Many young people get their first car with help from a parent or relative. When I bought my first car in 1988, my father and I split the cost of a 1984 Chevrolet Chevette, each spending $2,000.
At the time, the purchase price felt like the most important part of the decision. If we could afford the car, it seemed like the problem (of how I could easily go back and forth from university) was solved.
What I didn’t fully understand then—and what many young people still don’t realize—is that the purchase price is only a small part of what it actually costs to own a car. Insurance, fuel, maintenance, repairs, registration, and parking can easily add up to thousands of dollars a year. In fact, even a “free” first car can cost today’s young drivers $4,000–$6,000 annually once the full costs of ownership are factored in!
Ongoing operating costs can easily add up to more than the purchase price itself.
You asked for help with this conversation.
Parents and educators told us this is a conversation young people should be prepared to have. As many of the middle school students we worked with years ago are now approaching their first car decisions, we built a First Car DIMS – DOES IT MAKE SENSE?® Score Calculator to help.
Our newest permissionless mindful spending tool enables students to step back and evaluate whether a car makes sense for them and their family, given its real cost and how much they expect to use it. Like all DIMS SCORE® Calculators, it shows how powerful it can be to pause, gather information, and reflect before spending.
A first car is a particularly meaningful place to practice this kind of thinking because it provides just-in-time decision insight before many of life’s larger financial commitments begin to appear—choosing a post-secondary program, selecting a financial institution, applying for a credit card, evaluating an employer’s compensation package, or eventually taking on a mortgage.
DIMS SCORE® Calculators are thinking companions.
As always, calculating the DIMS SCORE® for a car isn’t about telling students whether they should or shouldn’t buy a vehicle. It’s about encouraging them to evaluate real-world decisions using facts versus opinions. Students are asked to research factors beyond the purchase price of the car they're curious about, such as insurance, fuel, maintenance, the social responsibility of driving, and how often they expect to drive. Doing so for both practical and aspirational models can be particularly revealing.
The goal isn't to dictate choices, but to help young people develop the habit of thinking carefully before making important spending decisions.
Free resources make the tool easy to use.
To make the activity easy to use in the classroom, we’ve created two free resources that guide students through the process. These can also be easily adapted for conversations at home.
- The Lesson Plan (downloadable) provides a structured way to explore the actual cost of owning a first car. The first half prepares students for the second half: an engaging role-playing exercise in which students take turns being either a parent or a young person discussing the possibility of purchasing a first car. Important financial decisions often involve conversations with family members.
- The Student Data Collection Worksheet (downloadable) helps students gather the information they need before calculating their DIMS SCORE®, making the ensuing discussion far more meaningful. For many students, this research step produces the biggest “aha” moment as they begin to see the true costs of car ownership. Advertisements aren't always accurate.
These activities give young people practice explaining their thinking using real information. It also helps them understand where parents might be coming from if family members ultimately agree—or agree to disagree.
Does It Make Sense?
Helping young people develop the habit of asking that question may be one of the most valuable financial lessons they can learn.
A first car is often the first significant financial commitment a young person considers. Learning how to step back and evaluate that decision thoughtfully is a habit that will serve them long after their first car is gone.
In fact, thinking before buying delivers valuable lessons even when the purchase is much smaller—like spending birthday money on a toy you think you’ll enjoy. Asking simple questions about everyday purchases helps a young person avoid disappointment, reduce waste, improve family harmony, and protect the planet all at once - for free.
Talk about a gift.
And that 1984 Chevette? I sold it in 1992 for $5,000. My father couldn’t believe it. Proof positive that taking good care of a vehicle can yield dividends beyond personal enjoyment.
To learn more about our permissionless mindful spending tools, click on the pink or blue buttons below.
Child Development Financial Literacy For Kids For Parents For Teachers
