Savings Advice for Your Graduating Children

Physician's Money Digest, October 2006, Volume 13, Issue 10

If you're a physician with childrenwho recently graduated from college,you may already be witness to the casualspending of their first "real" salary. TheAssociation of Independent ConsumerCredit Counseling Agencies (AICCCA) hasprovided tips for new graduates to helpthem make sound financial decisions asthey start earning money.

•Make a plan. AICCCA says that aspending plan is a map for stayingfinancially on track. It is important tokeep track of money flow to preventdebt. Bankrate.com (www.bankrate.com) offers help creating a plan.

•Save. While saving may seem likean obvious step, having the disciplineto put money aside each month is easiersaid than done—especially if therejust isn't a lot of it.

•Pay off debt fast. Try to pay offstudent loans and credit card debtquickly to avoid paying interest, andavoid charging any more expenses.

•Establish credit. Without establishinggood credit, making purchasessuch as a home or car can become difficult.Avoid charging things you don'tneed. Save up for something the oldfashionedway instead of immediatelywhipping out the credit card.

•Obtain insurance. Medical expenseswere a contributing factor formore than 50% of persons filing bankruptcylast year, according to theAICCCA. Auto, health, life, renter's, orhomeowner's insurance are alwaysimportant to consider to maintain yourfinancial wellness.