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Passage 4 Many children first learn the value of money by receiving an allowance.The purpose is to let children learn from exp
Passage 4 Many children first learn the value of money by receiving an allowance.The purpose is to let children learn from exp
admin
2016-03-01
52
问题
Passage 4
Many children first learn the value of money by receiving an allowance.The purpose is to let children learn from experience at an age when financial mistakes are not very costlv.
The amount of money that parents give to their children to spend as they wish differs form family to family.
At first,young children may spend all of their allowance in no time.If thev do this, they will learn the hard way that spending must be done within a budget,which demands choices between spending and saving.Older children may be responsible enough to save money for larger costs,like clothing or electronics.
But it is not a good idea to pay your child for work around the home.These jobs are a normal part of family life.Paying children to do extra work around the house,however,can be useful.It can even provide an understanding of how a business works.
Allowances give children a chance to experience the things they can do with monev.
They can share it in the form of gifts or giving to a good cause.They can spend it by buying things they want.Or they can save and maybe even invest it.Saving helps children understand that costly goals require sacrifice:you have to cut costs and plan for the future.
Many banks offer services to help children and teenagers learn about personal finance.A savings account is an excellent way to learn about the power of compound interest.
Compounding works by paying interest on interest.So,for example,one dollar invested at two percent interest for two years will earn two cents in the first year.The second year, the money will earn to percent of one dollar and two cents,and so on.That may not seem like a lot.But over time it adds up.
What does the writer intend to do through the last paragraph?( )
选项
A、To show the importance of children allowance
B、To explain how compounding interest works
C、To j ustify the habit of saving money
D、To promote a new bank service
答案
B
解析
由末端首句Compounding works by paying interest on interest得出这段讲解的是复利如何运转的,故选B。
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