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Should You Pay for Your Child’s Driver’s License?

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Paying For A Child's Driver's License

A driver’s license unlocks unimaginable freedom for a teenager — and might make parents cringe with worry. One set of issues surround the expenses, but paying for a child’s driver’s license can be a good investment.

Parents pay several one-time driver’s training and license fees. The fees listed below are for Olmsted County in southern Minnesota — contact your local Department of Motor Vehicles and local driving schools for costs in your area.

  • Classroom Course: $220
  • Behind the Wheel Training: $240
  • Instructional Permit Fee: $13.25
  • Driver’s License Fee: $16.25
  • Total training and license fees: $489.50

A newly licensed female will also add $113 to her parents’ monthly insurance premium in the same location. The increase depends greatly on location and number and types of cars owned. Check with your insurance agent for rates for your specific situation and location.

Benefits of Paying for a Child’s Driver’s License

You might recoup the costs associated with your child’s license when you consider the conveniences it might afford:

  • Designated Driver – A licensed teen driver provides a safe ride home after a night out, saving you money you’d otherwise fork over to Lyft or Uber.
  • Medical Emergencies – In case of a medical emergency a teen driver replaces a very expensive ambulance ride to the emergency room. An ambulance ride without insurance coverage could cost $2,700.
  • Time – Your time is invaluable; no matter how much you normally earn per hour, the time you save in not having to drive your teens everywhere would eventually recoup the costs of paying for your teen’s insurance premium and license .

Negatives of a Licensed Teen

Paying for a child’s driver’s license also has some potential problems:

  • Insurance Increase Due To Accident – If your teen has an at-fault accident, good driving discounts will be dropped and insurance will increase significantly.
  • Reduced Access to Car – Teens that drive will want to use the car often. Unless you incur the extra expense of buying another vehicle, there may be conflicts due to car needs.

Although paying for a child’s license and insurance premiums has some real down sides, the pluses have real value.

The greatest advantage may be your time. Instead of driving your teen around you regain hours each week to relax, get more done around the house, or make more money.

Readers, what’s your opinion on paying for a kid’s driver’s license? Would you or did you pay for your child to get his driver’s license, and why? Do you take advantage the positive aspects of having a licensed teen?

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Read more great articles about driving:

Cars That Don’t Depreciate in Value as Quickly

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Did you know that the moment you drive a new car off the lot, it loses about 10 percent of its value? That means if you just paid $40,000 for a car, it’s only worth $36,000 the second it hits the road. And it keeps sliding from there.

While all vehicles lose value over time, some cars don’t depreciate in value as fast as others.

By selecting the right one, you won’t suffer the same level of loss as someone else. This strategy is also very timely given that interest rates are rising on auto loans — and buyers’ incentives are also being scaled back.

So with that in mind, here are some cars that don’t depreciate in value quickly.

Consider Toyota

According to Kelley Blue Book, Toyota is the brand with the best resale value in 2018. Three of the company’s vehicles – the Tacoma, Tundra, and 4Runner – took the top three spots overall. The manufacturer also earned top honors in multiple categories during the 2018 survey.

Plus, Toyota won the same distinction in 2017, making it one of the strongest brands available.

This is largely due to Toyota’s reputation for producing reliable and dependable vehicles, which are incredibly important to used car buyers. This makes for the perfect type of cars that don’t depreciate in value quickly.

Porsche for Luxury

If you’re in the luxury brand market, then Porsche should be your go-to make.

The company has secured back-to-back wins in this category thanks to the blending of performance and luxury.

Ultimately, Porsche fans can be die-hards, helping these become cars that don’t depreciate in value as fast as other options.

Trucks and SUVs

Just like certain brands hold their value, specific categories typically outperform others.

For example, mid-size trucks are incredibly popular, with many projected to maintain more than 50 percent of their value after five years on the road. For example, the 2018 Toyota Tacoma is expected to keep 61.1 percent of its value.

Full-size trucks do similarly well. The top rated one in the category, the Chevrolet Silverado comes in with 56.4 percent and the second place GMC Sierra hits 55.8 percent.

