[USER]

I have 2 questions pertaining to children/preteens –

1. What is everyone’s opinion on first vehicles for their teens – do you believe in having them get a job and pay for it themselves, pay for good grades and not allow them to get a job, or other?

2. What is a savings account or other that you can set aside money in for your children to use for their first house one day?

I am late to the game with 1 preteen and 1 elementary age kiddo.

[Emma]

My oldest just turned 17. She has taken all advanced/AP/dual enrollment classes.

She gets straight A’s.

She also plays soccer, flag football, and volunteers.

She has time in the summer and works a summer job.

She also picks up soccer reffing here and there during the soccer seasons.

I cover insurance and bought her a used, reliable car and also pay for maintenance.

She is responsible for her gas.

She doesn’t really have the time to work to cover a car purchase and insurance, she’s a really good kid, and I have the means to cover those things for her, so I do.

[Stef]

My 10th grader has an unweighted 4.0, takes the highest level classes she can get, plays a high school sport and also plays club, volunteers, and is about to start preparing for the SAT/ACT.

She has a small social life but it always comes behind everything else.

I have discouraged her from working because she stays quite busy and I think she’s doing enough.

She’s in no hurry to get her drivers license.

When she’s ready to drive, I will pay her insurance and a car, if we decide she needs a car.

[Grant]

When our’s get older they will have chores. Those chores are not paid, they are a part of living and having your own place; they need to learn that cooking, cleaning, mowing grass, tending to chickens and pets is normal and no expectations of being paid for that.

Now… IF the child wants to do chores off from Mom or Dad’s list, those can be paid for upon completion.

Just like an adult; the kids must work for things they want.

So how does one go about out getting money? …

you do agreed upon work for someone else and they pay you the agreed wage; consensual trade.

As for a car, start having them check your vehicle for fluid levels are refill.

Make them get out of car to pump gas. Have them check the tires and brakes.

Use this time to have them learn about a vehicle and the maintenance required to drive it for 10 years.

We are in a ChooseFI group; so a used car that the child can afford; insurance, gas, maintenance, etc.

Remember… We are the parent and responsible for raising a functional adult in society….

If we keep asking for the government to teach them everything; what is left for the parents and what will the child’s future hold?

Does the bird born in a cage know it’s a prisoner?

[Rick]

I leaned towards providing my kids a vehicle, and I chose to get one for them that would carry them through college and to their first job, but they would be responsible for gas and insurance and car tag (in our state this is small amount each year).

I am a big huge proponent of kids working and paying some expenses.

It’s too valuable a set of life lessons to let slip by.

[Marcy]

For us, we had to take into consideration that one kid had a LD and a job would distract from school.

We only allowed her to work weekends.

So, we provided an older car (already had), reasonable gas, and covered insurance.

Since we had 2 kids, we were consistent, but the other kid worked 2 jobs and had all As.

Vastly different abilities, but we treated the same with respect to car.

They also shared the car.

Two years difference in age, but that might not apply in your case.

[Amber]

We bought one used car for my teens to share when they were 15 (now 17, almost 18).

We told them that if they wanted to keep the car, they would have to raise 1/2 of the kelly blue book value and buy their sibling out of their half.

So, they get a car cheaper than market and their sibling gets $ to have to help buy another.

Plus their working, saving and learning strategy.

[Lisa]

We had a deal w ours. Straight As (they took AP/DE starting 8th grade), no drugs/drinking/significant others, stay out of trouble and we will gift you your first car.

Insurance/gas was paid by us assuming they abided by the rules of our home.

Both got full rides to colleges they attend- so we continued paying insurance/gas for the one who took a car, and the other got her housing paid for (it wasn’t in her scholarship).

We have said we’d give $ for a wedding or house, not both:( so they can choose how they spend it.

We did 529s for college spending and started the second acct when they were freshman in hs.

[Megan]

We get a car for them to drive that is not “theirs”. We pay maintenance, repairs, insurance, taxes, gas.

When they are in a position to buy, we assist (usually that is meeting them halfway).

Once they buy their own car they pay for maintenance, repairs, gas, tags, etc.

Our kids all work jobs from 15-16 on while we are still covering all essentials so they have a chance to save and get used to budgeting.

By 17-18 they have all been ready to take on car ownership.

[Kim]

My senior has been working for just over a year. She has saved up for a car, pays her own gas as well as car insurance!

She has a little over 2k in savings and is very frugal with her money.

She’s a straight A student, plays sports and all around great kid.

She’s the oldest of 4 and sets the bar high. Her dad and I couldn’t be more proud!

[Melanie]

Grades were always important not a specific factor for a car. We told them we’d pay up to $6k towards a car and cover insurance.

They had to pay for gas (but we’d treat occasionally).

