Category: Tip of the Month

For many parents and kids, living independently after college or trade school has been a challenge – a big one, thanks to rising inflation, student debt, and high rent. However, whether your kids are headed for a university or a hands-on career, there is hope. Here’s a quick snapshot of what majors and skills can potentially yield the highest paychecks so that financial independence is achievable.

Engineering and More

According to Kiplinger, college-bound kids who have an aptitude for math and science make the most money right out of school. It’s not a surprise, given that technology changes at what feels like warp speed. For instance, all the engineering, computer science, and finance majors during their early career trajectory earn more than $65,000 per year; mid-career, it’s upward of $100,000. This is a decent chunk of change for most single people; however, “decent” can depend on what city you live in and how you budget.

Construction

While this is a somewhat hard right turn from the above desk jobs, this field can be surprisingly lucrative. Granted, you probably need to start at the bottom and work your way up. But if you have the physical aptitude and a passion for this trade, you can earn $97,000 as a Construction Manager. Pretty darn great! How fast you progress depends on a number of things (type of building, small or large company, etc.), but the great news is that this is absolutely possible.

Medical

We’re not talking about becoming a doctor, but those who choose a support role can also do well. For instance, radiation technologists can earn $80,000, while dental hygienists can earn $77,000, an occupation that’s expected to grow by 13 percent in the next decade. Both of these jobs can support independent living, with the caveat that you don’t live in an extravagant place and watch your spending.

Legal

You don’t have to have a college degree to work in the field of law. In fact, paralegals and legal assistants can earn $52,000, but the anticipated increase over the next decade in this silo is 10 percent. These jobs require training, but generally, it’s not four years. You can even learn these skills this online. Best of all, the cost of the training is decidedly less than that of a four-year institution.

Other Trades

This mention validates the fact that, along with most of the aforementioned, you don’t have to spend a fortune on education – or go to college – to earn enough to realize monetary independence. Check this out: Commercial drivers can make $54,000; aircraft mechanics, $64,000; and computer network specialists, $63,000.

While there are variables that affect how well you do right after college, the topline takeaway is that college is not a prerequisite to paying one’s way as a young adult. All it takes is some forethought, planning, and the will to succeed.

The 10 Highest Paying College Majors (and 10 Lowest) | Kiplinger

25 Highest Paying Trade School Jobs in 2024 & Their Career Outlook | Research.com

How many Gen Z adults live at home? More each year, the US census shows (usatoday.com)

Since it’s summer and reading lists are at the top of your mind, now’s the perfect time to expand your knowledge of money management and wealth building. So, whether you’re a retiree, a beginning saver, or even a child, we’ve got a book for you.

The Classics

If you haven’t had a chance to dive into these titles, you might want to grab them, starting with The Millionaire Next Door. Authors Thomas J. Stanley and William D. Danko published this in 1996 and learned something critical: most millionaires were those who don’t blatantly flash their wealth but live below their means and save, save, save. Other great books like The Psychology of Money and Same As Ever, both by Morgan Housel, explore how human emotions trigger spending decisions that aren’t always the best for us. (Not surprising, right?) Finally, The Intelligent Investor by Benjamin Graham advocates a “disciplined approach to investing.” He’s someone who you might want to listen to – he was a mentor to Warren Buffet.

New Books

For those who want to align their personal values with their financial decisions, The Social Justice Investor by Andrea Longton is a good read. Her thesis is simple: she reminds us that no matter how big or small, every investment impacts humanity. Another new book by an author who has a big presence on social media, Kyla Scanlon, is In This Economy? How Money and Markets Really Work. Using the model of short, bite-sized clips made famous by TikTok, she presents macroeconomic concepts like interest rates in digestible chunks. Even if you’re not into the socials, you can glean important fiduciary principles in a short time – especially if you have a busy life.

For Young Folks

Check out this powerful title, Stop Acting Rich…and Start Living like a Real Millionaire, also by Thomas J. Stanley. In a nutshell, this is a cautionary tale that details the pitfalls of overspending on a house or other major purchases while also emphasizing that just because you look rich doesn’t mean you are. Another great pick is Financially Stupid People are Everywhere – Don’t Be One of Them by Jason Kelly. This narrative shines the spotlight on dangers that parents might not discuss with their kids, such as consumer debt and large mortgages. It shares how “not to be a sucker.”

For Students and Kiddos

This is a long one: Debt Free U – How I Paid for an Outstanding College Education Without Loans, Scholarships or Mooching Off My Parents by Zac Bissonnette. According to the reviews, the story is motivating and inspiring for high school students and does an excellent job of paying off the title. For younger children, there is Lily Learns About Wants and Needs by Lisa Bullard, who reads it weekly to her kids. In her story, she focuses on gratitude and succeeds in explaining that “budgeting” isn’t negative but a necessity for success. From the sounds of this narrative, other age groups might benefit from it, as well.

These are just a few books you can pack into your suitcase or beach bag this summer. If you don’t finish them, you can take them with you for the rest of the year. Learning how to be smart about your finances never goes out of season.

Sources

Personal-Finance Books to Put on Your Summer Reading List (msn.com)

There are probably few things as exciting and daunting as becoming a new dad, especially when it comes to finances. But we’ve got you! Here are a few tips to help you turn those challenges into opportunities as you walk this new life path.

Create a Budget

This is probably super obvious, but here’s a way to break it down into sections so you’ll have a roadmap.

• Look at current finances. This includes income, checking, and savings.
• Plan for new expenses. Make an exhaustive list of everything you can think of that your baby might need.
• Prioritize and cut. Identify these areas, then make hard decisions about where you need to change things for your new reality.
• Launch into the changes. Keep tabs on how you’re doing as your life evolves and adjust as you deem necessary.

Review Your Insurance

First thing, add your baby to your health insurance plan so you’ll be covered for doctor visits, vaccinations, and anything else that comes along. Next up, update your life insurance plan – you’ll likely need to increase your coverage. It’s not just about you anymore. It’s about making sure your family’s financial future is secure. If you don’t have a life insurance policy, it’s time to get one.

Start a Savings Account for Your Child

Opening an account for your baby will help ensure a solid financial future. Look for accounts with good interest rates so you can build a nest egg over time. But wait, there’s more – college! Mind-boggling, yes, but necessary. A 529 plan is a great option because it’s designed specifically for future education and comes with tax advantages. Don’t put this on the back burner!

Set Up an Emergency Fund

Life happens. Unexpected things can pop up at any given moment. A car repair. Your HVAC breaks down. A trip to the ER in the middle of the night. Start small. Set aside a few dollars each month. This way, you won’t have to dip into your savings or use a credit card. Not that this is unwise, of course, but having some non-APR padding in your life provides the peace of mind you’ll undoubtedly need during this amazing, uncertain period of your life.

Plan Your Parental Leave

Make sure you understand all the details about your company’s policies. When you have digested it all, make sure your budget includes resources for your time away. If you’re an entrepreneur, add this to your overall budget. Yes, you’ll have to cut back on spending, but your child’s first few days and months? You can’t put a price on that.

Consult a Professional

If you feel you need extra assistance charting these unknown waters, bring in the pros. Your accountant is a great person to start with. Just talking things out with a human face-to-face might give you the comfort you need to put one foot in front of the other.

Navigating parenthood, specifically as a dad, is one of life’s most important jobs. Make sure you have all the right tools with you as you begin this awesome journey.

Sources

7 Financial Planning Tips for New Dads in 2024: Preparing for Parenthood