Smaller crossovers and SUVs are also cars that don’t depreciate as fast over five years. 2018 Jeep Wrangler Unlimiteds maintain 58.1 percent of their value while the regular version sits at 50 percent.

When it comes to depreciation, cars just don’t fare as well. The Honda Fit, which KBB said is the best subcompact car, will only have 31.6 percent of its value in five years. If you were considering a mid-size car, don’t be surprised for value losses their too. The best one in the eyes of KBB, the Honda Accord, drops to 34.5 percent in five years.

Even hybrid cars aren’t guaranteed winners. The top-rated Toyota Avalon Hybrid sees its value depreciate to 33.0 percent in five years while the Chevrolet Bolt EV, an electric, plummets to just 15.5 percent.

Ultimately, choosing a car that doesn’t depreciate in value as fast is a smart move, especially if you intend to sell before the end of its life. Just keep in mind that cars aren’t as popular as trucks and SUVs, so you’ll see larger losses across almost the entire category.

Readers, to what extent do you consider depreciation when buying a car? What kind of vehicle are you currently driving?

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Don’t Spend Your Tax Refund on These 7 Things

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Don't spend your tax refund like thisCongratulations: If you’re like 80% of the population, you are getting a tax refund, and it’s averaging $1,600 this year. A financially responsible person might opt to pay down debt or invest the money — but temptations to spend it are everywhere. But someday you might regret not putting your windfall to better use, and that’s why you don’t want to spend your tax refund on any of the following things.

Gambling

If you gamble the money, you might lose the entire tax refund — and then some. Gambling can become addictive, and as a habit it’s a wealth killer. The myth of the career gambler is — well, it’s a myth that you only see in movies.

Most people who gamble full time end up breaking even at best but more often they go broke. If you want to turn your refund into more money, put it into the stock market.

Partying Too Heartily

It’s one thing to celebrate a windfall and another to turn the celebration into an ongoing thing. Intoxication typically weakens your inhibitions and makes you prone to make decisions you might regret later.

Just ask anybody who’s gone shopping while drunk how they felt about their purchases the next day (unless, of course, they opted for the hair of the dog, which would be even more bad news for the pocketbook — don’t spend your tax refund this way).

Don’t confuse this particular warning one with any kind of moralistic trip about inebriation. Rather, this is a type of spending that can snowball quickly and in a bad way.

Contraband on the Dark Web

Speaking of which, might feel the temptation to go shopping on the Dark Web for — well whatever the vice might be that you have in mind, it’s easier than ever to get caught.

Although you supposedly enjoy anonymity when you surf this part of the internet, in reality there’s actually plenty of law enforcement types doing surveillance who manage to track people down this way.

Furthermore, even paying for things in cryptocurrency doesn’t necessarily afford the same degree of untraceability that is used to due to the advent of blockchain — the same technology that has been cutting down on fraud helps the authorities nail people buying illegal goods on the Dark Web.

Impulsive, Excessively Risky Investing

While investing your tax refund is always an astute move, rushing into any investment doesn’t bode well — especially under current conditions. With market volatility rising, professional investors and algorithmic trading make it hard for individual investors to get ahead — so the last thing you want to do is go overboard with risk right now.

For certain asset classes, prices can move against you faster than you might be able to unwind the position. Examples would include leveraged exchange traded funds, options, futures, any other type of derivative and even cryptocurrency exchange transactions.

Pay attention to the risk disclosures for anything you’re considering putting money into, and while you’re at it, read as much as you can about any investment before buying.Don't spend your tax refund on things you'll regret later.

Loan Collateral

Before you go take out a loan for anything, remember that borrowing costs have reached a ten-year high — in terms of interest rates. If you’re looking at mortgages or academic financial aid, an additional cost comes from the Tax Cuts and Jobs Act.

The law capped the deductibility of mortgage interest to the first $750,000 in principal value; it made student interest nondeductible and also put a $10,000 ceiling on deductions of state and local income, sales, and property taxes.

