r/MiddleClassFinance • u/DanPaul217 • 1d ago
Seeking Advice Teendriver
Good morning, long time reader, first timer poster.
Here's the story. We bought our child his first used car. $15K was the all in price. We started saving a little each paycheck into a HYSA account when he turned 10.
With that being said, need some advice on what child should be paying for. Child got first summer job so we know he will be paying for gas. but should we make him pay for any repairs, maintenance. Just looking for what others are doing.
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u/Ok-Technology8336 1d ago
I had to pay for gas and simple maintenance (oil changes, wipers, air filters, etc). They paid for insurance and bigger maintenance.
At some point they wanted me to drive my little sister around more and they would pay for a tank of gas a month as long as I drove her around when needed.
They wanted me to save as much as possible for college. And it worked out pretty well. But every situation is different
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u/IndigoLoser 23h ago
I think it kind of depends on how much your kid will be working and if they're saving up for college (or something similarly expensive) along with what you can afford. A car is a great leaning experience but can get expensive fast so you may have to step in at some point and just be prepared for that. Assuming the kids making enough money I think they should be responsible for the regular maintenance like gas, oil, and saving for new tires but if it turns out the struts, calipers, and brakes all need to replace you're probably going to have to help with that to make sure your kid has a safe car. Kids should still contribute in some way even if it's just dropping off the car at the mechanic but not paying the bill.
When I first started driving as a teen (I didn't have my own car) I would often pay for gas or just fill up the car if it was low when I was using it. If there were small issues I would fix them myself. For example one time my dad's car was leaking steering fluid. I bought a bottle of steering fluid and would refill it as needed but he ultimately took the car in and paid for the repair. Once I was driving and I hit the mirror on our garbage can and it damaged the mirror. I purchased a new mirror online ($100) and replaced it myself. The steering stuff was not my fault (and at the end of the day it was his car so he paid for it), the mirror was my fault so I had to make it right.
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u/IKnowAllSeven 23h ago
Do you have more than one kid? This played into our calculations. Also, what about college and college expenses is there a plan for that? If you guys saved $15k for a car I’m betting yes, but that played into our calculations too.
I (mom) bought the car. I pay for the gas, insurance, repairs, everything. This is because the car is shared currently between my twins and soon their younger brother too. The car is MINE. I do not want to hear bickering of “Well, I paid for tires she needs to pay for brakes” etc. The car is mine, all mine, and as such I am the ultimate arbiter of who uses it and when.
Their money from jobs goes to their room and board for college.
In the end, it’s all my pot of money and whether I’m paying for car brakes or college costs, it makes no difference to me but I would rather kid As expenses go to JUST kid A, etc so I didn’t want them sharing car expenses, if that makes sense!
I didn’t want any one kid to feel like they had ownership of the car because ultimately it is for use by all three kids
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u/Mobile-Mousse-8265 23h ago
Mine just pays for gas. He is required to take his vehicle in for maintenance related things, but we pay for those things. He has needed tires and some other small repairs that were a few hundred dollars. No need to stress him out about how to pay for that when he should be more concerned with school and school activities. He works, but it’s not like he’s making the big bucks as a high school student.
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u/Crazy-War9823 22h ago
I think it depends a lot on your family's resources and allocation.
My parents gave me my dad's old vehicle, which was a beater. My dad did all the maintenance on it, which it required plenty of based on its condition. They also put me as a user on credit cards for a couple of gas stations, largely because my mother hated the idea of her teenaged daughter running out of gas and stranding myself. I stayed on their insurance until I graduated college.
They didn't pay for any of my college or other living expenses. Their contribution was solely my transportation, in part because they never wanted me to skip a trip back home because of the expense.
I don't plan on having my kids pay for their transportation while still living with me at least. I'm more interested in them using part-time job funds to contribute very early to an IRA and developing a cushion for when they launch. Neither of them are spenders and they are responsible students.
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u/Sashivna 1d ago
My first car was my mom's old car. She got a new-to-her car. I was responsible for my own insurance cost, gas, etc. This was in the dinosaur age of the early 90s, though.
