For most teenagers, being free to drive their own car is a new chapter in life. Cars are very expensive, to purchase and maintain, even a simple car still requires tens of millions of funds. By implementing good financial planning and saving, teens can raise money to buy a car, with or without parental help.
Step
Method 1 of 4: Start Saving
Step 1. Get started right away
It's never too late to save. If you want to buy a car, save funds for birthday parties and odd salaries during the holidays. The earlier you start, the more money you will have when you are old enough to drive a car.
Pay attention to the age limit to get a driver's license. There's no need to buy a car if you're not legally allowed to drive, so adjust your schedule accordingly
Step 2. Set a savings target
Calculate the required amount of funds including taxes, certificates and registration fees. Think about whether the numbers are realistic. Maybe you have to have IDR 100 million to be able to buy a new car. But if you have to collect it in a year, it might be difficult to achieve. At least your savings should be able to cover the down payment. Generally around 20% of the total price.
If you plan to borrow money, prepare at least 20% of the total price in cash as a down payment. You also need a loan guarantor; a parent or guardian is required to guarantee the loan
Step 3. Calculate your other expenses
If you have to pay for leisure activities, buy new clothes and so on, calculate the amount of funds needed or want to spend every month. Include these costs in your financial plan, calculate the amount of money you can set aside.
Step 4. Monitor the price of the car
Once you start saving to buy a car, calculate the price of the car you want. If you want a new car, sports car or the latest model, you have to save more than saving for a simple, inexpensive or used car.
Additional charge for the car. Take into account other costs such as insurance, durability of the car, and fuel that will add to the cost of maintaining the car
Step 5. Calculate inflation
Once you start saving, remember that you will be buying a car in 2-3 years, not right now. Think of rising prices due to inflation. Add about 2%-4% to the total amount you have to save.
Step 6. Set a saving schedule
Calculate the amount of money you need to determine the amount of time you need to save. For example, if you want to have IDR 60 million in 2 years, you have to set aside IDR 2.5 million per month or IDR 625 thousand per week. Create a schedule for setting aside funds. Will you save weekly or monthly? Will you set aside money for a birthday gift or a vacation fund?
Method 2 of 4: Earn Money
Step 1. Find a job
There are many job opportunities for teenagers especially during the holidays. These jobs are generally not very well paid but earn better than nothing.
Compare different types of jobs to get the highest pay. Parenting, for example, may pay more than a minimum-paying job, although the timing may be less regular
Step 2. Do more homework
Make a deal with your parents to do extra chores around the house for a fee. Additional tasks could be painting the house, cleaning the garden, babysitting, washing and cleaning the family car and so on.
Step 3. Offer to help neighbors
Offer to do less desirable jobs or clean a neighbour's garden, especially elderly neighbors or families with young children.
Distribute flyers about your expertise in the neighborhood. Taking care of dogs, teaching tutoring, and babysitting are jobs that neighbors usually need
Step 4. Have a sale
Selling some of yours can make you money. Check with family members about what items they can sell; ask if they want to share the profits with you if you manage to sell their stuff.
Spread information in the neighborhood about your sales activities
Step 5. Sell some of your belongings at a thrift store
Sell used books to flea shops or used clothes that are worth using at a consignment shop. There are also online second hand shops such as OLX.co.id or BarangBekas.com.
Step 6. Keep the leftover money in a jar
Find an empty can and place it in your room. Whenever you find leftover money in your pocket, on the couch or even on the floor, take it and store it in a tin. If it is full, put it in savings.
Method 3 of 4: Open a Bank Account
Step 1. Go to the nearest bank
Ask the clerk about savings for youth. Maybe the bank has a special type of savings for you. You can choose your parent's bank or a different bank.
Savings and loan cooperatives are a good choice because they offer lower fees than banks
Step 2. Select a savings account or checking account
Savings accounts are primarily intended for storage rather than withdrawals. You can withdraw money from a savings account but are generally more restricted. Does not provide checks and does not always provide debit cards. Some banks also limit the number of withdrawals per month.
A checking account is more friendly if you want quick access to your account. But this also makes it easy for you to be tempted to take money instead of keeping it
Step 3. Ask for administrative fees and conditions associated with the account
There are attractive monthly fees or maintenance fees. There is also an overdraft fee that ranges from Rp. 300-500 thousand if you withdraw funds that exceed the amount of your savings. This can be burdensome and the number will continue to grow. Also check other provisions such as the minimum balance amount.
Step 4. Open an account
You may have to open it with a parent or guardian who will have full access to your account. Bring identification cards such as student cards, passports or social security cards. Your parent or guardian must bring two identification cards.
Ask your bank about the complete requirements for opening an account
Step 5. Place the opening balance
You may be asked to place a minimum amount in your account. In the end put some money in your account so you can see the growth immediately.
Step 6. Save regularly
Stick to your saving schedule and keep your money in the bank regularly. You can deposit directly to the teller at the bank or through an ATM machine.
Record your savings along with their deductions (administration fees, personal withdrawals, etc.) to easily monitor your balance. Compare your notes with bank statements every month. You can also monitor via internet banking
Method 4 of 4: Change Your Shopping Style
Step 1. Put the most important first
No need to go with the flow so you have to buy the latest clothes or cellphones. Think about whether the instant gratification of having new items is worth reducing the amount of money in your account. It will also help you review your relationship with material goods.
Step 2. Choose a less expensive alternative
If you want to buy a song, just download 1-2 songs instead of buying an album. For other items, compare prices from several stores, or between stores with prices on the internet. You'll notice that you've saved money by doing this.
Step 3. Buy second hand or sale items
If you have to buy clothes, books or something else, buy used instead of new. Another option, wait until the time of sale for the items you really want such as before the holidays or the end of the season.
Step 4. Don't shop on a whim
If you want to buy something, wait a week. This will make you rethink whether you really need it. Most likely you will not take your savings to buy a car.
Suggestion
- Your parents or guardians may be willing to add to your savings when the amount is close to buying a car. Ask them about this.
- Tell your family that you are saving to buy a car. They may replace your birthday or holiday gift with money so you can save.
