The True Cost of a Phone
Phone deals can cover service alone or include a handset. Some handset deals use a loan. Compare each payment once over the same period, including price changes and extras, and check the exit terms.
What a learner can do afterwards
- Multiply a monthly cost by the contract length and compare it with buying outright plus a cheap plan
- Explain what a contract locks you into and what an early exit costs
- Name two extras that are easy to miss, such as insurance or data overage
1 · Read
Some deals include a handset; SIM-only plans do not. Borrowing to buy a handset means repaying a loan. Count each payment once: upfront charges, monthly bills and extras not included. Never add a handset price already included in the bills. At a fixed $18 monthly, 12 payments total $216. Separate insurance at a fixed $6 monthly for 12 months adds $72.
With the same phone and service for 12 months, fixed prices and no extra fees, compare totals. At $34 monthly: 34 x 12 = $408. A $190 handset plus $11 monthly: $190 + (11 x 12) = $322. The difference is $86.
Check the term, price changes and exit rules. Early exit fees may apply; check the deal and local rights. For a fee per month left, multiply by the months left. Some plans charge for data over your allowance. Past bills help estimate data needs; allow for changes. Compare prices for service meeting those needs.
Budget for extras: insurance or repairs.
Count all payments once, including price changes and extras. Compare costs over the same period for service that meets your needs.
2 · Watch
Take it off screen
Where it sits
Where this leads
Jobs that lean on this skill. Follow one to see everything it is built on.
8 questions wait behind this lesson, each with its answer explained. Every answer feeds the sky: stars light as they are learned, and dim when it is time to come back.