Buying a car for teens

Depending on money situations, I probably wouldn't be buying my child a car (when she's 16). My parents never bought me a car. I learned to drive in the family van, and I shared the second vehicle (which barely worked--I broke down several times) with my brother and sister of similar ages until I could afford my own. While it would be nice to be able to give my child a car, I think it's a great way to learn real-life responsibilities by not doing that.

If you are going to buy a car for your child, make them a part of the purchase. If they are responsible for paying some of the cost, you are beginning to teach them responsibility. I would definately stay away from a car loan, this can be a huge hassle. It is a good opportunity for him or her to learn about insurance, credit and responsibility. Start with an older car that gets good gas mileage. Later they can work their way up to something better.