Money lessons for the class of 2018
EL PASO, Texas —
Congratulations to the class of 2018!
In this week’s Scoop on Savings, Local Financial Professional Brian Mirau, of Mirau Capital Management, shared some tips to help graduates take control of their finances, and reduce their dependence on the bank, and on mom and dad.
A recent study by Nerd Wallet shows that 80 percent of parents have helped their adult children with day-to-day expenses.
That may not sound like a whole lot, but when you add that up over time, there’s a recent study that was done that shows it can have an impact of more than $200,000 in retirement assets for the parents,” Mirau said.
According to Mirau, budgeting doesn’t have to be painful. A free app like Mint or Nerdwallet.com can do a lot of the work for you.
Mirau suggests that recent grads track every dollar, pay their own debt, give themselves a head start, and to always save for emergencies.
“The average cost of college student debt today is around $34,000,” Mirau said. “Now, if you have student loans, you’ll want to set up a 10-year repayment plan to get this debt paid off.”
Mirau says that once the 10 years is up, you’ll want to make those payments to yourself to save up for retirement.
“You’ve got an opportunity to get a head start,” Mirau said. “Take advantage of company-sponsored 401Ks, set up IRA accounts, so when you get this debt paid off, you can redirect that.”
His tip to parents is to make sure they’re on the same page with their grads.
“Before you just start dishing out money, you’ll want to set limits,” Mirau says. “Set a limit on how much you can support your child…. from just a monetary support.”
According to Mirau, if your grads are going to live at home, figure out how long it's going to be before they should start paying rent, in order to keep them financially responsible.
For help in budgeting, you can check out Mirau's budget-worksheet on his website, at MirauCapital.com.