Learning math in a classroom can seem boring. Learning to solve for x or doing complicated equations can make you wonder when you’ll ever use this in the real world. The truth of the matter is almost everyone uses math on a day-to-day basis. Math can be used in sports, cooking, finances and so many other things.
Of course, you may not be doing complicated equations but having the fundamentals of math understood can help you in the real world. Money is one of the best uses for our math knowledge. Knowing the basics of math like multiplication, division, subtracting, and adding are all used when talking about our money. Even think about when you buy something. You need to have enough money in your bank account minus the total of the item. It’s a simple equation we all do all the time when we use math.
Using Math to Create a Budget
Having a budget is recommended by almost every finance expert. It’ll take a little math to help you create one, but will be one of the most beneficial things you can do yourself. Having a budget can help you overcome debt and get out of the paycheck to paycheck lifestyle which so many Canadians are faced with.
Often we spend without thinking, which causes us to overspend and thus by the end of the week are bank accounts are low and we're waiting for that next paycheck to come in only to restart the process. Having a budget can help you break up your money so you can spend the right amount and still be able to spend it for the future. Having a budget also brings up your unnecessary spending. There will be the thing you can cut back on. For this article, we’ll focus on the math needed to create a budget.
Step 1: You’re the first step is to figure out how much money you make every month. By using some simple addition you’ll be able to have a total. If your income is irregular meaning it's not consistent or it’s a different amount we can use math to figure this out. You can use math by adding up how much you’ll make in the year. next divide by 12 to get the monthly total.
Step 2: Figure out Your expenses: You're going to want to write down all your expenses. This will primarily be your bills, but other things should be on there as well like gas or other needed expenses. Again we’re going to use addition to figure this out.
Step 3: Time for the math: Now, you're going to subtract step one and step two. If you’re still in the plus we’re on the right track. On the other hand, if you’re in the minus it's time to find out ways to cut your expenses back or make more money.
Since we're not a finance company, we’ll link to some great tips if you truly want to create a budget. The budget is just one of the examples of how we use math for managing our money. Creating a budget can be an effective tool and you need to know how to use math.
Loans and Math
Another perfect use of math around our money is loans. It could be a car loan, school loan, or bank loan you can use math to find out the best interest rates for yourself or you can figure out how long it will take to pay off your loan.
For starters let’s look at paying off you’re car loan. You don't want to make a sum payment to pay it off, but you would prefer to pay it over 8 months. If you’re car loan still has $8000 left on it and you want to make it off in 8 months. You’ll need to take the $8000 and divide it by 8 which leaves you with $1000. So, you would be paying $1000 for 8 months until your loan is based off. Having a basis of division can help you figure out how to pay things off quicker.
Now, if you’re looking into a car loan you’ll have a few options. The easiest way to calculate your car loan is to use the formula PMT. The PMT formula is used in excel, but it uses several mathematical principles that will help you calculate. Our goal here isn't to teach you how to use the PMT function so we’ll link to that, but by understanding math, you can have an easier time figuring out loans.
Investing and Math
As we get older we start to hear more and more about investing. It’s better for our financial future and can help us get more secured with our finances for things like retirement. But why is investing so great? Well for this article will look at compound interest as it relates to math. Investing can increase your money over the long term and comes from compound interest.
There a few formulas that can help you calculate compound interest. You can also find calculators online that make it simple and easy to figure out. Using these calculators or the formula you can see the power of compound interest which can make you more inclined to invest. By knowing the math concepts behind the formulas you can practice this at home. It will help you practice math and can benefit your life.
Need Help in Math Class
Knowing the importance of math in the real world especially when it comes to money. Things like investing, loans and budgeting can all be better understood by having a basis of math learned. Math can be a hard subject to learn, but there is a way you can have an easier time learning. By hiring a tutor to help you learn math you can have a better time learning. They’ll be able to help you with any issues you may be having in math class.
Superprof has 100s of math tutors all over Canada that are ready to help you. They have the experience and knowledge to teach you everything you need to know about math. They've worked with so many students learning math, now it's your time. Superprof also offers lessons online and in-person giving you the freedom and flexibility to learn math when you want to learn.
Math and Money in Canada
Knowing about math can certainly help you understanding money. It just comes down to your level of understanding. By using real-world concepts as we mentioned above you can find it easier to learn math. You can see the usefulness and the importance of learning math. You just have to start practicing and studying math. If you’re feeling stuck in math class you can always hire a tutor to help you learn everything you need to.
It's never too late to get a hold of your finances. By learning about a few basic math concepts you'll be better equipped to make better decisions financially. Things like investing, loans and budgeting all can be easier thanks to understanding math. Math and money go hand in hand and they both play important roles in our lives. Math can even be easier understood by using real-world examples. Money is the perfect example when it comes to math.
We have created numerous articles around different math topics. If you're looking to learn more check out any of the articles about math down below.