TEEN TALK: Financial Planning For A Car

Financial Planning For A Car

Okay, this one’s a little scary. It’s hard to imagine as a parent our small children who were once crawling around the kitchen, gearing up to take on the open road behind the wheel of a car. In addition to their many hours of studying for their driving test, we here at Hacker also believe that knowing all the financial aspects that go into the privilege of driving is just as important!

Driving

Driving is a huge responsibility, and so is saving up for all that goes into owning a car. Between insurance and registration, to oil changes and new radiators, cars can be a money pit if you’re not careful.

Finding A Reliable Car

It first and foremost important that you find a reliable car. No matter what your budget is, reliability needs to come before color or body style. This is a hard one to explain to teens – but the lesson is very important to know down the line! Teaching your teens the importance of not buy cars for looks but rather what is under the hood can save them a LOT of money down the line in tuneups and repairs.

Having A Plan

It’s also necessary to plan how much your teen can afford with all that goes into a car. How much will insurance be for the specific car you are looking at? Is your child aware of the yearly registration fees, and what something like a battery or an air conditioning unit costs to replace? What does their saving plan for a potential problem like that look like? This may seem like a lot to go over, but having a plan will definitely benefit them when they are prepared to face these obstacles.

For all additional tips for helping your teen with their finances and planning for their futures, give us a call at (602) 375-5251 to speak with one of our pros!

Chris Hacker
Chris has been working in the bookkeeping and accounting field for over 15 years preparing business, income and payroll taxes. Chris has a bachelor’s degree from Arizona State and is an Enrolled Agent with the Internal Revenue Service.