Graduation Season: Three Important Financial Lessons

Managing Director of Investments, Sean Satterfield offered his advice for students and college graduates on planning for their future and career opportunities in the financial services industry.

What is the most important financial lesson that young graduates should learn?

There are three important financial goals to establish in starting your career. The first is to repay debt. Focus on the highest interest rates like credit cards and pay those off.

The second is establishing an emergency fund. Set aside three to six months of monthly income to cover your bills in case an emergency does occur.

The last is start saving for retirement. Even though that is decades away, contribute to a retirement plan.  Especially an employer sponsored matching plan. Contribute the matching amount at a minimum because you will double your money every year!

What advice would you have given to your younger self when you graduated from college?

Compounding interest is the secret to financial success. The Rule of 72 is the calculation of how long it takes your money to double. The Rule of 115 is the calculation of how long it take to triple your money.

What advice would you give to students interested in a career in Finance?

Pursue any career with passion and persistence. A career in finance is very rewarding, you will have the opportunity to learn how money works. This can range from capital markets, banking, financial planning and so much more. Develop relationships with peers, mentors and advocates in finance as they will help you decide on one of the many paths that are available.

Learn more about our financial planning process or careers opportunities at Wedbush.