Leading your High School Graduate to Financial Success!
August is here! Many High School graduates will start a new adventure and head off to college. What a fun and exciting time; for many, this will be their first experience living independently. As parents, we have guided them through many life challenges, and financial education doesn’t have to be one of them. Here are four ways to help ease the transition into financial adulthood.
Establish an account: Opening a checking or savings account close to home or school can make banking easier. When looking for a financial institution, some things to consider are:
- ATM fees and reimbursement options
- minimum balance requirements
- online/mobile banking
- rewards checking accounts
- other services offered (such as the ability to transfer funds into an account from another account/financial institution)
These considerations will help ensure that your child’s financial needs are met. A credit union may be an excellent option for your college student. Most credit unions offer a shared branching service, which allows you to access your accounts and make basic transactions at any other participating credit union. Visit the following link for more information on shared branching and shared branching locations.
Saving: Establishing good habits for saving money can help ease the stress of managing finances. The following are great ways for your child to achieve financial security.
- Set savings goals
- Have a separate account for saving and checking
- Determine a specific amount to transfer into savings after each pay period
Budget: Finances can be daunting and overwhelming. Creating a budget can help your child organize their income and expenses in one place. Tracking the flow of funds may be eye-opening and lead to better financial decisions. A great resource to avoid account over-drafts is setting up alerts that notify the account owner when the balance is below a pre-determined amount.
Credit: Establishing credit can seem impossible for many young people. Here are some great low-risk options your child can use to start building their credit:
- low interest secured loans
- secured credit card
- authorized signer on parent/guardian(s) credit card
Implementing positive finance behaviors will help pave the path to future financial success.
If you or your child have financial questions, contact our Financial Coach at (207)-660-6267 or email creynolds@newdimensionsfcu.com to schedule an appointment. We look forward to helping you or your child start on the right financial foot!