Many Crestview High School graduates will get jobs. It may be a full-time summer job, or a part-time job that will be kept once school begins, but these young adults will produce income.
It is never too early to begin saving, both for unexpected expenses as well as for retirement. When one is in their late teens and early 20s, the last thing they want to think about is retirement — we all tend to think we will never grow old. I didn't think I would get old, but I did; it's inevitable.
Here are some suggestions for financial discipline that will last a lifetime:
Open a checking and a savings account and set up your paycheck for direct deposit. Allocate 25 percent to your savings account and the other 75 percent to your checking account.
The checking account money will be the money that you use to pay any bills you are responsible for, such as a cell phone, vehicle fuel, car insurance and food.
If you have moved from home then you may need to also allocate money for rent, utilities and groceries.
Christians: Tithe 10 percent of your income. Whenever you are paid, take 10 percent of your earnings out of your checking account and donate to your church. This will keep you from spending your tithe and help develop the habit of tithing.
Invest. Allow your savings account to accumulate and, when you have about $400, go into the bank, speak with a financial adviser and open an individual retirement account.
Once this account is opened, contribute at least $50 per month into it; as your income grows, so should your monthly IRA contribution.
If one begins at a young age to save for retirement, they will have a nice nest egg at retirement.
Many Americans are totally unprepared to retire; they don't have the finances that will allow them to quit working. By making this choice when you are young, you are setting yourself up to succeed.
Always have a healthy savings account, as we never know the future. My husband, Jim, and I have certainly found that out first-hand.
Once you are married with a family and home, there are always unexpected expenses, and having that safety net of savings when a car needs unexpected repairs, or the washer quits, or the air conditioner needs replacing, is always welcome.
Making smart money choices when one is young sets one up for a successful life.
Janice Lynn Crose, a former accountant, lives in Crestview with her husband, Jim; her two rescue collies, Shane and Jasmine; and two cats, Kathryn and Prince Valiant.
This article originally appeared on Crestview News Bulletin: 3 tips for Crestview High graduates to save for the future