CHARLOTTE, N.C. (WBTV) – For parents with a recent college grad at home this summer, now is a good time to start having some conversations about money.

There are steps families can take now to help them get off on the right financial foot.

Many new grads are already facing an uphill battle as they work to pay off student loans. According to consumer financial services company Bankrate, mishandling them is mistake number one.

Bankrate estimates the average debt for students with an undergraduate degree from a four-year public school is more than $27,000. For many, paying that off can be daunting.

Some common mistakes are missing or delaying payments, not paying the monthly minimum, or not refinancing when better interest rates are available.

If monthly payments are more than a graduate can afford, they should consider requesting a forbearance to pause or reduce loan payments.

The second mistake many make is not establishing an emergency fund. Bankrate found that 20% of adults who have or had student loans put off saving for emergencies. The fund should cover six months’ worth of expenses.

The third mistake is not living within a person’s means. They can avoid overspending by setting a budget with categories for how income will be spent. Then, sticking to the budget is key.

The fourth mistake a lot of people make is not saving for retirement. It does not always need to be a priority for people just beginning their careers, but the sooner they start saving, the better. If an employer offers a 401k plan, employees should consider taking advantage of it.

The fifth and final mistake is not saving for future goals, whether that be a home or a dream vacation, or anything in between. Some bank accounts are designed to help save for specific categories to help achieve financial goals.

Experts also recommend new college grads meet with a financial advisor or a relative who can offer financial advice.

There are also several good budgeting apps out there, like Mint and Rocket Money, that can help keep track of spending and create custom parameters to keep users on target for meeting their goals.

Also Read: Study: ‘Hidden costs’ of homeownership averaging $1,500+ per month

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