One of the important things that isn’t given as much attention as it deserves is that now that you’re going to be driving it comes with a lot of responsibility including financial responsibility. Not just getting a car but owning it and properly maintaining it are going to be a part of your life now. People tend to neglect that and because we do, that why one of the “fake industries” has popped up surrounding this shortcoming. The “extended car Warranty” industry.

Bottom line, those warranties are a scam. They exist in the first place because we are terrible at saving. Cars cost a lot of money but there is a lot more to owning a car than meets the eye. Of course there is the cost of insurance and gas but what about car repairs and just general maintenance? You have to buy tires and if your car gets old enough the front steering parts, starters, brakes, oil changes all kinds of stuff. Do engines and transmission cost thousands? Yeah, some. But that whole warranty industry is a scam. If you learn about financial responsibility then you don’t need warranties.

So what’s the fix?

There are few things in life as serious where you’re taking others people’s lives in your hands like when you’re driving. You’re responsible for not only your passengers but other drivers on the road. So it’s time to start acting like an adult in pretty much all facets of your life, finances being one of them. That means reconciling yourself to the fact that you have to do things like setting up a budget and saving money if you don’t already. You need to start crossing the T’s and dotting the I’s in life. You’re not a kid anymore if you’re going to be driving even if you are only 16 years old.

The fix is something you may have heard people complaining about is a problem in the public school system in Ohio, and the US really. Lack of teaching of practical life skills. Like money management. But really that isn’t part of what school is about. So you have to take it upon yourself to seek out sources to help you as a young adult prepare and understand about finances. One of the basic principles you learn in a money management course is that as soon as you get your money you put at least 10% into savings that you don’t touch. This is only to be used in an emergency. Like, you know, if you have an emergency car repair. Things like new tires are not an emergency. You know you need them so you need to budget things out. Yes budget.

So you need to spend some of your time educating yourself about this stuff and setting things up to help yourself. If it is just a spreadsheet or some application to help guide you. Don’t just wing it with your finances and do nothing. You have to have a plan and if you don’t have one now that you’re mature enough to be driving that is the signal from life it’s time to address it. Find and take a course about financial responsibility and start your own budget. Again, a spreadsheet is better than nothing but there are tons of apps. But you need to invest in yourself in knowing about this stuff. At some point you’re hopefully going to be doing some investing of your money. You don’t want to go through life not knowing it.

A good place to start with some free information is the Consumer Financial Protection Bureau. Check out the link to their site below. But by all means, look for many sources on this. This is one of those things you want many opinions so you get a good understanding. Again, this is investing in yourself. With being able to now buy into the stock market and invest money other ways it is how you will get ahead. No matter your age start now if you haven’t.

https://www.consumerfinance.gov/consumer-tools/educator-tools/adult-financial-education/tools-and-resources/ 

Thanks for watching and please, be safe out there.