Driving And Finance 101 For Teens

Handing down the key to a brand new or used car to teenagers must come along with the right basic teachings and understanding on finance and driving. The sharing of knowledge and awareness should basically come from parents in the first place. Responsible driving and basic personal money management are the basic concerns to be discussed with the teenagers. Parents need to educate their teens on how to deal with their daily expenses.

“Learning to drive is a major milestone in a young person’s life and with it comes major responsibilities. Safety will always be the first priority, but driving a car also has financial implications, so it’s the perfect time for parents to introduce the concept of responsible money management and help teens establish a strong foundation for their future financial success,” says June Walbert, USAA Certified Financial Planner®.

The latest survey conducted by USAA, a nonprofit, tax-exempt organization that offers consumer information to the military community and the public specifically revealed that learning how to drive is the appropriate point in time for parents to begin educating their children about basic money management.

“Through honest dialogue, parents and teens can work together to avoid common financial issues that often come with driving while, at the same time, help prepare the teens to make smart financial decisions in the years ahead,” said Walbert.

“While the costs of driving can be significant, parents can avoid theses headaches if they develop a long-term savings plan and stick to it. It can be as simple as watching a movie at home instead of going to the theater or bringing a brown bag lunch to work - it all adds up and will ensure that you can help your child with their driving expenses,” says Neale Godfrey, founder of Children’s Financial Network.