Is raising a teen more expensive than college tuition?
Parents often worry about the soaring costs of college education, but recent surveys reveal that raising a teenager may be a more significant financial burden.
In over half of the states, childcare expenses surpass in-state public college tuition, while the price of teen car ownership now also exceeds the cost of attending a public university.
With two years of elevated inflation, families are grappling with the reality that child-rearing expenses consume a substantial portion of their annual income, reaching as high as 19%, according to LendingTree.
As car ownership costs outpace in-state college tuition, American families find themselves in a growing affordability crisis.
How much does it cost for a teen to own a car?
The dream of a teenager owning a car is facing a harsh reality check, as the annual cost to own and drive a new car stands at a staggering $11,378.
This is more than the average annual in-state tuition at a four-year public university, which is $10,940. It is even double the in-state tuition at the cheapest flagship state university.
Even opting for a used car comes with a price tag surpassing in-state tuition in multiple states. The escalating costs are driven by surges in car insurance, maintenance, repairs, vehicle prices, and gasoline.
The COVID-19 pandemic has driven vehicle prices and related costs, like car insurance, higher, exacerbating the financial stress on families.
71% of Americans are expressing concerns about unaffordable car insurance. Parents of teen drivers are feeling the pinch even more, as it costs $829 more a year to insure a teen driver than an average person.
This leads to increased shopping around for better rates. With these expenses rising three times faster than tuition at state universities since 2018, the financial burden on teens and their families is becoming increasingly unsustainable.
Are teens facing a dilemma between cars and college?
The once-held belief that industrious teens could fund their own vehicles and even college through part-time jobs is now challenged.
The reality is that working 49 hours a week over a summer or 14 hours a week throughout the year might not cover the costs.
This raises the question: are some teens forced to choose between reliable transportation and pursuing higher education, and what does this mean for the future of education and mobility in America?
The implications of this financial strain on families and its potential long-term impact on educational aspirations and economic mobility. warrant a closer examination of policies addressing the intersection of education and transportation costs for the younger generation.
Some studies have concluded that shifting economics explain the difference in attitudes toward driving and car ownership among Millennials and Gen Z.
Policymakers now face a critical challenge in ensuring equitable access to both education and the means to attain it for the youth of today.