Graduation is quickly approaching. As a parent, you’re likely doing one of three (or maybe all three) things. Sitting back wondering where the time went, planning a graduation party, and last but not least, helping your graduating senior firm up their plans for the coming year.
Let’s add number four: providing your child (now an adult!) with sound financial advice as they move on to the next chapter of their life. This should include how personal finance works, budgeting and prioritizing spending, creating an emergency fund, insurance options, and just simply being smart with their money. Help your kids take responsibility for their finances by starting with these three steps.
Make a budget. There are a lot of ways to make a budget to keep an accurate account of income and fixed expenses and also build savings. So, whether it’s an app, accounting software, or a paper journal, help your grad find the budget tracking system that works for them, so that they will stick with it.
Be cautious with credit. Credit is a useful tool, but only if it’s handled responsibly. Help your son or daughter find a credit card with the best rate and benefits for their needs. They will receive numerous offers for credit cards, so it’s also important that they understand how signing up for too many credit cards just to get discounts or giveaways is a bad idea. Since many of these cards have high interest rates and low limits, using them makes it very easy to fall into the cycle of never ending credit card debt.
Build a good credit score. Perhaps the most important of all is how to manage their credit score. Our young adults need to know how crucial that number is to the interest paid on loans, how it effects the hiring process, or even the simple things like a cell phone contract. It’s safe to say that every financial decision he or she makes after walking across that stage will impact their credit score.
No matter where the future may take your graduate, they can always count on The Bank of Gillette to be here to help get them started. From opening their own checking and savings account to getting into a reliable vehicle, we are the sound choice in their financial future. Local makes the difference.
Congratulations to all our 2019 grads! And, mom and dad… here’s a virtual tissue!