Graduation season means parents out there: you might be thinking of getting your grad a gift. But before you do, you need to enter the Financial Fitness Zone.
For the graduates themselves, now is the time to go from college student to career-minded contributor to society.
Ah, a new car. What a great gift for that new grad right? Wrong.
Instead why not start off by shooting them a text: “Hey, new college grad…got u a gift…a CD!”
No, not the 80’s greatest hits but a certificate of deposit.
“How about $25 a month? How about $50 a month? Starting out small saving something is better than nothing,” said Josh Fadel with Desert Schools Federal Credit Union.
Now is actually the perfect time to save because of two words: compound interest.
“It's that powerful that if you just start small now, it really can make a huge difference later in life.”
In fact, Josh says if you save $1,000 a year from age 20 to age 30 and then stop altogether, you’ll have $100,000 when you retire.
So forget the so-called “fun” gifts and go for the financial products like IRA’s and mutual funds.
“If you're willing to commit to putting that money aside and knowing that I'm not going to take it out…that I'm going to really use this for my future, then you can do that today,” Josh said.
For more advice on how to make the most of your money, make sure you check back with the Financial Fitness Zone.