FINANCIAL LITERACY LESSONS: “GOOD” DEBT VS “BAD” DEBT

WHAT IS DEBT?

The money you owe another person or a business.

“GOOD” DEBT

Money owed for things that can help build wealth or increase income over time.

Example: student loans, mortgages, business loans

“BAD” DEBT

Money borrowed to purchase a depreciating asset

Example: cars, high interest credit cards

Book Recommendation:

The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness by Morgan Housel

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