How To Know If A Meeting With A Financial Advisor Would Benefit A College Graduate


If you are looking for a gift for a graduating college student, you might look into several long-lasting investments that will help them start their life on solid financial footing. You have many options with varying price ranges including CDs, bonds, stocks, and pure cash. One gift that some college graduates might benefit from, but is often overlooked, is a planning session with a financial advisor. While a two or three hour session with a financial advisor may not be the most glamorous of gifts, it is a highly beneficial gift that could help put the recipient on the correct financial path for their future. But how do you know if your college grad will benefit from this type of gift? Here are some situations when it is appropriate to give the gift of financial planning and other situations when you should opt for something else. 

Your College Graduate Is Receiving Access to a Trust 

If you know someone who is gaining access to a trust fund that has been set up for them or is receiving a large lump sum of cash as a gift, you may want to give an initial consultation with a financial planner as a companion gift. Financial advisors can help a young person figure out the best way to diversify their portfolio and which risks are worth taking while they are young and have years of potential income in front of them. 

Your College Graduate Is Entering a High Paying Field 

If your graduate has secured a well-paying job and will have access to a large disposable income that they can begin investing, it is time for them to meet with a financial advisor. The advisor can suggest which retirement funds to open and where to invest extra income as it becomes available. 

Your College Graduate Has Significant Debt 

69% of college seniors have student loan debt, which can be a significant burden for graduates just starting in their career. However, if your graduate has debt and little access to disposable income, it is a better idea to spend your money on something more immediately useful than an appointment with a financial advisor. Financial advisors usually specialize in investing money wisely rather than how to get out of debt. 

You may offer to pay one of their student loan payments or purchase a book on monthly budgeting and saving techniques.  

Your College Graduate Will Be Able to Save or Invest Less than $500/month 

While $500/month may seem like a large investment for a recent college graduate, it is a relatively small amount compared to the costs of meeting with a financial advisor. A more appropriate gift would be a book about investment strategies and a few shares of a solid stock. 

Your College Graduate Wants to Start Their Own Business 

If your college graduate wants to start their own business or work for a nonprofit cause, it is important for them to learn how to plan for their business and personal needs. It is not always necessary for them to visit a financial advisor until their business has been funded, but a holistic financial advisor may be able to help them figure out ways to access funding and meet their goals. 

While the gift of a consultation with a financial advisor can be helpful, it is important to realize that many graduates who do not have access to large amounts of investment money may be better off with basic financial counseling and budgeting skills. You may want to save the meeting with a financial advisor for when the recipient of your gift is taking their next big step, such as getting married or buying a home. 


3 April 2015

never too early to teach kids about financial planning

I have worked hard to teach my kids the true value of a dollar. My kids know very well that financial security only comes with a lot of careful planning and good decision making. At what age do you begin teaching kids about financial planning? Is there anything that you can do to ensure that your kids know and understand the importance of learning about the true value of a dollar? Our family's blog will help you gain a good understanding about teaching kids about money and how to prepare for their future lives as adults raising a family of their own.