Over the Easter weekend, we decided to have calm family time and play some games. One of my old, old games is Bargain Hunter. The game came out in the 1980s just as credit cards were becoming increasingly popular. Does anyone remember the old bulky metal credit card imprint sliding machines? You know the ones where they would take your credit card place it in the machine put the carbon copy receipt on top and swish, swish and then the credit card number would be imprinted on the receipt for the charge.

Well, this game has a plastic version of that machine. The idea with Bargain Hunter was the first person who bought all 17 or so items on a shopping list with no debt won. Of course there are typical expenses that sap your cash such as visits to the auto mechanic and doctor. As we played the game, our daughter was faced with a challenge of either waiting to buy an item or charging the item and paying 10% interest.

Her immediate reaction was that she was going to charge the item but when we pointed out that for that $300 item she would have to pay $30 interest every time she passed payday, she reanalyzed her options.

She said she thought interest could only be given for savings accounts. We had a homeschool teaching moment as we proceeded to explain how many people end up in serious debt because of the very high interest rates and that if you don’t have the money to buy something then you probably shouldn’t.

My husband explained how there are only a couple times when borrowing money makes sense. One case when borrowing is justified is if you are buying a tangible appreciable asset such as a house or when you need cash flow to build a business. Of course, these examples also included lessons on borrowing only what you can afford and not just what someone says is ok for you to borrow. We talked about the folks who are in a bind now because they chose variable interest rate loans, what variable interest rates are and how to address this problem.

Once she realized that interest could be charged for borrowed money and how it worked, a very bright bulb went off in (and over) her head. In the end, she won with all the items purchased, no debt and an economics lesson taught one-on-one.