Teens and Cars
There are several financial impacts to consider with this significant coming-of-age milestone. Here are some important questions to answer before putting car keys in the hands of your teen:
1) What will be the financial responsibility of your teen driver?
Purchasing his/her own vehicle?
Paying for Gas Money and Insurance Premiums?
Covering Repair Costs and Property Tax?
2) What is the financial liability and risk to your family?
Review your P&C policy and ensure you have a plan for the higher premiums and future out-of-pocket deductibles and expenses.
3) What's your family philosophy on your teen's car?Does your teen see driving as a privilege or entitlement? Discuss expectations with your teen including accountabilities and consequences. Consider a parent-teen driving agreement like the template from healthychildren.org.
It's an exciting milestone when your teen gains the independence to drive himself to school/practice/work, and ultimately giving you some freedom back in your own schedule. It's been a rewarding new chapter for me and my son!
“Proper financial planning incorporates all of life’s milestones.”