By Mai Nguyen-Tran

For nieces and nephews that are just graduating college it is always recommended to stay on top of finances, whether they have a job with steady income, student loan debt, both, or neither.

For college graduates who have a job lined up after school, it is easy to get excited and use their entire paycheck for disposable income. However nieces and nephews need to understand the importance of saving and setting budgets. Using budgets effectively can help save and plan for current and future financial goals. Budgets should include various amounts for daily expenses (groceries, gas, etc.), as well as amounts to pay off any loans and even an amount for discretionary spending (restaurants, movies, etc.).

Building credit can be tricky. If your nieces and nephews do not pay off their cards their credit score will be impacted and they may have to pay a hefty interest rate. I recommend first finding a credit card with low interest rates. http://www.creditcards.com/ is a fantastic site to compare credit cards. After choosing a card, advise your nieces and nephews to use their card regularly to help build their credit but to be extra cautious about paying off their bill and paying it on time.

There are so many great apps that help keep track of financial goals, budgets, etc. Mint is one of my favorites. The app sends me alerts if I’m almost over a budget or if I have a bill due. Most banks also have their own apps. I would recommend downloading these as well in order to track spending and verifying if these amounts are correct. Just being aware of incoming and outgoing cash flows is a powerful way to stay on top of finances.
 
Mai is a Junior Analyst at Francis Financial, where her role is to support the team in client financial management, planning and portfolio investment. She is currently enrolled in the New York University School for Continuing and Professional Studies and is working to obtain her Certified Financial Planner (CFP®) designation.

Photo: Will Folsom via Flickr cc
Published: April 30, 2014