A new study conducted by the insurance company Allstate has found that sixty percent of American parents whose children hold drivers' licenses say the economic downturn has led them to cut back on driving expenses, including buying cars for their teens.
Not surprisingly, income is a factor in spending and saving decisions.
Nearly three-quarters (72 percent) of parents in households earning less than $30,000 per year say they are saving or spending less on their children's driving, while just one-third (32 percent) of those in households earning more than $75,000 say the same.
Interestingly, among parents who already have a child with a driver's license, 73 percent say their child has their own car, while another eight percent say their child shares a car with a sibling.
This rate of teenage car ownership is considerably higher than what parents experienced when they were first driving (just 48 percent had their own car or shared with siblings), and also much higher than what is expected among parents whose children do not yet have a license (just 48 percent expect their children to have their own car).