A frightening thought occurred to me this week. I'd like to tag it 'unplanned expenses' but that would be delusional. On some level I had to have realized this expense was coming. I'm not THAT naive anymore. errr, I hope.
DS1's car will need his plates (license) renewed this summer. His father paid for them last year when we bought the car and informed me it was my turn to cover the cost this year. oh boy!!
The cost? Just under $1200, if I recall correctly. Ouch. big ouch.
The cost of the annual fee is determined by the age of the vehicle, two door/four door, wheel base, paint colour. Ok I am kidding about the paint colour. DS's car is a 2006. Newer costs more. It's also a two door, which they classify as 'sports' car regardless of the power, or lack thereof, of the engine :P
Now for those unfamiliar with SK's vehicle insurance (plates) costs, there is no flexibility or negotiation. SGI: Saskatchewan Government Insurance controls the prices. Regardless of what insurance agency you go through, it all goes to SGI and the cost is still the same. If I understand correctly, in the US (and parts of Canada?) the price can be different with different agencies.
Now DS1 plans to get a part time job when hockey is over in about 6 weeks. He's never had a part time job before so it is a new process and learning experience for both DS and his loving mother.
I need to draft a simple budget for DS to teach him some of the basics of finances that I never was taught. I want him to set aside money for his weekly gas. I want him to set aside money to help pay for some of his plates cost. I want him to set aside money to pay back a portion of what the car costs. I want him to set a bit aside for 'long term saving' as it is a skill all of us need. He'll need some spending money too or he'll see no point to the job.
I am not sure what kind of job he'll get or how many hours a week so I honestly can't say how much of his plates I want him to come up with. My 'pulled the number out of my head' number for him is $400. 1/3 of the cost. It needs to be a realistic amount so that he feels the pain of insurance plates as the rest of us do, but I am realistic enough to understand he can't afford it all.
So for me, tentatively, I need to find a way to save $800ish to cover the other 2/3 of the cost. Time for me to do some brainstorming :-)
Tuesday, Nice weekend!
1 day ago
6 comments:
In Ontario you can shop around for insurance and get different quotes. I've stuck with my broker for 30 years and they've done well by me. I think I could find cheaper but we've been through 2 accidents - one where Kazi was hit by a car when walking across the street & then her car accident in October and our insurance took really good care of us. Costs a bit more but definitely worth it. They never give me a hard time.
Good luck coming up with the extra $$ - you'll find a way.
Yes the basic insurance comes with this hefty non-negotiable amount.
Most opt to purchase an additional package policy on top of that for better coverage, lower deductibles etc.
In Virginia, we have a state car tax, which sounds similar to what you have to pay through insurance there. The good news is that the amount goes down every year based on the car's age. Do you think it will be less than $1,200 now that the car is another year older?
I make my daughter pay for her gas, insurance and car tax every year. She works almost full time in the summer and is able to handle these expenses. I felt it was an important lesson for her. Cars aren't cheap. We fronted the cost of her car, and she will pay us back once she graduates from college and works fulltime all year.
I think it's great that your son pays for some of the car. It's a great lesson.
Car maintenance should not be a surprise either, and I got whammied this month....I need to save for that every month.
Oh well, we live and learn.
I left an explanation of the tabs on my comment section for you. Let me know if it works!
Holy Cow!! 1200 dollars is a lot of money for car tags!
It costs me $634.45 a year to register my car this covers road tax and basic insurance.
If I want to have a fully comprehensive Insurance it will cost me another $600 which I can pay monthly if wished.
Great to hear that you are going to sit down and help your Son draw up a budget, thats an excellent plan.
OUCH!!! Yes, in the states we can shop around for the best prices on insurance (but to renew the plates on the car - we have to pay for that & our license - those are flat fees based on the state you live in)
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