Table of Contents
Cars are one of the most essential bucket list goals for teenagers. Most kids plan to buy their first car when they save or earn money. It might seem impossible if you are not earning enough money every month, but with strategic planning, it is achievable. A car costs around $45K at least, and it might cost you over two years if you start saving money today. Even if you buy a car in installments, you must show earning potential to the loan providers.
This article will help you plan and execute your strategy to save money for your first car. With practical saving tips, you can save enough to buy it. You must go through the whole article to understand how to strategically set and achieve a goal.
How to Plan for Your First Car
The first thing you can do as a teenager is to sit with your parents, guardians, or even an elder sibling to discuss your money-saving goals. You must decide which car to buy, how much you must save, and what the present value of the vehicle is. It is also essential to finalize a time period you have to save. It can be six months, a year, or even more. You can work on the weekly budgets and try to bring facts into the conversation.
If you are not planning to buy a luxury car, you can easily work small jobs to save enough. Your weekly earnings plus your pocket money can help you save enough money every week. You must avoid spending lavishly on other things during this journey to ensure you have put your heart and soul into buying it.
Related blog: Can A 17 Year Old Buy A Car
Setting a Savings Goal: How Much Do You Need?
When setting savings goals, you first find out the vehicle cost. It can be anything over $40K. If it seems too out of budget, you can look for small cars, family cars, or even second-hand ones to buy quickly. Then, it is not only about the vehicle cost; insurance, and other fees also make it more expensive. If a vehicle is $40K, then after insurance and other essential expenses, it will be over $42K. This additional $2k is something you didn’t have planned.
You also must include registration, title, and sales taxes in your saving list. Then comes the monthly gas bill. You cannot escape it and must continue working to keep your vehicle running. You must write down all the specific costs to plan your car effectively.
Finding Ways to Earn Money as a Teenager
Earning money as a teenager can be rewarding to learn financial responsibility. Here’s a list of ideas and opportunities for teens to start earning money:
1. Traditional Part-Time Jobs
Part-time jobs for teens can provide steady income and work experience. While labor laws can limit the types of jobs teens can do, there are still plenty of options. This will help you generate a small weekly income to save for your first car.
2. Freelance or Gig Economy Jobs
Many online platforms allow teens to tap into the gig economy. By using their skills to make money from home, teens can earn money. They can also learn new skills, interact with people, and gain experience that will help them in the future.
3. Online Businesses
Starting an online business or side hustle can be a fun and rewarding way to earn money.
4. Tutoring or Teaching
If you excel in a subject or have a particular talent, tutoring or teaching can be a great way to help others while making money.
5. Seasonal Jobs
Many seasonal job opportunities can provide short-term earnings depending on the time of year. During the summer, there are plenty of opportunities to earn money. You could work at a pool, amusement park, or summer camp, or as a lifeguard or camp counselor.
Read related blog: How to Make Money as a Teen: 10 Best Ways
Creating a Budget
Tracking your income and expenses requires a lot of planning and specifics. You must keep track of your income, expenses, and savings and even save an emergency goal. You can also ask your parents to help you out with budgeting tips to save money.
- Decide how much money you need every week. Then, think of ways to save or earn money. It is better if you make achievable goals.
- Once you have started earning money, you must limit your expenses and use your money wisely. You can discuss your essential bills with your parents and save a lot of money.
- While deciding your budget for cars, you must include all expenses, including registration, title, and insurance. Otherwise, even if you have enough for a car, you won’t be able to buy it without these expenses.
- You can also ask your parents to co-sign a car loan with you to get your car quickly.
- Buying a second-hand car is best if you are new to saving money and budgeting and do not have a stable income source. They are affordable and can help you achieve your dreams.
Smart Saving Strategies: Tips and Tricks
Saving money as a teenager, especially when aiming to buy a car, is a significant financial goal! While it can take some time and discipline, many innovative saving strategies can help you reach that goal faster. Here are some tips and tricks on how to save money for a car as a teenager:
- Define Your Target Amount
You must plan how much to save, including all expenses. You must also have money for registration fees, title charges, and auto insurance applications.
- Create a Timeline
You must decide which car you will buy by which year. This will provide you with specifics on how much to save to keep your goal on track every week.
- Track Your Income and Expenses
You must keep track of your expenses and your income sources. This will help you decide how much to reach your goal in time.
- Prioritize Savings
It is best to save more and spend less during this time. You must keep your expenses in check to save the maximum amount during this time.
Exploring Different Savings Accounts
Kids under 10 or 12 often use a piggy bank to save for their favorite treat. But a piggy bank is not enough to fulfill our dreams as we grow up. You cannot save $1 bills to buy a car. This is why it is high time you open your savings account at an actual bank.
Youth and teen savings accounts are outstanding for your kids to save money for their bigger dreams. They will feel it is a secure way to save money and enjoy the interests the bank offers. You can also invest their money into high-yield savings or other investment accounts under your name, as they must be at least 18 years old to invest as per the law.
Staying Motivated: Keeping Your Eye on the Prize
Saving money is not only about money but the determination to keep going. It is similar to losing weight; you might not see the difference every other day, but you will notice it after a few months of training. You will not save a considerable amount of money by saving small amounts quickly. It will take a lot of perseverance and passion to keep going without any results.
You must keep yourself motivated and dedicated to working towards your goal. You can plant small rewards after a specific amount is achieved; for example, after every $10K saved, you will take your friends out for dinner or visit an amusement park. These small rewards might spend your money and provide that extra push.
Read related blog: How To Become Financially Free In Your Teens
How Beem Can Help You Save Money as a Teenager
Beem is a financial app that can solve all your financial problems. Whether it is investments, personal loans, or money-saving goals, Beem is your one-stop shop for money-related issues. This app allows you to explore money-saving strategies and learn how to multiply your funds quickly.
You can also invest in a high-yield savings account with Beem and get 5% APY yearly. You must trust a partner in this journey who will guide you through it. And Beem is your answer to grow your funds in a short time. For more information on how to improve your savings, download the Beem app here.
Conclusion
Buying a car or a home is a considerable investment. Especially as a teenager, it seems like a huge responsibility. This is why you must plan and save very strategically for your first car. You must include your elders and parents in the conversation about saving and using your money wisely. They will offer the best money-saving tips and tricks and will keep you motivated every step of the way.
You can trust Beem to manage your bills and monitor your expenses. Beem can also help you multiply your savings and grow your funds exponentially.
FAQs on How to Save Money as a Teenager for a Car
How can I save money for a car as a teenager?
You can start by budgeting and planning for your car. You must decide how much you need to buy it. Once your goal is set, you must plan weekly money-saving goals to buy it.
What are some ways to earn money as a teenager?
You can work as a freelancer, part-time as a babysitter or pet sitter, or even hourly at a local store. You must manage your job and your studies together. You can also use your skills to tutor kids or teach them skills to earn money.
How much should I save for my first car?
The money you need to buy a car depends on the type of car you want. It can be a second-hand, family, or luxury car. You must decide the amount according to your needs and the type of car you want.
What are the best savings accounts for teenagers?
High-yield savings accounts, youth savings accounts, and teen savings accounts are a few ways to save money as a teen. You can also ask your parents to invest your money and give back with the returns to save better.
How can I stay motivated while saving for a car?
You must keep working and plan smaller regards after each achievement. You can give yourself a treat for every $5K saved or a full-fledged dinner or movie date for every $10K saved. This will provide you with motivation to keep going.
