How can a 17 year old save up money for a car?
I’m 17-years old and just got my license a few months ago. I asked my parents for a car as a birthday present, but they said I need to save my money and buy it myself. How can I save up enough money for a car?
Congratulations on getting your license; that is a large milestone in your life!
Saving money is something almost everyone struggles with but is a great skill to learn sooner rather than later. Here are a few ways to help get you started:
Get a job. This may seem a bit obvious but to save money, you need to make money. Working over your summer breaks or on weekends will help get you closer to purchasing a car.
Set a savings goal. Knowing how much you need to save and budgeting how much to save each week or month is a great way to hold yourself accountable. In addition, it can help you estimate how long it will take until you can purchase your car.
Open a savings account. Depositing your weekly or monthly savings into a separate account away from your spending money can help avoid the temptation of dipping into your savings and you may even gather a bit of interest!
Keep track of your spending and organize your budget. Knowing how you spend your money and how much you can afford to spend is an essential step to understanding how much you can put aside and what costs you can cut down on.
Talk to your parents. If you show your parents a budget and demonstrate you are serious about saving, they are more likely to help you out when they can. Consider asking if they could match part of your savings each month or if there are extra chores you could do around the house to earn some additional money.
Ask about discounts: Whenever you’re making a purchase, ask if they offer a student discount or any other discounts you may be eligible for. Insurance companies do not always market these discounts, so it is important to ask. They may not always be much (sometimes only 5% off) but the savings can add up over time.
Finally, be patient. Savings do not come overnight, but if you are willing to put in the work you will see your balance grow.
Once you purchase your vehicle, don’t forget you need car insurance before hitting the road. Consider using an app like Jerry to compare quotes and ensure you are never overpaying for insurance. Jerry will re-shop your insurance policy every renewal to ensure that you will save money on your car insurance for years. The average Jerry driver saves $879 a year on car insurance!
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