Teaching Life Lessons
What’s one of the best gifts to give a recent college graduate? It might be the gift of financial advice. Among the suggestions:
Insurance – Make sure they have health, car, homeowners' or renters' insurance. Consider disability and life insurance, too.
Credit cards – Many graduating seniors already have significant debt before their first job, thanks to the use of credit cards in college. It may be difficult to pay off credit cards and college loans on a starting salary, but it’s a worthy goal.
Saving for retirement – A recent grad looking forward to 40 years or more of work might not understand the importance of starting an early savings program, but a compound interest chart may help. That $5,500 (current maximum for most taxpayers) contributed to an IRA or the funds put into an employer’s 401(k) plan – particularly if the employer matches a portion – will grow exponentially. Even more important, it will set the graduate on the path to financial independence.
Philanthropy – Encourage the graduate to select a few favorite charities for giving back. You may even want to provide matching funds, up to a certain amount, to make the graduate’s gifts go further.
Director of Institutional Advancement
The materials contained on this website are intended only to show some ways by which you can make a charitable gift or bequest and thereby minimize federal tax liabilities, as authorized by the Internal Revenue Code. All examples are of a general nature only and should not be applied to your specific situation without first consulting your attorney or other advisers.