9 Best Gifts for Graduates

According to The National Center for Education Statistics (NCES) 1,606,000 students will earn their bachelor's degree in 2014. Chances are you might know someone who recently received their diploma. If you're unsure of what to give a recent college graduate, I've put together nine gift ideas every graduate could appreciate.

Show me the money. Nothing says "Congrats" like cold hard cash. Seriously though, you can never go wrong with money. Recent graduates are commonly low on savings and would rather have money than another tech gadget.

Noise canceling headphones. Whether they're commuting to the office, running to job interviews or tuning out a loud co-worker, noise canceling headphones are essential to staying focused. Your first few months on the job can be tough. It's hard to get used to working on your own while blocking out another person's conference call, a metro announcement or a meeting in another cube.

Wardrobe styling session. Having a stylist might sound like a luxury but it isn't. It's an investment. Plenty of traditional stores like Ann Taylor, Bloomingdale's or evenJ. Crew have an in-store stylist for no extra cost. Most graduates have no idea what a work wardrobe should look like or how career outfits should fit their bodies. Having a stylist's experience and expertise will help make sure they pick a chic professional wardrobe that will help them blend into the working world.

Luggage. When you start your first job, you never know when you'll get called on a business trip. A hiking backpack and a polka dot print roller will not do. A classic black four-wheel, durable carry-on roller is something every professional needs. A briefcase and a classic handbag also enhance a new graduate's style as they take on the job market.

Personalized stationery. In a world of ever-changing technology, there's nothing more traditional and personal than receiving a handwritten note. Stationery is essential for graduation gift thank you notes but also for job interview follow-up letters. Minted has great template options to choose from.

Business cards. New graduates will be tossed into the job market meeting new people, leveraging connections and entering conferences and job fairs. While they might not be employed yet – creating a professional business card with their contact information will help express their professionalism in the space. VistaPrintand TinyPrints are all great options. A business card holder is also helpful for those cards to stay clean and crisp while you're passing them out.

Watch. If you want to spend a bit extra on your graduate – get them a classic timepiece. Not only will it be their go-to accessory when applying for jobs – they'll keep it for years. Watches are timeless. They symbolize hard work and growth.

Inspirational book. Send your graduate a copy of your favorite book that helped (or still helps) motivate you. There are many popular career related books likeLean In for Graduates, The Confidence Code, 7 Habits of Highly Effective Peopleor I Just Graduated...Now What. Another classic is Dr. Seuss's Oh the Places You'll Go.

Gift cards. Maybe the thought of giving just money is too impersonal. Instead, choose a generic American Express gift card for your graduate to spend on items he or she needs. You'll be covering your bases getting them something they can actually use on items you might not even know they need.

Is College Worth it?

Meet Nancy. She's a 28-year-old tour guide. She leads city tours in Florida. She went to a great college and majored in photography. She tried to make it in her profession, but taking a crying baby's photos or shooting a wedding wasn't her ideal career after all. She now works at a job that is seasonal, has no real growth or benefits and didn't necessarily require her diploma.

Meet Danielle. She's a 29-year-old manager of a popular seasonal bar in New York. She graduated from a prestigious fashion school and scored a job designing showrooms for stores. She hated it. She started bartending and saw she was able to triple her former salary. She only works four months out of the year and is able to travel for eight months. To her, college was pointless and not at all necessary. If she could do it again, she would have saved her tuition money and started bartending four years earlier.

Meet Dan. He's a 30-year-old bartender at a popular bar in Washington, D.C. Dan graduated from a local college there but wasn't interested in finding a job in his chosen career path of art history. He bartended through college and kept going after graduation. He isn't thinking about applying to a regular nine-to-five.

Meet Andy. He's a 25-year-old waiter, a former pre-med graduate. After attending classes, he saw that becoming a doctor was not the path for him. He's still thinking about what his next steps are, but at the moment he is very happy and comfortable with where he is financially. He's taking food and wine courses to help him move up in the industry.

All of these people are extremely intelligent and educated. They all expressed how much interpretation and analysis goes into each of their lines of work -- something the customer rarely thinks about.

The college system is broken. More and more graduates are entering industries that not only have nothing to do with their field of interest but might not even require a degree. Colleges need to provide real life, on-the-job training. Students should have a chance to fully test out what that job should be. They should understand the roles, responsibilities, salary and demand of that position.

With the exorbitant cost of college, it really might not be the best option for some people. Plenty of industries do not require a four-year degree and won't leave students in a job they don't like with high amounts of student debt. Those jobs include electrician, cosmetologist, hygienist, customer service representative, or paralegal.

Professors Richard Arum and Josipa Roksa from New York University andThe University of Virginia released a study and wrote a book, Aspiring Adults Adrift, on the demise of prepared college graduates. They told the Wall Street Journal, 

"Colleges focus too much on students' social lives at the expense of a strong academic and career road map. Schools have given their charges an unrealistic sense of what it takes to achieve their life aims, resulting in overwhelming -- and possibly unrealistic --optimism among young people about their prospects."

Everyone's vision of success is different. The ROI of attending collegesattending colleges have faltered the millennial set. Schools need to take action now and reform their education process.

3 Tips to Create a Millennial Retirement Guide

Anytime I talk to millennials, the farthest thing from their minds financially is saving for retirement. Most of them are calculating how to pay down debt while also still being able to afford their monthly Uber, Amazon or Netflix charges. The logic of putting money into a retirement account that you can't touch for 50 years versus paying off current living expenses is a tough notion to get your head around, especially if you are earning an entry-level salary.

