Financing a car.
Me: You are financing $12,000 on a car. You have optional terms of 4, 5, or 6 years. Four years = $350 per month payment. Six years = $300 payment.
Kid 1: Lower is better. It would give me more money left over from my paycheck.
Me: Calculate it.
Kid 1, whipping out her phone: $350 x 12 x 4 = $16,800. $300 x 12 x 6 = $21, 600. WHAT? So I will end up paying them 21K for a 12K car? WHAT? That’s robbery. How can they do this?
Gordon: That’s how they make money. So when we walk into the office today to discuss this purchase, they will push you toward lowest monthly payment. Now you know why.
Kid 1, outraged: Right.
Things we do not teach kids in school and we really should.