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> MSU News
A financial calculator for Christmas? Pair it with a guide that teaches financial savvy.
December 03, 2002
Christmas is a time for giving, but why not make one of the gifts something that saves the recipient money in the long run?
A financial calculator can be an eye opener, whether the user is a child or adult, says Marsha Goetting, Montana State University economics professor and Extension family economics specialist. A financial calculator is different than a regular calculator. A financial calculator has keys for computing the future value of savings, figuring out payments on loans and many other features. A regular calculator that you can buy for $2 cannot figure out answers to these types of questions.
The person for whom you are buying the gift doesn't need to be a genius, either, she adds.
"All the person needs is the desire to learn the answers to financial questions and the willingness to learn how to use a hand-held financial calculator that costs from $17 to $29," says Goetting.
"Using a Financial Calculator to Make Decisions," a self-study guide, shows just how easy operating a financial calculator can be. The cost of the publication is $4.50. Goetting promises that the guide is straight-forward in its descriptions.
"I got extremely frustrated with the technical manuals and teamed up with a former Extension agent in Miles City, Gayle Muggli, to write something that would communicate the basics," says Goetting. With the guide and a financial calculator, you can easily determine how much interest you will save if you pay an extra $50 a month on your house payment, or put $3,000 in an IRA for 26 years, or figure the monthly payment on a car that costs $20,000.
"I have taught all ages, from 7 to 85, how to use the calculator and once they see what it can do, they get ahead of me," she added.
Tara Andrews, MSU Extension agent in Custer County, taught 43 students aged 11 and 12 how to use a financial calculator to figure out interest. They were amazed to discover that it would take them 21 years to pay off a $1,825 balance with only making a monthly payment of $28 a month. They also discovered that at 18 percent interest, they would pay over $5,325 in interest alone. One student in Andrews class said, "I will never use a credit card when I get older!"
A financial calculator "is a great gift for a high school senior or college student," says Andrews.
MSU Extension also has a website designated for financial calculator decision making at
http://www.montana.edu/extensionecon/publications/fincal.html.
The self-study manual from MSU Extension Service is written with step-by-step instructions for solving common financial problems. The cost is $4.50. It is available from your local MSU Extension Office, or Extension Publications, P.O. Box 172040, Bozeman, MT 59717-2040.
Marsha Goetting (406) 994-5695; Tara Andrews (406) 874-3370
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