How graduates can put their money to good use

DALENCIA. THANK YOU. IN THIS MORNING’S CONSUMER ALERT GRADUATION SEASON IS UPON US AND MANY NEW GRADS WILL BE GIFTED MONEY FROM FAMILY AND FRIENDS. BUT HOW CAN THEY PUT THAT MONEY TO GOOD USE? WELL, JOINING US THIS MORNING IS SOME TIPS FROM CHIEF LENDING OFFICER TOBY SMITH. GOOD MORNING. GOOD MORNING JANINE. YEAH WE’VE GOT OF COURSE WE’VE GOT ALL THESE GRADUATES COMING OUT OF HIGH SCHOOL COMING OUT OF COLLEGE AND PEOPLE WANT TO GIVE THEM MONEY. BUT I CAN TELL YOU, YOU GIVE THOSE HIGH SCHOOLERS MONEY THEY’RE SPENDING ON FAST FOOD. ABSOLUTELY. BE CAREFUL. CONGRATULATIONS, GRADUATES, WITH YOUR HIGH SCHOOL OR COLLEGE. BUT YOU’RE EXACTLY RIGHT. SO WHAT I WOULD RECOMMEND IS JUST BE CAREFUL. IF YOU’RE ACTUALLY GIVING MONEY. MAKE SURE THAT YOU UNDERSTAND WHERE WHERE, WHERE YOU’RE GOING TO GIVE THE MONEY TO. RIGHT. SO IF THE GRADUATE IS RECEIVING IT, IT’S IMPORTANT TO SET THEM UP. IF YOU’RE GIFTING MONEY AS A PARENT OR GRANDPARENT OR AUNT OR AN UNCLE SET THEM UP FOR A LONG TERM SAVING MENTALITY. SURE, CASH AND CHECKS, THOSE ARE ALL FUN. YOU CAN ZELLE AND VENMO, APPLE PAY, PAY, PAYPAL YOU CAN DO. THAT’S HOW THEY WANT THEIR MONEY. NOW. BINGO. RIGHT? BUT WHAT I WOULD SUGGEST IS A LITTLE BIT MORE NONTRADITIONAL. MAYBE THE FORM OF I BONDS OR I BOND IS A SERIES I GOVERNMENT BOND. YOU CAN GET IT RIGHT FROM THE TREASURY SETS THE STUDENT UP OR THE GRADUATE UP FOR MORE OF A LONG TERM SAVER MENTALITY. MORE SO THAN CASH. AND THOSE IMPULSE BUYS CAN COME INTO TO TO MIX BECAUSE THERE’S A TIME FRAME THAT YOU HAVE TO HOLD ON TO THAT BOND BEFORE YOU CAN EVEN CASH IT IN. CORRECT? CORRECT, CORRECT. GENERALLY, IT’S AT LEAST A YEAR BEFORE YOU CAN CASH IT. IN THREE YEARS YOU CAN YOU CAN HOLD IT WITHOUT HAVING ANY SORT OF A PENALTY. THE BEAUTY OF AN EYE BOND, THOUGH, IS THAT YOU CAN START SMALL AS AS LITTLE AS INCREMENTS OF $25. YOU CAN BUY IT DIRECTLY FROM TREASURY DIRECTGOV AND IT REALLY DOESN’T REQUIRE A BIG FINANCIAL IMPACT, AND YOU CAN CASH THEM IN AS SOON AS A YEAR. BUT WE WOULD RECOMMEND HOLDING THEM FOR AT LEAST THREE YEARS, BECAUSE THE BEAUTY OF A BOND IS THAT IT WILL GROW OVER TIME. SO EVEN IF YOU GET A HIGH SCHOOL GRAD A BOND, MAYBE IT’S SOMETHING THAT THEY USE ONCE THEY GRADUATE HIGH SCHOOL. I MEAN, GRADUATE COLLEGE AND AND SAME THING. YOU BUY IT FOR THEM FOR, YOU KNOW, COLLEGE GRADUATION AND THEY CAN USE IT LATER ON. BUT IT JUST KEEPS GETTING BIGGER. HERE’S THE BEAUTY OF IT. WITH AN EYE BOND, YOU HAVE A FIXED RATE OF INTEREST RETURN, BUT MORE IMPORTANTLY IT’S INFLATION RESISTANT, RIGHT? THEY HAVE AN ADJUSTABLE RATE OF RETURN THAT’S TIED TO THE INFLATION. SO YOU HEAR SO MUCH ABOUT THINGS ARE GETTING MORE AND MORE EXPENSIVE. WELL THE BEAUTY OF THIS SORT OF A VEHICLE AS ONE OPTION IS THAT YOU’RE PROTECTED A LITTLE BIT FROM THAT. THE BIG THING THOUGH IS SEEK OUT HELP. PEOPLE DON’T HAVE TO BE BY THEMSELVES AND