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This is part of a collection of definitions on Financial Literacy. This defines the term finance charge.
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Algebra >> Expressions, Equations, and Inequalities >> Numerical and Algebraic Expressions

Definition--Financial Literacy--Finance Charge

Finance Charge

Finance Charge

Topic

Financial Literacy

Definition

A finance charge is the cost of borrowing money, including interest and other fees, expressed as a dollar amount.

Description

Finance charges are incurred when borrowing money, representing the total cost of credit. They include interest, service fees, and other charges, influencing the overall cost of loans and credit cards. Understanding finance charges is crucial for managing debt and making informed borrowing decisions. In real-world applications, finance charges affect monthly payments and the total repayment amount. In math education, finance charges introduce students to interest calculations, loan terms, and financial planning. A teacher might say, "A finance charge is the extra money you pay when you borrow, like interest on a credit card or loan."

Finance Charge
When you use a credit card, you will incur a finance charge.

For a complete collection of terms related to Financial Literacy click on this link: Financial Literacy Collection.

Common Core Standards CCSS.MATH.CONTENT.HSA.CED.A.1
Grade Range 8 - 10
Curriculum Nodes Algebra
    • Expressions, Equations, and Inequalities
        • Numerical and Algebraic Expressions
Copyright Year 2023
Keywords financial literacy, finance charge