My little finance wiz

Yesterday, I was in the car with the kids and they were talking about 2 restaurants near us that they really liked that are no longer in business. One was called Village Inn and they loved getting their pancake breakfast. The other was Baja Fresh, because it is Mexican food and Peyton loved their beans and rice (she is quite picky about her Spanish rice).

So, they were asking me why these restaurants were no longer in business (at least at the locations near us). I told them that restaurants had to make enough money to stay in business and if they weren't, then they had to close their doors. They both remarked that the restaurants seemed busy when we went and it seemed like they were getting plenty of business.

Peyton then had some sort of revelation. She said "So, if restaurants charge less for their food, more people will come. But, if they charge more for their food, they can make more money, but less people come and that is not good either." I thought that was so smart of her to think about. I did not steer the conversation that way at all and I was so surprised that she just came up with that whole concept totally on her own. We ended the conversation deciding that restaurants needed to find and in-between price that would make them money, but still have lots of people visit. She has always been very good with numbers and math, so we many have another accountant in the family- like father, like daughter.