How To Save Big On Your Teenager's Auto Insurance

 How To Save Big On Your Teenager's Auto Insurance - How to save a car as a teenager, whether they want to buy one at 16 or in their later teenage years.

This is likely the biggest purchase they will make as a teenager (and possibly, as a young adult), so getting help with how to do it is a good idea.

How To Save Big On Your Teenager's Auto Insurance

Since that post is no longer available, I'm going to write it now to help your teen with his goals.

Your Teen For Parents: March April 2018 By Your Teen Media

Before your teen starts working on their car savings goals, you should both have a sit-down to ask some very important questions that will affect everyone.

After all, buying a car as a teenager is a big deal. You both have to be on the same page.

Psst: You might want to check out my article on setting money limits with your child. Step 2: Set a Target Savings Goal - How Much Should I Save for My First Car?

Now that you've removed some of these responsibilities and spending limitations, let's see how much your teen needs to save.

Good Money Habits To Teach Your Child, Today!

A target savings goal is the amount your teen needs to save in order to successfully purchase their car. It can also have a deadline associated with it.

If this is your teen's first car, then they probably don't know how much to save for a big purchase.

Honestly, when I saved my first car as a teenager, I didn't know either! I simply saved up as much as I could, and by 17, it was $1,700 (which happened to be enough to buy a used, 120,000-mile Chevy Cavalier).

Now, you want to calculate your teen's total for each of these car spending categories. A range is a good idea, with a minimum threshold, then a more conservative one, that they have to save up.

Save Your Money And Get On The Floor

Psst: You might want to check out these 19 gifts for new drivers, in case you just got their license! Step 3: Calculate the Money Gap

First, is the gap between how much they have saved now, and how much they need to reach their savings goal (what you calculated above).

And the second gap? That is how much they earn every month, and how much they will have to earn in order to bear the monthly costs and continue owning the vehicle.

If they fail to meet one or the other of these? Well, then the goose may be ripe (meaning, they should probably ask for your help, financially).

How To Stop A Teenager From Spending Your Money In Games

Help for Money Gap #1: For the first money gap, make sure they take into consideration other sources of money that can reduce the total savings target amount of their goal (that is, they can reach their goal faster). For example, will you, the parents, help them with parts of the car costs (and is there a requirement for that, such as maintaining a good attitude and decent grades)? Can they dedicate 50% of the cash gifts (for birthdays, Christmas, can be a smart way to spend your graduation money, etc.) they receive to this goal?

To calculate this one, they must add up all their current resources to be used for their car savings goal, then subtract it from the range of their target savings goals. Gap is what is left for them to save.

Help for Money Gap #2: For this one, you can reduce the likelihood that they will have to ask you for money to help with their car by requiring them to maintain a certain amount in an emergency fund before they are allowed to buy it. vehicle. Say, $500 or $1,000.

To calculate this one, they must add up the monthly maintenance cost from above (gas, insurance, etc.), then subtract it from their income. Hang onto this number, as it will be a line item in their budgets moving forward.

How To Save For Your Baby's Future

Your teenager can fill this out, then based on working with the numbers, figure out how long it will take them to save up to their target savings goal.

You will want to help your teen pay attention to the intensity level of savings. You can have light, medium, or high intensity levels.

If they're serious about saving a car when they're teenagers, then I'd say they should have a moderate (and high, when they can swing it) intensity level. This is largely because they don't seem to be making much money these days.

For example, saving $ 250 / month for people who earn $ 5,000 / month means that they will save only 5% of their income. But is it the same $250/month for a teenager earning only $800/month? Well, it eats up 31% of the total cash - a higher level of intensity (even though it's the same $250).

Teach Your Child To Save At Any Age

For $ 6,000 used vehicle, it will take them two years to save up (and that does not take into consideration other costs of vehicle ownership). Meaning, if they can swing at a higher level of intensity, that's even better.

You will want to manage their expectations that they will have to make sacrifices in their budget and spending so that they can increase the amount they are saving each week and each paycheck (hint: hang up to the motivation section for tips on how to keep your teen motivated, because they is trying to tackle long-term savings goals for high school students).

A Word of Caution: Be careful here. Your gung-ho teenager may, in his great enthusiasm to become a car owner - overestimate the amount of money he can really afford for the purpose of saving each week / salary. Step 5: Try Smart Savings Strategies

I'm not going to lie — between low incomes, long-term savings goals, and needing a healthy dose of ability to delay gratification — your teen is on an uphill climb.

Reasons To Save Money As A Teenager (use These Talking Points)

But it can be done. I mean, I did it while earning only $98/week, hawking the horse stall after school.

This smart savings strategy I share with you guys will make the manager a bit easier.

Make a line item in their current weekly budget, with their estimated monthly car expenses. This serves two purposes:

Have your teen commit to dedicating 50% or more of the money given to them - from birthdays, graduations, Christmas, etc. - towards a savings goal.

Teaching Your Child To Save Is A Gift That Money Can't Buy

Psst: gift money for teenagers? Here is my graduation credit card idea. 3. Offer matching savings programs

I have yet to meet parents who have no work to do around their house. Extra work, off duty.

Now, whether you want to pay for it or not is up to you. BUT, it can be beneficial for your teen as well as helping you to let your teen handle some of the projects and chores around the house that you are willing to pay for.

Bonus points if you are willing to negotiate for a payment that will be accepted. Negotiating is an important money life skill!

How To Get £39,000 For Your Child When They Turn 18 By Saving £100 A Month

If you're okay with your teen taking on some of the driving responsibilities for their older sibling, or running errands, then you can set up a car sharing program where they can use the family car to do these things, plus they earn a small amount. to put into their own car fund to help the family.

It can be a valuable lesson that they will draw on in the years to come. However, they need to sustain their motivation and determination for some time.

You can help them create a reverse-engineered vision board for teenagers, as I detailed in my article on how to save an iPhone as a child.

They can use a savings tracker to visually show the progress they are making. Here's a bunch of free printable savings trackers.

Teach Your Child To Save Money: 7 Interesting Ways

Okay - let's move on to the last part, my own story about saving up a car as a teenager.

Perhaps I should name this article "how to save up for a car at 17", because that's how old I was when I bought my first car with the money I've saved myself.

And it took me about a year to do. Mostly because I've spent all my savings over the last few years saving for a student exchange trip to Spain (it was a great 6 weeks!).

I grew up on a family farm, and so it was a lot of work (and then some) to get done. When our family opened a place in the fall and winter along the highway where we lived, suddenly there were many earning opportunities - wo(manning) the pumpkin stand, cashiering at the store, monitoring the inventory, going horseback riding. , etc.

Smart Money Moves For Parents Of Teenagers

Then, my father actually hooked me up to a job mucking horses at a local vet's (thanks, Dad!). I earned $98/week at the height of that job, and was able to save up to $1700. I needed to buy my first used vehicle (a 1997 Chevy Cavalier) at the age of 17.

Now, I had great

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