What to say to your high school graduate (about money)

Sending your high school graduate out into the world can bring up a lot of mixed feelings.  

On the one hand, you’re proud of everything they’ve accomplished. On the other hand, you want to make sure they’re ready to step into their new role as an adult. 

Whether your recent grad is headed for college, trade school, a gap year abroad or straight for the workforce, it’s time to have the money talk. The choices they make now can have a long-term impact, and having an open, honest conversation about money can help them avoid the most common money mistakes that young adults face. But sometimes it’s hard to know what to say. What words of advice will help prepare them for the real world? 

Here are a few talking points you can use to guide your money conversation and help get your high school graduate started on the path toward financial wellness. 

How much help they can expect from you 

Many recent graduates live in a financial gray area where they’re still getting some help from their parents while making their own day-to-day decisions about money. Whether you plan on pitching in for expenses or expect your teen to stand on their own two feet, it’s important to set clear boundaries and expectations around how much help they can expect from you. Discuss what you’ll be able to contribute and set up a system for doing so. 

How to use basic financial tools 

To develop good financial habits, your teen will need both a checking and a savings account — and they’ll need to know how to use them effectively. A Remarkable Checking account, paired with our Ignite Savings, can be a powerful combination to help your teen start saving and practicing responsible money management. A few points to discuss: 

• Setting up autopay to ensure their bills get paid on time. 

• Setting up an automatic monthly transfer to consistently build their savings. 

• Tracking their spending, financial wellness and account balances with MyOCCU Online & Mobile. 

How to budget 

Regardless of how much income your recent grad has — whether it’s a monthly paycheck, stipend or a financial aid disbursement at the beginning of each term — they’ll need to start budgeting their money.  

Help your teen plan a basic budget that covers all their expenses and leaves some room for saving a bit each month. This is also a great opportunity to discuss spending priorities and explain the difference between necessities that must get paid, like rent or utilities, versus discretionary spending on things like food delivery and streaming services. 

How to use credit responsibly 

Indiscriminate charging can lead to all sorts of trouble, but avoiding credit cards altogether will put your teen at a disadvantage down the road when they want to apply for a lease, take out a business loan or buy a home. That’s why it’s important to give your recent graduate some guidance on how to build credit without taking on too much debt. Key points to discuss: 

• What a credit score means and what factors affect it, like making payments on time. 

• How to monitor their credit report for changes.  

• Best practices for credit card use, such as paying more than the minimum payment each month and not charging more than they can comfortably pay off.  

• How to compare interest rates and choose a credit card. 

What to do if they get in a financial pinch 

Young adults need space to make mistakes and practice picking themselves up again. But it also helps to have a playbook for when things aren’t going their way. Talk to your recent grad about what to do if they make mistakes like overspending or forgetting to pay their bills. What are their options if they run out of money? What steps can they take to get back on track? 

Let them know that OCCU is here for them, wherever they go. We can serve as a support and mentor while they’re away from home. Whenever they get in a financial pinch, our team is available to talk through their options and help them figure out a path forward. 

Graduating from high school is a huge accomplishment, and we’re proud of all the recent grads in our community. We wish them all the best as they begin their next adventure in life — and we’re here to support them every step of the way! 

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