When students picture their first car, they picture the sticker price and the monthly payment. Few picture the roughly $225 a month for insurance and $138 a month for maintenance that come with it. Together, those two costs now run about $363 a month, close to 50% of the average monthly car payment, and that is before gas and taxes.

In the MarketWatch article, These Hidden Costs of Car Ownership Are Giving Buyers Sticker Shock Long After They Leave the Dealership, Genna Contino shows that car insurance costs have climbed about 55% since 2020 and maintenance and repair costs about 47%, both faster than car prices themselves. She also explains how buyers can budget for the full cost of ownership before they sign.

[Image credit: MarketWatch photo illustration/iStockphoto]

Click these links to access the article, student guide, and answer key

MarketWatch Article | NGPF Student Reading Guide + Answer Key

Reading time: ~7 minutes (1,221 words)

Discussion Questions

Use these to spark conversation after students read:

1. The article says insurance and maintenance now add up to roughly 50% of the average monthly car payment. How might knowing this change the way you approach budgeting for a car someday?
2. The article says some lower-income Americans are being “pushed into the market just out of necessity,” buying a car they technically can’t afford because they need it to get to work. What do you think should be done to address this?

This reading pairs well with NGPF’s Buying a Car Unit.

This resource was created through NGPF’s partnership with Dow Jones, bringing high quality financial journalism into personal finance classrooms across the country for free.

Every WSJ Wednesday, NGPF will highlight a classroom-ready article, video, or data crunch resource from the Wall Street Journal, MarketWatch, or Barron’s, including a student guide, discussion questions, and an answer key.

About the Author

Yonathan Tadesse

Yonathan is a Dallas-based Curriculum Designer at NGPF with 12 years of experience as a high school math, college transition, and financial literacy teacher. An award-winning educator, he has a track record of launching innovative programs at the high school level that expand access and opportunity for students. He is a graduate of Emory University and is passionate about advancing financial education for all students. Outside of work, Yonathan loves spending time with his wife and two kids, working out, playing chess and poker, and learning new things.

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