Endings and Beginnings

As we start to mentally enter “summer mode,” students and families are celebrating graduations and transitions to the next life stage. My family recently gathered in a tiny western Massachusetts town to celebrate the college graduation of Erin, my youngest child. Erin’s graduation marks the completion of the college journey for my four kids, and the end of tuition checks (if not cell phone bills). My wife and I are enormously proud of our kids for making it to adulthood as happy, good-hearted, talented people ready to (or have already begun to) make their way in the world. I believe that any parent, guardian, or caregiver who shepherds kids to adulthood with the child’s health and self-esteem intact deserves an A+, regardless of what path these kids take. For all the parents and caregivers of new graduates, congratulations!

Beyond the diploma, the desire of financial independence for new graduates is icing on the cake (as long as they still regularly call home). It is both professionally and personally interesting to see my kids begin navigating the financial world and newly relevant products and services. Their sudden interest in what Dad’s company does and how I spend my days is not random for sure. It has also been interesting to watch my kids experience how the industry engages—or not—potential new customers. Paper post card solicitations filled with jargon, slick offers for high-interest credit cards, and onerous demands for data and proof they are not criminals to open accounts are distressingly common.

Not only are millions of new graduates entering the workforce, more than 32 million Americans will either resume or start repaying their student loans this August for the very first time in over three years.* Many are filled with anxiety and stress over the huge amount of debt they and their family incurred. In fact, according to Fidelity’s Financial Resolutions Study, nearly 1-in-3 young investors are feeling more stressed about their ability to pay down student debt when compared to pre-pandemic days.

Even as we celebrate the progression of young people to the next stage of their lives, we can’t ignore the importance of helping them—at home and in the workplace—get started on a life of being financially healthy and making good decisions. Finding a job with an employer that offers good benefits, including savings and retirement, and student loan assistance is a great start. Good health care coverage also helps build a strong financial footing. Companies like Fidelity can play a huge role by helping employers offer great educational content and easy-to-use programs and services, in simple, engaging digital channels that they use regularly. It’s also imperative to talk about what young workers care about—retirement readiness at age 65 doesn’t generally resonate with a 25-year-old. Student debt, emergency savings accounts, and save and spend tools are a much more compelling start to a conversation with the next generation than traditional retirement benefits.

Congratulations to the Class of 2023. Your families and loved ones are pulling for you and want nothing but the best for you in all things, including a life of financial health and stability that helps you reach your goals and dreams. To everyone who helped them get there, well done!

*Consumer Financial Protection Bureau Student Loan Research

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