SEEK AGAIN. WE’RE MARYLAND’S LARGEST CREDIT UNION. WE DO FREE FINANCIAL CHECKUPS AND WELLNESS AND REALLY SIT DOWN AND MAKE SURE THAT YOU’RE DOING THE RIGHT THING. BECAUSE IF YOU’VE GOT OTHER DEBT, IT MAY NOT BE THE MOST, UM, PRUDENT, BENEFICIAL FOR YOU, RIGHT? TO SAVE MONEY WHEN YOU HAVE TO PAY DOWN HIGHER INTEREST RATE CREDIT CARD DEBT, ESPECIALLY IF YOU’RE A COLLEGE GRADUATE. RIGHT? AND THAT’S HOW YOU GIVE THEM MONEY. NOW, HOW SHOULD THEY BE SPENDING THAT MONEY? THAT’S EXACTLY IT. SO BE BE BE FRUGAL WITH IT. AVOID IMPULSE BUYS. EVERYONE’S EXCITED RIGHT NOW. YOU’VE GOT ALL THIS MONEY COMING IN. MAYBE MORE MONEY THAN THE GRADUATE HAS EVER HAD AT ONE TIME IN THEIR LIFE. IT’S REALLY JUST IMPORTANT TO SIT DOWN AND WORK OUT YOUR BUDGET. HOW MUCH MONEY DO YOU WANT TO SET ASIDE TO MAKE IT LAST LONGER? BUT MORE IMPORTANTLY, SAVINGS? IF YOU’RE HOLDING A BUNCH OF OTHER DEBT, REALLY IS NOT THE WAY TO GO. YOU WANT TO BALANCE OUT PAYING DOWN SOME OF THE DEBT, BUT ALSO PUT SOME AWAY FOR THE LONG TERM. BUT REALLY, IT’S ABOUT THE MENTALITY. AVOID THE IMPULSE AGAIN. VISIT US AT AQMD. ORG GET SOME. GET A FREE FINANCIAL CHECKUP. YOU CAN DO IT VIRTUALLY. YOU DON’T EVEN HAVE TO STOP BY ONE OF THE 23 BRANCHES, BUT WE WOULD LOVE TO SIT DOWN AND TALK TO THE VIEWERS BECAUSE ONE THING THAT WE DON’T THINK ABOUT IS WHEN THESE HIGH SCHOOLERS ARE GRADUATING AND THEY’RE GETTING THESE LUMP SUMS OF MONEY, IT’S EVEN SITTING THEM DOWN WITH THE FINANCIAL ADVISOR TO SAY, HEY, LOOK, COLLEGE YEARS, YOU’RE USUALLY BROKE, SO MAYBE YOU WANT TO LET THAT LAST A WHILE. THAT’S EXACTLY IT. AND IT’S SO IMPORTANT TO JUST SIT DOWN WITH A MONTHLY BUDGET SHEET. THERE’S SO MANY MONTHLY BUDGETING TOOLS THAT ARE OUT THERE. YOU HAVE APPS THAT WILL ASSIST YOU WITH IT. CREDIT KARMA IS ANOTHER RESOURCE. GREAT RESOURCE THAT CAN HELP PUT YOUR BUDGET IN PLACE. BECAUSE AGAIN, IF YOU JUST GET GET ALL THIS CASH, YOU’VE GOT A COMMA IN IT. NOW YOU’VE GOT $1,000 OR MORE SITTING WITH YOU. WHERE DO YOU START? SIT DOWN WITH SOMEONE, TALK TO THEM ABOUT IT. READ UP ON RESOURCES LIKE NERDWALLET IS ANOTHER EXCELLENT SPOT TO SEE. WHAT DO I DO WITH THIS EXTRA CASH THAT I HAVE? IF I’M WHETHER I’M GIVING THE MONEY TO MAKE SURE THAT YOUR GRADUATE IS GOING TO SPEND IT THE RIGHT WAY, OR IF I’M RECEIVING THE MONEY TO MAKE IT LAST LONGER FOR YOU, I’LL TELL YOU. I CHECK IN TO NERDWALLET A LOT BECAUSE THEY HAVE SO MUCH GREAT INFORMATION ON THERE. ABSOLUTELY. YEAH. THANK YOU SO MUCH FOR JOINING US THIS MORNING. REALLY APPRECIATE IT. AGAIN. VISIT US AT AQMD. ORG AND LEARN MORE ABOUT US. WE’D LOVE TO TALK TO YOU. YEAH. AND CONGRATULATIONS AGAIN TO ALL THE GRADS.

How graduates can put their money to good use

Updated: 10:31 AM EDT May 26, 2024

Toby Smith, SVP Chief Lending Officer, SECU offers money advice to new graduates.

BALTIMORE —

Toby Smith, SVP Chief Lending Officer, SECU offers money advice to new graduates.