How to Help Your College Graduate Financially Without Building Dependency

The crowd is cheering, hats are flying, everyone is hugging each other, and you're sitting there watching your graduate close one chapter of their life and open a new one. And you're probably wondering, Now what? Don't worry - you're not alone. Millions of parents go through this exact same problem: Your child just graduated college and they're about to go off into the world alone - how do you help them without them becoming dependent on you? Here are a few ideas that will help you get your graduate on their feet:

Give your graduate gift cards, not cash. They're on their own now, and they want to buy whatever they want with their new job. Instead of giving them $100 and hoping they don't spend it on a PlayStation 3, how about giving them a gift card instead? A gift card for a gas station or a grocery store will help them with the increasing food and fuel prices, and you can be sure that they won't use the money to go skydiving.

Make a budget. There are plenty of online resources that provide free tips for making a budget. Teach your graduate the importance of making a good budget and sticking to it. Make sure they understand the priorities - rent, car payments, utility bills, etc. - before including "spending money". Also make sure they are including their savings account and an emergency fund.

Discourage the use of credit cards. Don't let your graduate sign up for every credit card that comes in the mail. While they seem promising, you know how they can get expensive. A credit card for emergencies is incredibly useful, but make sure they know how they work and the risks involved in using them.

Limit how much money you give them. This may be the hardest part. When your graduate is in a tight spot and they come to you for money because they need to change the oil in their car or buy groceries, ask them a few questions before writing them a check. Should they have expected this expense? If they've been keeping and following a good budget, then they probably did expect it, but circumstances made them unable to pay. If they didn't expect it, maybe they should adjust their budget. Ask them if they have been spending superfluously, and make sure they understand their priorities in the budget. It's easy to spend money when you have it in the bank, but excessive spending can cut into your budgets for other things. Write them the check, but make sure it's being spent on what they said they needed it for.