Nothing is more synonymous with turning sixteen than getting behind the wheel of a car. But before you can get that sweet taste of freedom, there are a few important steps to take. First: ace your state’s driving exam. Second: start saving for a car. If you’re ambitious enough, you might already have step two underway. For those who need a little guidance, here’s how to earn top-dollar savings as a teenager.
Steps to saving for a car as a teenager
Saving for a car as a teenager can be intimidating. The good news is you have a magnitude of resources at your disposal. These days you can make a car transaction completely online. You can browse used vehicles on Facebook Marketplace. You can even compare options with car comparison websites. Shopping for a car as a teenager isn’t necessarily difficult, but there are some things you’ll want to know.
We’ve outlined a simple approach to saving enough cash for your first car. Let’s get started!
Set a goal
Before you jump in, configure a realistic savings goal. Analyze how often you’ll drive, how far you’ll drive, and what features are important to you. For instance, if safety is a top concern then you’ll want a newer model with state-of-the-art safety technologies. If you’re looking for a reliable but more affordable option, then searching through used or pre-owned models might be the best route. By the time you narrow down your car savings goal, you’ll have a clear idea of how much you need to save.
Find a part-time gig
As a teenager, you’ll be kept busy with school and social events and extra curricular activities. Therefore, a part-time job is your best answer. It’s the easiest way to earn the extra money you need without dishing out all of your free time. Check into openings in the retail or service industry. These employment opportunities are usually best geared toward teenagers and will start at or above minimum wage.
Open a savings account when saving for a car
We encourage any person who is saving for a car to open a savings account, but for teenagers, the value can last well into their 20’s. Creating a savings account is the best way to secure your nest egg and get you on track toward your goal. It’s the safest place to put your money without being tempted to spend some on frivolous buying. On top of that, you’ll find it easier to start putting away from college, trade school, or a business investment in the future.
Avoid needless spending
Being a teenager means you’re entitled to have as much fun as possible. It’s the few years before adulthood really sets in and the responsibilities follow. From going to the movies, hanging with friends, and taking mini road trips, the necessity of a car becomes more crucial, especially if you live in a town or city without efficient transportation. So if you’re serious about saving for a car, you’ll have to limit yourself from time to time. You can’t say yes to every event that will cost your long-term savings.
Accept your first car won’t be your dream car
Whether your parents choose to help you reach your savings goal or you’re tackling it on your own, it’s okay that your first car won’t be your most cherished. In fact, most teenagers are just looking for a way to get from Point A to Point B without parental reliance. For many teens with a limited budget, you’re stuck choosing the best option versus the model you most want. Bottom line: don’t expect your first car purchase to be anything like a scene out of My Super Sweet 16.
Overview on saving for a car
Getting your driver’s license is a major right of passage. Perhaps it’s the one moment you look forward to most as a teenager. However, unless your parents plan on handing over the family van, you could be faced with the daunting task of saving for your own car. To help you achieve that goal faster, take these simple and easy steps into consideration as you approach your teen years.