Open Letter to a High School Graduate

Money, Matter, and More Musings will be featuring some guest bloggers while I am on vacation for the next few days. This is the first of such guest posts by PT @ Prime Time Money. More information on PT and his blog is available towards the end of this post.

My brother-in-law is graduating from high school this week. Naturally, I reflected back to my own graduation, how glad I was at the time to be finished with high school, and how excited I was for college and the future. I also thought back at how naive I was in regards to my personal finances. So, I thought I would draft a letter to all the young people graduating from high school this spring and provide some practical advice geared towards their personal finances.

Dear High School Graduate,

Congratulations on your accomplishment! You should be proud. Newton D. Baker once said, “The man who graduates today and stops learning tomorrow is uneducated the day after.” With that, I offer you these words of advice for your finances as you continue on your journey of learning.

Save. Save a percentage of every dollar you get, no matter if it’s given or earned. I know. I know. You’ve heard this before, but I promise you, along with getting your advanced degree, this is one of the most important things you can do now to secure your future. You may not be earning much over the next few years, but very little is needed now in order to have a big impact later. It’s true that there is more time to save later, but your saving will never be as effective as it is right now. So, if you haven’t already, begin saving and make it a part of your normal routine.

Understand the Cost of College. I really want you to understand what it will take to pay for college. Most of you will either get scholarships, student loans, or some combination of the two. You may not stop to think about the true cost or to fully understand that student loan debt. Please, do not take on more student loan debt than you actually need. You’ll only end up blowing the extra money on “stuff” and food. Lastly, don’t just sign the loan papers and move on. Sit down with someone who can fully explain the debt you are getting into and help you to visualize your future with this debt. Believe me, fully understanding this transaction will do nothing but cause you to apply for just a few more scholarships or grants.

Be Careful with Credit Cards. Now that you’re a responsible member of adult society, the credit card companies will begin soliciting you. Don’t listen to them or their sales pitches. Seek out trusted advice, understand the ramifications, and get a card (for emergencies) on your terms. When you do use the card, use it with the knowledge that you will pay it off the following month. Never view the card as a way to finance your livelihood, and save the big purchases (car, flat screen TV, etc…) for later in life, when you’ve saved for them.

Find a Mentor. There’s always someone else out there who has been through it. No matter how smart you think you are, you can always learn something from others. Find someone stable and successful that you admire and pick their brain for every financial step you take. You will get ahead much quicker by learning from the mistakes and successes of others than by always trying to do it on your own.

Congratulations again on your success thus far. I wish you the best in your future and finances.

Sincerely,

Prime Time Money

About the author: PT is in his early 30s living in Texas where he’s lucky to be married to a wonderful wife who, by the way, worked her way through college. No kids yet, but they have a house on the way, and a fat cat named Larry. Catch PT lamenting about his high school and college years (and all things personal finance) on his blog, Prime Time Money. He can be reached at ptmoneyblog at gmail dot com. Check out his series of posts titled “10 Things That Bring Success in Personal Finance” (Feed link for Prime Time Money)