Your child’s first “real” job


Congratulations! Your child has passed their interviews and received a great job offer. After celebrating their independence, now is the perfect time to offer some sound financial advice.

Here are five ways to ensure their success in the real world.

1. Recommend the 50/30/20 rule to your graduate. Have 50% of their salary for needs, 30% for wants, and the remaining 20% ​​for savings and investments. Ask them to recalculate these numbers when they receive a raise or bonus. With savings, I recommend that they set aside 10% of their take home pay in an emergency account until they have six months of living expenses. Once they have reached this level, ask them to redirect their savings to their investments. Investing early will give them plenty of options later in life, like starting a business, buying a house, or staying home with their kids.

I agree with Warren Buffett, who once said, “If you want a happy life, spend 80% of your take home pay. If you want to have a miserable life, spend 105%.”

2. Set up a checking account with direct deposit. After withdrawing taxes and contributing to their employer’s 401(k), the remainder of their check should be directly deposited into a no-fee or low-fee checking account.

3. Build a good credit rating. A strong credit score gives your child an edge when negotiating rent and mortgages in the future. Find a credit card friendly and pay off the balance each month. Ask them to use a budget app like or other apps that send alerts if they go over their 50/30/20 plan spending limits.

4. Basic insurance needs. Be sure to compare insurance options. Your child can remain insured until the age of 26, but pay attention to the differences in cost and coverage. Hopefully their new corporate health plan is robust and covers them for little to no cost. Compare the price of getting them to stay on your plan before they sign up for work. If your employer primarily covers the cost of your health insurance, it might be best for your child to pay you to stay on your coverage. Beyond health insurance, make sure they get strong car and renter coverage and enroll in their employer’s group disability insurance in case of illness or accident that keeps them from working for an extended period. .

5. Continuing education. The most successful people I have met are lifelong learners. Encourage your kids to spend their off-hours learning and practicing instead of binge-watching Netflix. The first 10 years of their professional life are essential for long-term success. The most successful people I know wake up early to work out, plan their day, and read materials that inspire them long before their peers wake up. Encourage your new graduate to adopt good habits early on, because it will pay off in unimaginable ways.

Eric Tashlein is a Certified Financial Planning Professional, Founder, Financial Advisor and Coach of Connecticut Capital Management Group, LLC, 2 Schooner Lane, Suite 1-12, Milford. He can be reached at 203-877-1520 or via Connecticut Capital Management Group, LLC “CCMG” is a registered investment adviser. The information presented is for educational purposes only and is not intended to make an offer or solicitation for the sale or purchase of any specific securities, investments or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy described here. Past performance is not indicative of future performance. “CCMG” may discuss and display charts, graphs, formulas and stock picks that are not intended for use alone in determining which securities to buy or sell, or when to buy or sell them. These charts and graphs provide limited information and should not be relied on alone to make investment decisions. “CCMG” and Connecticut Benefits Group, LLC are not affiliated.


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