Buying your first car is not just about money—it’s about freedom. The freedom to go where you want, when you want. Of course, this freedom comes at a price—and a big one at that. A car is often the first major purchase a person makes, and it’s one of the main goals teenagers save for. So it’s important that both you and your kids know what you’re getting into before anyone starts test-driving.

A car is not an investment. Make sure your teenager understands that a car's value depreciates the moment it’s driven off the lot, and that there are many recurring expenses, such as gas, insurance, registration and maintenance.