I went on CNN Headline News with #lynnsmithtv this weekend to talk about what kind of gifts to give for the college graduate. In my opinion, far too often, senseless gifts are given from both families who have means and resources and those that don’t. So, here are three smart financial gifts to consider for the college graduate and three others for those who want to stay within a $100 budget.
- Get A Budget! @ youneedabudget.com for $60.
- Do you still want the kids to be living at home until they are the age of 30? If the answer is no, then you need to consider teaching them the #1 financial skill in life that is most certainly not taught in college and that is how to manage a budget. Ultimately, they need to learn the real cost for day to day fixed expense, discretionary expenses, taxes, and saving so they can take care of themselves.
- Open A Roth IRA Account
- How important is it to start saving young? You can run the math, but a 22 year old who saves $2,000 a year into an IRA until they are 30 vs. a 30 year old who saves $2,000 a year in an IRA until they are the age of 65 . . . the 22 year old will always have more money irrespective of interest rate. Remember, the college graduate must have earned income in order to be able to do a Roth IRA.
- One Year Of LinkedIn Premium For Job Seekers
- Get to 1,000 connections quickly. Remember, in life it’s not what you know, it’s who you know that will matter. The resume of the college graduate will have higher visibility with premium and they will also be able to do InMails which should help them toward securing a new job.
What should you do if your budget is only $100 or less??
- Coffee Maker
- Kitchen Aid Personal Coffee Maker $79
- Keurig Mini is $99
- Help the college graduate kick the $4.00 a day coffee habit from the day they start out financially.
- Buy A Subscription Service For A Year
- Netflix $7.99 a month- get them off of your household subscription
- A magazine subscription or two could be a good idea. It can give the new graduate good business ideas or home ideas to help them save money.
- We know razor blades and razors aren’t cheap, so you could consider a subscription to the Dollar Shave Club to cut down on the drugstore bills.
- Gift Cards For Their First Apartment
- If the college graduate is going to move into their first apartment, then you could consider just getting them a gift card to WalMart, Target, or Bed, Bath, & Beyond. This could help them get glasses, silverware, bedding, or towels for their first apartment.
This time of year can be a very exciting one for families, but it should also be a time where you don’t lose sight of helping your new graduate make smart financial moves. Paying off their student loan debt would be the ultimate gift, but it may not be in the cards. Consider these six smart money moves to say Congrats!!