Parents stumping up cash for young Queenslanders’ first cars

RACQ has revealed 43 percent of young Queenslanders would turn to family members to help fund the cost of buying their first car.

Club spokesperson Clare Hunter said high school students were asked questions about their spending and saving habits, as part of the Club’s new financial literacy program Cash IQ, and most said they needed some help from their parents.

“Many teens are asking the Bank of Mum and Dad to foot some of the bill for the first car, but interestingly around 39 percent of students told us they’d be saving the lot themselves,” Ms Hunter said.

“Unsurprisingly, saving for their first car is top of the list for many young people when they get a casual job, and thankfully very few said they’d take out a loan to buy one.”

Ms Hunter said while young motorists would be willing to fork out for the car themselves, when it came to driving lessons and running costs, they were a little more frugal.

“Close to half told us they expected their parents to stump up the funds for driving lessons,” she said.

“They also expect their friends to chip in for fuel if they’re getting regular lifts.”

Ms Hunter said the findings were a starting block for RACQ’s educators to give Year 11 and 12 students the tools to make sound financial choices.

“While other financial literacy programs focus on bank accounts and products, Cash IQ gets students thinking about how they make choices about spending and saving money,” she said.

“The results over the past six months have given us vital insights about how teenagers think about money and also how they resolve tricky situations with friends, and we’re confident these students will make good choices when it comes to spending their hard-earned cash.”

Since its launch in July 2018, RACQ’s Cash IQ program has presented to students in 42 schools across the State.