Have you wondered if you should give your teen a car?
Are other parents in your area doing it and you’re getting pressure from your child?
What should parents do about Teens & Cars?
Is it MoneySmart to give your kids a car and a computer?
One dad thinks so.
We didn’t give any of our kids a car. But we did help them save and shop and buy their first cars for cash.
When we heard about this dad who gave his teenager a 1965 Mustang, we thought he’d lost his mind.
Why We Think This Dad is MoneySmart
The dad of the family wrote the article and shared how as an engineer he earned a good salary but determined not to financially support his kids at HIS EARNING LEVEL.
Instead, he taught them to work and to save and to plan. All of the kids paid for their own college education (and several paid for graduate degrees).
Why We thought This Dad Was Dumb!
BUT . . . They almost lost us when he said that he gave each of his kids a car when they turned 16. This Dad gave a 16-year-old a 1965 Mustang!
You’ve got to read what he did . . . it is ingenious, clever, smart and . . . something we wish we had done!
The Thompson Family followed many of the same principals we wrote about in our award-winning book, “The MoneySmart Family System – Teaching Financial Independence to Children of Every Age.”
Read the entire article below
How I made sure my 12 kids would pay for College Themselves
By Francis L. Thompson
My wife and I had 12 children over the course of 15 1/2 years. Today, our oldest is 37 and our youngest is 22. I have always had a very prosperous job and enough money to give my kids almost anything. But my wife and I decided not to.
Here are the Results of our Child Rearing Philosophy
I will share with you the things that we did, but first let me tell you the results: All 12 of my children have college degrees (or are in school), and we as parents did not pay for it. Most have graduate degrees. Those who are married have wonderful spouses with the same ethics and college degrees, too.
We have 18 grandchildren who are learning the same things that our kids learned—self-respect, gratitude, and a desire to give back to society.
We raised our family in Utah, Florida, and California; my wife and I now live in Colorado. In March, we will have been married for 40 years. I attribute the love between us as a part of our success with the children. They see a stable home life with a commitment that does not have compromises.
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How We Raised Our kids to be Self Sufficient
Here’s what we did right (we got plenty wrong, too, but that’s another list):
Our Kids Did Chores
- The girls and boys had to learn to sew.
- They got allowances based on how they did the chores for the week.
- Kids had to perform chores from age 3. A 3-year-old does not clean toilets very well but by the time he is 4, it’s a reasonably good job. We had the children wash their own clothes by the time they turned 8. We assigned them a wash day.
- When they started reading, they had to make dinner by reading a recipe. They also had to learn to double a recipe.
How We Helped Them Love Learning
Education was very important to our family.
- A Scheduled Study Time
We had study time from 6 to 8 pm every weekday. No television, computer, games, or other activities until the two hours were up. If they had no homework, then they read books. For those too young to be in school, we had someone read books to them. After the two hours, they could do whatever they wanted as long as they were in by curfew.
- Dealing with Difficult Teachers
If children would come home and say that a teacher hated them or was not fair, our response was that you need to find a way to get along. You need to find a way to learn the material because, in real life, you may have a boss that does not like you.
We would not enable children to “blame” the teacher for not learning, but place the responsibility for learning the material back on the child. Of course, we were alongside them for two hours of study a day, for them to ask for help anytime.
- We Enrolled them in Advanced Placement Classes
All the kids were required to take every Advanced Placement class there was. We did not let entrance scores be an impediment. We went to the school and demanded our kids be let in.
Then we, as parents, spent the time to ensure they had the understanding to pass the class. After the first child, the school learned that we kept our promise that the kids could handle the AP classes.
How Our Family Dealt with Picky Eaters and Other Food Issues
- Meals Together
We all ate dinner and breakfast together. Breakfast was at 5:15 am and then the children had to do chores before school. Dinner was at 5:30 pm.
- How we Helped our Kids with Foods They Disliked
More broadly, our food was interesting. We wanted a balanced diet but hated it when we were young and parents made us eat all our food. Sometimes we were full and just did not want to eat anymore. Our rule was to give the kids the food they hated most first (usually vegetables) and then they got the next type of food.
They did not have to eat it and could leave the table. If later they complained they were hungry, we would get out that food they did not want to eat, warm it up in the microwave, and provide it to them. Again, they did not have to eat it. But they got no other food until the next meal unless they ate it.
- A Balanced Diet and No Snacks Between Meals
We did not have snacks between meals. We always had the four food groups (meat, dairy, grain, fruits and vegetables) and nearly always had dessert of some kind. To this day, our kids are not afraid to try different foods and have no allergies to foods.
They try all kinds of new foods and eat only until they are full. Not one of our kids is even a little bit heavy. They are thin, athletic, and very healthy. With 12 kids, you would think that at least one would have some food allergies or food special needs. (I am not a doctor.)