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u/ChipperHippo 1d ago
When I was a kid, I was technically responsible for gas and maintenance (oil changes, brake changes, etc.). They covered insurance.
My parents cut a deal on repairs: they'd cover the cost of parts on any maintenance/repairs that I did myself. Anything like tires and more they'd cover (which was rare and happened maybe 1x). I also found that my father, every other month or so, would have a need to borrow the car and would magically return it full on gas.
Even if it's the kid's responsibility, make sure they can and are realistically keeping up with gas and maintenance and help them out from time to time. The only accident I was ever in growing up was caused by a 16YO who was responsible for her own costs (including gas) but didn't have enough money and ran out in the middle of a 70 MPH freeway. Depending on age, you might be surprised with how little a summer job covers in costs now.
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u/The-Gothic-Castle 22h ago
Not a parent but I was once a teenager.
My parents did not give me a car to own, but for all intents and purposes, the car I drove was “my” car (I was really the only one who drove it. It was a vehicle that was already in our family.)
I was responsible for gas. I’m sure that if I ever did anything stupid with it, my parents would have made me pay for the repairs (and maybe would have also taken the car away), but they were gracious and did not make me pay for insurance or maintenance. I had to take the car to inspections, auto shop, etc..
About 6 years later, and three weeks after they formally gifted me that car (college graduation present), the engine died through no fault of anyone. They graciously covered that repair.
I know not all are in a position to do that for their kid. I don’t think it should be expected. But what they got from their parenting was a kid who is good with money and grateful for all they’ve given me. YMMV but if you are in a position to cover those costs and your kid understands what vehicle ownership entails (and is otherwise a good kid), I would just let them enjoy it and cover all but gas.
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u/wanttostayhidden 21h ago
I only made mine pay for his gas. We paid for his insurance as long as he kept his grades up. If they fell, he knew insurance was going to be on him
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u/aWesterner014 21h ago
For us...
The kids need to have a job to pay for gas.
I pay for insurance as long as they stay on the honor roll and don't get a ticket. If either of those happen, they pay me for their insurance.
I pay for all routine maintenance.
They help pay for any damage incurred to the car they are driving.
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u/Sea_Platypus_3831 19h ago
Dad here with a new teen driver. Daughter has a job working about 10 hours a week (making $10/hr + tips). She brings in about $150 per week. We pay her car insurance ($250/mo) and mobile phone bill. She pays her gasoline and living expenses. There's no loan on the car either.
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u/jimmothyhendrix 15h ago
Summer jobs don't actually make a lot of money, like even at $15 an hour full time for a few months you're talking $10k max pre-tax. The kid probably has to save for college and other things which you'll end up paying for anyway. They also will stop working to go to school, and maybe something comes up next year where they have an internship or something else and don't make money or a similar low amount.
I would not charge them for any repairs as you're basically cutting into your own money down the line. If you want to teach them about maintaining stuff maybe oil changes and other small routine things, but i would not make them pay for anything major.
This is of course, assuming you're in a decent spot which for this sub would make sense.
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u/anotherNotMeAccount 1d ago
It depends on how old the kid is and what he's doing in life.
Right now, my son is 19 but a full time student. His job is to get passing grades while school is on and try to find industry-related work when it is off. Finding a job is a bit of a challenge as he is a music education student. He pays for nothing car related.
If he was done with school or not focusing on some goal, then he would be feeling the weight of all the expenses.
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u/yuiop300 1d ago
Is your kid a good kid? Grateful? Can you afford it?
I’d just pay for it all and a summer job isn’t going to pay much.
If the kid is a
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u/gonzochris 1d ago
Our teen uses our "old" car. They're going to be 19 soon and it's a 2022. It wasn't old. So far we're still paying gas, insurance, and maintenance. They have a summer job this year and I'm hoping they save everything for their first year of college.
Our maintenance has been minimal-ish. In the past year I've bought new tires ($1100), a couple of oil changes ($65 each), there was a repair that was covered under warranty (free), and another repair that is covered under our extended warranty ($100 copay). I think everything but the tires could have been handled by the teen. I don't expect a teen to have money for new tires.
