Graduation season is upon us! If your senior is closing the chapter on their high school experience, it’s time to celebrate their achievement—and get them ready for rapidly approaching independence. 

Whether heading off to college, trade school, or into the workforce, your child’s next season is critical for building habits that will serve them well throughout life. Hopefully teaching the values that are most important to your family started many years ago. However, now is the time to help your graduate establish strong financial habits that can be the foundation for long-term success.

Here are three things you can do to prepare your high school graduate for financial independence.

Help them create a budget.

Budgeting will help your graduate see the true cost of their lifestyle and begin to understand fixed versus fluctuating expenses. Prior to graduating high school, many children aren’t exposed to their household’s incoming and outgoing cash, so it’s important to familiarize them with a basic budget. Help estimate their income streams, whether from a part-time job or monthly allowance, as well as rent, bills, and necessities like food, fuel, and insurance. Don’t forget to include a line item for savings; even if they can’t meet a savings target every month, it’s important they begin the practice of saving for emergencies.

Kickstart strong credit.

Talk with your graduate about the different types of debt—especially high-interest credit cards and personal loans—how interest works, and the importance of making timely payments. Explain how credit scores are calculated and the impact negative credit can have on their plans for the future. Add your child as an authorized user to your credit cards, which allows them to benefit from your positive credit history without having to qualify for their own card. For responsible teens, you can also consider co-signing on a small loan or securing a student credit card but be sure to clearly outline expectations and repayment plans.

Discuss money-saving strategies.

The college years and first jobs aren't known for being high-earning seasons, which means your graduate will have to learn how to make-do with what they have. Teach them to shop smart by looking for deals or buying secondhand. Encourage saving toward large purchases and discourage impulse spending. When your children are willing to work hard for the things they want and understand the value of money, they are already ahead of the curve for building a solid financial foundation.

Financial habits are not merely taught but also modeled. Your recent graduate likely picked up a number of helpful habits by growing up in your home. However, as they embark on newfound independence, now is the time to explain that financial success doesn’t happen by accident, and these three strategies are critical building blocks to get where they want to go in life.