Sharing Daily Discoveries About Personal Finance And Business Topics

Getting A Free Car Syndrome

I had a funny conversation with another person where we were comparing our financial management habits compared to our siblings. Basically, the common theme was for us that turned out to be able to manage money very well versus those that seem to accumulate so much debt was the fact that parents gave them a free car when they were say a teenager. Whereas we had to learn at a young age to earn everything ourselves and was never given such expensive luxuries.

That just made me wonder how true that really is where receiving something that large in value basically just spoils you so much where you just expect to continually receive the same benefits even when you are an adult. The other simple theory in my mind is that usually when you give a teenager a car you will also continue to say pay off the insurance for them. Because they are so used to revolving their lifestyle around the vehicle and not having to pay that part of the bill it just kind of hits them in the end.

I guess in that sense the only way to really do it is that from the beginning you need to show them just how much it costs to own a vehicle so that they are actually working towards trying to pay it off themselves. Otherwise it is like giving someone a free house where they had no clue about having to pay property taxes each year and such.

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