This season brings feelings of pride, nostalgia, excitement, and, let’s be honest, financial worry to many. Whether your child is heading off to college, taking a gap year, or jumping straight into the workforce, the next chapter comes with some major money decisions. And while most curricula do not teach today’s youth how to manage real-world finances, Bay Federal can help. Here are some simple ways to set your grad up for success!
Think big picture: Is student debt the only way?
Student loans can feel like a rite of passage for college-bound students, but it’s worth asking: Are they the only option, or even the best one? The truth is, student debt can follow graduates for years, impacting everything from credit scores and housing choices to career flexibility.
Before your grad signs on the dotted line, encourage an open conversation about what borrowing really means. How much will repayment cost each month? How long will it take to pay off? What kind of salary might they realistically earn in their field?
Also, talk about alternatives that can reduce or even eliminate the need for loans:
Scholarships and grants:
These don’t need to be repaid, and thousands are available for all kinds of students.
Community college and transfer paths:
Locally for general ed classes can significantly lower costs without compromising education quality.
Work-study and part-time jobs:
These options build work experience and help cover everyday expenses.
High-Yield and other savings accounts:
If you’ve been able to save, now’s the time to make those dollars stretch.
Location, location… tuition?
The idea of going to your dream school, out-of-state or even abroad, can be exciting. But it can also be costly. Making well-informed choices about where to study can keep that number from multiplying.
Having your grad compare in-state tuition costs to their dream schools can be eye-opening. That doesn’t mean settling, but it does mean choosing a financially sustainable path. Remind them: where you study matters less than what you do while you’re there.
Internships: Worth their weight in gold (and paychecks)
A degree is important, but so is experience. Finding employment without experience can be difficult, which is why internships are key. Internships can help grads dip their toes into potential careers, grow their network, and earn some extra money along the way.
Internships often lead to job offers, making them not just a resume booster but a foot in the door. Even unpaid or short-term opportunities can open long-term possibilities. Encourage your grad to apply early and often—these positions tend to fill quickly.
Budgeting 101: The best gift you can give
Budgeting is tricky if you haven’t done it before, and even more challenging when you consider living with roommates. Ask your grad if they feel comfortable managing a budget. If not, walk them through the basics: planning, tracking spending, and preparing for emergencies.
You will be thankful you did when you don’t get a panicked call asking for money.
Here are a few essentials to cover:
How to track income and expenses
Why having an emergency fund matters
What happens if you ignore your bank balance for too long
Living independently, juggling classes or a new job, and managing finances all at once? It’s a lot. That’s why a crash course in budgeting is one of the best graduation gifts you can give.
It’s not about perfection— It’s about preparation
You can’t control every decision your grad will make, but you can set the tone. Financial wellness isn’t about having all the answers. It’s about asking the right questions and learning from each step forward.
So, as you watch them cross the stage in their cap and gown, know that helping them navigate this next chapter isn’t about swooping in, but showing up with support, information, and maybe a little tough love when needed.
And if you need backup? Bay Federal Credit Union is always here with tools and resources to help guide your grad toward a financially healthy future.
Bay Federal Credit Union proudly serves families in Santa Cruz County and along the Central Coast, offering savings and checking solutions that grow with your child. With just five dollars, you can open an account with no monthly fees and easy-to-use mobile banking, making it simple to teach financial wellness habits. Visit a local branch today to learn more about how we can help set your child on a path to a bright financial future.
Helping Your Grad Start Strong Financially
This column is sponsored by Bay Federal Credit Union
