Today I have some advice for your children beyond the college dorm. It’s about that time of year where there are lots of graduations. I have a senior in high school who is graduating this year and a junior at UT who is graduating next year. I thought I’d dole out a little financial advice based on my experience. It’s not parenting advice, but it’s just a bit of financial wisdom for you to share with your graduates.

If your kids end up moving back home, and many do, I think it’s only fair that they start paying rent. They’ll probably get a pretty good deal when you factor in the home-cooked meals, but getting into the habit of paying rent is a good thing for college grads to do.

Your kids have probably been with roommates for their entire college career. They know how to live with other people, so maybe that could be another living option. Living with roommates is more economical than not.

"Some debt, like buying a house, is good."

When it comes to budgeting, that’s another important lesson to learn. Help them out with a little spreadsheet that adds up their expenses and income. As for debt, the first time they can’t pay off all their credit cards in one month, it’s time to stop using them until they are paid off completely.

On the other hand, some debt is good, like buying a house. If your son or daughter can afford it and you can help a little with the down payment, that’s a great investment. Buying an asset like a house is good debt, but buying drinks at the bar with a credit card is not.

It amazes me how many of our kids don’t know anything about finance. As parents, we have to teach our kids some of these things along the way.

If you have any questions for me, don’t hesitate to reach out via phone or email. Congrats to the class of 2021.

The information contained in this blog does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of the author, and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct.

Every investor's situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Investing involves risk and you may incur a profit or loss regardless of strategy selected. The forgoing is not a recommendation to buy or sell any individual security or any combination of securities. Be sure to contact a qualified professional regarding your particular situation before making any investment or withdrawal decision.