Many parents find it hard to decide if they should buy their teen a car. There are some parents who can afford to buy their teen a new vehicle, but worry about over-indulging their child.

If parents spend very little money on a car for their teen, it is possible they are purchasing an unreliable junker for them. Also, their teen may end up working way too hard to support the vehicle and as a result will lose focus on their studies.

On the other hand, if parents spend excessive amounts of money on a car for their teen, their teen may develop an unhealthy sense of entitlement. The result of this is that their teen could have a distorted sense of just how much money things cost.

The value of money is never really learned if teens just have a car handed to them. A lot of teens whose parents purchase a luxury car for them end up totaling their car within a few months of owning it. This situation makes it essential for parents to sign their teen up with a roadside assistance program in case they end up stranded on the side of the road.

Therefore, if you are planning on buying your teen a car, you should have them put some of their own money towards the car as well.