Lab
Household Budget, Savings and Debt
This household earns, spends, saves and owes. Move the sliders and watch the savings line, the credit card line and the change in net worth respond over five years.
Challenges
- Set the card payment just above the monthly interest. How long does payoff take, and how much interest is paid?
- Double the card payment. How many months does it save, and how much interest?
- Cut wants by $200 a month and send it to savings. What happens to net worth after five years?
- Find a payment so low that the card balance never falls. Why does that happen?