Ramsey County

Making $ense of Dollars and Cents

May 26, 2008

The Best Graduation Gift Ever 

          If your house is like most, as soon as a high school/ college graduation announcement arrives in the mailbox, you begin puzzling over what gift to give the lucky graduate.  If our best wishes could be packaged in the form of financial advice, it might include the following:  Dear Graduate, we wish for you the ability to –

           1. Live below your means.  More people reach their goals when what they spend is based on their income. Always give yourself some flexibility.

          2. Practice your consumer skills. Consider cost, quality and convenience. For big-ticket items, read widely before you buy and use the Rule of Three - always check prices at a minimum of three places. If you plan to use your purchase for a long time, purchase the highest quality you can afford.

          3. Establish credit as soon as you can - good credit. If you have no credit, it will be difficult to quality to buy a house, and you will pay high interest rates hen you are ready to buy a car.  When you have credit available to use, use sparingly and pay off quickly. Take advantage of the Federal law allowing you free access to your credit reports: http://www.annualcreditreport.com.

          4. Learn about money markets, annuities, life insurance and other forms of financial investments – even if you currently have no money to invest.  Read financial articles in newspapers and magazines. Check some of the financial Web sites.  When you are ready to make an investment, you will have the background info you need.

          5. Pay yourself first. Understand the incredible power of compound interest.on any amount of money.  If you save $25 a month beginning when you are 21, at 8 percent interest, you will have $121,470 by the time you are 65.

          5. Promise to yourself to learn one new work skill each year. Attend classes or seminars and read, read, read.  Do whatever you can to become a more valuable commodity in today’s job market.

          6. Make budgeting a habit. Think of a budget as a spending plan to guide your spending and saving so you can have the things you really want and that really matter to “Keeping up with the Jones”  by allowing someone else's priorities and earning power to set your own financial pace is a guaranteed plan for failure.  

          7. Ask questions about money – and ask the right people.  Find a variety of financial experts you are comfortable with – a banker, a loan officer, an insurance agent, an investment rep and others. – and ask for their recommendations.  As a reliable financial expert becomes acquainted with your particular situation, he/she will be able to help you achieve your financial goals.

          Congratulations Graduate and Good Luck!

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524 4th Ave NE #5, 2nd Floor Ramsey County Courthouse
Devils Lake  ND  58301
701-662-7027
email - ramsey@ndsuext.nodak.edu