Age 15 · Financial literacy

The real cost of a first car

Compare a practical first car with a dream-car option, then build a savings plan that accounts for more than the sticker price.

3 pages · 50–60 minutes · Sample packet

HattieAge 15 · Financial literacy

Look beyond the price tag

Name: ____________________Date: ______________

1. Compare two fictional cars

All figures are made-up US-dollar estimates for a cash purchase. Actual insurance, taxes, and vehicle costs vary. No loan interest is included.

Cost	Car A: practical	Car B: dream
Purchase price	$6,000	$12,000
One-time taxes & registration	$600	$1,000
Insurance per month	$140	$220
Fuel per month	$100	$150
Maintenance savings per month	$60	$90

2. Calculate the starting goal

For each car, add purchase price, one-time taxes/registration, and a $1,000 emergency reserve. How much cash do you need before buying?

3. Compare monthly running costs

Add insurance, fuel, and maintenance savings for each car. What is the monthly difference?

HattieAge 15 · Financial literacy

Build a savings timeline

Name: ____________________Date: ______________

1. Work with a real limit

You have $1,800 saved. Your take-home income is $650 per month. Other spending is $250 per month. Before buying a car, you save everything left over.

How much can you save each month?

Using the starting goals from page 1, how much more do you need for each car?

How many full months of saving will each take? Round up, and explain why.

2. After the purchase

For each car, subtract other spending and monthly car costs from your $650 income. What remains? Is that enough breathing room?

3. Stress-test your plan

Your take-home income drops by $100 a month. Recalculate what remains with each car. What would you change?

HattieAge 15 · Financial literacy

Make an informed choice

Name: ____________________Date: ______________

1. Compare the first year

Add purchase price, one-time taxes/registration, and 12 months of running costs. Do not count the emergency reserve as spending if you haven't used it.

Car A first-year cost: __________________

Car B first-year cost: __________________

Difference: __________________

2. Your own dream-car research

Choose a car you like. Record an advertised price, source, and date. List two costs you would need to verify before trusting your budget. Do not enter identifying information.

3. Write your decision

Choose Car A, Car B, or waiting. Support your choice with two numbers from your work, one trade-off, and one financial risk.

Grown-up notes & answer guide

Starting goals including reserve: A $7,600; B $14,000. Monthly running costs: A $300; B $460; difference $160. Save $400/month. Remaining goals: $5,800 and $12,200; timelines 15 and 31 months. After buying: $100 and −$60 left monthly. With $100 less income: $0 and −$160. First-year spending excluding unused reserve: $10,200 and $18,520; difference $8,320. This sample is educational, not personal financial advice.

Names, scenarios, and prices in these samples are fictional.

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