Sunshine State Sue Posted January 1, 2012 Share Posted January 1, 2012 Ds will be getting his driver's license on Jan 4. :driving: He will be inheriting my 10yo vehicle and driving himself to school and basketball and weight lifting... How do y'all handle the $$$ aspect of this? We'll pay the insurance :scared::eek::ack2: I don't mind paying for gas for school and extracurriculars. I am not so interested in funding gas and entertainment with his friends (which I imagine will happen eventually). Because he plays basketball year round, I don't expect him to find a part-time job (like I had). I do have a list of jobs around the house that I will pay him minimum wage to perform. He has not been very motivated in the past to earn money this way, though I expect that may change. Dh and I charge most purchases and pay the bill every month. I don't know if we should get ds an extra credit card? I am not worried about ds overspending, really. I am more worried about his losing his wallet. Any BTDT advice? I'm sure there is a quite a variety of ways to handle $$$ that I have not even considered. Thanks! Quote Link to comment Share on other sites More sharing options...
speedmom4 Posted January 1, 2012 Share Posted January 1, 2012 We just got our teen dds checking accounts. They both received a debit card with it. I think that is a better way to go than a credit card. There is no way to overspend on the debit card and if it is lost or stolen there isn't much money in the account. Plus I am hoping this will teach them money management! God Bless, Elise in NC Quote Link to comment Share on other sites More sharing options...
regentrude Posted January 1, 2012 Share Posted January 1, 2012 My DD has a prepaid credit card. We transfer her monthly allowance to the card and she can use it like a normal card, but can not incur any debt. Because the amount is limited, we do not worry about her losing her card. Quote Link to comment Share on other sites More sharing options...
ZooRho Posted January 1, 2012 Share Posted January 1, 2012 Can he find some kind of job to help out some. our swimmer child has a dog walking job. He makes $100 a month. He also did life guarding during the summer so he has some extra money to do things with. the oldest didn't get his licence until he was much older. The ins wasn't as bad as we were expecting though. he did pay for some of his own gas. Quote Link to comment Share on other sites More sharing options...
fischerl Posted January 1, 2012 Share Posted January 1, 2012 We pay 1/2 the insurance and, for the time being, all the gas. We do this because: 1. He does any errand I ask him to (I HATE running errands). That's worth a lot to me! :D 2. He drives his sister wherever she needs to be 3. He's been pounding the pavement for the last several months looking for a job, to no avail Also, all his extra-curricular activities are local, and he walks to them sometimes, so gas isn't much of an issue there. We got him a credit card. He's very responsible with it, and only uses it to fill the car up or get groceries for us, etc. We pay it off every month, of course. My understanding is that this is helping him to develop his own credit report. Quote Link to comment Share on other sites More sharing options...
Krista in LA Posted January 1, 2012 Share Posted January 1, 2012 We've been trying to figure this out too. I have no problem paying for the insurance and I wouldn't even mind paying for the gas within reason. Unfortunately, dd thinks she needs to drive to public school everyday instead of taking the bus or riding with a friend and she loves running around with her friends. I'm contemplating filling up the car once a month in exchange for her running errands for me whenever asked, and anything beyond that she needs to pay for. I did get her a Shell gift card for emergencies to keep in the car. Now we are just trying to decide what to do with regards to making sure she has money/card of some type to pay for groceries, etc when I want her to run an errand or stop on her way home. I never have cash on hand to give her. We were thinking of getting her a credit card on our account. Quote Link to comment Share on other sites More sharing options...
Barb_ Posted January 1, 2012 Share Posted January 1, 2012 I add my kids to our credit card as soon as they have checking accounts. Here's why: a. Credit is safer. If a wallet is lost, the fraudulent charges on your credit card are immediately removed. If a Visa Debit is stolen, the fraud protection can take weeks to kick in while they research the problem. Meanwhile you are out that cash or even overdrawn. b. Many credit card companies offer purchase protection. My Amex will refund my purchase price if something is damaged or stolen in the first 90 days. They also double the manufacturer's warranty up to 2 years. c. My kids begin establishing credit from the age of 15 or 16. By the time they need a mortgage or auto loan or whatnot, they qualify for the best rates. d. I can keep a closer eye on their spending. I check the current charges 2-3 times a week and ask if there is something I don't know about. e. They can pay for something as soon as they charge it. We hook up their checking accounts to the AMEX so that as soon as they charge something, they are to immediately go to their checking account and transfer the money to pay for it. f. Carrying a credit card is good for emergencies. g. If I need her to run an errand for me on the way home from somewhere, they have a card to pay for whatever it is I need...even if it's $150 worth of groceries. h. I get point for their purchases :) i. They learn to use credit responsibly under my watchful eye and by the time they are on their own it's second nature. Quote Link to comment Share on other sites More sharing options...
desiree77 Posted January 1, 2012 Share Posted January 1, 2012 My mother made me open a checking account when I turned 16 and started driving. She gave me a monthly allowance of $130 (in 1993). It broke down like $40 for gas, $40 for my regular allowance for fun stuff or whatever, and $50 for clothes. She used to spend about $200 per season on clothes for me and she quit doing that totally. If I needed new socks, a bra, or a dress, I had to buy it myself. I had to learn to save it up if I needed. I borrowed a dress for my prom because I was so lousy at saving!! It taught me how to keep a checking account balanced. When I worked in the summer, I had someplace to put my money. I really thought it was ideal. They did pay for my car insurance. I'm not looking forward to that with my own kiddos! Quote Link to comment Share on other sites More sharing options...
