Tips for parents to help their children prepare for the future

1. Stress the importance of job experience.
Job experience cannot be underestimated in any industry. Competition is thick, and employers expect you to have experience beyond education, even for an entry-level position. Internships are one way to get this experience, but they can be hard to come by and very competitive. Volunteering at an organization of interest is another way to make connections and get experience, but of course this is unpaid. Either way, on-the-job experience will make a positive impression on a potential employer after graduation.

2. Consider job shadowing as another alternative.
Often, shadowing a busy professional takes nothing more than a friendly phone call. Although the student may not actually do any “real” work, they’ll get a little experience, show they’re determined to learn more about their prospective career, and possibly make a few important connections.

3. Set up a fixed allowance while your son or daughter is still in school.
As school ends, weaning children off of the bank of Mom and Dad can sometimes be difficult. It's best to stick to a set allowance and not exceed it while in school. Allowing students to pay some of their own bills and learn about budgeting will give them a better understanding of money management and help them avoid the poor spending habits that can get them in over their heads.

4. Outline a monthly money management system for the future.
Make a budget based on anticipated income and expenses post gradation so your child isn't surprised. Assume the lowest amount your child could earn in his specific field. Next, subtract nondiscretionary expenses from this amount, including taxes, medical insurance, car insurance, rent, utilities and food. Then subtract discretionary expenses, such as entertainment, travel, cable television, Internet fees, etc. Now your son or daughter knows how much things really cost and can be ready to make any lifestyle changes that are necessary.

5. Encourage social responsibility.
Budgeting money for charitable giving is hard to do right out of school. Encourage your student to volunteer for a favorite organization. It is a great way to build a resume, give to those less fortunate and feel good about time well spent.

6. Stress saving even when income is low.
Saving money when you're just starting out can be difficult, but help your grad understand that saving today will help them begin to live comfortably tomorrow. Recommend investing 10 percent of every paycheck for the long-term. If this doesn't work into the budget, try 3 or 5 percent. And remember, set a good example and strive for 10 percent yourself.

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