Simple Tips on how to Manage that Recent Graduation Gift

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Graduation is an exciting time of the year, it's also a great time for new grads to start investing in their future.

Submitted: May 23, 2018

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Submitted: May 23, 2018

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It’s graduation party time and lucky teens are likely to experience an influx of cash from family members and loved ones offering their congratulations.

That money can either be thrown to the wind with temporary summer fun or it can help a recent grad propel to a brighter future. While it might be tempting to spend all of the gifts on vacations or other splurges, there are some things to consider first.

“Learning the importance of saving and only buying things which you can afford is an important part of life,” said Mick Manley. “Whether this means encouraging your children set aside a small amount every week to buy something they will need, or, longer-term planning for a larger purchase. Learning to save is a critical skill that needs to be learned as early as possible.”

The following are some basic tips on how teens can manage their recent graduation gift:

  • Put Some into Savings-This is a perfect opportunity to set up a savings account and begin to save for the future. For high schoolers, it’s important to remember that throughout college and all of life there will be plenty of expenses that might tempt one to drain the main savings account. Use a separate savings account for non-necessities.
  • Prepare for the Next Step- If a grad is moving onto college, there will be plenty of costs associated. There are books, living expenses, and of course tuition. Use some graduation money to offset those expenses to set up for a more manageable financial future.
  • Pay Off Any Debts- If graduating from college, there has most likely been debt that’s incurred. Whether it’s student loans or credit cards, the influx of cash from graduation can likely make a dent. Using money to reduce student debt can really help long-term.
  • Consider Investing- Investing might sound intimidating at this time, but consulting with a professional can really help through the process. If there’s enough left over after paying off debts and putting some in savings, making even one investment can be a smart move.


© Copyright 2018 Mick Manley. All rights reserved.

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