{"id":3823,"date":"2014-06-01T07:02:58","date_gmt":"2014-06-01T11:02:58","guid":{"rendered":"https:\/\/kerryhannon.com\/?p=3823"},"modified":"2014-06-01T07:02:58","modified_gmt":"2014-06-01T11:02:58","slug":"8-money-and-work-tips-for-my-college-grad-niece","status":"publish","type":"post","link":"https:\/\/kerryhannon.com\/?p=3823","title":{"rendered":"8 Money And Work Tips For My College-Grad Niece"},"content":{"rendered":"
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\"Kerry<\/a>
Kerry and Caitlin
Photo by Cliff Hackel<\/figcaption><\/figure>\n

College graduations are hopeful, exciting, scary \u2026 and, to be honest, somewhat bittersweet. On May 11, I attended the University of Richmond\u2019s, cheering on my 22-year-old niece, Caitlin Bonney, as she accepted her bachelor\u2019s in business diploma.<\/p>\n

As I looked back at how she\u2019d grown into a confident leader and let my thoughts wander forward to the world awaiting her, I felt all of those emotions.<\/p>\n

Caitlin will begin a two\u2013year\u00a0GE Energy Plant Financial Leadership Program<\/a>\u00a0later this year, so she\u2019s off to a solid\u00a0career start<\/a>.<\/p>\n

(MORE<\/strong>:\u00a011 Essential Money Tips for New College Grads<\/a>)<\/p>\n

READ ON FORBES<\/a><\/strong><\/p>\n

Thinking Back, Thinking Ahead<\/strong><\/p>\n

But her graduation got me thinking about the money and work\u00a0advice I\u2019ve given<\/a>\u00a0her over the years and led me to put down in this blog post some new tips for her and other recent grads, now that I\u2019m three decades and change from my Duke University days.<\/p>\n

Caitlin\u2019s\u00a0commencement speaker<\/a>\u00a0was Gayle Goodson Butler, 63, executive vice president and creative content leader of Meredith Corp.\u2019s National Media Group and editor-in-chief of\u00a0Better Homes and Gardens<\/em>. She talked a lot about how things have changed at the school since she graduated there in 1973.<\/p>\n

But after all the flap about the recent ouster of New York Times executive editor Jill Abramson \u2014 who just gave a terrific\u00a0commencement address<\/a>\u00a0at Wake Forest University \u2014 I\u2019m wondering how far women have really evolved in the workplace.<\/p>\n

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(MORE<\/strong>:\u00a0Sheryl Sandberg\u2019s 5 Best \u2018Lean In\u2019 Tips for Women<\/a>)<\/div>\n<\/div>\n

An Ouster That Made Me Cringe<\/strong><\/p>\n

I don\u2019t really know what prompted Abramson\u2019s departure and don\u2019t want to speculate. But I have followed the scrutiny about Abramson, 60, being paid less than her male predecessor and her management style described as abrasive, tough and \u201cbossy.\u201d Talk about gender stereotypes. Argh. All of these things make me cringe.<\/p>\n

\u201cWhat\u2019s next for me? I don\u2019t know,\u201d Abramson told the Wake Forest students. \u201cSo I\u2019m in exactly the same boat as many of you. And like you, I\u2019m a little scared, but mostly excited.\u201d<\/p>\n

Echoing her father\u2019s advice, she told the grads: \u201cShow what you are made of.\u201d I love that message of resiliency for women.<\/p>\n

Butler urged the Richmond \u201cSpiders\u201d to \u201cembrace your bold,\u201d saying she wished that\u00a0she<\/em>\u00a0had been bolder sooner. \u201cTimidity is the enemy of success,\u201d she said.<\/p>\n

Keep getting smarter, Butler advised. \u201cAnything else today is not really a viable option.\u201d<\/p>\n

My 8 Tips for New Grads<\/strong><\/p>\n

So, in that vein of knowledge, I present these eight tips to Caitlin (and her classmates), particularly the young women:<\/p>\n

1. Set financial goals.<\/strong>\u00a0Be conscientious about socking money away regularly, so you\u2019ll be able to get what you can\u2019t have today \u2014 whether that\u2019s a car, a vacation, a house, whatever.<\/p>\n

I set photographs around my work desk of where I\u2019d like to travel or to live one day, for example. That motivates me to save and invest.<\/p>\n

A good friend of mine says she equates saving with freedom. \u201cHaving money set aside gives me the freedom to live my life without fear of debt and to even quit a job if I\u2019m miserable,\u201d she told me. Incidentally, she did quit a job for that reason.<\/p>\n

2. Watch your debt and spending.<\/strong>\u00a0I don\u2019t have to tell you or any other new grad about the ravages of debt. The typical 25- to 29-year-old owes more than $35,000, according to a\u00a0recent study<\/a>\u00a0from PNC Financial Services \u2014 and only about 40% of those with debt say they have student loans.<\/p>\n

