April is Financial Literacy Month – a time dedicated to raising awareness about the importance of understanding personal finance and making informed money decisions. It is also an ideal opportunity to dig deeper into real-life topics impacting teen and adult learners alike, including the financial realities of purchasing, owning and operating a vehicle.
For many, purchasing a car is one of the first major financial decisions they will have to make. A vehicle can provide greater independence, expanded job opportunities and access to education or training – but it also comes with a wide range of ongoing expenses and responsibilities. Beyond the sticker price, car ownership includes insurance premiums, routine maintenance, registration fees and, for most buyers, the complexities of financing. Without a strong foundation in personal finance, navigating these costs and making smart, informed decisions can feel overwhelming.
Vehicle financing, in particular, requires an understanding of several key financial concepts. These include:
- How credit scores affect loan offers.
- How interest rates and loan terms impact monthly payments.
- The importance of down payments.
- Comparing financing options and understanding the long-term financial implications of borrowing money to purchase a car.
Despite how standard auto loans are, many consumers, especially first-time buyers, don’t fully understand how car loans work or how their choices today may affect their financial wellness for years to come. That’s why integrating topics like vehicle financing and ownership into personal finance education is so important.
A well-rounded financial education empowers learners to ask the right questions, avoid common pitfalls and feel confident when making one of life’s most practical and necessary purchases.
To support this learning, we at the AFSA Education Foundation offer three dedicated modules through our free online personal finance program, MoneySKILL, that address the intricacies of vehicle financing, ownership and operation. These modules help learners build foundational knowledge while connecting abstract financial concepts to the real-world scenarios that many will face.
Additionally, we recently introduced three new classroom lesson plans on the topics of vehicle financing and ownership, designed to complement the existing MoneySKILL modules and provide even more opportunities for hands-on, classroom-based learning. All three lesson plans are available for download (for free) in the Resources section of every MoneySKILL instructor account.
For additional support, educators can also access our Understanding Vehicle Financing brochure, which is available on our website.
As we celebrate Financial Literacy Month this April, now is the perfect time to introduce these essential lessons to your students. Whether you’re working with teens planning for their first vehicle purchase or adult learners navigating a changing financial landscape, these resources can support your work with students to build the knowledge and confidence they need to make smart financial choices.
Help your learners drive toward a more financially confident future. Explore our free MoneySKILL curriculum and lesson plans here and other educator tools and resources on our website at www.afsaef.org.