MyThreeSons Posted January 2, 2012 Share Posted January 2, 2012 I thought this was very wise: They had our insurance agent calculate the savings we got for good grades. If our grades ever dropped so that we no longer qualified for that discount, we would be responsible to pay the difference ourselves. And, once my brother graduated from high school and chose to not attend college, he had to pay for his own portion of the insurance. Except that our agent calculated how much his portion would be if he were a girl with the same driving record, age, etc. They didn't feel that it was right for him to have to pay the penalty for being a guy, so my parents paid that part. Quote Link to comment Share on other sites More sharing options...
Sunshine State Sue Posted January 2, 2012 Author Share Posted January 2, 2012 Thanks for all the ideas. I'll be calling our credit union tomorrow. Quote Link to comment Share on other sites More sharing options...
bugs Posted January 2, 2012 Share Posted January 2, 2012 I am enjoying reading the responses since I will be in a similar boat in 1/2 a year. Figure I might help "bump" this thread back to the first page. Quote Link to comment Share on other sites More sharing options...
Tressa Posted January 2, 2012 Share Posted January 2, 2012 My DD has a prepaid credit card. We transfer her monthly allowance to the card and she can use it like a normal card, but can not incur any debt. Because the amount is limited, we do not worry about her losing her card. This is what we do. It is through our credit union. It works out so nice when I need him to go to the grocery store for me. Quote Link to comment Share on other sites More sharing options...
Sunshine State Sue Posted January 3, 2012 Author Share Posted January 3, 2012 My DD has a prepaid credit card. We transfer her monthly allowance to the card and she can use it like a normal card, but can not incur any debt. Because the amount is limited, we do not worry about her losing her card. regentrude, where did you get the card and is there a fee involved? Quote Link to comment Share on other sites More sharing options...
Lori D. Posted January 3, 2012 Share Posted January 3, 2012 Invest in a AAA membership. We found switching to the AAA insurance was a HUGE savings! It is LOWER per year to insure teen DS PLUS DH and myself through AAA, then it was for JUST myself and DH through a regular insurance company! Plus, this way DS can also benefit from the free towing, locksmith service, and maps by our family having a AAA membership. And don't forget all the discounts for dining, hotels, vacations, entrance fees, etc. that AAA gives you! :) Quote Link to comment Share on other sites More sharing options...
MyThreeSons Posted January 4, 2012 Share Posted January 4, 2012 We loved AAA insurance in CA, but we had to switch when we moved here to SC. My road service membership card says "Member since 1979". Definitely a good investment! Quote Link to comment Share on other sites More sharing options...
Sunshine State Sue Posted January 4, 2012 Author Share Posted January 4, 2012 Invest in a AAA membership. We loved AAA insurance in CA, but we had to switch when we moved here to SC. My road service membership card says "Member since 1979". Definitely a good investment! What do you pay for AAA membership? A first glance at the website confused me with all the options? :confused: Quote Link to comment Share on other sites More sharing options...
Lori D. Posted January 4, 2012 Share Posted January 4, 2012 Depending on what state and what discount code you can find, it looks like anywhere from $51 to $91 per year for a married couple. Try this coupon code: COUPON CODE:11JAZZ12 Waive the $17 enrollment fee. OR, ask about the Holiday Gift Membership: "We will waive$20 Off admission fee so each one-year AAA gift membership costs only $52. And, when you give an AAA membership this holiday season, we’ll show you our appreciation by giving you a gift of your choice: Two movie tickets good at Regal Cinemas, United Artist Theaters, and Edwards Theaters. OR An assortment of Ghirardelli® SQUARES™ chocolates in a gold keepsake tin." Maybe try giving a membership to your spouse??? Here are some more tips: http://www.ehow.com/how_5815335_buy-discounted-membership-aaa.html Quote Link to comment Share on other sites More sharing options...
74Heaven Posted January 4, 2012 Share Posted January 4, 2012 My secondborn daughter is now driving and she has a debit card with her own checking account. She babysits and earns $20-50 each week approx. which she rarely spends. She's a saver - yay! We pay half the ins. as long as her grades are 3.6 or above. If her gpa for a semester is above 3.75, we will pay all the insurance (about $65ish). We decided to do gas this way: she buys every fourth tank. We live rurally and the nearest "destination" is about 25 miles. This should be about $30 a month for this car. We both drive this car (it saves me gas over driving my mini-van) but I'm guessing she will soon be driving it much more. IF she ends up driving it more often, then we'll likely have her buy every other tank or something? Lisa J Quote Link to comment Share on other sites More sharing options...
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