Our second child it was $6500 (because inflation and she kicked in about $700), third child $7k and he chipped in about $1700.

All of them worked some.

[Danielle]

I love the way my parents did it. They timed it so they would need a new car by the time I was 16.

Then, they sold me their old car for a small down payment.

I made low monthly payments to them.

It taught me financial responsibility but also didn’t leave me working too much – I was an athlete so I couldn’t work a normal job.

I already know what car I’m getting my kids.

A Chevy spark EV. 80 miles of range but I don’t want them going far.

And it’s a $5k car that doesn’t have mechanical issues like most used gas vehicles.

I owned one for 2 years and never needed a single repair

[Michelle]

If I would have required my oldest pay his way towards driving he still wouldn’t have a license now at 22.

So many young people these days are uninterested in learning how which is beyond weird to me but they live in a different world where they are connected to everything virtually.

Anyhow., forced him to get his license at 16 and I paid for drivers training and insurance and a cheap beater car (97 camry that he is still driving and is super reliable!)

It was more for me.

We lived in the country and shuttling him back and forth to activities was a huge time suck.

I also gave him one tank of gas a month…

which was all he ever needed because he never drove unless he had to.

No driving around all over just for fun like I did.

It worked out for us.

He didn’t work much in high school but earned several scholarships that I don’t think he would have without focusing on school and extracurriculars.

[Charlotte]

We provided very modest vehicles for our kids. Our kids did not work during the school year.

The money earned from their summer jobs went into Roth IRAs and we covered their expenses.

I realize now that they could have covered their own expenses and we could have contributed our money to their Roth IRA.

The scholarships they earned from their top grades in high school, and being able to cut a year off their undergrad degrees from AP classes and CLEP testing, were far more valuable than what they would have earned through jobs working during the school year.

They focused on their grades and extracurricular activities.

For anyone worried, they are now young adults who know how to work and have a great work ethic.

They know how to budget and invest.

[Laurie]

Having a car available for our teens to use made life easier for US, the parents.

Sports, music, before and after school activities and simply being able to drive themselves to school and home after sports and or other after school activities made it a no brainer.

“Dora” (ford explorer) passed from being my husband’s vehicle to our oldest, to the next and finally to our youngest.

She was a tank.

We were happy to pay for maintenance and gas because she made OUR lives easier for most of a decade.

[Martha]

My husband nor I were allowed to work when we were in high school as school was the priority.

We are maintaining that mindset for our kids.

Our 11th grader is in dual enrollment and overall good kids – so we got her a used car to drive around.

As for saving- our kids have an investment account which we review with them quarterly and they present researched options they would like to invest in.

The goal is to show them how to be involved in their finances.

[Amanda]

We decided since my son is now able to get his permit that my husband’s car will be the family car.

The car has a few dents already and the inside is not the best visually but it’s a 2018 Honda Civic with low miles.

Hubby will be getting a new car once my son gets his license and starts working (he will be responsible for insurance and gas).

My next child will only be a couple years behind him.

So, they will share the vehicle while in our home and once they move out its on them to buy their next vehicle.

[Kureen]

We so far have bought our kids old vehicles and we pay for everything car related as long as they keep studying, and working hard.

Our oldest gets her nursing degree in a few months and she will just have turned 21.

They do work for their fun money.

So far it has worked well for the older two.

We have 2 more young teens.

We require our kids to get licenses at 16.

There is a trend not to these days and we don’t feel that is in their best interest.

Every kid is different though.

[BillPaige]

Our kids were homeschooled and able to work a green house temp job from age 13.

They get $20 a month and sone birthday money. Chick Fil A at 15.

Then we have a kid car for their use for 1-1.5 years while they keep saving.

At our house, by 17, they should each easily have about 4k for their own car.

Right now with the kid car we bought, we pay insurance/registration but kid (16) pays gas (unless it’s school).

[Cathy]

I got both money a vehicle. One played 3 varsity sports and the other 2. Those plus school were their jobs.

I live rurally and there is no public transportation, so a car is essential

[Robin]

We bought our son a $8k car 5 years ago and no he wasn’t working. He was busy with school and extra activities.

We didn’t set aside money for his house.

We were too busy paying for our own.

He’s 21 now and has $50k from work in a Roth IRA and HYSA.

[Erin]

I know this was like 100 years ago but my parents provided basics – room, board, school fees, school wardrobe.

I took the bus to high school.

If I wanted anything else I had to figure out how to pay for it and how to get it.

So, I got a job.

My neighbor was selling his van so I walked over there and I knocked on his door and I negotiated with him to buy it.

All by myself at 16 years old.

My parents didn’t do anything to intervene or try to find me a car or help me pay for it.

This set me up to be a confident, independent person.

[Author]

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