Credit

This week in Econ class we have been learning all about credit. We have learned everything from what to look for in a credit card to how a credit score is configured. The most surprising thing that I learned this week is that there is good debt.  Good debt is when you cannot afford to pay for something you are in debt but you will gain money on it later on. A prime example of good debt is higher education. A lot of people cannot finance for college on their own and must take out a student loan. A student loan is similar to credit because you are using someone else's money to pay for something--in this case college-- and will pay them back with interest.  Higher education is good debt because a college degree will often get you a better, high paying job than you would get without the degree. In this way, you receive money on the debt of the student loans because in the long run you receive more money than you owe. The topic of financing higher education is a good topic for us to discuss as highschoolers preparing to go to college.