Do you have a child that is getting ready to start their first job and who has just graduated from college? If so, there are some things that you want to teach them so they don't get a job and then start accumulating debt when they should be putting money away.
You'll want to make sure that they don't go out and get a new house, new car, and then end up with massive payments and assets that aren't worth the money owed on them. Explain the following things to your graduate as they start to live life like an adult.
Buy Instead of Build Your First Home
If your college graduate is starting to look at houses and they aren't sure if they should build or buy a home, encouraging them to buy their first home is best. The cost of building can often go over the limit, extending the buyer's budget or leaving the buyer unable to pay for the property. Also, if the property value decreases they could easily end up owing more than the home is worth, especially if they put a lot of upgrades into the property. Instead, taking the time to search for a property that could be an investment property, that isn't a huge financial risk, and that has instant equity is best.
Keep Driving a Used Car
A new car straight from the dealership with no previous owners will depreciate in value quickly. Even though your graduate is entering the professional world and they may not like their current used automobile, encourage them to buy another used car that is newer and nicer, instead of getting something brand new. This is a better investment if something happens to the car or if they decide that they want something different a couple of years after purchase, and it saves on insurance costs. To buy a used car, check out a dealer like City Auto Wreckers.
If your graduate already has some credit card debt and student loans that they have to pay off, then staying away from high house payments and hefty vehicle payments will be the smartest thing for them so they can start to pay down their debts. Talk with the graduate about getting in touch with a financial planner or someone from their bank that can help them get on a debt management plan to pay everything off, and to help them make the best decisions when it comes to buying assets they need.Share