This week’s theme on the Retirement Quick Tips Podcast is: Setting Up Your College Grad For Financial Success
Today…
Many college grads are more concerned with finding a job, buying a car, and paying down student loans then they are with saving for retirement. Those are all important goals, but the problem I see is that because retirement is still a long way off for your young adult child, saving for retirement is often dead last in their priority list.
And then they’re 40 before it occurs to them to start saving for retirement. And it’s just not enough time for most. So start early, save consistently is the goal.
As their parent, you can help them prioritize the right goals and incentivize them to save for the long-term.
A couple ways to go about doing that:
- Gifting a few shares of a stock they’re interested in. My 5 year old loves Tesla cars. Don’t know why, he just does. Every time he spots one on the road (which is a lot) he shouts Tesla! Maybe for his 6th birthday I’ll buy him a few shares of Tesla stock :)
- Same rules apply for college grads. Whether it’s their favorite Starbucks coffee, car company, or they’re in love with all things Apple, it’s a great way to get them interested in investing.
- Better yet, match their IRA contributions and savings they’re able to sock away if you can afford to do that. 2023 Gift limits for these matching contributions allow you to provide matching contributions up to $17,000 per recipient, or $34,000 if you’re married and giving as a couple.
That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.
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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance