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Man Perfectly Explains How Interest and Credit Work So Anyone Can Understand

This was a beautiful explanation.

Understanding finances is no easy feat. There are so many factors that go into financial literacy and financial freedom, and unfortunately, these essential life lessons are often not taught to us in public school. However, thanks to the Internet, we don't need to spend thousands upon thousands of dollars on public education to learn the basics of financial concepts such as interest and credit.

TikToker Humphrey Yang (@humphreytalks) is one of the people we can thank for free financial tips. His account covers everything you need to know about personal finance, money and investing. In one of his latest TikToks, he explains how it helps to have good credit.

He explains this complex concept in such a simple way. Good credit means you're highly likely to pay back your debt, which makes you an appealing candidate for future loans. This helps lower your monthly payments and your interest rates.

Commenters marveled at the simplicity of this everyday concept. "Perfectly explained for the people way in the back," @cuevasj48 applauded. "Trusting the algorithm to bring me back in 10 years," @cheesy...yummy said. "This is so important I wish they taught these things in school," said. 

We wish so too! Luckily, we have the power of the World Wide Web and people like Yang who are willing to share this important knowledge with the world. So if you ever feel stuck with your financial situation, and you don't know how to make it better, you can always turn to your good friend, the Internet.