New Car

Although using your tax refund as any kind of loan collateral is bad news, auto loans are a different headache than mortgages and student financial aid. You simply cannot rationalize this one an investment because autos depreciate quicker than most other types of assets you could buy.

Adding insult to injury, the prices have gotten a bit steeper because dealerships have drastically cut back on offering buyer incentives over the past year or so.

And with interest rates rising, financing criteria has gotten stricter so you may have to pony up additional funds just to make the down payment. Make do with the vehicle you already have and put the tax refund to more productive use. Or if the kind of work you do requires a new-looking vehicle, consider leasing instead of buying.

Loan It to Flakes

You might be feeling generous because of your windfall but try to think critically before saying “yes” to a request for money right around the time that tax refunds go out.

As noted already, eight in 10 households are getting refunds this year — so did the person who wants to borrow money from you already spend theirs?

If they didn’t get a refund at all, of course it’s a fallacy to presume they don’t have the means to repay a loan — but you might need to assume that you won’t see the money again.

Don’t Spend Your Tax Refund Foolishly

Rewarding yourself now and then can help you stick to a budget longer term, but if you go overboard on the indulgences you might regret it later.

If you have outstanding debt, make paying down the balances your first order of business. Then if you have any money left over from your tax refund after that, invest it or set up an emergency fund if you don’t have one already).

Readers, how much are you getting as a tax refund and what are your plans for the money?

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Learn more about taxes by checking out these other stories from our archives:

NYC Foreclosures Hit 8-Year High — Cause for Concern or Fluke?

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The high-cost of housing may be taking its toll: foreclosures are surging in New York City. Is this a fluke or do NYC foreclosures show an early sign of trouble? NYC foreclosures might be cause for worry.Although a likely contributor might be rising interest rates, the effect doesn’t appear to be consistent nationwide.

Another sign of the trend, however, has appeared in plunging auto sales attributable to stricter credit terms and higher payments.

But while the decline in car sales was just over 4% annually nationwide, the rise in New York foreclosures was 58% annually.

Are NYC Foreclosures Accelerating?

And some parts of New York City have had seen an acceleration in foreclosures: They’ve soared 226% annually in Staten Island and 64% in Brooklyn from the first quarter of 2018 compared to the same period of time last year.

Both of these boroughs drove the overall increase in new cases across New York City — it went up 31% from the first quarter of 2017 to the first quarter of 2018.

Although housing in many parts of the country have been unaffordable for some time now, the most expensive real estate market in the U.S. is so far not seeing a spike in foreclosures like New York is. Home prices in the greater San Francisco Bay Area continue to keep climbing, but mortgage delinquencies keep falling, according to The San Jose Mercury News.

Although it’s possible that a national trend might emerge along the lines of what’s happening in the Big Apple, a likelier explanation for the spike in NYC foreclosures may have to do with local policies related to housing.

Readers, does the spike in NYC foreclosures concern you at all?

NYC foreclosures are accelerating -- should you worry yet?
Source: Dent Research

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If you liked this article, you just might enjoy these other stories in our archives.

How to Flip Cars for Profit

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Flip Cars
You’ve probably heard about people flipping houses. Some people even make a living at doing so. Did you know that you can also make a sizable amount of money from flipping cars? Flipping cars can be a little tricky and time consuming but if you are able to pull it off you can make a decent amount of cash.

How to Flip Cars

If you are able to learn to successfully flip cars it can be a great side hustle. Flipping cars can be difficult, however. Luckily for you, I am an expert on the subject and have some great advice for newcomers to the car flipping crowd.

In some states, it is illegal to do so without a dealer’s license. You will want to check your state’s specific laws. In Colorado, for instance, you are able to flip three cars each year for profit without having to have a dealer’s license. Some states allow you flip as many as 15 cars throughout the year for profit without having a license. To make extra cash legally flipping cars you have a few options:

  • Get a dealer’s license (these can cost up to $900 in some states). However, if you are looking to make a living buying and selling vehicles, a dealer’s license will be necessary to keep things legal.
  • “Flip” the car. Car flipping, as described above, is illegal in most states (but not all). You buy the vehicle and leave the title open for the buyer to fill in. This is NOT something that we recommend as it is illegal in most states but it is a practice commonly used in the car-flipping industry.
  • Team up with a car lot. You can also team up with a local car lot and let them do the paperwork for your sale. This may cost you up to $400 per car but if you are looking to make decent cash from flipping cars it is a small fee to pay.

