Tip:
Highlight text to annotate it
X
>> Narrator: How do you teach your children that there's more to a purchase than just the initial cost?
>> Dad, you've got to admit, it's a good deal. >> Well, it runs well. And it seems to check out
on all the safety points. >> So, can we sign the papers now? I've got the down payment.
>> Hang on a minute! That down payment is just the beginning, you know. You and I need to go over
all the extras. But first, I promised Danika we'd swing by the Humane Society.
>> Extras? >> Narrator: When a teen is about to get that first car, it's a really big deal.
It's also financially complex. No wonder teens may not grasp all the details at first.
>> Come on! (dogs barking) See? He likes me. Look how cute he is!
>> He really is. >> I promise I'll feed him and brush him. >> I know, I know.
And we have to promise the folks here to take good care of him, too. But we need to talk about
a few doggie extras first. >> Extras? >> Narrator: Kids need to learn about those extra costs.
Taking time to think, rather than buying something on impulse, is a really important lesson.
>> So, what have you found out? >> Well, it looks like I'd have to pay the bank about $80 a month on this loan.
I can handle that easily with my job. >> $80 a month? Wait a second, how long
will this loan last? >> Uh, 96 months. >> 96 months? That sounds to me
like eight years! Do you think that old car will last that long? >> I'm not sure.
>> Me, neither. Better plan on making a larger monthly payment, so you don't pay so much interest.
And also, you pay the loan off much faster. Then, take a look at all the other extras.
>> Narrator: Cars are notorious for their hidden costs. Some are predictable. Others, like repairs, are not.
But pets can be equally surprising to someone who hasn't had one before. >> See, this is a pet cost
calculator. Here you put in the fee that the shelter charges, $145. Mom and I
will help you with that. And dog food. But look here, there's more. >> Food dish?
>> Sales tax? >> Collar? >> Registration fees? >> Leash?
>> Oil changes? >> Training? >> Insurance?! >> Pooper scooper?!
>> Gasoline every week?! >> Christopher, we'll try to get you in on our car insurance, as long as
you keep your grades up, so the rates won't be so high. But there are lots of other extras for cars.
And for dogs. So you both need to wait and save until you have enough to help pay for all the costs.
>> Narrator: Learning to calculate the total cost of ownership helps kids prepare for the bigger expenditures
they'll face as adults, like renting an apartment or buying a house.