Information for Adults!
This section will cover the need for this WebQuest and its uses, the intended audience, how you can help teens work through the WebQuest and other resources you as a parent can use for your own benefit or to help teach your teen more about the world of finance.
The Need
This WebQuest was created to help guide teens step-by-step through the process of budgeting for the purchase of a car. Every teenager wants a car but many have no idea what they can afford or how they can figure it out. They don't understand the cost of insurance or how expensive gas can really be. They might think they can afford a car only to realize too late that insurance on a sports car is too expensive or the old Chevy truck that was reasonably priced swallows $90 a week in gas! This WebQuest covers all of those areas and in the process teaches teens some financial terminology, the basics of financial management and insurance and the process of making a budget.
The Uses
Parents - As a parent, when you're child starts begging for a car, you can direct them to this WebQuest. "Finish this, and then we'll talk." This will give your child a better understanding of what they are asking for. It will also help them realize that buying a car isn't as simple as pulling a bunny out of a hat!
Librarians - I think we've all had the teenager come into the library to look at car ads on the internet and then ask us how to help figure out if he/she can afford it. This is an excellent opportunity to use this WebQuest! Everything they need is located in one place with step by step directions and tools to use the numbers they find.
Teachers - Though not created for a school setting, this WebQuest could also be utilized in a classroom. A Driver's Training instructor could incorporate it into a lesson or it could be a project in a Personal Finance class. Click to view the AASL Standards.
Librarians - I think we've all had the teenager come into the library to look at car ads on the internet and then ask us how to help figure out if he/she can afford it. This is an excellent opportunity to use this WebQuest! Everything they need is located in one place with step by step directions and tools to use the numbers they find.
Teachers - Though not created for a school setting, this WebQuest could also be utilized in a classroom. A Driver's Training instructor could incorporate it into a lesson or it could be a project in a Personal Finance class. Click to view the AASL Standards.
The Audience
This WebQuest was created for teenagers who have income (or plan to start earning an income) and want to buy a car. School-aged teens aged 15-18 have specifically been targeted for this activity. It is assumed that the teens will live at home (with parents) and not need to provide for their daily welfare (rent, utilities, etc.). It is also assumed that these teens will have a limited work schedule and likely earn minimum wage.
Your Involvement
If you as a parent, librarian or other educator have guided a teen (or a class of teens) to this WebQuest, I suggest you work through the budgeting process yourself. This will give you knowledge of the process and the resources that are used. You will then be better prepared to answer questions and guide the teens through the WebQuest. (You will also be able to ensure that none of the links have been blocked by an internet filter!)
Parents - There are sections of the WebQuest that you might "modify" for your teen. Rather than using the insurance estimator, maybe you could initiate a phone call or visit with your local insurance agent to learn more about insurance and get a more accurate quote. It would also be a great opportunity to ask about Good Student Discounts. The same method could be used for the loan calculator. Take your teen to your local bank branch to learn about current loan and rates specials. The loan officer should have a loan calculator to help figure out what your child can afford. These conversations can also take place after completion of the WebQuest and the information used to update the information in the worksheet.
If you work through the WebQuest, you will see that there is a lot of information! A teen that isn't task oriented or math-minded might grow weary of the information gathering and budgeting process. From start to finish, if everything works well and there are few questions, a teen should be able to complete the task in less than two hours. However, there are logical breaks built into the WebQuest. A teen could complete one section a day (Income / General Expenses / Gas / Insurance / Loan Calculator) or there are places where it is suggested within the WebQuest that the teen can take a break. If you are a teacher incorporating this in the classroom, you could lecture on a section, have them complete it and then move on to the next section. There is no right or wrong timeframe to complete this activity. Find what works best for the teen(s) you are working with.
If using this WebQuest in a group setting, add an element of fun. Split a bulletin board or section of wall into three parts. Ask students to choose the car they'd buy if they had all the money in the world. Find a picture and hang it in the first section. Then ask students to find a picture of a type of car they think they can afford. Place these pictures in the second section. Finally, when the WebQuest is complete, have them find pictures of an actual car they can afford and place those in the third section. It will be fun to see the differences in the three areas!
Another fun activity would be to have teens guess the price of the car they think they can afford before starting the activity. When finished, compare this to the price of the car they can actually afford. The one closest to their estimated price (and maybe even the one furthest off) get a simple prize like a free can of pop or a candy bar.
Parents - There are sections of the WebQuest that you might "modify" for your teen. Rather than using the insurance estimator, maybe you could initiate a phone call or visit with your local insurance agent to learn more about insurance and get a more accurate quote. It would also be a great opportunity to ask about Good Student Discounts. The same method could be used for the loan calculator. Take your teen to your local bank branch to learn about current loan and rates specials. The loan officer should have a loan calculator to help figure out what your child can afford. These conversations can also take place after completion of the WebQuest and the information used to update the information in the worksheet.
