Chapter 3

Saving and borrowing

Introduction to chapter 3

Many pupils save money. Research shows that youngsters do not spend all their income at once. A portion of it is spent and the remaining portion is saved. No less than 86% of third-year havo/vwo pupils save. Saving is not spending a portion of the income. The average amount saved in the accounts of third-year pupils is € 1,435. Not all of that money has been saved by the pupils themselves. In more than half of the cases the parents have stepped in. 15- and 16-year-old pupils who save, put an average amount of € 40 into a savings account every month.
This chapter also contains the necessary arithmetical work. This concerns calculating the interest you get on a savings account. When you save, you shift the spending to a later point in time, whereas borrowing means you bring your spending forward in time. Borrowing costs money, because you have to pay interest. Other forms of borrowing are hire-purchase and buying on instalment credit terms.
The building blocks in this chapter deal with budgeting, saving and borrowing.

Links with chapter 3
Loans in all kinds of forms Nibud.
Calculating the effective mortgage loan interest from the nominal mortgage loan interest.