The Big Mistake Most People Make

Posted: September 8, 2006 in Blogs I'm reading!, Cars, Family, Finance For Youth, Friends, Jobs, Life, School, Spending, Working

Most young people decide to enter the workforce with one goal in mind.  They want to buy a car, (or motorcycle, scooter, or other mechanical means of transportation).  To youth, this is the Holy Grail, the final peg in their search for adulthood.  Without a car, not only are kids lacking autonomy and transportation that is on-demand, they are also lacking a certain status within the microcosm of society that is high school.

 Many families will strengthen this bad idea by providing support and additional justification for the need of a car.  They all attract kids with the same siren song, “You need to be able to get around”, and like all the Argonauts before them, most teens steer right into the rocks of increased debt.

Guys, believe me when I say that I understand the need for something a little better than a skateboard.  Let’s play honestly here.  There is no chance at all of getting anywhere with the opposite sex if you have to ride them on your handlebars.  I know how hard this excersise will be, but think of how little sense is made by the idea of putting yourself in debt for years when you are making a single digit hourly wage!  Now think of having an auto loan with a DOUBLE DIGIT INTEREST RATE!!  You will never pay down any principal on this loan, you will be forever stuck in a vehicle that is losing value as it sits, and you are opening the door to a host of other expenses that come with the ownership of a car.

If possible, make arrangements to share the usage of a family vehicle instead, while you save enough money and build a little credit so that when you are ready to buy, you won’t get such a bad deal!

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