Save for a new car for teens.

It is a rite of passage for many teens to be able to drive their own car.Cars are expensive to purchase and maintain, with some of the more inexpensive cars costing several thousand dollars.Teens can accumulate enough money to buy their first car, with or without help from their parents, by doing some careful financial planning and saving.

Step 1: Start early.

It is never too late to start saving money.Put aside birthday money and earnings from summer jobs if you think you might want to buy your own car.By the time you are old enough to drive, the earlier you start the more you can potentially save.You can get a driver’s license at any age.If you want to buy a car before you can legally drive it, you need to know when you will be able to.

Step 2: A savings goal can be set.

If applicable, come up with a number that will cover your car purchase, along with tax, licensing, registration and transfer fees.How realistic is this number?You might want to save $30,000 to buy a new car.You won’t meet that goal if you give yourself a year to make that money.An appropriate down payment amount should be equal to your savings goal.20% is the total cost of the car.If you are going to take out a loan to buy a car, you should have at least 20% of the total price ready to pay in cash as a down payment.You will need a co-signer on a loan, as well as your parent or guardian guaranteeing the loan.

Step 3: You have to account for your other expenses.

If you are responsible for paying for leisure activities, new clothes, and so on, you should consider how much money you need or want to spend every month.If you want to save more money, take the expenses into account and subtract them from the total amount you can save.

Step 4: Take the price of a car into account.

The price of the car that you want should be considered as you start saving for it.If you want to buy a brand new car, a sports car or a high-end model, you will have to save a lot more money than a more practical, inexpensive or used car.The price of a car doesn’t stop when you buy it.Other factors like car insurance, reliability and gas mileage will add to the maintenance price of the car.

Step 5: Add in inflation.

If you want to set a savings goal, remember that you need to buy a car in 1-2 years.Inflation may cause prices to go up.The total savings goal can be increased by 2% to 4%.

Step 6: Determine a schedule for savings.

You can calculate how much money you need to make in order to save your goal.If you want to save $6,000 over the course of 2 years, you’ll need $250 a month or $60 a week.You will put money away if you make a schedule.Is it every week or every month?Do you plan to save money?

Step 7: Get a job.

In the summer and around the holidays, there are a lot of job opportunities for teens.Minimum wage jobs are preferable to no income if you have some level of income.To find out if certain jobs will pay more, compare different types of jobs.It is possible that babysitting can pay more than a minimum wage job.

Step 8: There are extra chores to be done around the house.

If you strike a deal with your parents, you will be able to do chores that are beyond your usual chores.This could include house painting, yard work, babysitting younger siblings, cleaning and detailing the family car, and so on.

Step 9: You can offer to work for your neighbors.

Offer to do odd jobs around the house or yard for elderly neighbors or people with young kids.You can advertise your skills by putting up flyers around the neighborhood.Dog walking, yard work, and babysitting are good jobs that neighbors often need help with.

Step 10: You can hold a yard sale.

Some of your possessions can be sold to raise money for your savings account.If you handle the entire sale, be sure to check with family members to see if they have any items to add to the sale.To increase traffic to your sale, put up advertising around the neighborhood.

Step 11: Resale stores are a good place to sell your possessions.

Consignment shops and book stores can be used to sell gently used clothes.There are several online resale websites, such as

Step 12: Change can be put in a jar.

You can keep an empty jar in your bedroom.Put the spare change in the jar when you find it in your pockets, inside the sofa, or on the ground.Deposit it into your savings account when it’s full.

Step 13: You can visit a bank.

There are account options for teens.They might have special accounts for you.You have the option of choosing a bank that your parents use, or a different bank.Credit unions have fewer fees than regular banks.

Step 14: You can choose a checking account or savings account.

A savings account is used to deposit money.It is possible to withdraw money from a savings account.Debit cards are not always tied to savings accounts.Some banks may limit the number of withdrawals someone can make.If you need ready access to your money, a checking account is more convenient.This can make it more tempting to spend your money.

Step 15: Fees and requirements can be checked out.

Monthly or maintenance fees are attached to some accounts.If you overdraw your account, they can charge you a fee.These can add up quickly.Check for other account requirements.

Step 16: You should open an account.

You will most likely need to open your account with your parent or guardian.Bring your current photo identification, such as a student ID card or passport, as well as your social security card.Two forms of photo ID are required for your parent or guardian.The exact requirements for opening an account should be checked with your bank.

Step 17: Start with a small amount of money.

It’s possible that you need a minimum balance in your bank account.If you want to watch the balance grow right away, deposit some money into the account.

Step 18: Continue to make regular deposits.

Take your money to the bank for regular deposits and stick to your savings schedule.You can deposit the money at an ATM or inside the bank.Along with any withdrawals, record deposits.Track your balance with a register.You should compare your bank statement every month.Internet banking can be used to track online.

Step 19: What is the most important?

Peer pressure to buy the latest fashions or newest gadgets is not a good idea.Some of these items may not be worth the money in your savings account.This will help you rethink your relationship with material goods.

Step 20: Choose alternatives that are less expensive.

You can download 1-2 songs if you want to buy some music.There are price comparisons between stores and online prices for other items.You might be able to save money by shopping around.

Step 21: There are used items on sale.

Buy used items instead of brand new items if you need to buy clothes, books, and so on.You can wait for sales to buy things you really want, such as around holidays or the end of the season.

Step 22: Don’t buy on impulse.

If you want to buy something, wait a week.If you really need the item, this will give you time to think about it.Chances are you would rather keep the money for your car.