Business : Graduating to the Next Stage

Many new graduates are proudly accepting their diplomas this time of year. As they walk across the stage, they’re taking their first steps on the path toward independence. Whether that means heading off to college or entering the “real world,” venturing out on your own (and letting go as their parent) can be a time of excitement, yet uncertainty.

To help you make a smooth transition to this new stage in life, we’ve highlighted a few things you should know as a parent, and ideas to share with the young adults in your life.

Parents
Sending a child off to college involves many uncertainties, but insurance protection shouldn’t be among them. Before arriving on campus, research what protection your current insurance policies will provide, and what additional coverage may be needed.

1. Know what is covered by insurance
   In most cases, your coverage will extend to a student away from home. However, there may be limits that apply. In addition to reviewing insurance coverage, it’s a good idea to document the items your child will be taking to school and include the estimated value. Download the free Home Inventory form on www.FBFS.com to make the process easier.

2. Mode of transportation
   Decide whether your child will have a personal vehicle at college. The decision could impact your auto insurance. Taking a car to college may require increased coverage, while leaving it at home may lower rates during the time your student is away.

3. Umbrella coverage
   Personal liability coverage protects against financial loss if your child accidentally injures someone or damages others’ property while away at school. Umbrella insurance coverage starts where personal liability stops. Generally, personal umbrella policies provide up to $1 million or more in financial protection.1

Future Freshmen
College freshman, welcome to dorm living and newfound independence. Along with doing your own laundry, you’re now in charge of your finances. Here are some tips for smart money management.

1. Protect your belongings
   Always lock your room or residence when you leave if a roommate is not present. Store wallets, cash, credit cards, checks and other valuable items in a locked drawer or cabinet. Engrave your name or driver’s license number on any portable and valuable items – like a smartphone, tablet or stereo equipment. Never leave your backpack unattended on campus.

2. Credit cards 101
   The allure of credit cards – spend now, pay later – can be hard to resist. But carrying a balance, incurring finance charges and trying to pay off sky-high interest can put your credit history at risk. A poor credit history can make it difficult to get approved for future financial needs, such as a home loan.

3. Budget wisely
   Avoid putting a semester’s worth of funds in your checking account. It’s easy to exhaust your savings without realizing it. Instead, arrange for your bank to automatically transfer a specific amount from savings to checking once a month to cover set expenses.

Life After Graduation
Life after college is a time to forge your own path — which could mean getting a first job, moving out on your own, and planning for the future. These tips and tools will help you get off to a good start as you begin your new life.

1. Stick to a budget
   Living within your means prevents trouble with debt. Knowing how much you can afford to spend will help you stay within your budget. Track your spending and set a budget with the Savings Calculators on www.FBFS.com.

2. Setting up your future
   When you land your new job, enroll in your company’s 401(k) retirement plan as soon as possible. The earlier you start to save, the harder your savings will work for you. Adding other retirement funding options, like an IRA, is a good idea as your income grows.

3. Check on your car insurance
   If you’re planning to move out on your own, make sure your car remains insured. If you’re younger than 25 years old, you may qualify for Farm Bureau Financial Services’ Driven to Safety discount. You may even be eligible for a preferred rate on your auto insurance if you move from your parent’s policy to an individual policy. Check with your local Farm Bureau agent for details and to find out if you qualify.

Visit www.FBFS.com/graduation for more tools and tips to help you and the young adults in your life feel confident about the future. Then contact your Farm Bureau agent to review and update your insurance coverage as you graduate to the next stage of life.

Tips brought to you by Farm Bureau Financial Services. For more information about products and services, call Randy Stein at (319) 472-5231.

1 There are specific amounts of liability coverage that must be carried on the primary or underlying auto and homeowner’s policies in order to maintain the umbrella policy.

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