Once your kids start driving, the idea of getting their own car may become a major issue in your house. And this of course brings up other issues. You may want them driving an older vehicle for fear they might damage a brand new one. Alternatively, if you can muster the means, you may want them driving a newer car or truck because it is safer and more reliable. Either way, the issue of saving money to finance the new ride and which vehicle you are be able to afford will have a huge impact on what you choose. Here are some tips on how to save for the vehicle your family needs.
Start Saving Early
A lot of parents start thinking about acquiring a car for their child around their 16th birthday. Unfortunately, this gives parents a very limited time to save the money for such a purchase. According to Statistic Brain the average American family only has about $3,800 in savings, which is barely enough to cover a half-way decent used car. And to make matters worse these families are carrying $2,200 in credit card debt.
It is far more progressive to think about setting money aside each year while your kids are still young. This way, when it is time for teens to start driving, the cost of a new car will not be such a huge financial burden. In addition, this method has far less an impact on household finances especially since adding another car involves much more than just the cost of the car itself, there is fuel, insurance, taxes, license fees etc. So starting to save early means that your family’s new vehicle will not require such a huge adjustment to your current lifestyle.
Getting a Job
Another way members of the family can help to pitch in to afford a new car is by getting a job. Mom or Dad could potentially work a second job to generate additional savings but an even better solution is for children to learn initiative and responsibility by getting a job before or after school. Paper routes and mowing lawns have long been considered typical first jobs although working at a fast-food restaurant is rapidly becoming more common. This not only helps to generate extra income for the purchase of a new vehicle, but will help to ensure your kids make an effort to pitch in and be responsible. Alternatively, if your child is old enough to get a work permit, they may be able to land a position in a local retail store for a higher wage. See: Is your Teen ready for a Summer Job for more information.
A Garage Sale
If like most of us your garage is loaded down with all sorts of stuff you don’t even use, it might be a wise idea to generate money for your new vehicle by having a garage sale. Clearing out bikes, wood, tools, and appliances is easy to do with a local online ad. Once you sell off all these extra items, it will both help to finance your new vehicle and make room in the garage to park it.
Avoid Excess Spending
Before approaching a new or used car seller, it may be prudent to take a closer look at the household finances. According to Expressway Dodge used car dealership, it is helpful to have your financial information available when approaching a dealer because sometimes they will be able to help you set up a payment plan to help budget for the new vehicle. So before you go in, it is important to focus on how money is flowing in and out of the household. Cutting certain luxuries, such as cable and that monthly gym membership, will help to create more savings for a vehicle purchase. As the old saying goes, “A penny saved is a penny earned.” In this case, eliminating as many unnecessary monthly expenses will certainly add up to saving more than mere pennies. Even just limiting how often the family goes out to eat each month will add more money to the new vehicle fund. Putting an end to a smoking or drinking habit will also save a significant amount of money for the family car fund.
With a little forward thinking, it is possible to identify and leverage multiple avenues of monetary savings to reach your vehicle financing goals. This is a situation where the whole family can get involved and save for that new car. With the entire family pitching in and adding to the pot, it will help your family’s car fund grow quicker than members of your family may have believed to be possible. Before long, you will have that new car you always wanted.
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