Setting Your High School Graduate Up for Financial Success

As parents, one of our primary goals is to ensure the future success and well-being of our children. When it comes to financial success, early planning and guidance can make a significant difference in their lives. As your high school graduate prepares to step into adulthood, it's crucial to equip them with the necessary knowledge and skills to navigate the world of personal finance.

Here are five key strategies that you can do to set your alum up for financial success.

Financial success begins with a strong foundation in budgeting and saving. Encourage your graduate to create a budget that outlines their income and expenses. Help them understand the importance of living within their means, distinguishing between needs and wants, and setting aside a portion of their earnings for savings and emergencies. By introducing these habits early on, you will help them develop a responsible and sustainable approach to managing their finances.

As your teenager enters adulthood, they may be enticed by credit card offers. Educate them on the responsible use of credit cards, emphasizing the importance of paying bills on time, keeping balances low and avoiding unnecessary debt. Teach them about interest rates, credit scores and how their financial decisions today can impact their future borrowing abilities.

Teach your alum about the power of investing and the potential for long-term wealth accumulation. Introduce them to concepts such as compound interest, diversification, and risk management. Encourage them to start investing early, even if it's with small amounts. Consider opening a retirement account, such as an Individual Retirement Account (IRA), and explain the benefits of long-term saving for retirement.

Financial literacy is a vital skill that will serve your high school graduate well throughout their life. Encourage them to read books or take courses on personal finance. Point them towards reliable online resources and tools that can help them understand topics such as credit scores, loans, taxes, and investments. By arming them with knowledge, you empower them to make informed financial decisions.

Advise your high school graduate about the significance of pursuing higher education. Whether it's seeking a college degree, vocational training, or apprenticeships, higher education can open doors to more job opportunities and higher earning potential. Discuss various options and guide them in making informed decisions about their educational path. Additionally, teach them about the potential financial significance of student loans and the importance of managing them responsibly.
By implementing these strategies, parents can play a pivotal role in setting their high school graduate up for financial success.

Pacific Service CU has everything you need to get your graduate headed down the right path, including free financial education modules and counseling, starter Visa credit cards and free checking accounts. We’re here to help you set your graduate on the path to financial success. For more information, visit www.pacificservice.org or call a member service representative at (888) 858-6878.