Extracurricular Activities Were Required for our Teeenagers
- Our Kids Played Sports
All the kids had to play some kind of sport. They got to choose, but choosing none was not an option. We started them in grade school. We did not care if it was swimming, football, baseball, fencing, tennis, etc. and did not care if they chose to change sports. But they had to play something.
- Our Kids Participated in Clubs
All kids had to be in some kind of club: Boy Scouts, Girl Scouts, history, drama, etc.
- Our Kids Did Community Service
They were required to provide community service. We would volunteer within our community and at church. For Eagle Scout projects, we would have the entire family help.
Once we collected old clothes and took them to Mexico and passed them out. The kids saw what life was like for many families and how their collections made them so happy and made a difference.
Encouraging Independence with Teens & Cars
Our goal in raising our kids was to prepare them to stand as independent, self-sufficient adults, so we did some things that other parents may not have done.
- When the kids turned 16, we bought each a car.
The first one learned what that meant. As the tow truck pulled a once “new” car into the driveway, my oldest proclaimed: “Dad, it is a wreck!” I said, “Yes, but a 1965 Mustang fastback wreck. Here are the repair manuals.
Tools are in the garage. I will pay for every part, but will not pay for LABOR.” Eleven months later, the car had a rebuilt engine, rebuilt transmission, newly upholstered interior, a new suspension system, and a new coat of paint.
My daughter (yes, it was my daughter) had one of the hottest cars at high school. And her pride that she built it was beyond imaginable. (As a side note, none of my kids ever got a ticket for speeding, even though no car had less than 450 horsepower.)
- Mistakes Were Okay
We as parents allowed kids to make mistakes. Five years before the 16th birthday and their “new” car gift, they had to help out with our family cars. Once I asked my son, Samuel, to change the oil and asked if he needed help or instruction. “No, Dad, I can do it.”
An hour later, he came in and said, “Dad, does it take 18 quarts of oil to change the oil?” I asked where did he put 18 quarts of oil when normally only five were needed. His response: “That big screw on top at the front of the engine.” I said, “You mean the radiator?”
Well, he did not get into trouble for filling the radiator with oil. He had to drain it, we bought a radiator flush, put in new radiator fluid, and then he had to change the real oil. We did not ground him or give him any punishment for doing it “wrong.” We let the lesson be the teaching tool.
Our children are not afraid to try something new. They were trained that if they do something wrong they will not get punished. It often cost us more money, but we were raising kids, not saving money.
- Computers were Okay – as long as they Built Them
The kids each got their own computer but had to build it. I bought the processor, memory, power supply, case, keyboard, hard drive, motherboard, and mouse. They had to put it together and load the software on. This started when they were 12.
- We Let Them Make Choices
We let the children make their own choices, but limited. For example, do you want to go to bed now or clean your room? Rarely, did we give directives that were one way, unless it dealt with living the agreed-upon family rules. This lets the child feel that she had some control over life.
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The Kids Had to Work Together in Our Family
Parenting isn’t just a parent working with each child, it’s teaching older children to care for and help the younger ones.
- In House Tutoring
We required the children to help each other. When a fifth grader is required to read 30 minutes a day, and a first grader is required to be read to 30 minutes a day, have one sit next to the other and read. Those in high school calculus tutored those in algebra or grade-school math.
- Teamwork on Chores
We assigned an older child to a younger child to teach them and help them accomplish their weekly chores.
- A Monthly Family Council to Make House Rules
We let the children be a part of making the family rules. For example, the kids wanted the rule that no toys were allowed in the family room. The toys had to stay either in the bedroom or playroom.
In addition to their chores, they had to all clean their bedroom every day (or just keep it clean in the first place). These were rules that the children wanted. We gave them a chance each month to amend or create new rules. Mom and Dad had veto power of course.
- Consistency in the Rules
We tried to be always consistent. If they had to study for two hours every night, we did not make an exception to it. Curfew was 10 pm during school nights and midnight on non-school nights. There were no exceptions to the rules.
Family Vacation Policy
- Camping Vacations Were the Norm
We would take family vacations every summer for two or three weeks. Even though we could afford a hotel, or cruise, but did not choose those options. We went camping and backpacking. If it rained, then we would figure out how to backpack in the rain and survive.
We would set up a base camp at a site with five or six tents, and I would take all kids age 6 or older on a three- to five-day backpack trip. My wife would stay with the little ones. Remember, for 15 years, she was either pregnant or just had a baby.
My kids and I hiked across the Grand Canyon, to the top of Mount Whitney, across the Continental Divide, across Yosemite.
- We Taught Our Kids to Travel Independently
We would send kids via airplane to relatives in Europe or across the US for two or three weeks at a time. This was started when they were in kindergarten. It would take special treatment for the airlines to take a 5-year-old alone on the plane and required people on the other end to have special documentation.
