Parental Advisory: Money Matters

Surprise them by asking for the best gift anyone could give: knowledge. Meet family matters with money matters and get the inside scoop on the best ways to handle new responsibilities as an adult. Here’s a list of financial advice you should seek from your parents or older family members:

401 (K)

Youth is no excuse for putting off thinking about your future and investments. A large part of your financial planning from here on out will include your 401(k) retirement plan. Even if your employer manages your account, you usually have a say in how your money is invested. Establish realistic expectations and find a professional for reference. You don’t have to be thinking of kids and picket fences to get the wheels in motion for your future finances. You may even get some brownie points from mom and dad for being ahead of the curve.

FILING TAXES

This season comes around every year and it’s always a huge topic at election time. I’ll go ahead and give you a head start by telling you the deadline – yes there’s a deadline silly; April 15th. Knowing the deadline is the easy part. Be prepared to see your financial state in it’s rawest form because decisions must be made. Should you itemize deductions? How should you file as a freelancer? Can you deduct my student loan interest? Are you able to claim myself as an independent? These are just a few questions parents are happy to answer to get you a few steps closer to financial independence. If you haven’t already had this talk with your parents, go now!

CREDIT SCORE

Treat your credit score like your GPA on a 4.0 scale. This will follow you as long as you are alive and will affect your ability to live the kind of life you want regardless of the numbers on your paycheck. There will come a time when all you have is your credit score to show who you are in this country, and those missed credit card payments won’t paint a pretty picture. You’ll be more of a caricature when you want Picasso recognition. You should know that credit cards are not the only way to establish credit and your parents know exactly what I mean. It’s time for a family meeting.

No matter your economic status,  ask someone you trust about the points above. Why not ask some of the wisest people you know about tips and tricks for financial success. You’ll be surprised at the benefits of starting early.

[divider]Undergrad Success would like to thank The Culture LP for this article