From College To The Real World - Tips For Parents Of Recent Graduates

Did your college student become a college graduate this spring?  Now what?  If your recent graduate is now struggling to adjust to the “real world” and balance student loans and debt here are a few tips to get them on the right path:

• Take this opportunity to teach!  You know you child better than anyone else.  If you feel they are lacking in basic financial knowledge, don’t wait any longer to sit them down and teach them the basics.  Many students nowadays are graduating without knowing how to write a check, or how interest works on a loan or savings account.  Even if your child knows these financial basics, understanding finances is going to be very valuable as they enter the workforce.  At Honor our Account Specialists sit down with members all the time to teach these very things.

• Cut Down The Credit Cards – If your child has slipped into the credit card trap that many recent graduates do, consolidation is key.  Credit card companies target this age group, so when you start to see the number of “irresistible” credit card offers addressed to your child increase it is no coincidence.  Having just a few cards, like Honor’s Visa, will make credit card debt more manageable and easier to work down to a zero balance. 

• Plan ahead for student loans – While most students will receive a 6 month grace period from the date they graduate to start paying off student loans, don’t wait that long to make a plan.  Addressing the situation of exactly what the monthly payment will be and a plan to get that balance to zero will make that first bill a lot less stressful.

What other questions does your recent graduate have entering the real world and what solutions have you offered?  Follow Honor Credit Union on twitter @honorcu and let us know using #askhonorcu!