Financial Planning for Young Adults

The New Grad Money Checklist: Student Loans, Benefits, and Where to Start - 35

Action Item: Log into StudentAid.gov [http://StudentAid.gov] this week and find out three things: how much you owe, what type of loans you have, and when your grace period ends. Write those three things down. You cannot make a smart plan around your student loans until you know what you are actually dealing with. Summary In this episode I walk through the financial starting line for new college graduates and anyone who is just getting started with their money. I cover the seven-item adulting checklist from the CFP Board including budgeting, saving early, protecting your income with the right insurance, and building a debt system that actually works. I also break down what to look for in your first job beyond just the salary, including benefits, company culture, commute, and compensation structure. Then I get into student loans, when payments actually start, and how to think through whether to keep your loans federal or refinance to private. I wrap it all up with Cole's case study, a 22-year-old supply chain coordinator who figured out his benefits, got his student loans under control, and built the kind of financial confidence that changes everything going forward. Resources & Links Mentioned CFP Board Adulting Checklist for Recent College Graduates: https://www.letsmakeaplan.org/financial-topics/articles/young-professionals/financial-roadmap-for-recent-college-graduates [https://www.letsmakeaplan.org/financial-topics/articles/young-professionals/financial-roadmap-for-recent-college-graduates] Citizens Bank: 6 Financial Tips for New College Graduates: https://www.citizensbank.com/learning/financial-tips-for-new-graduates.aspx [https://www.citizensbank.com/learning/financial-tips-for-new-graduates.aspx] College Grad: 25 Components of a Job Offer Benefits Package: https://collegegrad.com/job-offer-negotiation/understand-all-25-components-of-your-job-offer-benefits-package [https://collegegrad.com/job-offer-negotiation/understand-all-25-components-of-your-job-offer-benefits-package] Making Waves: How to Evaluate and Compare Job Offers: https://making-waves.org/career-development-how-to-evaluate-and-compare-job-offers/ [https://making-waves.org/career-development-how-to-evaluate-and-compare-job-offers/] Consumer Financial Protection Bureau: When and How Do I Start Paying My Student Loans: https://www.consumerfinance.gov/ask-cfpb/when-and-how-do-i-start-paying-my-student-loans-en-585/ [https://www.consumerfinance.gov/ask-cfpb/when-and-how-do-i-start-paying-my-student-loans-en-585/] Federal Student Aid Loan Simulator: https://studentaid.gov/loan-simulator/ [https://studentaid.gov/loan-simulator/] Episode 32: You're Leaving Free Money at Work Every Single Day: https://open.spotify.com/episode/0BsQK8fXh5CwDpmbM6cNn7?si=CALx-VV6SRek1sQpk4zfSw [https://open.spotify.com/episode/0BsQK8fXh5CwDpmbM6cNn7?si=CALx-VV6SRek1sQpk4zfSw] Timestamps [00:01:37] The seven-item adulting checklist for new grads [00:06:52] What to actually look for in your first job [00:12:00] Student loans: grace periods, repayment plans, and federal vs. private [00:15:55] Cole's case study begins [00:21:48] This week's action item Email me at fpyapod@gmail.com [fpyapod@gmail.com]

Why Money Feels So Hard and How to Finally Make It Easier - 34

Action Item: Find one person you trust and ask them a question about whatever financial situation you are going through right now. Then share this episode with them so you both have a foundation to build on for your new money chats. Summary In this episode, I dive into the mental and emotional side of money and why so many of us feel so overwhelmed by our finances. I walk through ten financial biases that could be quietly working against you, including mental accounting, overconfidence, herd mentality, and FOMO, and explain how to start using that awareness to your advantage. I also break down the four money scripts that most of us were handed in childhood, including the script a lot of us in our twenties got, which was basically just "spend less than you make and figure out the rest yourself." And then I wrap up the research with six practical steps to overcome financial procrastination. Savannah's case study shows exactly what is possible in twelve months when you stop trying to do everything at once, start talking to people you trust, and just make the goals small enough to actually win. Resources and Links Mentioned Financial Anxiety at an All-Time High (Included Health): https://includedhealth.com/announcements/financial-anxiety-at-an-all-time-high-as-americans-struggle-with-access-to-care/ [https://includedhealth.com/announcements/financial-anxiety-at-an-all-time-high-as-americans-struggle-with-access-to-care/] Behavioral Finance Biases (World Scholars Review): https://www.worldscholarsreview.org/article/biases-in-behavioral-finance [https://www.worldscholarsreview.org/article/biases-in-behavioral-finance] FOMO, Loss Aversion, and Other Investing Biases (US News): https://money.usnews.com/investing/articles/behavioral-finance-fomo-loss-aversion-and-other-investing-biases#fomo [https://money.usnews.com/investing/articles/behavioral-finance-fomo-loss-aversion-and-other-investing-biases#fomo] How Your Parents' Beliefs About Money Affect You (Psychology Today): https://www.psychologytoday.com/us/blog/mental-wealth/202108/how-your-parents-beliefs-about-money-affect-you [https://www.psychologytoday.com/us/blog/mental-wealth/202108/how-your-parents-beliefs-about-money-affect-you] How to Tackle Financial Procrastination (Psychology Today): https://www.psychologytoday.com/us/blog/how-to-make-better-choices/202306/how-to-tackle-financial-procrastination [https://www.psychologytoday.com/us/blog/how-to-make-better-choices/202306/how-to-tackle-financial-procrastination] FPYA Psychology Guide: https://includedhealth.com/announcements/financial-anxiety-at-an-all-time-high-as-americans-struggle-with-access-to-care/ [https://includedhealth.com/announcements/financial-anxiety-at-an-all-time-high-as-americans-struggle-with-access-to-care/] Timestamps [00:03:15] Ten financial biases showing up in your money decisions and the three you need to know most [00:08:24] FOMO is just manufactured scarcity and here is how to spot it [00:10:04] The four money scripts and the one most of us in our twenties were handed [00:12:06] Six steps to overcome financial procrastination [00:14:53] Savannah's case study: from financial paralysis to real progress in twelve months Email me at fpyapod@gmail.com [fpyapod@gmail.com]

