What Your Kids Need to Know Before Their First Paycheck

Five Lessons That Separate Financial Survival from Financial Confidence

At Summitry, financial planning isn’t just about preserving and growing wealth—it’s about living with clarity, confidence, and purpose. We ensure this is a commitment we keep to our clients, their children, and future generations.

If your child is graduating or entering the workforce, you might be wondering:

Do they have the tools not just to survive—but to thrive financially?

This transition from student to working adult is one of the most pivotal financial moments of a lifetime. For the first time, they’ll manage money on their own—without tuition payments, allowances, or parental safety nets. And yet, most schools don’t prepare them for this leap.

We think it’s time that changed. Financial planning shouldn’t wait until “you’re older.” It’s about building foundational habits early—while the stakes are still low and the opportunities high.

Here are five core lessons every young adult should master:

Your Paycheck ≠ Your Income

Cash flow is everything.

That $85,000 salary? After taxes, benefits, rent, and bills, it’s often closer to $3,800/month in actual spending power.

The fix: a simple, powerful framework—the 50/30/20 rule:

• 50% for essential living expenses
• 30% for lifestyle
• 20% for saving and investing

It’s not about perfection—it’s about consistency. One client’s daughter said it best:

“I had no idea how fast it would all go.”

Credit Is a Tool—Not a Trap

Used right, credit builds power. Used wrong, it builds debt.

We coach young clients to:

• Start with a strong rewards card (e.g., AMEX Gold, Chase Sapphire, or Bilt)
• Pay the full statement balance every month
• Review spending monthly—don’t set and forget

Discipline builds not just a credit score, but financial credibility and resilience.

You’re Already Investing—Even If You Don’t Realize It

“Later” is the most expensive word in personal finance.

Even $250/month in a Roth 401(k) starting in your early 20s can become hundreds of thousands by retirement.

We help young adults understand:

• Roth vs. Traditional 401(k)
• Why your tax bracket matters
• How to automate a diversified, low-cost portfolio

The earlier you start, the more your money works for you.

Your Most Powerful Account Is the One You Hope Never to Use

Emergency funds buy time—and options.

Three to six months of expenses in a high-yield savings account lets you:

• Say no to bad job offers
• Absorb life’s surprises
• Take smarter risks

One young client who was laid off didn’t panic—she pivoted. That’s the difference between financial fragility and flexibility.

Financial Planning Isn’t About Products—It’s About Thinking Clearly

This is where most people get it wrong.

Planning is not about stock picks or insurance sales. It’s about helping your child make better decisions, grounded in their values and goals.

We hear questions like:

• “Should I invest my savings?”
• “Do I need a planner?”
• “Where do I start?”

That’s exactly when a planner helps most—before life gets more complex.

A New Tradition:  Teaching Financial Stewardship

You’ve worked hard to build a secure financial life. Now’s the time to pass on the mindset behind it.

“The job of a CFP is to think clearly, act in your best interest, and be there when others aren’t sure what to do.”

We’d be honored to support your children—whether that’s building a budget, navigating benefits, or making career decisions with confidence.

Ready to Start the Conversation?

If your child is graduating, starting work, or simply needs a sounding board—we’re here.

Schedule a meeting with us. Invite them to join. Let’s help them take the first step toward lifelong financial confidence.