Advice to a New Graduate
Last week I attended the graduation of my niece Lucy in Los Angeles. I saw happy, hopeful faces, but also heard many concerns about the future. Here’s what I would say to Lucy. If you have a graduate in your family, maybe share this with them.
These days many young people feel the system is stacked against them. You leave school facing the high costs of food, education and housing, and the burden of student debt. Good jobs can be hard to find. How will you ever get ahead?
These challenges are real. But though the system can appear rigged, it’s important to understand that you can make it work for you. Here are some simple guidelines to help you get started in creating a solid financial future.
One: Avoid revolving credit card debt. I have friends and family members in their fifties and sixties who are still paying off their student loans. Don’t add to this burden by accumulating additional debt on credit cards. Card companies charge outrageous interest rates of 20%-30%.[1] At these rates, even a small amount of revolving credit can quickly balloon into an amount that becomes unpayable. Similarly, avoid Klarna and Afterpay. They are predatory services taking advantage of people’s impulsive spending.[2]
Instead, read up about credit cards. Learn to use them as a tool rather than a crutch and build a strong credit score. In the years to come your credit history will affect every loan you take, as well as your auto insurance rates and apartment rental applications. You want it to be as clean as possible. Only use your credit card to buy what you have cash to pay for. Pay off your monthly balance in full. And choose a card with benefits like airline miles. If you put $15,000 a year on your card, and pay it all off monthly, in two years you’ll have a dependable credit history plus enough miles for a free airline ticket![3]
Two: Spend wisely. You’re likely to be living on a pretty spare budget for the next few years. Prioritize what you spend it on. Can you cook at home instead of getting DoorDash delivery? Would a beer substitute for a cocktail? A bus for an Uber? Would a free concert in the park and dinner at a food truck be acceptable instead of an expensive restaurant for a date? Roommates instead of a solo apartment? Every dollar you save can be used for priorities like paying down debt or investing in a retirement fund.
Three: Invest. Investing for a seemingly distant future may seem pointless or impossible if you’re 23 years old and struggling to make rent. Also, the language of finance may be unfamiliar and intimidating to you.
The truth is, it’s easy to open an online investment account at firms like Fidelity, Betterment, or Charles Schwab. And you don’t need to know anything about individual stocks. Just buy an index fund that gives you broad exposure to the whole market. Don’t worry about timing. Start today and keep adding to your account when you have cash to spare.
Take advantage of the magic of compound interest. The math is simple. If you invest a hundred dollars, and the market goes up 10%, you’ll make ten dollars. If on the other hand you have a thousand dollars invested, that same 10% market increase will give you a gain of $100. Over time, as your account grows in value, the dollars you earn will increase exponentially. The earlier you start, the more it’ll grow. The future may seem distant, but time has a habit of creeping up on us.
So put some of your graduation money, or travel money, into a brokerage account instead. Start investing now for that house you’ll want to buy, or the kids you’ll be putting through college, or having the freedom to quit a job you hate and switch careers without worrying about how you’ll pay the bills. A financial cushion will give you options you might otherwise never have.
Four: Take advantage of free money. Investments in a Roth retirement account will grow tax free for years to come. Employers who offer a 401K retirement plan will often match your contributions up to a percentage of your salary. Tax savings and employer matches are free money–maybe the only free money you’ll ever get.
Five: Set goals for yourself. It’s easier to reach a target when you know what it is. Set goals and timelines for saving, spending and investing, and you’ll find you reach them faster than you thought possible.
Finally, a word about the future. The threats we face may seem daunting. Remember that personal happiness tends to arise from finding purpose in life more than from material wealth or ease. [4] The most meaningful experiences often occur during the most challenging times. Imagine yourself as a warrior. Who and what are you fighting for? Your family? The environment? Democracy? The planet?
Whatever the future brings, these things will still matter. Love, beauty, and connection will always be available to you. So live your best life, and please, have fun along the way!
This material is intended for education purposes only. LongView Asset Management, LLC (referred to as "LongView") does not warrant that the provided information will be free from error. None of the information provided is intended as investment, tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. This information should not be relied upon for transacting securities or other investments. Under no circumstances shall LongView be liable for any direct, indirect, special or consequential damages that result from the use of, or the inability to use, the materials provided. In no event shall LongView Asset Management, LLC have any liability to you for damages, losses, and causes of action for accessing this commentary. Past performance is not indicative of future results. This content not reviewed by FINRA. Photo by Charles DeLoye on Unsplash .
[1]https://www.investopedia.com/average-credit-card-interest-rate-5076674
[2] https://en.wikipedia.org/wiki/Buy_now%2C_pay_later
[3] https://thepointsguy.com/airline/how-you-redeem-miles-matters/
[4] https://publichealth.jhu.edu/2025/finding-meaning-and-purpose-to-achieve-well-being