Typically you will only want to flip cars that are on the lower end of the price margins. Higher end, more expensive vehicles don’t do well in the car flipping market. This is because (most of the time) people who are buying more expensive vehicles are buying the vehicles directly from the dealership itself.

What to Look For When Flipping Cars

If you decide you want to flip cars for extra cash you will want to have some basic knowledge of cars overall. If you don’t know anything about the car you are selling you are less likely to be able to turn a profit. Most people who flip cars use sites like Craigslist to purchase the vehicles. If there are major problems you may actually end up losing money on the car instead of turning a profit.

Where to Buy the Cars

In my opinion, the best place to buy a car you are looking to flip is through a private seller. Craigslist is a great place to start looking for cars to flip. You can also check your newspaper and other online selling sites where you can go see the car locally. You won’t want to purchase the vehicle online without viewing it first though.

It should also be noted that you should not make the purchase unless you feel confident you can turn a profit. For instance, if the vehicle will cost a ton of money to fix to sell it may not be worth the initial purchase. Additionally, you should never buy a car with the check engine light on. The only reason you should purchase a car with the check engine light on is if you have a code reader and are able to fix the problem with ease.

Flip Cars for Extra Cash

With those things in mind, you are ready to start flipping cars. The first place you should check for potential vehicles to sell is Craigslist. Go to the car/truck section of the site and fill in the “max price” and “min price.” Obviously you don’t want to pay too much for the vehicle or you won’t likely make any money from the sale. You also don’t want to pay too little for the car because it will likely have more problems and need more work to be able to sell.

My Personal Experience

I started off with a $1,000 car that had bad CV Axles. The outside was clean, the interior wasn’t the best, but here in Colorado, AWD cars are very reliable due to the snow and have a higher street value than most people think. Find a car you think you could flip, and make sure you look at it in person. Once you’ve seen the car in person, check all of the cosmetics like the tires, paint and any body damage to the car. If you don’t think you can flip it due to dents, etc. move on to the next vehicle. Don’t waste your time. You will also want to make sure fluids like oil and coolant are at the correct levels.

You will also want to test drive the car. Most people on Craigslist will allow you to drive their car but you’ll want to be safe. The car isn’t yours yet! Ask if you can take the car on the closest main road and, if there is a highway nearby, ask to drive the car on the highway as well. Check for any strange noises and be sure everything runs normal. I try to get the car up to 80 to 85 MPH just to be sure that the engine can take it. You should also keep an eye on the temperature gauge to be sure it maintains normal temperature.

Once you’ve seen and driven the car, check sites like Kelley Blue Book and Nada Guides to determine how much the vehicle is worth before you buy it to flip. I try to buy cars that have less than 130,000 miles and little cosmetic wear. It is also a huge plus if the owner has maintenance records for the vehicle. If the car has recorded maintenance it can actually increase the value of the car and will make it easier for you to sell.

When all is said and done, make sure that you are paying attention to the vehicle and its issues. You don’t want to purchase a car that is severely damaged.

Selling the Car

You basically switch roles with the person you’ve just purchased the car from. If there is anything major that needs to be fixed with the car, you should fix it before selling it again. Most people will refuse to pay for something that doesn’t work correctly or try to strike a hefty deal. When you are in the business of flipping cars, you are trying to pull a profit. You don’t want to lose money on the deal. Also remember that honesty is the best policy. If you know something is wrong with the vehicle be sure to tell the buyer about it.

Where to Sell the Car

You will be returning to Craigslist to sell the car. You can also post it on other online sites or even in your local newspaper if you aren’t comfortable with Craigslist or aren’t having luck selling your vehicles there. Craigslist, however, is usually the best.

