Lectures for Adult Children

I still have more lectures in me, the children are just not around to hear them.  Now we have brief conversations.  They tell me what they think, and I'm there saying "You're kidding, right?"  There is no discussion or exchange of ideas, they just leave the house.  Hey, kids, I still have more to say!!!!

Some lectures are ageless.  Take for example, "Nothing good happens after midnight."  But other lectures are for older children and understanding.  When you were 14, you didn't need to know about the complexities of renewable energy and government subsidies - now you do.

Lecture One: 
Do the Math in Your Head.  Do it While They're Talking to You.

The media is your source of information, but that information needs to be filtered by you against the truth you know.  And for heaven's sake, learn to do the math in your head and not just believe them.
Case in point.  Child:  I think any new government building built going forward must have solar power. 

Back on December 9, 2010, Las Vegas city officials gathered with the news media to tour the new solar parking structure built by the City of Las Vegas.  These were the facts given on the news account:

• The solar structure was built with a block grant from HUD for $1.2 million
• NV Energy was giving the City of Las Vegas a rebate check for $400,000
• These sites are projected to give an energy savings of $26,000 per year.

Good News!!!! Isn't this great!!!

No.

Net cost to City (actually fed govt cause it's a grant from HUD):  $800,000 divided by 26,000/yr = 30.76 years to RECOOP cost of installation.  This is recoop your installation cost.  It is not until year 31 that you start realizing a profit of "free energy."

Just because City officials gather and news reporters spit back a press release at you, does not make this a wise use of money resources.  Learn to do the math in your head as they're talking to you.
Why would we want to build all govt buildings going forward with renewable energy only?  It is not cost feasible yet.

Second Case in Point:  Hybrid Vehicles

I was thinking a hybrid Tahoe would be the best of both worlds.  I could get the Tahoe size that I would prefer, and a hybrid.  I could save money on gas!  It would be more affordable. Score! 

Let's do the math.

MSRP on a Tahoe:  $37,445
MSRP on a hybrid: $48,974
difference in cost just to buy a hybrid:  $11,529

MPG Tahoe:  15 city/21 hwy
MPG hybrid:  20 city/23 hwy
5 mpg savings.
30 gal tank.  For simple math assume gas is $3/gal.  One tank would be $90 in either vehicle. How many miles do I have to drive to earn back my $11,529 so that I can really start taking advantage of the hybrid extra miles per gallon?

Miles traveled in Tahoe (15x30) 450 miles per tank
Miles traveled in hybird (20x30) 600 miles per tank
150 miles per tank difference.  which in the hybrid makes for 7.5 gallons saved.  7.5 times our assumed $3/gal is $22.50 saved with each tank full.

I paid an extra $11,529 to save $22.50 per tank full = 512 tankfulls of gas.  If I fill up 52 times a year, thats 9.8 years.  I will have to own and drive this car for 10 years to just recoop the extra cost of buying a hybrid.  At 600 miles per tankfull, in ten years I would have driven 307,200 miles.

I usually do not keep a vehicle for 10 years or 307,200 miles; therefore, buying a hybrid will not save me money.

So my lecture to you would be:  Just because the media, your friends, your president, etc., are telling you you could save so much money with renewable energy, that's not necessarily true.  Do the math for yourself.  Or, in older lecture language:  You have a head on your shoulders, use it.