The National Association of Colleges and Employers projects 1,882,000 students will graduate this month with a Bachelor’s degree in hopes of landing their first real job and heading into the next stage of their life. This is an exciting time for both the parents and their adult children as this new life stage can provide many opportunities for all.
As parents, you are aware of the financial concerns your children should be considering. Have that discussion with them soon. Following are a few things to review with them.
Provide Budgeting Resources
Suggest they make out a budget. There are many things they maybe haven’t had to pay for in the past but now do. Cable TV, internet service, utilities, car insurance, rent or mortgage, auto loans, student loans, cell phones, food, and other miscellaneous items that you always took care of. You may already have a rough idea what these things cost. This is an opportunity to empower them with enough education to make an informed decision. Once they understand their income, established debts, and options, they’ll be careful to choose an affordable place to live. They will also be more cautious with their miscellaneous spending which will save you from having to provide that security.
Help Make Their Dreams a Reality
What are your son or daughter’s dreams? To own a car? Buy a house? Get married? Have children? These things all have one thing in common -- a price tag on each one and planning for them is important. One of the biggest financial mistakes people make is not starting early. Time is on your side when you start early. Encourage them to set aside money to achieve these dreams. For example, a small amount of money set aside every month can add up quickly and become a down payment on their first home.
Talk to Them About Life Insurance
Life insurance is the foundation to any financial plan. Owning life insurance can reduce the burden placed on others if something should happen to you. How much and what type of coverage can depend on an estimate of final expenses, current financial obligations (debt), and anticipated financial obligations (the cost of raising a family, for instance).
Purchasing life insurance at a young age can save you money in the long run. It is important to talk with a Western Fraternal Life agent to fully understand the options available to you and your family.
For more ideas on getting a good start for your graduate, call your Western agent or representative at 877-935-2467.
CLU, CRPC, CLTC Sales and Marketing Manager
Call 877-935-2467 to speak with a Western Fraternal Life Representative.