For starters, don't set yourself up to live from paycheck to paycheck. Get a job before an apartment and make sure the rent and utilities don't exceed 30 percent of your after tax income. If not, you'll keep digging yourself into a financial hole. Paying for more than you can truly afford will have you feeling anxious, guilty and overworked. Of course, it's a dream to be living in a spacious one-bedroom apartment in Greenwich Village. Except that apartment will come with a $2,500 price tag and be located on the top floor of a five-floor walk-up. Living on your own in New York City after four years dealing with roommates sounds like heaven. Except unless you're in investment banking or a tech developer it'll be nearly impossible to make that happen. Unless you have no other expenses and are happy only eating 99 cent pizza and cup of soup for meals. Get a roommate and live in a less expensive area of your city. Isn't it better to have roommates now while you are just starting out rather than in your 40s and 50s?

Don't Ignore Retirement: Most millennials tend to look the other way when it comes to retirement. As a generation, they've succeeded in pushing the clock back ... temporarily. They are making high-level purchases later on like buying cars and homes. They are also getting married at older ages and having kids much later in life than former generations. The biggest life milestone millennials are pushing back is setting up a retirement nest egg. Millennials are spending beyond their means and are living paycheck to paycheck more frequently than any other generation. According to the Bank of America/USA Today Better Money Habits Report, more than half of them live paycheck to paycheck.

Make a Plan and be Accountable: There is no denying that millennials are in a worse financial state than their parents. A shaky economy, diminishing Social Security rates, lack of job security and decreasing 401K match programs all negatively affect a millennial's retirement platform. Long gone are the days when loyal employees spent forty years at a single company and received a pension as a reward for good behavior. The pension is no longer a viable option for retirement unless you work for the city government. Professionals are jumping from company to company, gaining new skills, responsibilities and often a higher salary.

Understand the ABC's of 401(k)s. The first thing you need to ask, "Does my company have a 401(k) program and do they match it?" If it does, lucky you! You better sign up quick for both -- especially if they match. You'll be throwing away free money if you don't. That's like winning the lottery but never collecting your check. Of those surveyed, 43% have contributed to a 401(k) program, according to the Better Money Habits Report. If your company doesn't have a retirement plan in place, sign up for an IRA or Roth IRA. How do they differ? With an IRA, you will be taxed once you withdraw the funds when you retire. A Roth IRA will be taxed as soon as you open an account (and each time you contribute). The highest amount you can put in annually is $5,500. Go to your local bank and set up an account this week. Don't let it slide. Jump start 2015 by opening an account up today. Even if you think you can only put in a few hundred dollars yearly -- it'll still be more than zero. It'll also help you set up a pattern to save and hopefully budget out more cash for next year's contribution.

You might be thinking that this all sounds great, but you just don't have the extra dollars to make saving for retirement a current reality. Don't make excuses -- you are only sabotaging yourself. Think of your weekly guilty pleasures: the Venti Latte or the second glass of wine with dinner. There are items you can weed out or thin down. Downsize your Starbucks coffee order to a $1.75 tall brew coffee from a $3.45 latte and you'll save $621.25 a year. If you removed your daily coffee habit altogether you could save $1,239.25. Instead of spending your salary on designer shoes, pricey restaurants or high rent -- invest in yourself and put money towards your financial future. Stop living with financial regret.

Building an Emergency Fund

 

Building an emergency fund is one of those things that no one really wants to do but they know they have to do it. There are lots of reasons to have one: an unexpected job loss, emergency medical expenses, a natural disaster, an appliance breakdown, auto repairs — the list goes on and on. You want to be as prepared for these things as possible, which takes effort and requires planning. Whether you’re starting a fresh fund or rebuilding a depleted one, here are some tips that will not only make the process much simpler but also a little less intimidating.

1. Evaluate (or re-evaluate) your budget.

The first step in building an emergency fund is to take a look at your budget and see how much money you have to play with. If you don’t have a budget, now is the time to make one. Keep it simple by subtracting your mandatory monthly expenses (things like rent or mortgage, bills, loans — pretty much anything with a due date) from your monthly income. The difference is what you can use to spend on entertainment, shopping and other things that you don’t necessary need. If you have a substantial amount leftover, that’s good — it means you can use a lot of that to put toward your emergency savings fun. If you don’t, that’s OK, because you can…

2. Figure out how to cut back.

Devise a plan to lower some (or all) of the expenses in your life. Lower your grocery bill by creating weekly menus, make dishes that you can freeze and eat again and again, and stick to your list. Be smart about your phone and cable bills — bundle your cable services, and only sign up for packages you know you’ll actually use. Determine whether you’re really using that monthly membership, and cut the cost by walking or jogging outside instead.

Even if you’re working with a salary on the lower side and you’re already struggling to make ends meet, you can still contribute to an emergency fund — you just have to…

3. Start small.

You may have read or heard that it’s important to have six months’ or even eight months’ worth of living expenses saved in your emergency fund. While this is ideal, it’s simply not probable for many of us. Rather than beating yourself up about being unable to achieve such a large target goal, lower your standards. Set a small goal at first, maybe just $500 or $1,000. Determine how much money you can put toward that goal each month (that’s where tip No. 1 comes in). As your income increases, your monthly emergency fund contributions should, as well.

4. Set it and forget it.

Set up direct deposit so that a portion of each paycheck goes directly into your emergency fund. Think of it this way: You can’t miss what you never knew you had.