At a Glance

Next time when your young child asks to buy a car for him/herself, don’t brush it off. Take the opportunity to teach your child about financial commitment and needs vs wants.

Try this fun activity to compare our various transportation options, and help your child learn the difference between essentials we need and luxuries we want. This may also help him/her understand the significance of taking on a big financial commitment.

Suitable for:

Your 7 - 9 year old

It will take:

30 minutes

Please prepare:

Printed ”Compare rides” activity sheet, calculator, pencil & eraser

The important considerations when deciding on a car

An important role the bank plays in our lives

The difference between needs and wants

Discuss with your child why he/she would want to buy a car, instead of taking the bus or the train.

Use the “Compare rides” activity sheet to help him/her work out the pros and cons of owning a car, as compared to other forms of available transport.

Download “Compare rides” activity sheet here

Step 1: Purchase

Ask your child to choose a car model then fill in the steps and overall costs of buying it:

Step 2: Ownership

Help your child work out the cost of owning a car. Fill in the monthly costs of:

Loan Repayment

Insurance

ERP

Fuel

Maintenance

Parking

To help your child understand the value of money, you can use values that are relevant to his/her experience.

He/She would understand better what a loan repayment of $700 means if it’s converted into the number of ice creams or toys it can buy.