How can a parent help their teen realize being responsible can save boatloads of money especially in Auto Insurance? This bit of advice can set your child up for a successful start to accumulating money for good things like a down payment on a home instead of high cost insurance due to mistakes made by youthful indiscretion. At the end of this article is a link to visually show your child the difference over a lifetime including Mortgages, Car Loans and Credit Cards.
This does not even include the effect of higher Insurance cost on Home and Auto. What they need to see is without the insurance cost even in the calculation that Excellent credit was $406,367 over a life span and bad credit was $788,875. Add another $50,000 at least to difference in Insurance over a lifetime I would guess.
1. Live by commitments, not by feelings.
Let’s look at a sober minded parentally coached new driver that committed to some agreements for the privilege of driving either a car their parent owns thus insures or maybe just helps pay for. He or she takes advice compared to one that knows it all and thinks they can speed, text while driving and break the rules.
Help your teen know what they do can change your life as a parent that is legally responsible in many ways for their actions.
A policy in Worcester, Mass for a driver with less than 3 years but has 5 points will cost an easy $5000 to $6000 a year until those points drop and the driver goes over 3 years and then 6 years with many companies.
2. Seeking wisdom—skill in everyday living. Knowing how to make good decisions.
If that young person lets their insurance lapse that is a black mark because the Insurance carriers see that as irresponsible thus they think this person is more likely to get in an accident, maybe be fraudulent or act in other foolish ways.
It would be a great help to help your young adult know they are judged on the way they handle their lives. This is from credit, to how they drive, to their grades. A good student is given credit on their policy if under 6 years driving by most companies either on their parents policy or their own.
3. Choices are yours to make and results are yours to experience.
Do you see how irresponsibility makes it a tougher go? EVERYTHING costs more!
Your car loan, your mortgage, your insurance.
The young adult that pay attention, resists speeding, has the patience to stop at stop signs etc[ will see their insurance rates head down more and more over the years. On the other hand the example of the person that keeps getting tickets, accidents and cancellation notices is just going to continue to pay through the nose. They are proving themselves to be less responsible.
4. Keep your promises.
Before handing over the keys talk about some agreements. Talk about how peer pressure is really just a test of your backbone and resolve. When family identity is strong peer pressure is weak. Remember …teenagers do not rebel against authority they rebel against a lack of relationship.
5. Character is the basis of all leadership.
Good driving habits, obeying laws that are there for the safety of all,
paying your bills and handling money responsibly shows character.
A leader will carry the knowledge that good decisions are better for his or
her life. Giving in to any peer that pressures you to do anything that could
result in paying for years to come or your whole life is where the leader is
separated from the follower. See the Lifetime Cost To Debt Tool.