Money tips from the pros for the Class of 2022

Some of the best advice I received about money after graduating high school came from a favorite uncle. In his worldly, yet personal way, he encouraged me to live always below my means, never try to keep up with the Joneses, and to take an entry-level personal finance class in my freshman year of college.

Viewed very much in that same spirit, I asked a handful of personal finance and financial education experts to share some money morsels with the high school graduating class of 2022. It’s all common sense, and their advice works no matter what the graduate’s plans are.

Here are their comments, edited for brevity and clarity:

Susan Beacham, co-creator of the Money Savvy Generation

“Work this summer and save what you earn. Working this summer will give you options when you get to campus. Options other than to rely on credit for all those things you never knew you wanted or needed — but do now that you are on your own.”

Vicki Fitzgerald, author of the “Simple Guide to Saving for the Young & Broke”

“Be aware of your spending, especially how much money you waste on nonessentials. This goes along with living below your income and saving the extra. Don’t worry that people have better stuff than you have. There will always be people with more money and possessions than you have. As Theodore Roosevelt wrote, comparison is the thief of joy.”

Ted Rossman, senior industry analyst at Bankrate.com

“Start building a strong credit score. As an 18-year-old, that might involve getting on a parent’s credit card as an authorized user. This is a great way to jump-start your credit history. Other good ways to build credit include signing up for a credit card in your own name (this is harder before age 21.) But if you have some income — including part-time or seasonal work — you could probably get something safe like a secured card or a student credit card.”

Eva Velasquez, president and chief executive officer of the Identity Theft Resource Center

“There are so many aspects of good cyber and identity hygiene that it can feel daunting. We encourage young people to start small and build lifelong habits that will help them to prevent and detect identity theft and cyber crimes.

“They can start with three things: Freeze your credit, upgrade your passwords and turn on MFA (multi-factor authentication). Freezing your credit is one of the most robust protection steps you can take. It will stop thieves from opening new lines of credit in your name, and it’s free. Using unique passwords on all of your accounts, even the ones you don’t think are important, will ensure that if one password is compromised, you haven’t opened up all of your accounts to compromise.

“Also, opting in to MFA wherever it’s available will ensure that even if your username and password are compromised, a bad actor will be unable to access your online account.”

Carrie Schwab-Pomerantz, board chair and president, Charles Schwab Foundation

“This time of life can feel daunting, but it’s also an opportunity to get started on a path to financial independence. I have two pieces of financial advice for recent high school graduates. Prioritize spending less than you earn so you can start to build up some savings. Start by creating a budget that identifies your income and expenses. Divide your expenses into two categories: “must-haves,” such as housing, groceries, transportation, insurance and debt payments, and “nice-to-haves,” like restaurants, entertainment and travel. This will help you track what you spend and where you may be able to cut back.

“Get invested. You have time on your side, and the earlier you start investing the longer your money has to grow. Before you get started, consider your goals, time horizon and risk tolerance to help you choose what to invest in. Luckily, it doesn’t take a lot of money these days to start investing, especially if you use mutual funds, exchange traded funds or fractional shares.”