401(k) vs Roth IRA: Have You Been Asking the Wrong Question? - 33

Action Item: Share today's episode with a coworker the next time they ask you "should I have a 401k or a Roth IRA?" Help them understand that those are actually two different questions, and send them this episode so they can walk away with the same clarity you have now. Summary In this episode I break down one of the most common questions I get from young adults just getting started with retirement savings. Should you have a 401k or a Roth IRA? The truth is that question is actually asking two separate things at once, and once you understand that, everything clicks. I walk through all the major retirement account types including the 401k, TSP, 457b, 403b, IRA, and brokerage account so you know which ones apply to your situation. Then I explain the difference between Roth and traditional tax treatment using a seed and harvest analogy that makes the whole thing finally make sense. I also introduce you to Lisa, a 26 year old accountant who spent a year and a half thinking a 401k and a Roth IRA were the same thing, and walk through exactly how she got both accounts working for her at the same time. Resources & Links Mentioned FPYA Retirement Planning Guide: https://fp4ya.com/guide/retirement [https://fp4ya.com/guide/retirement] What Is Coast FI and How Do You Calculate It (YouTube): https://youtu.be/UcVyjqf5MV0 [https://youtu.be/UcVyjqf5MV0] Charles Schwab: Common Types of Retirement Plans: https://www.schwab.com/learn/story/types-of-retirement-plans [https://www.schwab.com/learn/story/types-of-retirement-plans] IRS: Types of Retirement Plans: https://www.irs.gov/retirement-plans/plan-sponsor/types-of-retirement-plans [https://www.irs.gov/retirement-plans/plan-sponsor/types-of-retirement-plans] NerdWallet: Roth 401k vs 401k: https://www.nerdwallet.com/retirement/learn/roth-401k-vs-401k [https://www.nerdwallet.com/retirement/learn/roth-401k-vs-401k] Empower: After Tax vs Roth 401k: https://www.empower.com/the-currency/work/after-tax-vs-roth-401k [https://www.empower.com/the-currency/work/after-tax-vs-roth-401k] Timestamps [00:01:42] Why Coast FI matters when you are young and just getting started [00:04:12] Breaking down every major retirement account type and who they are for [00:10:30] The IRS resource I actually recommend feeding into an AI chatbot [00:13:33] The seed and harvest analogy that explains Roth vs traditional once and for all [00:17:08] Lisa's case study begins: a year and a half of doing it wrong without knowing it [00:22:36] Your one action item: get the match and open the IRA Email me at fpyapod@gmail.com [fpyapod@gmail.com]