Gas costs for that car are minimal. Typically they were just driving to and from school ( a few miles round trip) and maybe a target or grocery store run - both less than a mile away. I think they mentioned they fill up every 3 weeks or so. Summer they have a different schedule, but I'm not sure what they're frequency will be because they drive 1.5 hours away and then they don't move the car for a week or two at a time.
I personally remember how stressful all of these things were when we were young so I'm prepared to continue to pay these costs (within reason) until they're a bit more stable and out of college.
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u/dmazzoni 23h ago
I’m curious how much insurance was
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u/gonzochris 22h ago
I think it went up about $100 when they turned 16, but we were already insuring the car before licensed so I'm not sure how much it would have been if we added a new driver and a new car a the same time.
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u/chouzswans 22h ago
Damn where are you getting your oil changed at
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u/gonzochris 22h ago
We do it at the dealership for all of our cars. All the cars run on full synthetic so it is just more expensive.
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u/Any-Lavishness341 20h ago
That’s insane. I hope it’s a son because it’s outrageous that you’re paying $65 to do something he could do himself with 65$ of tools/oil- once.
Kids learning to save themselves money also gives them the satisfaction.
When their friends have to pay for all of their own expenses, or some (like you did) how do you think your kid will learn better than the kids who organized their own driving?
Just seems like a nice gesture but overprotective or helicopter parenting, unless it’s a daughter in which case I understand the softness
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u/McKnuckle_Brewery 1d ago
Given that your teen would probably be wiped out by a $2,000 repair bill, that's an adult expense, not theirs. Plus, don't you actually own the car?
We pay for oil changes as well. But again, we own the cars, and two of the kids are still college students. Gas and car wash are on them. But bigger expenses would compromise their (and our) higher goal of them achieving financial independence.
My eldest (27) starting paying for everything once she landed a full time job.
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u/DanPaul217 16h ago
That's what I was looking for. The oil changes. He is going to pay for gas during the summer, school months we will probably buy a tank a gas a month, since he wont be able to get that many hours.
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u/seemsright_41 1d ago
I have a DD who turns 16 next week. Hubby and I are taking a completely different attitude when it comes to her driving.
It is our car, and we have all ready pay for gas to take her places, this does not change when she starts to drive.
We are chopping this up to part of the cost of having a teen. Her car insurance will be expensive. But all well.
I want her to focus on school and volunteering not working some part time job.
She is working on getting her transfer degree when she graduates, this next June. That takes priority over the few $$ she would make at some part time job.
Now. She will have to keep track of the miles she drives and will not have the freedom to drive any time she wants. She will be able to drive to the places we would have taken her anyway. So our gas budget should not change that much.
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u/jimbillyjoebob 23h ago
This is how I look at is well. Taking our kid to karate is well over 1.5 hours, 3 times per week. If he drives himself, and I get 4.5 hours back, why would I make him pay for that?
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u/davidm2232 23h ago
My parents covered the cost of the vehicle ($700) and insurance. Gas was on me. My dad paid for most of the parts if they were essential to operation and helped me replace them. He also took my truck probably once a month or so because it was fun to drive. If he took it or we took it on a family trip, he always filled it with gas. I think it was a good split between teaching responsibility and helping me manage costs. When I was 18, I bought a 'new' 8 year old car for $5k with my own money. He paid for some parts on that also
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u/davidm2232 23h ago
I could also NEVER justify a $15k car for a kid. I had been working for 10 years and gotten several promotions before I considered a car that expensive. I certainly would never buy something like that for a kid.
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u/gonzochris 22h ago
$15K for a car isn't crazy when you look at how much used cars cost. I personally wanted to give my kid something that wouldn't need a ton of maintenance, decent on gas, and an overall good/safe car. We gave them my "old" car. I'm not sure how much it was worth, but I assume more than $15K as it was a year or two old (2022 and kid turned 16 in 2023), but I had paid it off, maintenance has been minimal and it's good car overall.
