My son has been saving up for a new car. He just turned 18 and has a job but also goes to school. His chosen degree is one that requires some really expensive coursework and fees outside of his tuition. As a result, he will have to make up the difference in what his student loans won't cover somehow. We've been having the discussion on whether when he purchases his new car, should he pay cash (which he has in the bank) for the entire cost. Or if he should take out a small loan for the car and use some of his savings for the gap in school costs. This might be an example of TVM within a more personal finance situation. By using TVM, comparison can be done of the implications of his options. Using his savings would mean he would have less cash on hand. However, he wouldn't have car payments and due to his current employment would still have opportunity to have funds again in the near future. Perhaps in smaller amounts, but some cash flow. By taking out a loan, he'd be building credit but have a monthly payment as well as pay interest. If he needed a personal loan as well for school expense, his ability to borrow more may be limited. Utilizing TVM, more informed decisions can be made. It reminded me of an old-fashioned pro/con list type situation. In considering the long-term impacts and both long- and short-term cash flow, he made the decision to choose a less expensive car and use his savings to pay for it. This allowed for a little of his savings to remain intact, uninterrupted cash flow with no car payment, and the ability to continue saving for school expe