Remember that people are coming to you for the car which means they are already interested. A lot of people are looking for cars so don’t sell your vehicle short of its worth. You may also want to ask the buyer to pay taxes on the vehicle for selling the car. If they don’t you may end up paying taxes on the car at the end of the year.

Can You Flip Cars for a Profit?

Although it can be rather difficult, like any other self-run business, flipping cars is a great way to make extra cash. In some cases you can earn $1,000+ on one single sale. However, as mentioned above, it will depend on what the law for your specific state is. Depending on where you live, you may be limited to the number of cars you are able to flip, how many taxes you pay and how much money you are able to make from your car business each year. Use this map to find out what you need to do to be able to flip cars in your state.

Try to find a nice looking and good running car. After you find one, look up the value of the car using the two links mentioned above, and if you think it’s worth it, go test drive the car. If it runs good, has no signs of engine or transmission damage, you can try to flip it for more. There’s many aspects when it comes to car flipping, you just have to concentrate and think logically.

If you found this topic interesting, join the discussion with Dimitry in the Saving Advice forums. You can also check out the video below:

Photo: JOHN LLOYD

Cars That Look More Expensive Than They Actually Are

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Cars That Look More Expensive Than They Actually Are
The car you drive, like the clothes you wear, can say a lot about who you are. We all want to look good, but have to balance that against functionality, durability, and cost. You can usually tell if cars or clothes are expensive just by looking at them, but that’s not always the case. Just like finding high fashion on the discount rack, there are plenty of cars that let you roll in style at an affordable price point. No matter your needs for a vehicle, here are 10 cars that look more expensive than they actually are.

2017 Cars That Look Expensive (But Aren’t)

Cars That Look More Expensive Than They Actually Are2017 Honda Civic – MSRP $18,740: For decades, the Honda Civic has set the standard for simple, reliable, inexpensive transportation. Now it raises the bar for what an economy car should look like too, with a better design than ever before. Sharp angles and subtle curves combine to give the Civic a futuristic look, aided by a sleek profile that improves efficiency. Chrome trim and LED headlights come standard, but options like spoilers, center-exit exhaust pipes, and a punchy turbocharged engine boost the Civic’s style and sportiness for not much more money. Long-term costs are low too, with under $7,000 in maintenance over the first 10 years of ownership. The car comes in sedan, coupe, and hatchback body styles, so whatever your needs are for a car, there’s a Civic that suits them.

 

Cars that look expensive2017 Mazda CX-3 – MSRP $19,960: If you’re looking for a small SUV that’s inexpensive, stylish, and fun to drive, the Mazda CX-3 might be the one for you. The CX-3’s wide grille, strong curves, and lifted ride height make it look big and brawny, but you’ll be reminded of its compact dimensions whenever you parallel park it. Blacked-out window trim and pinched exterior lights give it a sporty, modern style. The interior looks premium too, with leather, brushed metal, and carbon fiber trim covering the simple yet functional dashboard. Mazda emphasizes driving dynamics in all their vehicles, so whether you’re standing outside or sitting behind the wheel, the CX-3 is sure to make you smile.

 

Cars that look expensive2017 Chevrolet Colorado – MSRP $20,055: Pickup truck shoppers are usually limited to options that prioritize utility over style, but the Chevrolet Colorado does a great job of combining both. There’s no question that first and foremost it’s a pickup, with multiple bed and cab configurations to meet a range of needs. The Colorado’s high ride height, boxy wheel arches, and upright grille give it a powerful, rugged look, but it’s not all about brute force: the body still has enough curvature to provide broad appeal. With over 7,000 pounds of towing capacity, available four-wheel drive, and optional torquey diesel engine, the Colorado offers major utility along with style that no other truck can match.