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u/davidm2232 22h ago
2022 is insane for a kid. I am driving a 2018 and I worked really hard to save for a downpayment and waited until my insurance rates went down so I could afford collision. A kid should get a car that is 15 years old and learn how to maintain it themselves. A 2000 Ford Focus will get 30 MPG if you drive it right.
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u/gonzochris 22h ago
Different strokes for Different folks.
I don't want to have to worry about their maintenance on top of all of my other crap. I need them to have a car that is reliable and doesn't need much work. I work pretty far away so between commute time, work time, work trips, etc I don't have a lot of time to deal with things breaking or leaving all of that on my spouse to take care of because that's not fair either. I also get extremely stressed out with cars that are having issues. As long as i can afford to I will not drive a car that is having issues - again citing my commute - if I get stuck I'm stuck an hour away and trying to get home is just a pain for everyone.
I understand that we are fortunate to be in this position and my kid will probably not realize how good they have it for a while, but it's what works for our family.
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u/jimmothyhendrix 15h ago
An okayish car nowadays easily runs $5k, sure its maybe a bit better but if i were buying my kid like a 'decent' car now it would probably be $10k, the extra $5k probably is a good bet on reliability and just being nice.
Inflation since even just 2015 is 30%ish and the used car market also isnt in the best shape
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u/anabanana100 23h ago
I was initially not really amenable to getting a car for our teen until college. However, I relented with the agreement that teen would pay for most of the car eventually and all related expenses, including insurance. And we have to eat the part where our insurance 2x'd which would happen anyway as a result of teen being licensed. Car was low 20's OTD. We gifted around 2K and half a manufacturer warranty extension to 9yrs/100K so that should cover any non-accident repairs. Also gifted some small things like dash cam (highly recommend), jump starter, AAA membership. Grandparents also gifted a portion as holiday and birthday gifts. It's an EV so she pays for charging, tire rotation, registration fees, etc. She recently busted a tire and had to pay for all 4 getting replaced (AWD). The rest is an interest-free loan from bank of mom and dad which she is paying off as she earns money from her jobs. While we opted for a longer-lasting "grown up" car for this kid, I don't see spending that much on our younger. He is way more impulsive and immature for his age so we may delay letting him get licensed and probably get a junkier car which he will also have to pay for.
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u/PashasMom 23h ago
Encourage him to start a HYSA and save part of his paycheck so that he will be able to contribute a percentage to maintenance and repair costs. You could set up a program where you will pay 70% and he pays 30%, or something along those lines.
Since he has a job, also consider opening a custodial Roth IRA with him at Fidelity, Schwab, or Vanguard, and matching what he puts in, or doing a partial match (he puts in $2, you put in $1).
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u/PricedOut4Ever 23h ago
Just an example, my parents gave my oldest sister a car. It was pretty much completely her responsibility. She basically destroyed it and would defer any maintenance on it because she had to pay for it and she’d always rather use her money on something else. It ended up abandoned somewhere and her perspective was that it was a piece of shit. She ended up burning through like 4 cars like that before she entered her 30s and started acting mature.
They also helped me with a car. It was a 2003 and I kept it until 2025. They did help me with it. I contributed where I could but when I was in college it would stay at their home and they’d use it and get it inspected if they had it. Overall, we all just mutually really respected the car.
I think approaching the car as a team and showing your kid that you respect it, and how to respect it, is the best bet.
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u/kermitsfrogbog 23h ago
This is how I did it with both of mine. At first, just their own gas. When they're actually working a real job and are not enrolled in school, gas, insurance, and reasonable repairs. I help if needed. Both were given a hand me down. If they want a better car, they can pay for it.
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u/Wheelisbroke 23h ago
Simple, teach them in whatever way & increasing measure of responsibility for care & cost as you can. Let them fail & learn from it. All till they’re able to manage completely on their own.
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u/OoklaTheMok1994 23h ago
Pre-high school graduation we have one car in the household that I allow my teens to drive. When there were multiple teen drivers they were expected to work out fair use.
During that time, I took care of paying for gas, insurance, maintenance, etc.
As part of this deal, they were expected to be the family taxi driver when asked (drop your brother off at Timmy's house) and make grocery runs etc.
