Graduating college can be a stressful time filled with anxiety of beginning a new career and finding a place to live. Along with these stressors comes the burden of money management. This new found responsibility of having to pay bills, student loans and other expenses may make it seem tough for your clients’ graduates to keep a healthy pocketbook.
Your clients look to you for financial advice in all aspects of their lives—including their children. To help you keep their spending and saving on track toward financial stability, feel free to share some money saving tips we have gathered for you below:
Although it may seem monotonous, this is one of the most important steps in managing money. When helping the recent grad develop a budget, make sure it has enough money aside for bills, rent and groceries.
Afterwards, encourage them to divide a portion of their paycheck into a savings plan, and leave the rest for activities or things they want.
There are many benefits to budgeting, one advantage being that it helps individuals stay focused on long and short term goals.
Instead of eating out every night, suggest that they make a menu for the week and go grocery shopping to cut down on costs. Advise them to make the menu ahead of time so they aren’t left making hasty decisions. This not only helps with saving money, but can also help ensure a healthier, well-balanced diet. If the graduate likes the social aspect of eating out, suggest they invite friends over for a dinner party.
Encourage them to carpool with their new coworkers, alternating who drives every other day. This will cut back on money spent on gas, as well as wear and tear on their vehicle that could lead to costly repairs down the road.
Carpooling not only cuts down on an individual’s carbon footprint, but it’s also a great opportunity to create friendships and bond with coworkers while saving some money.
One of the most important things to remember is life’s unexpected moments. Make sure the recent grad puts money aside every paycheck for when an emergency occurs so they aren’t left unable to cover expenses they normally would.
When budgeting for an emergency fund, remind them of necessities such as housing, food or other entities needed to survive. Make sure they understand that not a lot needs to be put down at once. Consistently putting a little away every week will do the job.
Money management is a major key in the real world. Teaching your clients’ graduates how to manage their money efficiently will not only help them learn and grow, but it will also let them know that they can rely on you when it comes to financial advice if they decide to invest.
These money saving tips can help you start recent graduates off on the right foot, and help them start their journey toward financial stability. Additionally, being financially literate is an important quality to have, and will help them further down the road with future endeavors.