This is a sponsored post.
I didn’t realize when my teen turned 16 how many things would change quickly. From permit to driver’s license, getting his first job, getting on our car insurance, getting him his first bank account, prepping for SATs, planning for college…oh man. It’s been a whirlwind experience since he is my first of 4 kids to go through this. All of this means financial changes too. Here’s some tips to help both you and your child prepare for all these changes financially (I’m still working on the emotional part) with a post inspired by Roseland Associates.
Be Open With Your Teen About All The Financial Aspects of Driving
Before my teen even got his permit, we talked about the financial responsibilities of driving. It’s not just putting gas in the car or buying a car. It’s inspections, maintenance, tires, car insurance, etc. I recently needed new tires on my SUV, and an oil change. I also noticed my car was pulling to the left so I assumed it needed an alignment. What came out of it was a $2000+ bill because they discovered busted shocks and struts, a power steering leak, and the other items that need done. I was very open with my son about the work and how much each item costs.
Give Them Some Financial Responsibility When They Start Driving
I understand that my son will not be able to take care of all the expenses of driving at this point in his life but it’s a good opportunity to teach him that there are bills every month. This is a good opportunity to teach him financial responsibility. He decided to get a part-time job based off the discussions. We’ve decided since he has a job he will pay us $25 a month towards his car insurance and will be responsible for putting some gas in the car when he takes it. I’ve talked to my husband and his father about teaching him some basic vehicle maintenance like oil changes, tire changes, checking fluids, etc. Even if you aren’t interested in having your teen get a job just yet, if they get an allowance, even paying $5 a month towards insurance can help them understand that there is are monthly re-occurring bills. This can help them learn to start planning ahead financially.
Shop Around For Insurances
You may think the Insurance company you’ve been with for years will be just fine when your teen starts driving. After sourcing information from other parents that had already been through the driving phase we decided to take another look. We had been with our insurance company for years. My husband had no interest in changing. I finally talked him into getting a few quotes from an insurance broker and we found out pretty quick that our insurance was one of the most expensive companies out there. It was going to be even more expensive when we were ready to add my son. Our insurance was going to double on our already high premium. We ended up finding another company in which we would actually pay less than what we’re paying now WITH my son added for the same amount of coverage! Crazy right!? It pays to shop around.
Driving School and Good Grades Matter
We opted to put my son through driving school. While it did cost us $300 upfront, the peace of mind of having a certified instructor and the insurance discount made it all worth it. His driving instructor was also able to test him for his driver’s test. My son got to take his test with someone he was comfortable with! I wish I would have had that. The insurance discount varies with insurance companies but it can be 10-20% savings which can be a big deal when adding a new driver to your insurance. Most insurances also give a good student discount. If your teen has a “B” average or better that can lead to even more discounts.
Financially Preparing for 16+ as a Parent With Roseland Associates
A lot of things happen at 16. Driving, insurance, possibly a part-time job, college prep, etc. If you’re reading this and you’re not quite financially prepared yet, it’s a good idea to start getting your own finances in order. Credit scores can help play a part in insurance prices too. There are plenty of resources out there from financial help books to debt consolidation services like Roseland Associates. Making better financial choices now can help with all the major life events for you and your teen.
Quick Financial Overview
- Give your teen some of the financial responsibility with driving even if its as simple as paying $10/mo towards insurance insurance but don’t overburden your teen with expenses they can’t possibly cover.
- I know you might be loyal to your insurance company but they may not be the best fit for a new teen driver. Shop around, you might find you can save a ton of money when your teen starts driving.
- Getting your own finances straightened out is always a good thing. But with a teenager it will help you be better prepared to tackle higher insurance rates, higher education expenses, etc. If it seems overwhelming seek help from professionals like Roseland Associates.
- Things like good grades and driving schools can help with discounts on insurances.
- If you want to buy your teen a car, speak with your insurance agent. Some vehicles are much more affordable to insure than others. According to autotrader.com, these were the most affordable cars to insure in 2018
