Buying a Car

A lesson in freedom and finance

Buying a first car isn't 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 savings goals for many teenagers. So it's important that both you and your kids know what you're getting into before anyone starts test-driving.

If you want to help your teen, consider guiding them through any of the following:

Our Two Cents
A car isn't 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.


Save Smarter

Follow eight simple guidelines to get the most out of your money.

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Ask Carrie

Get valuable advice from a family finance expert.

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Investing involves risk, including possible loss of principal.

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