Although it may seem crass to view our children as investments, there are many parallels. Our children are high risk because they are often volatile, and these characteristics are also true of many growth funds. They also demand time, energy, and money; therefore we often expect a return for our efforts. Some of us expect more from our children than others, but I believe I can safely say their survival, health, and happiness would be a very profitable return in most cases.

So, when my daughter begins to eye cars the same way she notices boys and clothes, I know my investment risk just skyrocketed. I'll spare you my reactions to Cora's new fascination with driving, because most parents probably know how I feel. Instead, I'll focus on investment strategies during the "learn to drive" phase so we might sleep well and avoid ulcers.

The Insurance Institute of Highway Safety (IIHS) states that teen drivers have the highest crash risk of any age group. Fatalities most often occur among sixteen-year-olds, because they are the least experienced drivers and because they believe they are indestructible. Although drinking is a limited factor in teenage car accidents because most teens are prohibited from alcohol purchases, the risk factor rises when more teens are added to any given vehicle. It seems a teen driving a car full of teens might be similar to driving under the influence.

Insurance companies view teenage drivers with trepidation, so insurance rates are higher for teens than for any other age group. However, we can take our cues from insurance companies, as they offer guidelines that help our children struggle through this period of maturity. The main key to maintaining lower accident risk and insurance rates is our own participation from the beginning.

For instance, one approach suggested to the driver's learning curve is the "graduated license" mentality. This concept involves lifting restrictions, including our own participation and presence in the vehicle, as the driver gains experience. There is no possible way to allow our children to fully act or react to every circumstance that may befall them in the future, but we can be the guiding light in normal day-to-day routines. We can also help our children vary these routines to help them learn more responsible behavior. This graduated licensing also includes professional and/or school driver education programs.

Although driver training is good, this education often doesn't affect teen attitudes about socializing and driving. Night driving without an accompanying responsible adult is forbidden in this house for the first few years, because most automobile accidents involving teen drivers happen between 9pm and midnight. If your teen reacts with stunning acts of anger against this rule, you can use my defense, which includes, "When you become hirable and accepted at college and can pay for your own insurance, you can drive whenever you chose in your own vehicle." Driving under the influence is also forbidden. I tell Cora that if "authorities" don't catch her in this circumstance, her mother will. This threat is enough for Cora, but you may need more ammo. Insurance rates play a huge part in this instance.

Let's add mandatory seat belt use to the list of what our teens must do in order to maintain driving privileges. This topic of safety also includes vehicle construction. Insurance rates vary on automobile makes and models, so this helps us decide where lines are drawn between safe versus high-risk automobiles. Teen attitudes toward their "dream car" also vary, and our budgets will dictate these concerns. My opinion is that teens are more careful when they drive a car they prize, so budgets, safety, and desires all deserve consideration. My daughter actually wants a used car (thank you!) so she can add her own decorations (flashback to hand-painted Volkswagen bugs).

The other side to the teen driver coin is the adult driver. We set the example, and the IIHS indicates that lousy adult drivers produce lousy teen drivers. If we tend to race the car through yellow lights, we can bet our bottom dollar that our children will do the same. Perhaps cleaning up our act will attract our teen's undue attention, but we can say we finally realized how valuable our lives are, and how one mistake behind the wheel can change - or end - these lives forever.

Insurance costs may or may not be altered due to initial driving habits, but these practices eventually develop into a personal driving record. A clean record, meaning no speeding tickets or accidents, usually equates to lower insurance rates. Another strategy to lower rates is to discover whether it would be less expensive to add our teen to current policies or to invest in a separate policy. Either way, the insurance company will have guidelines to help keep our "lowered risk" strategy on track.

One incentive involves our teens' grades. If our teens maintain a 3.0 grade point average, their driver insurance rates may decrease by up to ten percent (3.0 GPA amounts to A, B, and very few C grades). Insurance companies believe high GPAs prove one of two things: either the teen is serious about their future, or they cheat. Apparently a teen's driving record will eventually betray their character. Although this monitoring may seem onerous, it seems to work. When I help Cora focus on her grades (using insurance rates as a carrot), her GPA soars and this achievement is reflected in her attitude and confidence. Focus is good, especially when I think about her behind the wheel of a car.

No matter how responsible our teens seem when they learn to drive, the chances they will have an automobile accident within the first few years of driving are extremely high. When we invest our time and attention in this period of growth, hopefully our teens will mature to enjoy the happiness and health we wish them. For me, this is the best investment return imaginable.

Until Next Week,
Linda Goin