Hidden cost

Hidden costs are like surprise expenses that you might not know about at first. Imagine you want to buy a toy that costs $5 at the store. But when you get to the cash register, the cashier tells you that you have to pay extra money for things like taxes or a bag to carry the toy in. These extra costs are hidden because they weren't included in the initial price tag.

In grown-up terms, hidden costs are the extra expenses that we may not consider when making a purchase or decision. For example, buying a car might involve expenses beyond just the initial price, such as maintenance, repairs, fuel costs, insurance, and taxes. Sometimes we don't think about these expenses when deciding whether to buy the car, but they can add up to a significant amount over time.

Hidden costs can also occur in other areas of our lives, such as in contracts or services we use. For instance, signing up for a phone plan might seem cheap at first, but we might be charged extra for things like going over our data limit or making international calls.

To avoid getting surprised by hidden costs, it's important to do research and consider all potential expenses before making a purchase or decision.