Three Financial Gift Ideas for New Grads

May has turned to June and with that a new class of graduates are leaving college and university into the big scary world of “adulthood.” With this transition for many comes their first “big” pay cheque. Although we encourage anyone who is just starting out to spend some money and enjoy themselves, this is also the best time to establish strong foundations for a solid financial future.

The habits formed in the first few years of a career can really make or break someone’s financial success. Instead of buying your loved one a personalized mug or some other trinket, why not make an investment in their future and consider a gift of financial literacy instead? Here are a few of our top ideas:

1. Purchase a gift certificate for a session with a financial coach to help them establish healthy financial habits and behaviours. To make it valuable and useful here are some top things you should look for:

a. Unbiased advice (no product sales)
b. Student Loan payment planning
c. Personalized and actionable advice

A financial coach focuses on building positive financial habits, increasing savings rates and paying down debt.

2. Help them open a Tax-Free Savings Account (TFSA) and encourage them to save for their future. For most new grads it should be one of these two options:

a. High interest TFSA savings account (such as Alterna Bank with a current rate 2.10%)
b. Investment account of low cost ETFs (such as with Finovo and Wealthsimple)

3. Give them a Canada specific personal finance book to help them transition into the “adult world” of personal finance. Two of our favorites are:

Wealthing Like Rabbits – Robert Brown

  • Brown wrote this book specifically for his daughter and her friends in University
  • A little more fun than the typical financial books

The Wealthy Barber Returns – David Chilton

  • Written in an accessible, conversational style
  • Emphasis on common sense principles of personal finances

It is true, in the moment, this might not seem like the coolest gift idea, but we are confident your new grad will see great benefit and thank you down the road. The reality is, far too many young people won’t be proactive in establishing sound financial habits unless given some support. Be the person that provides that spark!

If you’d like to learn more about financial coaching for New Grads, check out Finovo’s services or drop us a line!

 

If you’d like some additional support with making a change, please setup an initial connection meeting with us and learn more about how Finovo can help you get better control of your finances.

#Finovo #FinancialLiteracy