The big ideaPaying the whole bill by the due day usually costs no extra coins.
How it works
In the made-up town of this story, cousins Cass and Cal each got a bill of ten coins with a ringed due day.
Cass paid all ten before the due day. That is paying in full: nothing is left and nothing extra is charged. The days before the due day usually cost nothing.
Cal paid five of the ten. The five still owed are a balance, and the bank adds one extra coin for every five still owed, so next month he owed six.
If the full bill is too big, tell the bank early. A plan made early is kinder than silence, for everyone.
What Cal owes next month, by what he pays of 10.Paying in full and paying part.
Example 1: Pay in full
The bill is 10 coins and Cass pays all 10 by the due day.
10 − 10 = 0 coins are left.
Nothing is left, so no extra is charged.
Example 2: Pay part
Cal pays 5 of the 10.
10 − 5 = 5 coins are left: a balance.
The bank adds 1 extra coin for every 5 still owed.
5 + 1 = 6 coins are owed next month.
Example 3: Pay nothing
Nothing is paid, so 10 coins are left.
10 has two 5s, so 2 extra coins are added.
10 + 2 = 12 coins are owed.
A month later it is 12 + 2 = 14.
Example 4: Catching up
Cal's next bill starts at 6.
He pays all 6 in full.
6 − 6 = 0, so the pile melts away.
Words to know
due day
The last day to pay without a price for being late.
in full
The whole bill, not a part of it.
balance
A left-over pile that is still owed.
extra
Coins added on what is still owed.
late
After the due day.
Watch out
Paying in full usually brings no extra. Check the small print for any late price.
A balance can grow even when nothing new is bought.
Paying after the due day can bring a price for being late.
If the full bill is too big, tell the bank early. A plan is kinder than silence.
Try it
A bill of 10 is paid in full by the due day. How many extra coins are charged?
Cal pays 5 of 10. What is the 5 still owed called?
Cal still owes 5, and one extra coin comes for every 5. What does he owe next month?
Nothing is paid on a bill of 10. What is owed next month?
Answers: 1. None · 2. A balance · 3. 6 · 4. 12
Try at homeWith a grown-up, talk about how people remember due days: a calendar, a note, a reminder. Which way would you like best?
For grown-upsTalk about how your family remembers due days, a calendar, a note or a reminder, and let your child pick the way they like best. This is about a pretend bill in a made-up town.
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