Graduating from high school is a huge milestone for both students and families. Whether the next step is college, starting a career, trade school, or another path, this transition comes with exciting opportunities and important decisions. Here are five ways to help young adults prepare financially for the journey ahead:
1. Start Talking About Money NOW
Initiate open conversations around budgeting, saving and responsible spending. Whether it’s managing a part-time job paycheck, setting up a checking account or understanding credit, building strong money habits now sets the foundation for long-term financial success.
2. Build a Basic Budget
Encourage young adults to map out expected income and expenses. For college-bound students, that might include tuition, books, meals and housing. For those starting careers, it may include transportation, rent, or other living costs. A simple budget – like this NerdWallet example - helps avoid surprises and creates confidence.
3. Explore All Education & Career Options
Not every path looks the same and that’s okay. From traditional four-year colleges to community colleges, trade schools, military service, or jumping into the workforce, encourage exploration. Research scholarships, training programs and entry-level career opportunities that align with the teens’ interests.
4. Build a Safety Net
Encourage regular saving…even if it’s a small amount. Having an emergency fund provides peace of mind and helps young adults handle unexpected costs like car repairs or medical bills without relying on high-interest debt.
5. Learn to Use Credit Wisely
Credit cards and student loans can be powerful tools (or challenges!) depending on how they’re managed. Make sure teens understand how credit works, the importance of paying bills on time and how building healthy credit now impacts their future goals like renting an apartment or buying a car.
Institution for Savings offers products and services for every stage of life. From savings accounts to financial education, our team is here to help you prepare for what’s ahead.
High school graduation on the horizon? We award six $20,000 scholarships annually to graduating seniors from Amesbury, Beverly, Gloucester, Hamilton-Wenham, Ipswich, Masconomet Regional, Pentucket Regional, Newburyport, Rockport, Salem or Triton Regional High Schools. Learn more about our IFS scholarships.