Out of the Mouths of Babes—A Mortgage Lesson

From a reader: “At dinner last night we got into a discussion about mortgages and homes.

Not sure how we got to who owns the house, but I explained to them that the bank actually owns our house and we pay $1000 a month to live here. ‘Wow! That's a lot of money dad!’ they exclaimed.

Then, they asked me why we moved and what we paid to live in the old house. I told them we paid $400 a month and the house was too small.

‘$400 a month! What the heck! Why didn't we stay at the old house? We could use the extra money to go on vacations, buy bikes, and eat out all the time!’

You know, for being 6 and 8, they made a pretty good point.” :)