6 essential money skills for grads

Congratulations, you’ve graduated high school! Independence is so close you can taste it. But, before you strike out on your own, there are a few things you should know about money that could make the difference between financial success and living with your parents until you’re 30.

Create a spending plan

First things first, you need to create a budget. No matter where you go or what you do in life, this is a basic skill you need to learn now. Think of your budget as a spending plan – it’s not meant to be a killjoy, it’s a map that will help guide you to your financial goals.

If you’ve never created a spending plan before, enlist the help of a financially responsible adult or find a basic free template online. If your parents are going to help you financially while you’re in school, sit down and do this with them.

Start by determining the income that will be available to you. Obviously, this includes whatever you earn, but if you’re headed to college this may also include parental aid, scholarships and grants.

Next, assess your expenses: tuition, rent, food, transportation, health insurance, etc. This may be an eye-opener – you may want to see what scholarships are still available or work more than one job this summer. Subtract your expenses from your income. Save and invest the difference – more on that in a minute.