If you are a teenager and want to know how to save money for a car at 17, then here are some strategies to help you achieve that goal.
Saving for a car as a teenager may seem difficult, but with patience and persistence, you will be able to achieve your goal in no time.
To save money for a car as a teenager, at age 17, you first need to let your parents be aware of your plan, then create a budget, have a savings goal, open a savings account, and have a means of earning income.
Read on to learn more about how to save money for a car at 17.
Read 19 tips on how to save money as a student.
What is the minimum age requirement for a teenager to own a car?
Before you make your decision to own a car as a teenager, you need to consider the minimum age for obtaining a driver’s license.
It makes no sense to buy a car before you can legally drive it, therefore, base your timeframe on when you can legally drive the car you buy.
The minimum driving age in most places, including those in the United States, is roughly 16 or 17 years old.
As a result, teenagers must normally be at least that age to legally possess a car in their name.
To legally own and operate an automobile in the United Kingdom, you must be at least 17 years old and have a valid driver’s license. This means that before they can purchase a car, teenagers must meet both the age and licensing criteria.
What are the best ways to save money for a car at 17?
Talk with your parents
When you are ready to buy your first car, you should first talk to your parents because you will need their approval.
They may advise you against it because of the responsibilities involved.
However, if you show them your budget and indicate that you are serious about saving, they may be more inclined to assist you when necessary.
Consider asking if they will match a portion of your monthly savings or if there are any other activities you can perform around the house to earn some more money.
Make a Budget to save money for a car as a teenager
To start saving money for a car as a teenager, you need to create a budget. Budgeting is very important; it will help you keep track of your spending.
Add all of the money you receive each month, including pocket money and gifts, and deduct all of your expenses; the result is the amount you can potentially save each month.
The actual amount will vary depending on hours worked, unexpected events, and other factors, but it will give you an estimate of how long it will take you to save up. Now, be certain that you keep to your budget
Learn how to budget as a teenager..
Set a savings goal to save money for a car at age 17
Setting a savings goal is another approach that will help you save for a car at 17. Knowing how much money you need to save each week or month is an excellent way to hold yourself accountable.
It might also help you predict how long it will take you to save up enough money to buy your car. Try to set goals that are attainable. Determine the exact cost, and then divide the amount into smaller parts
For example, if the car you want costs $10,000, divide it by 24, and you’ll have about $420 each month; see if you can save that much each month depending on your financial circumstances.
This means it will take you about two years to save up for the car. A savings goal, however, is meaningless without a solid budget.
To avoid being frustrated in the middle of your savings, be sure you know how much you can afford to save before setting your goal.
Read more about 8 best modern ways of saving money.
Set up a savings account.
To save money for a car at 17, you must have a place to keep the money in order to avoid utilizing it for other purposes. Consider opening a separate savings account for your financial goals.
Depositing your weekly or monthly savings into a different account separate from your spending money will help you avoid the temptation of dipping into your savings, and you might even earn some interest!
Then, if you have a stable paycheck, consider placing the same amount in your savings account every payday—no matter what.
For example, you might set aside $100 from each salary, whether it is for $200 or $400. As a result, you’ll notice regular progress toward your ultimate goal.
Get a job to save for a car as a teenager
This may sound apparent, but you must earn money in order to save money. To save money as a teenager, try working during your summer vacations or on weekends.
This will help you get closer to owning a car. If you can do ii, a part-time job can also be a stable source of income. The minimum wage differs by state, so figure out how much you may earn in a standard part-time job, such as retail or food service.
You might also volunteer to take up some extra jobs around the house or for your neighbors if they have any errands or work that needs to be done.
Washing a car, mowing the yard, and so on If you’re prepared to put in a little extra effort, these small paychecks can add up.
There are numerous options for saving for a car as a teenager. Whatever work you wind up getting, you must know what to do with the money you earn.
Inquire about discounts to save money on a car as a teenager
Ask for a student discount or any other type of discount you may be qualified for whenever you make a purchase.
Most insurance companies do not usually advertise these reductions; therefore, it is necessary to make an inquiry to know if they are available .
They aren’t always significant (often only 5% off), but the savings add up over time.
Reduce unnecessary expenses to save money for a car as a teenager.
To save money for a car at 17, you need to cut down on your expenses. If you are responsible for paying for leisure activities, new clothes, and so on, examine how much money you want to spend on these things each month.
Cut back on the ones that are not really necessary, or replace them with cheaper alternatives. For example, instead of buying a new video game system, you may buy a used one. Avoid making spontaneous purchases as well.
Consider this: every dollar you spend on something else is a dollar that will not go toward your new car. Making minor changes to your spending habits can significantly increase your savings.
Sell off old items to save money for a car as a teenager
Once you begin saving, you may be seeking other ways to save for a car.
Consider selling items you won’t miss. A gaming system you haven’t used in a year, clothes you may no longer wear, or old toys that other children may enjoy could all contribute to your savings goal.
Final Thought
Now that you know how to save for a car at 17, it is important to know that patience is required. Savings do not happen immediately, but if you are prepared to put in the effort, your balance will grow.
Saving for a car, whether new or used, will be difficult and may definitely take some time. With these savings strategies and smart spending habits, you could soon be driving your own car.
Learn more about savings by reading about the essential benefits of saving money.
FAQs on how to save money for a car at 17
How Much Should a 17-Year-Old Save for a Car?
There is no specific amount of money that a 17-year-old should have saved for a car. It will be determined by your finances, job, and the local economy. A reliable secondhand car, on the other hand, will cost between $5,000 and $10,000 on average.
You can get a reliable car for a lower price, but it will take patience and a lot of time.
What amount should a 17-year-old spend on a car?
There is no hard-and-fast rule for determining how much you and your teen should spend on their first car. Still, you don’t want to go too cheap, but you also don’t want to forgo safety for a “good deal.” It’s a fine line to walk.
The most important consideration is whether you buy new or old. To give you an indication of cost, in May 2022, the average new car sold for roughly $45,000.
Because it is their first car, it does not have to be the most expensive, which is why many parents choose secondhand cars.