carry that debt until you're our age? By then you owe more than $10. Are the fries worth $10? No, of course not. Well 9 percent is the going rate now for those nifty home equity loans everyone seems to be touting. What if you use your credit card to pay for the fries and carry the debt at 18 percent? By the time your our age," we tell them, "You'll owe $87. But you might be thinking that you'd never borrow money for french fries. No? Well, think about it. If you always carry a balance on your card, like many families do, you could reduce that debt by a dollar if you pass on those fries, couldn't you? So when you buy them, you're making a decision to keep a dollar of debt at 18 percent when you could pay if off instead. How is that any different than buying french fries on credit? It isn't. A serving of fries for $87. Wow. That's a lot of money for one serving of french fries."

1 Responses to “$87 for a serving of french fries”

  1. Thrifty Ray Says:

    What a great way to explain debt and its high cost. I am going to share that with my kids!!

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