HS Kid with $8,500 - should I save it for college or buy a car?

Question

My mom keeps saying that I will just have to pay the money I have saved up for college because financial aid forces the student to use all of their money anyways, so now I'm thinking I might as well buy a cool car for $5,000 and have fun with my senior year of high school. Will I regret not saving my money or will I be glad to have used this money for a car since the college would have required me to use the money anyways?

Answer 1

Buy yourself a decent car that will last through your college days. That way you don't have to get into a car payment with high interest later. College loans can be deferred until after you graduate so if you have no car payment and no college payment while in school, that will take a lot of the pressure off of you so you don't have to work as much just to make ends meet and can concentrate on studies better. If that cool car is a good dependable one go for it. Then you still have $3500 in the bank for college.

I had about $2000 and still got aid. As far as having a little fun for the senior year I also completely understand. I spent about $1000 during a senior cruise but I do not regret it one bit. It was one of my funnest experiences and I did save the other $2000 so I didn't feel guilty then or now (8 yrs later)

Answer 2

Unless you're some sort of ace race car driver in training, I'd say that college is the better investment.

Answer 3

Do NOT do what the first answer says and lie about having the money.  If they do check it out and find out you hide a couple of thousand dollars you could potentially loose all types of aid for falsifying the report.  You could also be charged with fraud, because that is what you would be doing, knowingly hiding funds from the federal government is not a good idea.  

Me personally, i would take into consideration what aid you will be receiving, if you don't maintain a 3.0 in college you will likely only be offered loans.  So if you were in that situation, that $8500 would be looking pretty good.  Either way I would go with your mom and talk to a financial planner.  There are various investments which could be used tax free with special incentives.  You could always give the money to a uncle or someone to hold  for you.  Of course you would have to pay them a couple hundred dollars in taxes a year.  

Answer 4

However you only live once not to regret a huge decision in wasting your money and reflecting back on it and kicking yourself for it later on. College of course is a better investment. Those who have stupid cars and no college degree won't make big bucks and survive in the world. It's better off to put your money in your education and then when you make alot of money, you can buy a better car than a freakin used car at $8.500  

Answer 5

I'm not sure your mom is fully aware of college and the potential for financial aid from sources that you may never have to pay back.  What I would recommend is buying a car with SOME of the money, I have a decent car for 2,500 I bought and it's a very nice car about 10 years old.  You could do that, and then save the rest for college.  Financial aid will ask about whats in your savings account, when you file for federal aid, but trust me, it's easy to lie and say whoops I've only got 100 dollars, that's what I did.  If grants and scholarships do not cover it all, you will have to take out loans perhaps, but those are not paid until after you graduate or fall below half-time enrollment in college.

Point being, you are never expected to personally invest money upfront for college.  In the end, you may have to, so it can definitely benefit you to save the money now, and you can use it while in school as well for whatever you want.  However, do not feel forced to do that.  It's your money so its your decision.

Answer 6

buy the car.

you live once.

i recommend a classic american muscle.

a nice Chevy or Mopar.

then you'll be kicking all those imports a**'s

and with $8500 you can buy a nice one with a big block.

or even buy one for cheaper and invest in it.

cause you get equity out of those classic cars.

win win.  

Answer 7

Save the money, don't waste money on a car?