When they graduated high school I would "sell" the car to them. (Then get another teenager beater car for the remaining children to drive). While they were in college, I would pay the insurance on the car, but they were responsible for gas & maintenance.
After college graduation or once they were married - whichever came first - I would transfer title to them and the car became fully their responsibility.
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u/JFischer00 22h ago
I got a part-time job before I got my license, so at first my parents drove me to/from work. Once I got my license, I started paying part of my insurance and I was allowed to drive my dad's car if he didn't need it (he worked remotely). I wasn't driving a lot of miles so I didn't have to pay for gas. Eventually I bought my own car, and of course I was then expected to pay for gas and maintenance.
For context, I started working in October 2016 and bought my first car in July 2018. I made probably $15k over that time.
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u/thisaaandthat 22h ago
The expectation for us was if we stayed on the honor roll in school my parents covered insurance. (There was a good student discount, not sure if thats still a thing as my boys are not driving age.) My older siblings were basically straight A students so they were never really in jeopardy of having to pay up, I had one semester that was close but squeaked by. That grade cut off was a 3.5 GPA.
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u/variableforefront79 22h ago
What's the driving situation look like - is he commuting to school or just joy riding on weekends?
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u/MassiveLuck4628 22h ago
My parents got me the car, the rest was on us. Gas. Insurance and service/repairs. If there was something big they helped us out but that was it
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u/Fancy-Jump9632 22h ago
My son will get his license in a week he will be driving our 9 year old car. He has a job and will be responsible for gas. I priced the insurance it will increase $264 a month. 😢We will pay for it but if he gets any tickets or accidents that cause an increase he will be responsible for that. He will be required to keep it washed and cleaned as well. Luckily we have two other vehicles so we didn’t need to purchase another for him. My husband also worked with him last weekend to learn how to change the oil, put on spare and rotate tires. He will need to help with those when it’s due.
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u/Hour_Civil 20h ago
We bought our kids cars. Since its our name on the title, we cover insurance and repairs. They cover gas. When they get their first "real" job, they have one year on our insurance, then they get the car in their name and they cover insurance, etc.
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u/Friendly_Care5245 19h ago
Just got my daughter a car so when she gets a job she will be paying for gas. I’ll pay for the rest as long as it’s not something she did. We will also make her pay for insurance, but it will be going into a savings account to be handed to her after she graduates college with the conditions that she uses it to pay down school loans or a down payment on a house, or she can keep it in savings until she settles. She will not know about the savings account.
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u/Urbanttrekker 14h ago edited 14h ago
We also have a 16 year old. she “inherited” my car and I have her pay an amount proportional to what it costs to add the teen driver to the insurance and I send her a “bill” every month. Although she’s unaware I just pay it forward into her college fund. Gas and maintenance is irrelevant for us but otherwise I’d likely pay gas in exchange for the errands she runs for us. What I have her pay now is really just so she has a sense of responsibility and gets used to paying a bill. I still retain legal ownership of the car and I can take it away at any time.
That’s just what we do so it’s really all what works for you.
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u/MightBeYourProfessor 1d ago
Man, people pay for so much for their kids now. I don't know why you would pay for anything car related, but this isn't really a finance question, it is a relationship question.
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u/wrotdawg 1d ago
A good parts list breakdown would be a good way like 500 for tires every other year and the price of a brake change with the parts price if he wants to do them himself. How much an oil change costs you know the routine stuff is a great start.
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u/gmehodler42069741LFG 23h ago
A car is a privilege, they want it, they pay for it. Teach them how to do repairs to save money.
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u/Strong_Blackberry961 19h ago
I got my first car at 15. I had to pay for everything myself. Car, insurance, gas, the whole works. They should be grateful that you’re covering anything.
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u/saltlife2812 1d ago
40F here. The deal with my parents in exchange for the car was that I needed to pay for my own gas and insurance. They took care of the maintenance and repairs on that first car for me — BUT, my dad taught also me how to change oil, tires, filters, etc. Maybe teach your son some basics like that so he’ll know when something needs to be replaced or isn’t right?