 

Cars that look expensive2017 Hyundai Elantra Sport – MSRP $22,485: Hyundai’s Elantra is available in a variety of trim levels, but the Sport model gives upscale style and features to the already sharp small sedan. Big two-tone multi-spoke wheels unique to the Sport look far more expensive than the hubcaps found on lower trim levels, and LEDs in the headlights and taillights look complex and dimensional. Big air inlets on the front bumper, twin exhaust tips at the rear, and a small red “Turbo” badge on the grille hint at the upgraded powerplant under the hood. The Elantra Sport proves that you don’t have to shell out big bucks to have a car that’s as good looking as it is exciting to drive.

 

Cars that look expensive2017 Jeep Compass – MSRP $23,000 (est.): Jeep started from scratch with the 2017 Compass, and paid equal attention to making the car look great and capable on trails. It wears Jeep’s trademark seven-slat grille, but also has modern design touches like trim that flows above the side windows and wraps around the rear glass to the other side. The headlights give it an aggressive presence, and the spacious wheel arches have plenty of room for knobby off-road tires. An optional black-painted roof provides great contrast against lighter shades of paint on the rest of the body. The Jeep Compass is going to look great whether you need a car to run around town or tackle rocky roads.

 

Cars that look expensive2017 Toyota Prius – MSRP $24,685: The looks of the Toyota Prius have always been dictated by making the car as aerodynamic and efficient as possible. The car has been a sales hit, but it’s safe to assume that MPG figures has been the main selling point, not styling – until now. Toyota did much to banish blandness from the current Prius by giving it a futuristic and highly polarizing design. The body is heavily sculpted, with complex surfacing and deep cutlines, and the headlights and taillights really catch the eye. It’s up for debate whether the design of the 2017 Prius is a success or failure, but what can’t be refuted is the car’s fantastic fuel economy: over 50 MPG makes fill-ups few and far between.

 

Cars that look expensive2017 Ford Mustang – MSRP $24,915: The Ford Mustang has been a classic since its introduction in 1965, and the stylish 2017 model continues that tradition. Even though the current bodystyle has been on the road for a few years, it’s still a head turner. No doubt it’s the sleekest muscle car available today, with a design reminiscent of European exotics. There’s a huge catalogue of optional extras – including spoilers, decals, wheels, and exhaust – so Mustang drivers can personalize their ride’s looks. A variety of powerful engines are available under the hood, but despite its sporting credentials, the Mustang isn’t known for its reliability: It costs almost $12,000 to maintain in its first decade on the road.

 

Cars that look expensive2017 Kia Sedona – MSRP $26,800: If all you need your car to do is carry as many people as possible, a minivan is your best bet. With the Kia Sedona, you can maximize your people-moving capacity without sacrificing style. It won’t ever be mistaken for anything but a minivan, but with a chrome-lined grille, LED running lights, and uniquely-shaped side windows, the Sedona’s handsome looks will help it stand out in the school drop-off line. The well-laid out interior is as stylish as it is spacious, too. Ultimately the Kia Sedona has premium design that makes it look expensive compared to other minivans on the market.

 

Cars that look expensive2017 Infiniti QX30 – MSRP $29,950: You could stare at Infiniti’s QX30 crossover SUV for hours and still find new features in the striking exterior. Its dramatic, curvaceous, and flowing body really catches light and draws the eye in to take a closer look. Infiniti claims that entirely new manufacturing processes had to be developed to build the QX30’s body panels, so clearly they made no concessions in the car’s styling. Chrome trim abounds but isn’t overdone, and the raised ride height gives it an authoritative presence. Overall it’s an organic design, with headlights clearly inspired by the human eye. Drivers ready to put a luxury car in their driveway will be attracted to the QX30’s style and price point.

 

Cars that look expensive2017 Buick Cascada – MSRP $33,065: Want a car that lets you feel the wind in your hair? The Buick Cascada convertible is a great-looking and reasonably-priced option. The car is a major departure from Buicks of old, with European-inspired styling that’s sure to turn heads. A crease running along the side of the car makes it look long and low, while the angular headlights and taillights break up the otherwise smooth design. A palette of bright and subdued paints are available, so you can choose whether you want your Cascada to stand out or be more subtle. Don’t let Buick’s oldschool reputation stop you from giving the Cascada a closer look.