High School Graduation is a Time to Celebrate

But it’s also a time to do some life-planning

The spring ritual of high school graduations is here. But graduates and their parents often are poorly prepared to meet the practicalities of the youngsters’ sudden entry into adulthood, from making financial decisions, medical decisions or  choosing what to study. How should parents and their offspring get ready for the transition?

Amid the joy of the occasion, facing such practical concerns is easily overlooked. The entrances to many housing subdivisions sport banners trumpeting the names of the community’s high school graduates. For parents and grandparents alike, it’s an exercise in wondering how little ones grew up so fast. Grow they did, and grow they will. But as they celebrate their 18th birthdays, we hope and pray that they will advance in wisdom and make good choices in life.

From a financial planning standpoint, they still depend largely on the Bank of Mom and Dad.   One of the best tools you can equip your new graduate with is a budget.  In the age of technology there are numerous apps that can do the trick.  Here are a few, but there are many more:  Mint Budgeting App, Good Budget, Empower, PocketGuard Budget App, You Need a Budget.  Also caution your youngster to stay clear of credit card offers with the lure of buying expensive items with no way to pay for them and a quick start to a financial mistake.  Starting credit early with good habits will carry your youngster far in life.  Equally, starting off with bad habits can stifle their financial ability for years to come.  Good counsel will go a long way to build good financial habits. 

Although your 18 year old may still rely on you, recognize that the law now views many of them as adults. In 46 states, the age of majority is 18. In six states, legal adulthood commences at 18 or upon graduation from high school, whichever is sooner. In Alabama, Delaware and Nebraska, the threshold age is 19 in Mississippi, 21.

As an adult, your graduate should have a will, even if he or she owns very little. Otherwise, in the event of a fatal accident or illness, the legal process (called an intestate proceeding) to sort out who gets the deceased’s belongings is heartbreaking and irksome.

Once young people are deemed adults, health-care providers will not share medical information with parents. That’s unless a parent has a durable power of attorney for health care, signed by the adult child, appointing mom, dad or both as their agent empowered to make medical decisions if they cannot.

The 1996 Health Insurance Portability and Accountability Act (HIPAA), bars doctors, hospitals and other health-care providers from disclosing information about a person’s health or medical condition without express permission.

Your relationship to the patient is irrelevant. Unless you have a power of attorney with HIPAA provisions, no health information will be shared. Without documentation, a sick or hurt adult child away at school or traveling on a break has a problem: Parents could encounter potentially disastrous delays in getting proper care.

Thoughts from a Financial Professional…

These are the not so fun things to think about when your child transitions into adulthood. They are necessary things to keep your child protected as long as possible.  Good luck and congratulations!

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