If you\u2019re not loaded down with debt payments, you\u2019ll be more agile and able to pursue a wider range of career prospects and even go for a job you love \u2014 or one you always wanted to try \u2014 even if the salary isn\u2019t the best.<\/p>\n

\u201cYour money choices have consequences, says Gene Natali Jr., co-author of\u00a0The Missing Semester<\/em><\/a>.\u00a0<\/em>\u201cYou are graduating into a world in which you will be surrounded on nearly all sides by constant consumerism, temptation and peer pressure. I\u2019m not suggesting you live in a cave, but I am suggesting that you make your saving dictate your spending, not the reverse.\u201d<\/p>\n

3. Save at work<\/strong>. The earlier you start saving, the more that money will compound and grow for you. So max out your contribution to your employer\u2019s retirement plan and\u00a0please<\/em>\u00a0don\u2019t cash out if you feel pinched for cash or when you change jobs.<\/p>\n

Workers under age 50 can contribute up to $17,500 to their employer-provided retirement plan in 2014. Your contributions are tax-deductible, and your investments grow tax-deferred until you are ready to make withdrawals in retirement.<\/p>\n

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Set aside enough to qualify for your employer\u2019s full matching funds if you can. Most employers require workers to save between 4 and 6% of their pay to get the full match.<\/div>\n<\/div>\n

4. Open a Roth IRA.<\/strong>\u00a0You generally need $1,000 of earned income for the initial deposit. In 2014, the maximum contribution is $5,500.<\/p>\n

You won\u2019t be taxed when you withdraw money from the Roth IRA in retirement, but a Roth doesn\u2019t provide a tax deduction the way a traditional IRA can, depending on your income. The\u00a0Internal Revenue Service<\/a>\u00a0has a guide that compares traditional IRAs and Roth IRAs.<\/p>\n

5. Build your emergency fund.<\/strong>\u00a0Most financial advisers suggest you set aside six months of living expenses for an\u00a0emergency fund<\/a>. But if you can gradually build up to a year\u2019s worth, do. A money market mutual fund or a bank savings account are smart, safe places to stockpile this money \u2014 even if they pay next to nothing these days.<\/p>\n

6. Keep learning.\u00a0<\/strong>Always become more knowledgeable about your finances, investing and retirement planning. You might begin by tracking your finances on sites like\u00a0Mint.com<\/a>\u00a0or\u00a0YouNeedABudget.com<\/a>.<\/p>\n

Also, check out The National Endowment for Financial Education\u2019s site,\u00a0Smartaboutmoney.org<\/a>, which has free guides that explain stocks, bonds and mutual funds. The government site,\u00a0Investor.gov<\/a>, is worth a look as well.<\/p>\n

And pick up a copy of the bestselling\u00a0Get a Financial Life: Personal Finance In Your 20s and 30s<\/em><\/a>\u00a0by Beth Kobliner, a noted personal finance commentator and former colleague of mine at Money magazine.<\/p>\n

7. Take control of your career.\u00a0<\/strong>Don\u2019t wait to be asked to work on projects; volunteer for them. Find a\u00a0mentor<\/a>\u00a0and work together to find ways for designing your career path and upgrading your skill set.<\/p>\n

Be fearless about\u00a0negotiating<\/a>\u00a0for a higher salary, if you feel you warrant it. But before you march into your boss\u2019s office with the request, get a feel for the raises co-workers have been scoring and suss out what competitors are paying for comparable jobs.<\/p>\n

For information and advice about raises, visit sites like\u00a0Payscale.com<\/a>\u00a0and\u00a0Salary.com<\/a>, as well as the\u00a0Economic Research Institute site<\/a>, which can show you what a particular position pays where you live.<\/p>\n

If you work at a nonprofit, or are interviewing for a job at one, check out the organization\u2019s latest online tax filing (Form 990) to see what its employees and executives earn.<\/p>\n

8. Finally, take time to give back.<\/strong>\u00a0When work gets stressful, you will find that doing something for someone else always makes you feel better. Bonus:Volunteering<\/a>\u00a0offers networking opportunities, so it could help you find your\u00a0next<\/em>\u00a0job.<\/p>\n

My Thanks to You<\/strong><\/p>\n

Caity-bird, as I like to call you, you wrote me a note the other day thanking me for unconditional love and support and helping you navigate your college years. But it\u2019s a two-way street. I thank\u00a0you<\/em>\u00a0for being there for me, too.<\/p>\n

Now run with all your heart and come home safe.<\/p>\n

Love,
\nKerry<\/p>\n

Kerry Hannon has spent more than 25 years covering personal finance for Forbes, Money, U.S. News & World Report and USA Today. Her website is\u00a0kerryhannon.com<\/a>. Follow her on Twitter\u00a0@kerryhannon<\/a>.<\/em><\/p>\n<\/div>\n<\/div>\n

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