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The Ramsey Show

Should You Make Your Kids Pay for Car Insurance? (Hour 3)

04 Oct 2022

Transcription

Transcript generated automatically by AI and may contain errors.

Chapter 1: What is the main topic discussed in this episode?

29.95 - 56.079 Ken Coleman

Live from the headquarters of Ramsey Solutions, broadcasting from the Pods Moving and Storage Studio. This is the Ramsey Show. It's where we talk about your life, specifically your money, your relationships, your work. We want to give you a clear path. that has hope and practical steps that you can turn your life around in any of those areas. It is a free phone call, 888-825-5225.

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56.179 - 67.696 Ken Coleman

That's 888-825-5225. I'm Ken Coleman, and Rachel Cruz joins me this hour. We are here for you. Let's go to Detroit, Michigan. Nicole is there. Nicole, how can we help?

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68.918 - 70.7

Hi, thank you for speaking with me today.

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70.721 - 71.061 Ken Coleman

You bet.

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72.087 - 100.947

So we have a 16-year-old daughter, and she got her license in August this year. And we did the day recommendation. We got her an inexpensive car, and she paid for half, and that's all good. So my question now is Michigan is sort of notoriously high for car insurance. So we've got that, and then obviously repairs and gas and things like that. So what is your program's recommendation for that?

101.399 - 107.16

how to sort of, what to have her pay for, what we would pick up, things like that, as far as expenses.

109.046 - 123.998 Rachel Cruz

I don't think we really have a... hard and fast rule, Nicole, with it. I think it's going to depend maybe kid by kid by you and your husband's financial situation. I think a lot of that kind of comes into play.

124.118 - 142.78 Rachel Cruz

And the whole idea of matching the car, yeah, is just a great idea for the kids to have skin in the game, saving up, having a big purchase that they're a part of and that they probably end up taking care of that car better than if it was just handed to them. So all of that goes into play. But when it comes to actually maintaining it, the car insurance,

142.76 - 161.708 Rachel Cruz

Um, I, I honestly see, can I, you have teenagers, so I'll be curious what you, what you think, but I think either path is okay. So there are some parents that are like, nope, it's up to you. You got to get a part-time job. You got to handle these expenses. Um, It's going to be your responsibility. And I think there's good in that.

Chapter 2: Should a 16-year-old pay for car insurance?

273.243 - 278.288 Rachel Cruz

And I'm like, I have no money. I have to go babysit this weekend to earn any kind of money.

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278.308 - 288.478 Ken Coleman

Wah, wah. I know. So here's what we're going to do. I would agree with you, Nicole. We're going to pay car insurance and maintenance. But I've told our kids, you're paying your gas.

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288.458 - 290 Rachel Cruz

Okay, so they're in charge of their gas.

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290.02 - 290.941 Ken Coleman

They're in charge of gas.

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290.981 - 295.185 Rachel Cruz

And the reason is, is because... This is expensive inflationary times, Ken Coleman.

295.205 - 298.769 Ken Coleman

Get a job, you know, or get your friend to pick you up.

298.789 - 300.811 Rachel Cruz

She doesn't have a part-time job at a dog kennel.

300.891 - 301.311

She doesn't work.

301.451 - 318.511 Ken Coleman

Oh, no, no, no. I'm just talking about my... I'm just saying, I would cover insurance and maintenance, but I am going to make my kids cover their gas. Because, number one, they need to learn the cost of things like that. And then, you know, you get to school, you get to work, anything outside of that, you know, you're paying gas. Period.

Chapter 3: What factors should I consider when buying a house right now?

2166.371 - 2166.872 Ken Coleman

What major?

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2169.315 - 2170.497 Ken Coleman

And you have no desire to do that?

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2173.2 - 2175.223

Not really. I'm not really into college.

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2175.644 - 2184.115 Ken Coleman

I get it. Or school. What's a full-time DJ going to make? I don't know. I'm sorry, that's a serious question. What's that possibility look like?

2184.938 - 2194.96

That's true. I turned 21 soon, so I'm going to try to apply for clubs near my area, but So you don't know. I should look at that, yeah.

2195.18 - 2216.461 Ken Coleman

Okay, so here's the point. We don't drop out of anything into nothing, right? So I totally get that you're not into college. Believe me, dude, I don't have a degree. I couldn't stay in college either. I get it. But to drop out to nothing just to go to Amazon without knowing what the plan is, let's say you do that, okay?

2216.921 - 2237.79 Ken Coleman

You drop out, you go work at Amazon, that's honorable, you're making money, whatever. But you have no idea what a path to being a successful DJ looks like. And then you look into it and you go, oh, it's not as lucrative or as exciting as I thought it was once I actually dug in. So now what? What I'd rather you do is sit tight, have some discipline. Okay.

2238.391 - 2259.486 Ken Coleman

And then what I would do is I would start hanging out with guys that are DJs. I would start, you know, if you got to work, you know, behind the bar or something like that, you know, just to get around DJs. You're not even 21. You probably can't even do that. The point is you get in close proximity to DJs for real and really understand, like, what do you make? What do you make on a weekend?

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