“How debt works” is a subject that unfortunately gets poor treatment in American required education. [none]
I don’t know about other countries but I wouldn’t be surprised if it’s similar in many other places.
The shame of it is: It’s simple and could be taught easily to 8 year olds. If you’ve played any games or had siblings, you already understand debt by that age anyway just not how important it is in the real world.
But it gets avoided, left as an exercise for you to figure out when you get your first bank account and try to balance your checkbook. All of the sudden, the basic math you learned in school – and even the advanced math, suddenly feels “useless’ in this “weird world” of debt and asset.
But it’s not a weird world. It’s everybody’s world. It just feels weird to realize that it rules over 2+2=4 but rather that it’s -8a – -10b = 2a, -0b.
… or is it -8a – -10b = 2a, -18b ? Ugh…