The act of budgeting seems for the well-established; however, on the contrary, proper wealth development starts before adulthood. Regardless of where your household is the financial timeline, there are ways to help your high school graduate manage money. If your student recently received their diploma, be sure to review our fiscal planning tips below.
Financial advice for high school students
Preparing for a stable financial future includes creating a solid savings plan. To help your high school graduate manage money, instill the importance of setting aside between 5-10% of their earnings. The practice will give them a benchmark for later accomplishments.
No first job yet? That’s okay. Your responsible grad can prepare for the interview process at home before going to the real thing.
There are a ton of programs that offer advice geared towards recent graduates or high school students, yet the most impactful lessons come from examples set by the home. Factors include not only saving, but also investing, budgeting, and establishing credit.
1. Establish the first bill
Whether it’s a food expense or paying rent for their room, create a reasonable bill that they can manage. The household should work together to choose an amount and due date, as well as consequences for non-payment.
2. Give a course on credit
Many traveling on the road to adulthood do not know when they should sign up for their first credit card. Additionally, most recent grads understand very little about the credit process. Giving a crash course on the basics of using credit wisely will give your student an edge. At the same time, you can teach them how to get involved with their credit score to self-monitor for mistakes.
3. Open your checkbook
To assist your grad with financial planning, we suggest opening your checkbook. Not to lend money, but to provide insight on how you pay the bills. Your previous student should see how accounts fluctuate depending on expenditures, and they should also analyze the way you budget for it.
4. Encourage ambition through a side hustle
Does your grad have an above-average skill such as math intuition or translating? Why not let them contract for skill-based payment? Side hustle opportunities are everywhere. Assist them in researching platforms such as Upwork or Task Rabbit to become a self-employed entrepreneur.
Let your high school graduate manage money wisely through practice
Financial fitness requires repetition. Not only should your high school graduate manage money by routinely budgeting, but also by being aware of their complete monetary footprint. Regular study of their income and expenses will make keep them on track with their accounts, both now and well into the future.