You're Leaving Free Money at Work Every Single Day - 32

Action Item: Log into your benefits portal this week and write down one benefit you did not know you had, then start using it. Summary In this episode, I break down why your employer benefits are worth a lot more than most people realize, and how ignoring them is quietly costing you money every month. I walk through the key benefits you need to review, including your 401k match, health insurance, disability coverage, pre-tax commuter benefits, and student loan repayment assistance through IRC Section 127, which is now a permanent tax-free benefit. I also introduce Hailey Miller, a 26-year-old Operations Analyst who spent one evening in her benefits portal and unlocked over $7,000 in annual value she had no idea existed. The takeaway is simple: you do not need a raise to see more money. You just need to actually look at what your employer is already paying for. Resources & Links Mentioned How Can Young People Maximize Their Workplace Benefits? https://www.standard.com/ahl/news-and-insights/how-can-young-people-maximize-their-workplace-benefits [https://www.standard.com/ahl/news-and-insights/how-can-young-people-maximize-their-workplace-benefits] FPYA Employer Benefits Evaluation Checklist: https://fp4ya.com/guide/investing [https://fp4ya.com/guide/investing] Employer Health Insurance: How Much Does It Really Cost? https://npabenefits.com/average-health-insurance-cost-per-month-through-employer/ [https://npabenefits.com/average-health-insurance-cost-per-month-through-employer/] Long-Term Disability Insurance: Is Employer Coverage Enough? https://www.usbank.com/wealth-management/financial-perspectives/financial-planning/long-term-disability-insurance.html [https://www.usbank.com/wealth-management/financial-perspectives/financial-planning/long-term-disability-insurance.html] Q&A: Employer Student Loan Repayment Rules for 2025-2026 https://blr.com/resources/hr-hotline-qa-employer-student-loan-repayment-rules-for-2025-2026/ [https://blr.com/resources/hr-hotline-qa-employer-student-loan-repayment-rules-for-2025-2026/] Student Loan Repayment Permanently Part of Section 127 https://youbenefited.com/resource/student-loan-repayment-permanently-part-of-section-127/ [https://youbenefited.com/resource/student-loan-repayment-permanently-part-of-section-127/] Employee Benefit Preferences by Generation https://inspirafinancial.com/business/insights/health-benefits/employee-benefits-by-generation [https://inspirafinancial.com/business/insights/health-benefits/employee-benefits-by-generation] Timestamps [00:02:35] The invincibility mindset and why young adults leave benefits on the table [00:04:19] Retirement benefits: 401k match, Roth options, and what to confirm with HR [00:06:00] Health insurance: why you need to compare plans every single year [00:07:27] The real cost your employer is paying toward your health insurance [00:08:25] Life and disability insurance: what your work plan probably isn't covering [00:11:12] Section 127: how your employer can help pay off your student loans tax-free [00:13:47] Hailey's case study begins [00:18:27] Key insight and what to do next Email me at fpyapod@gmail.com [fpyapod@gmail.com]

The Parts of Your Financial Plan That Have Nothing to Do With Investing - 31

Action Item: Pick one area from today's episode, insurance, estate planning, or psychology, and take one real step this week. Get a quote for life or disability insurance, log in and update your beneficiaries, or write down your financial plan somewhere you will actually see it. Summary In this episode, I break down three parts of your financial plan that most young adults completely skip because they are too focused on investing. I walk through how to calculate how much term life insurance you actually need, why disability insurance is more important than life insurance for most of us, and how to make sure your beneficiaries and power of attorney documents are set up correctly before something forces you to. I also cover two of the most common money psychology traps, loss aversion and mental accounting, and explain how writing down your goals can increase your chances of following through by more than 30 percent. The episode wraps up with a real life case study following Kayla and Derek through the same car accident twice, once without disability insurance and once with it, so you can see exactly what is at stake. Resources & Links Mentioned Risk & Insurance Calculator (Life Insurance and Disability Estimator): https://fp4ya.com/guide/insurance [https://fp4ya.com/guide/insurance] Psychology of Money Guide: https://fp4ya.com/guide/psychology [https://fp4ya.com/guide/psychology] Disability Insurance: Why You Need It: https://www.nerdwallet.com/insurance/life/learn/disability-insurance-explained [https://www.nerdwallet.com/insurance/life/learn/disability-insurance-explained] Beneficiary Designation Mistakes to Avoid: https://www.usbank.com/wealth-management/financial-perspectives/trust-and-estate-planning/common-beneficiary-designation-mistakes-to-avoid.html [https://www.usbank.com/wealth-management/financial-perspectives/trust-and-estate-planning/common-beneficiary-designation-mistakes-to-avoid.html] Turning 18: Why a Power of Attorney is Essential for Young Adults: https://www.cornerstonetrust.net/blog/turning-18-why-a-power-of-attorney-is-essential-for-young-adults [https://www.cornerstonetrust.net/blog/turning-18-why-a-power-of-attorney-is-essential-for-young-adults] Achieving Your Goals: An Evidence-Based Approach: https://www.canr.msu.edu/news/achieving_your_goals_an_evidence_based_approach [https://www.canr.msu.edu/news/achieving_your_goals_an_evidence_based_approach] Timestamps [01:36] Term life insurance: how to calculate exactly how much you need [05:43] Disability insurance: the stat that should change how you think about risk [08:25] Beneficiaries: the mistake most people make when they open their first account [10:41] Financial and healthcare power of attorney: why every adult needs these documents [13:55] Loss aversion and mental accounting: the two biases hurting your financial decisions [16:33] Why writing down your goals makes you 33 percent more likely to achieve them [18:04] Case study: Kayla and Derek, the same accident, two completely different outcomes