The big ideaSmall pay-later parts can pile into one big month.
How it works
In the made-up town of Lark Lane, Dara bought four things on pay later, each in four equal parts: a shirt for 8 coins, a game for 12, headphones for 16 and a bag for 4.
Each part looks small. But the plans overlap, so their parts land in the same month.
In month four all four bills arrived together and made 10 coins, ten of Dara's twelve.
Pay later does not make anything cheaper. It only moves the paying later.
👕shirt: 2 a month🎮game: 3 a month🎧headphones: 4 a month👜bag: 1 a month
Each plan's part, one a month.What pay later does and does not do.
Example 1: Splitting a price
The shirt costs 8 coins in 4 equal parts.
8 ÷ 4 = 2 coins a part.
The game is 12 ÷ 4 = 3, the headphones 16 ÷ 4 = 4 and the bag 4 ÷ 4 = 1.
Example 2: Month two
The shirt's part is 2 and the game's part is 3.
2 + 3 = 5 coins fall due.
Dara gets 12 coins a month, so 12 − 5 = 7 are left.
Example 3: Month three
Three plans are running, with parts 2, 3 and 4.
2 + 3 + 4 = 9 coins fall due.
Now three bills land together.
Example 4: Month four
The bag joins with a part of 1, and the other three plans still run.
2 + 3 + 4 + 1 = 10 coins fall due.
Dara gets 12 coins a month, so 12 − 10 = 2 are left for everything else.
Example 5: The whole hill
The bills run 2, 5, 9, 10, 8, 5 and 1.
2 + 5 + 9 + 10 + 8 + 5 + 1 = 40.
The four prices are 8 + 12 + 16 + 4 = 40, so pay later changed nothing about the price.
Words to know
plan
A price split into equal parts, one a month.
part
One of the equal pieces of a price.
due
Needing to be paid.
overlap
Plans that run at the same time.
late fee
Extra charged for a part that is paid late.
Watch out
One small bill is easy. Counting them all is the trick.
Pay later does not make a thing cost fewer coins. The parts still add up to the price.
Plans overlap, so their parts land in the same month.
Some plans charge a late fee for a late part, and then the total grows.
Try it
A game costs 12 coins in 4 equal parts. How much is each part?
Month three has parts of 2, 3 and 4. How many coins fall due?
Does pay later make a thing cost fewer coins?
Name one thing to check before saying yes to a pay later plan.
Answers: 1. 3 · 2. 9 · 3. No · 4. The number of parts, the dates, or any late fee
Try at homeWith a grown-up, pick three pretend buys. Split each into four equal parts, one a month, and add up what falls due in the busiest month.
For grown-upsWrite three pretend pay later buys on a calendar together, one part a month, and add up the busiest month. This is a way to see overlapping bills in a made-up town, not advice about any real plan or shop.
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