Do you have a college-bound student or recent grad in your life? The financial steps they take today can make a big impact over their lifetime. The college and early career years can be a make and break time for future lifestyle goals. Here are five absolute essentials young adults should consider for creating a stable financial foundation.

1. Choose a career path mindfully. Some people know their dream career from a young age, and others take more time to explore options and decide. Regardless, it’s worth taking an analytical approach. Think about the lifestyle you want in your 30s, 40s, and into retirement age. Devote time to self-discovery and seek out assessments and tools to help you understand your natural strengths. Then work backward and explore career pathways that will support that lifestyle trajectory.

2. Make informed choices. Approach student loans with care and ensure you fully understand the terms. Know the difference between federal and private loans, and understand the timelines and breakdown of interest vs. principal. Consider working a part-time job while attending school to ease the financial pressure – and begin building adult working relationships and other life skills.

3. Learn the basics of financial literacy. Establish a monthly budget and start building other good financial habits. Resist the temptation to sign up for credit cards, spend money on a nice car or apartment, or put off saving for the future. Understand different types of loans, how interest and compound interest work, the concept of amortization, and the basics of stocks, bonds, and mutual funds.

4. Understand the FAFSA and other essential forms. Whether you plan to apply for loans and financial assistance or not, everyone enrolling in college will need to complete the FAFSA.

5. Plan ahead now. You’re still young, but it’s never too early to put plans in place in case the unexpected happens. As an adult, you have to designate who will make medical decisions for you if you’re too sick or injured to make them yourself. Take the time to complete a general power of attorney and health care power of attorney designating who will make decisions on your behalf if needed.

Advisors at Comprehensive Wealth Management have extensive experience helping clients and their families navigate these decisions and make a smooth transition to financial adulthood. Visit our College Planning Guide and Library to find a budget template, explainers on key financial forms, samples of powers of attorney documents, and a host of other pre-college resources.

Brian Lockett
Vice President and Lead Advisor
Comprehensive Wealth Management
3500 188th St. S.W., Suite 102
Lynnwood, WA 98037
Phone:  425-778-6160
800-268-2440
Email: info@cwmnw.com
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Comprehensive Wealth Management, LLC (CWM) is an SEC registered Investment Advisor and Pacific Northwest wealth management firm that partners with clients to articulate and help achieve their financial goals as prudently as possible. Our high-touch, client-focused investment planning and implementation makes us the first call for executives, business owners, and other thoughtful investors to help strengthen their financial health holistically and intentionally, managing risk while pursuing long-term gains.

All investments involve the risk of potential investment losses as well as the potential for investment gains. Past performance is no guarantee of future results. This communication is informational only and is not a solicitation for investment advice.