>> 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.