📅the end date🏷️the yearly fee🪙the rule for a coin left over
Three lines worth checking in the small print.
The big ideaOffers are worth what is left after the fee and the end date.
How it works
In the made-up village of Maple Bay, Mo's rewards card gave one coin back for every full twenty coins spent. That is cash back, a small discount on coins already being spent.
The card had a yearly fee of two coins, a price for having it, used or not. Spending forty brings two back, and the fee takes them.
A zero-extra deal adds no coins as long as the deal is followed. Every deal has an end date, and a coin left on the last day brings extra.
An offer is worth what is left after the fee and the end date, so read the small print first.
One coin back for every full twenty spent.Two ways to pay for a 12-coin scooter.
Example 1: Cash back
One coin back for every full 20 coins spent.
Mo spends 20 and 1 comes back.
20 − 1 = 19 coins are really gone.
Spending 40 brings 2 back.
Example 2: The yearly fee
Mo spends 40 and gets 2 coins back.
The card has a yearly fee of 2 coins, used or not.
2 − 2 = 0, so Mo comes out even.
Spending less would make the card cost more than it gives.
Example 3: Mo's zero deal
The scooter costs 12 coins, with zero extra for four months.
Mo pays 3 a month: 3, 6, 9, 12.
12 ÷ 4 = 3, and nothing is owed at the end.
Mo circled the end date on the calendar.
Example 4: Ines pays too little
Ines pays 2 coins a month for 4 months.
2 + 2 + 2 + 2 = 8 coins paid.
12 − 8 = 4 coins are left on the last day.
The shop adds 1 extra coin a month for 4 months, so she owes 4 + 4 = 8 coins.
Words to know
cash back
Coins that come back when you spend, like one for every full twenty.
yearly fee
A price for having the card, used or not.
zero-extra deal
A deal that adds no coins, as long as it is followed.
end date
The day the deal stops being free.
small print
The small words that say the fee, the end date and what happens to a coin left over.
Watch out
Cash back only helps on coins already planned for spending. Spending more to chase it costs more.
A yearly fee is paid even when the card is hardly used.
Every deal has an end date, and that is the day the deal stops being free.
A bill that waits gets extra coins for waiting, and a few extra coins can outweigh one coin back.
Try it
Cash back is 1 coin for every full 20 spent. How many coins come back on 60?
Mo spends 40, gets 2 back and pays a fee of 2. How many coins does Mo gain?
Ines paid 2 a month for 4 months on a 12-coin scooter. How many coins were left?
Name two lines worth checking in the small print.
Answers: 1. 3 · 2. None · 3. 4 · 4. The end date and the yearly fee
Try at homeWith a grown-up, read the small print of one offer, like a shop's loyalty card or a coupon, and find its end date and any fee.
For grown-upsRead the small print of one offer together, like a shop's loyalty card or a coupon, and find its end date and any fee. These are pretend offers in a made-up village, not advice about any real card or deal.
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