As with any large purchase, buying a car should not be done hastily. Your teen should take the time to calculate how much money he can comfortably spend, factoring in hidden costs and extra features.

There are several different ways to look at the price of a vehicle. Some people feel the overall cost is important, while others are more concerned with monthly payments. If your teen is more focused on monthly payments, he should factor in other fixed monthly costs as well, including insurance, registration, maintenance, repairs and, of course, gas. This is a great opportunity to put our budgeting tool to good use!

New or used? Encourage your teenager to do his homework: Kelley Blue Book and Consumer Reports are two great resources to help decide whether a new or used car is the way to go.

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The type of savings and investment strategies mentioned may not be suitable for everyone. Each investor needs to review a security transaction or strategy for his or her own particular situation. The examples mentioned are for informational purposes only and are not intended to represent results you should expect in the future. Data contained herein is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.