Should I Give My Teenager a Gas Budget?

Tue, Aug 11, 2009

Budgeting, Finance Tips

Remember when gas prices were at the highest levels in history just a few short months ago?  Like most drivers, you probably curtailed your use of the car and used public transportation instead.  Did your teen use the family car and if so, did he or she pay for the gas?

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Thinking back to when we were teens, it was probably unthinkable to ask our parents to pay for gas whenever we used the car.  At that time, most of us were living on budgets and our parents certainly couldn’t afford any excesses.  We applied for part-time jobs in order to pay for the privilege of driving the family car.

Today, it’s quite different.  Here is one parent’s answer to this age-old question, taken from Denise’s Parenting Blog:  “We give our son $30 a month to cover gasoline for the 20 minute commute to school and he fills the tank the rest of the time to go to work, friend’s houses, out to eat, movies, etc.”

Another parent uses the same methodology that a rental car agency uses.  That is, whatever amount of gas is in the tank when you use it is the amount that must be put it when it is returned.

In another example, a parent asks for $5.00 every time he gives his teen the keys to the car.

There are other scenarios that are similar, but the one fact that is replayed over and over is that parents today should not pay for gas, but instead have the teen pay whenever the car is used for leisure activities.

If the teen is using the family car, then the parents would also pay for their fair share of the expenses.  But if a teen owns the car, then it is incumbent upon him to pay for the gas.  However, in this case the parents may pay for the insurance or if the teen is working, would receive a portion of the insurance from the teen as well.

In today’s economic recession, it would seem prudent for families to discuss and set down rules with their teens regarding expenses relating to driving.

It seems only fair that while most families are trying to stick to a budget, the teens in the family not only contribute to the household expenses but, at the very least, carry their weight when it comes to utilizing the family car.

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This post was written by:

Richard Tyler - who has written 467 posts on Free Investment Advice.

Ignorance is often the reason why some people are unable to harness upon what they already have to make more money while some 'in-the-know' get richer every year simply through investments. Invest Money Stocks strives to be a wealth of knowledge for those who need help in investment and wealth management matters. Invest Money Stocks covers a wide range of topics from business management, home budgeting, personal wealth management to stocks investment, options trading, penny stocks trading, forex trading, bonds, technical analysis, fundamental analysis and more.

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