APR vs APY Explained So Even Kids Get It!

What’s the difference between APR and APY? Why do banks say you’re earning interest, but your credit card balance keeps growing?In this episode of Ask Dad: Financial Edition, we break down what APR and APY actually mean, how interest works when you borrow or save, and how banks and credit card companies profit from both. If you’ve ever felt confused looking at your statement or unsure about how interest is calculated — this is the video to watch.📊 What we cover:What is APR? What is APY?Why your credit card interest rate looks “low” but costs so muchHow compound interest works (for and against you)How banks use APY to attract saversHow credit card companies make billions off APR🎯 This is one of those “wish I learned this sooner” videos — so hit save, share with a friend, and stay smart with your money.📈 Subscribe for more fast, clear financial answers: https://www.youtube.com/@thefinancialdad💬 Ask your own money question in the comments below!📢 Disclaimer:This video is for educational and informational purposes only and does not constitute financial advice. Please consult with a qualified financial professional before making any personal finance decisions.#APRvsAPY #AskDad #TheFinancialDad #InterestExplained #CreditCardInterest #MoneyTips #FinancialLiteracy #CompoundInterest #HowBanksMakeMoney #GenZFinance #MillennialMoneyThe Financial Dad™ is a podcast for young adults and aspiring entrepreneurs to teach you the things you didn't learn in school or at home—from quarterly taxes to W9s to retirement plans to insurance and saving—we’ve got you covered.Hosted by:Tim Smith, CFP®, Bridget Sicsko (PR Strategist) + Hally Smith (Actress) *This is strictly for educational purposes and does not suffice as advice.* 👉Subscribe: https://www.youtube.com/@Thefinancialdad👀Follow:https://www.instagram.com/thefinancialdad_/ Website: https://thefinancialdad.com/✍️Trusted Resources:QuickbooksNotionRiverside