We only sent the kids if they wanted to go. However, with the younger ones seeing the older ones travel, they wanted to go. The kids learned from an early age that we, as parents, were always there for them, but would let them grow their own wings and fly.
Money and Materialism
We followed the old proverb, “Give a man a fish and you’ll feed him for a day. Teach a man to fish and you’ll feed him for a lifetime.”
- We Give Time NOT Money
Even though we have sufficient money, we have not helped the children buy homes, pay for education, pay for weddings (yes, we do not pay for weddings either). We have provided extensive information on how to do it or how to buy rental units and use equity to grow wealth.
In fact, we do not “give” things to our children but we give them information and teach them “how” to do things. We have helped them with contacts in corporations, but they have to do the interviews and “earn” the jobs.
- How We Gave Gifts
We give birthday and Christmas presents to the kids. In truth, we would play Santa Claus but as they got older, and would ask about it, we would not lie. We would say it is a game we play and it is fun. Also, wish lists were kept.
As a matter of fact, we did and do have lists for items that each child would like for presents. Then everyone can see what they want. With the internet, it is easy to send such lists around to the children and grandchildren. Still, homemade gifts are often the favorite of all.
The Real World
We loved the children regardless of what they did. But would not prevent consequences of any of their actions. Our children would suffer consequences and we would not try to mitigate the consequences because we saw them suffering.
We would cry and be sad, but would not do anything to reduce the consequences of their actions.
We were and are not our kids’ best friends. Gladly, we were their parents.
A photo collage of the Thompson Family
Pros and Cons for Buying Your Teenager a Car
There are several reasons why we see giving your teenager a car being a good thing and a bad thing. What do you think?
Good Reason for Giving your Teen a Car
It’s a Nice Way to Reward Hard Work
If you’ve got a teenager who is a hard worker in school and has a part-time job it would be a nice reward to give them a car. But we would definitely not buy them a new car that would require taking out a loan.
At the age of 16, giving them a $4000 or $5000 reward isn’t terrible. But giving them a $20,000 bonus sets expectations pretty high for college graduation and wedding presents.
We would only recommend giving your child a car if they have demonstrated proven character – honesty, responsibility, and caution.
It Reduces Your Driving Time
If you have several children and you have a responsible teen, giving the teen a car can really help your stress level.
Allowing older kids to drive younger ones to practice or lessons really could help to balance out your day. And it helps the kids spend time together.
Again, this will only work if the teen is responsible and mature enough to do the job well.
Giving Your Teen A Car Teaches Responsibility
Real life responsibilities like maintaining a car with tires, batteries and other repairs is a good thing to learn before you leave home.
It can also be a very expensive lesson. When our kids bought their cars, we encouraged them to keep $1000 of what they had saved for unexpected repairs.
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Good Reasons to Let your Teen Buy Their Own Car
At MoneySmartFamily, we didn’t buy our kids cars, but we did help them plan and shop for the cars they bought.
There are many amazing things that happen when a teenager is able to save enough money to buy a car for cash.
At the age of 16 to 18 being able to focus for a year or two on a goal and reach it is fantastic. Our daughter Becky, saved for 5 years to buy her first truck.
Because of her focused determination, she has reached other amazing financial goals.
After paying cash for a car, most teens will be able to accomplish anything financially that they set their minds to.
In our instant gratification world, waiting for a year or five years for reaching a goal is a real-world experience. And learning this lesson at a young age will carry them into adulthood ahead of most of their peers.
The Value of Money
Any teen who has saved to buy their own car knows the value of work, the discipline of saving and the amount of effort it takes to reach an expensive goal. They are more likely to maintain and care for the things they buy with their own money.
The Value of Hard Work
Working and saving for years to buy a car is just plain hard work. But knowing how to work hard is something that is uncommon in teens and super-valuable in the workplace.
Any kid who can focus and save for a car will make a great employee and probably a great boss someday.
Conclusion: Buying a Car for your Teen
You can tell that we are biased toward not giving your teenager a car. Although we really love the Thompson family’s approach of giving them a junker car and paying to fix it up. That is a stroke of brilliance.
If you can afford to give your child a car, at least let them have some skin in the game. Let them pay for half of the car. And no matter what you do, whether you give your child a car, or help them buy it, or let them drive the family car, let them pay for their own auto insurance.
If you want an easy way to get a quote on auto insurance, try GABI. Their simple to use website will get you 5 to 7 quotes by just linking your current insurance policy to their system.
We saved $178 using Gabi and it was super easy to do.
Here’s a page that has all kinds of tips for teaching kids & teens to be financially independent!
Also here’s a great blog about summer jobs for teens!
And finally, here’s a blog about teens and credit scores.