If you work through the WebQuest, you will see that there is a lot of information! A teen that isn't task oriented or math-minded might grow weary of the information gathering and budgeting process. From start to finish, if everything works well and there are few questions, a teen should be able to complete the task in less than two hours. However, there are logical breaks built into the WebQuest. A teen could complete one section a day (Income / General Expenses / Gas / Insurance / Loan Calculator) or there are places where it is suggested within the WebQuest that the teen can take a break. If you are a teacher incorporating this in the classroom, you could lecture on a section, have them complete it and then move on to the next section. There is no right or wrong timeframe to complete this activity. Find what works best for the teen(s) you are working with.
If using this WebQuest in a group setting, add an element of fun. Split a bulletin board or section of wall into three parts. Ask students to choose the car they'd buy if they had all the money in the world. Find a picture and hang it in the first section. Then ask students to find a picture of a type of car they think they can afford. Place these pictures in the second section. Finally, when the WebQuest is complete, have them find pictures of an actual car they can afford and place those in the third section. It will be fun to see the differences in the three areas!
Another fun activity would be to have teens guess the price of the car they think they can afford before starting the activity. When finished, compare this to the price of the car they can actually afford. The one closest to their estimated price (and maybe even the one furthest off) get a simple prize like a free can of pop or a candy bar.
Resources
There are many resources available to help you learn more about the subject and how to talk to teens about finances. Here are some you might want to check out.
The Basics of Co-Signing a Loan
Curry, Pat. The Basics of Co-Signing a Loan. Bank Rate. September 27, 2002. Accessed April 27, 2014. http://www.bankrate.com/brm/news/advice/20020927a.asp
If your teenager is going to buy a car, he or she is likely going to need a co-signer for the loan. Do you understand the responsibilities of being a co-signer? You're not just vouching for your kid, you're agreeing to make the payments if necessary! If your teen misses a payment, that goes against your credit score. Read this article to learn all of the details!
eHowFinance
eHowFinance has a YouTube channel with videos that cover all things Finance. There are several videos aimed directly at talking to your teen about finances. These are very short and only cover the basics. They will however give you ideas you can research further.
About Credit Cards for Teens
http://www.youtube.com/watch?v=Wr4VIDMGjrk
Recommendations for giving your teen a low balance card to teach him/her about credit card responsibility.
About Teen Car Insurance
http://www.youtube.com/watch?v=ulcoccUS1KI
Recommends adding teen to your policy, enrolling them in a safe driving course and other suggestions for lowering teen car insurance premiums.
Money Management: Setting Financial Goals for Teenagers
http://www.youtube.com/watch?v=TZ8w9cWdc2U
Covers topics such as paying back loans, income taxes and savings to reach a goal.
Teen Finance 101
http://www.youtube.com/watch?v=fxEXedXDF6w
This video covers basic topics including how your teen is saving their money and how they are spending their money.
What are the Disadvantages to Having Some One Co-Sign on a Loan
http://www.youtube.com/watch?v=4P9foGFBWvo
An attorney discusses the pitfalls of co-signing and what you can do if you've co-signed and things don't work out as planned.
About Credit Cards for Teens
http://www.youtube.com/watch?v=Wr4VIDMGjrk
Recommendations for giving your teen a low balance card to teach him/her about credit card responsibility.
About Teen Car Insurance
http://www.youtube.com/watch?v=ulcoccUS1KI
Recommends adding teen to your policy, enrolling them in a safe driving course and other suggestions for lowering teen car insurance premiums.
Money Management: Setting Financial Goals for Teenagers
http://www.youtube.com/watch?v=TZ8w9cWdc2U
Covers topics such as paying back loans, income taxes and savings to reach a goal.
Teen Finance 101
http://www.youtube.com/watch?v=fxEXedXDF6w
This video covers basic topics including how your teen is saving their money and how they are spending their money.
What are the Disadvantages to Having Some One Co-Sign on a Loan
http://www.youtube.com/watch?v=4P9foGFBWvo
An attorney discusses the pitfalls of co-signing and what you can do if you've co-signed and things don't work out as planned.
The Sink or Swim Money Program: The 6 Step Plan for Teaching Your Teens Financial Responsibility
Whitcomb, Dr. John E. The Sink or Swim Money Program: The 6 Step Plan for Teaching Your Teens Financial Responsibility. New York: Viking Adult, 2001.
This book means exactly what the title says. The author recommends giving your teen some money, some guidance and letting him or her run with it even if they have to learn the hard way. The author covers cash, ATM cards, bank accounts and budgeting.
Top 10 Reasons Not to Co-Sign a Loan
Harelik, Justin. Top 10 Reasons Not to Co-Sign a Loan. Bank Rate. February 14, 2013. Accessed April 27, 2014. http://www.bankrate.com/finance/debt/reasons-not-to-co-sign-loan.aspx
At the risk of making your teen mad, it is important to understand all of the risks associated with co-signing a loan. Read this article and weigh all points carefully before making your decision.