And often times young adults like to forge their own path, turning a cold shoulder to the wisdom of their elders.
But in today’s economy, before taking on more debt with a purchase like a new auto, young men and women may be wise to seek car-buying tips from parents or friends that have more experience with personal financial management.
According to a new survey on car buying trends from Capital One Auto Finance, over half of young adults surveyed have not discussed car expenses or the toll they can take on a personal budget with their parents.
Similarly, 64 percent have not broached the topic of financing with someone more knowledgeable about personal money and debt management.
Some say that parents should be proactive and use the first time car-buying milestone as an opportunity to teach their kids – many of whom are reportedly unaware of what their own credit score is.
“With the increased focus on the economy and the importance of making smart financial choices, buying a car presents parents a great opportunity to teach their children the importance of creating a budget, selecting the right vehicle and choosing the best financing option for that vehicle,” said Sanjiv Yajnik, president of Capital One Auto Finance.
The survey revealed that young adults looking to buy their first vehicle were largely aware that their credit score could impact their ability to obtain financing or the rate at which it would be offered.
Yet 72 percent of those surveyed planning to use bank or dealership financing for their purchase never took the time to review their own credit report.
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