What Makes Your Car Safe, Reliable and Affordable

1. What Makes Your Car Safe, Reliable and Affordable • Draw a big car on your flip chart. • Give your car an “awesome paint job” by covering the car with the things that it safe, reliable and affordable. • You can use words or drawings or both. • Make your cars colorful AND informative. • The team that develops the most beautiful AND informative car will win a prize.

2. Safe, Reliable and Affordable Transportation • Balancing safe, reliableand affordablecan be difficult. • Safe = reasonable chance you or others will not be harmed • Reliable = with proper maintenance if needed, your transportation option will work when you need it • Affordable = all costs associated with the transportation option are manageable in your budget • Irrespective of the transportation you chose, having safe, reliable and affordable transportation is a key to your financial future because it connects you to school, friends, family, jobs and so on.

3. Transportation Spending Limits—3 Examples • Chris earns $8.90/hour and works 25 hours per week   • Angelica earns $7.25/hour and works 15 hours per week   • Camden earns $10.50/hour and works 30 hours per week

4. Transportation and Asset Building • Safe, reliable and affordable transportation is an asset—a productive asset. • A productive asset is one that helps you get and keep other assets. • Most importantly, it allows you to get where you need to go to earn money for other assets, get more education and training, or build social capital.

5. Risks and Rewards of Owning a Car

6. Lower Rates and Longer Terms • Lower interest rates mean lower monthly payment. • Lower interest rates mean less interest paid over the life of the loan. • Longer terms mean lower monthly payments. • Longer terms means higher (and sometimes much higher) levels of interest paid over the life of the loan. Visual Aid 6.6

7. Co-Signing for a Loan • Anyone that acts as a co-signor on your behalf is legally responsible for the loan. • If you don’t pay, the creditor (bank, credit union or car dealer) will go after your co-signor for payment. • If you don’t pay as agreed, your credit scores will drop. And your co-signor’s credit scores will drop, too. Remember this if you ask someone to be your co-signor OR if someone asks you to be a co-signor. Visual Aid 6.7

8. Vehicles and the Opportunity Passport™ Matched Savings You can use the Opportunity Passport™ Matched Savings to: • Buy the vehicle • Make a one-time payment of car insurance in conjunction with the purchase of a vehicle • Pay for title and registration fees in conjunction with the purchase of a vehicle You cannot use the Opportunity Passport™ Matched Savings for: • Car repair or maintenance • Driver’s license • Car inspection • Vehicle lease Visual Aid 4.8

9. Instructions for Teach Back in an Elevator • Using the materials in your book, you are going to prepare a “teach back in an elevator” for the car buying process for someone who has never purchased a used car before. • A teach back in an elevator means you have to be quick (90 seconds) with your message and catchy. • Include information about: • Where to buy a car. • How to make sure the car is being sold for the right price. • How to make sure the car is the quality you are looking for and not a lemon. • How much car to buy-affordability of both owning and operating. • You may want to start by reading through the materials in your workbook. • You can make visual aids. • You can be as creative as you want in the elevator, but be sure your presentation can fit within the elevator. Visual Aid 6.9

10. Instructions for Small Group Work, Part 1 • Brainstorm with your small group: • the two biggest potholes or barriers that keep young people in or who have been in care from getting a car. • AND • the two biggest potholes or barriers that keep young people in or who have been in care from retaining their vehicles. • Write one idea per sheet of paper in marker. • Be prepared to present your ideas. Visual Aid 6.10

11. Instructions for Small Group Work, Part 2 • Develop strategies to overcome the obstacle your group has been assigned. • Identify resources needed to implement the strategy. • Identify people that can help. • Write your strategies on a flip chart following the worksheet contained in Keys to your Financial Future Step 6.6: Obstacles to Getting and Keeping a Car. Visual Aid 6.11

12. What You Need to Get a Learner’s Permit • You must be at least 15 years old and you must bring the following to the Department of Motor Vehicles to get a learner’s permit: • Proof of legal residence in the U.S. • Proof of legal name—generally, your birth certificate provides this proof. • Proof of your Social Security Number • A completed application signed by a grandparent, a brother or sister over 18 years old, aunt or uncle, the foster parent you are living with, or a social worker or probation officer (if you have your own insurance) Visual Aid 6.12

13. From Learner’s Permit to License • Once you have your learner’s permit you can take driver’s education. • Once you have your permit and have taken driver’s education you may have to: • Practice driving with someone who is older (check your state laws to find out if they must be over 25). • Get car insurance. • Go to DMV and take the written and behind the wheel driving test. • Once you do start driving, you are responsible for all costs associated with driving. • If you get a ticket, you have to pay it or to court. • If you do not pay your ticket or go to court, the judge will issue a bench warrant for “Failure to Appear.” • You can be arrested for this. By not taking care of small problem, you will end up with a big problem. Visual Aid 6.13