So, you finally got your driver's license, and now, you want to have a car — cool!

But how much money really goes into having a car?

Well, yes! This is because you'll need to spend money on some basics to have your vehicle legally and safely running on the road.

## Paying For Gasoline

Unless you have this kid's car.....

...you'll have to pay for gas, and the amount you spend will vary depending on:

• The type of vehicle you have — some will need more or less gasoline per kilometre.

• How far you drive on a regular basis — is your home far from work?

• How often you use your car — will you use your car every day?

In general, most people spend about\$100 to \$130 on gas every month. But...

• Choose a car that's economic — one that uses less gas per kilometre. Find out how many litres of gasoline it needs per 100 kilometres.

• Use your car when it's really necessary. If you can walk, bike or take public transportation to work...do it! You'll save on both gas costs and parking fees.

#### Quiz

Marvin lives far from his job. What's the best thing he can do to save on gas?

Buy a new and more economic car

"Park and Ride" to work everyday

Use his car only to travel on holidays

## Insurance

You have to be prepared in case something goes wrong, right?

In this case, insurance is your best friend! It's also illegal to have your car on the road without insurance, so there's no way around this.

You can expect to pay between \$1,250 and \$1,500 a year to insure your car — roughly \$115 monthly.

But there are a few things you can do to lower your insurance payments:

• Shop around! Talk to different insurance companies, ask for quotes, and compare them.

• Your monthly premiums might be lower if the deductible is higher.

Imagine you get into an accident and it'll cost \$3,000 to get it fixed. If your insurance policy says that your deductible is \$600, it means you'll pay that amount, and the insurance company will pay the remaining \$2,400.

#### Quiz

Lynn is a new driver, so her insurance payments are quite high. How can she make them a bit lower?

Choose a better insurance company

Increase her deductible by \$500

Buy an older and cheaper car

Cancel her insurance altogether

You'll have to license and register your vehicle. Prices will vary according to where you are. For example, in Alberta, an ordinary license will cost \$25 and your annual renewal fee will come to about \$85.

## Maintenance

Well, a car needs some regular service so that it will keep functioning without any big problems. It's wise to budget about \$112 a month for maintenance.

Oil change every six months or 5,000 Km

New filters once a year

Tire rotations every 7,500 km

Checking & replacing lights when necessary

#### Quiz

How can you save money on the maintenance of your car?

Clean the filters every six months

Buy winter tires to save the summer ones

Rotate the tires every 10,000km

Learn how to change the oil yourself

## Let's Do The Math, Shall We?

If we add it all up, you'll probably need about \$350 per month to maintain and use your car on a regular basis. If you borrow money to buy a car, you need to add your loan payments to that.

Here's a breakdown:

## Take Action

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