Smart Gifts for the College Graduate

It’s graduation season and college graduates are heading out into the working world. The first paycheck can feel so impressive, until you realize how much everything costs.

Got a graduate in your life? Here is some advice for giving them a gift that keeps on giving: a good financial start.

One of the best gifts you can give your college graduate is some financial education.

· If you haven’t already, sit down and take a look at their college loan payment plans and go over their budget and talk about “wants” vs. “needs.”

· Get them started on a lifetime habit of saving. Talk with them about how they can take the money they’ve received from family and friends and open a Roth IRA or mutual fund to really watch it grow.

· Don’t forget that important “emergency fund.” Sudden additional expenses can really sink someone just starting out in their career.

Practical gifts can start them off right.

Parents and other close family members can help give them a great start by covering some necessities while they’re getting on their feet:

· Consider covering their car insurance or public transit cards.

· Help them replace those college sweatshirts with some sharp work clothes.

· Give them a hand up in their profession by paying dues for a professional association or networking group.

· And of course, any student loan payment assistance you can offer will be appreciated far more than another iTunes card or gadget!

A chat with a financial advisor

Not sure your child wants to take your advice? Consider paying for a visit to a professional financial planner. They can give an objective look at all the “must haves” in your graduate’s budget and help whittle them down.

And, they can help your graduate decide among all the different savings options out there, to find the one that’s best right now.

Helping your graduate make smart financial decisions is the best possible gift you can give.

Leo Palana manages the Mercer Island branch.