Spring is a time of transitions. One of the major spring milestones is graduation.
My parents were both frugal, but I did not internalize their values and habits until I made mistakes of my own.
When I graduated from high school, I was expected to go to college and didn’t realize any other path existed. Upward mobility was tied to receiving a college education and being a hard worker. But college is not for everyone, and there are other ways to make a living. Nobody was talking about increasing your human capital and the need for lifelong learning. As our newly minted high school and college graduates move on to the next phase in life, here are some things I wish someone had told me when I graduated.
Graduation is a great time to get a start on building a firm financial foundation.
An essential first step is to develop good financial habits. Basic skills include knowing how to create a budget, saving for emergencies, paying off student loans, building credit and investing wisely.
It’s also crucial to understand your financial situation and track expenses.
Many banks provide a way to consolidate your accounts and track your income, expenses, savings and investments. These online tools are intended to create awareness of your spending and allow you to set priorities and show progress toward debt repayment or other goals.
Life is a continuous journey of personal growth and maturity. One goal for long-term personal and financial success is building your personal capital. For example, invest in education, training and skill development.
Here are some more examples of ways to increase personal capital:
Lifelong learning: A diploma or degree isn’t the end of learning. Expand your knowledge and skills, both formally and informally. Personal computers and the internet didn’t exist when I graduated from college.
Emotional and people intelligence: Develop strong interpersonal skills, including empathy, communication and conflict resolution. These skills are crucial for building relationships and navigating various situations in life.
Success and failure perspective: Don’t let success go to your head, and don’t let failure define you. View both as learning opportunities and parts of the journey.
Embrace challenges: Don’t be afraid to step outside your comfort zone and take on new challenges. Growth often happens when you push yourself.
Be courageous: Life will present obstacles, but be courageous in the face of adversity. Embrace the unknown and believe in your ability to overcome challenges. A friend once wrote on my aspirations and goals sheet to “do one thing that scares me every day.”
Pursue your passions: Find what you’re passionate about and pursue it with enthusiasm. This can be a career, a hobby or a way to make a difference in the world.
Be kind and compassionate: Treat others with kindness and empathy, even when they disagree with you or when things are difficult. You never know what that other person might be experiencing. Make a positive impact on the world around you.
Remember your values: Stay true to your values and principles throughout your life. This will help you make decisions that align with your beliefs and aspirations.
Going out into the world can be scary and confusing. Whatever you might be graduating from—be it high school, college or trade school—understand some individuals know exactly what they want to do, while others might struggle to find their place in the world.
I didn’t find my ideal career until I was in my 40s. Wherever you are on your lifelong journey, carve out time to work on the financial building blocks as well as your personal capital. Making smart choices about money and careers is not a guarantee you will become financially wealthy, but without those two foundations, life might be more of a struggle, both personally and professionally.
Hahn is a certified financial planner and owner of WWA Planning and Investments in Columbus. She can be reached at [email protected]. Send comments to [email protected].
