I listed to it last year. It's a bit infuriating. In all fairness, though, this guy is not a very good teacher for people who are bad at math. Here's how I would have handled it.
Me: Do you agree that there's a difference between 1.00 dollars and 1.00 cents?
VZ: Sure.
Me: And do you also agree that there are 100 cents in a dollar?
VZ: I'm not an idiot.
Me: Ok, do you agree that there's a difference between half a dollar and half a cent?
VZ: Yeah, of course.
Me: Do you know that you can write half a dollar -- which is 50 cents -- as $0.50?
VZ: Again, I'm not stupid.
Me: OK. Now take a look at the decimal. $0.50 = 50.0 cents. Right?
VZ: I see that, but where are we going with this?
Me: Almost done, I promise. Let's divide $0.50 by 10. That equals $0.05. In math, when you divide any number by 10, you move the decimal point one place to the left. The same thing happens to 50.0 cents. Now it becomes 5.00 cents.
VZ: You're losing me.
Me: Hang on a little longer. This is important. Watch what happens when we divide both numbers by 10 again. $0.05 becomes $0.005 and 5.00 cents becomes .500 cents. .005 dollars is equal to .500 cents. The decimal point is not in the same place.
VZ: Wha...
Me: So you see, .002 dollars can't possibly be the same as .002 cents!
VZ: My mind is melting. Help me!
