The Path to Financial Freedom Starts Now: 4 Financial Tips for Your High School Graduate
We would like to congratulate the 2023 graduating seniors and wish them luck in pursuing their goals and dreams. Graduating high school is an important life milestone as young adults navigate new responsibilities, which may seem overwhelming and hard to navigate. Helping your graduate feel confident and educated in the different areas of adulthood can relieve this stress. One critical area is finances. If your student was not exposed to a personal finance class, they may feel disadvantaged. We have four financial tips for your child as they enter adulthood:
Cash vs. credit: As the world continues evolving digitally, most people rely solely on debit or credit cards as payment. Some may find that the ease of swiping a card can make spending more tempting. We recommend consistently checking bank statements or online banking to track purchases. Avoid accumulating debt by opting out of making purchases with credit. Using credit without a plan to pay it off immediately or quickly can result in high-interest payments. Save up for the item and use your debit card instead.
Budget: When we hear the word budget, we tend to think about the negative restrictions that come with that. In reality, budgeting allows you to create a plan with your money, helping you become financially free. By budgeting, you can pinpoint areas of overspending, ensure bill due dates are met, and put money aside for the things you want.
Emergency fund: It is crucial to be prepared for those “what-if” moments in life. An emergency fund creates a financial safety net if something unexpected happens, such as car issues, injury, or work displacement. An emergency fund allows you to focus on the issue and rectify the situation instead of stressing about the financial burden.
Compound Interest: Choosing a deposit product that will accrue interest on your savings is a great way to make your money work for you! Compound interest is one of the best ways to increase your savings. Think of it as earning money on the money you already have. Follow the link to learn more about compound interest.
The path to financial freedom starts now! If you or your graduate need help with any financial topics, we are here to help! Contact our certified financial coach, Carrielyn Reynolds, at email@example.com or (207) 660-6267 to schedule an appointment.