This article explains the difference between area and perimeter. It gives the real world example of area being used to put carpet in a room, and perimeter used to put a fence around a yard. Consequence: I often confuse area and perimeter. If this happened in these real world examples, I would put carpet around the outside of the room instead of covering the floor. Then, I would place a fence on the inside of the yard instead of around the outside.
In this video, David Norton explains how to find the area and perimeter of a room in order to paint it. Consequence: If I only measured and found the area of one wall instead of the whole room, I would not buy enough paint for the entire room.
This image shows a fence around a garden. This shows perimeter because perimeter is around a shape. Consequence: If I confused perimeter with area, the fence would be placed on the inside of the garden. I would not have enough fence to go around the entire garden.
In this article, Deb Russel explains that area is the space inside a shape. She provides the real world example of needing to know area in order to put grass in your yard. Consequence: If I did not understand that area is length x width and that it is the space inside my yard, I could accidentally order too much or too little grass.