Financial planning might not be the first thing on the mind of a new college graduate who’s learning a new job and finding an apartment in the midst of a pandemic. But there are some smart things recent grads can do that will pay off later, according to Michigan Ross Professor Paolo Pasquariello. 

In a new essay for InvestorPlace, Pasquariello discusses how young people can start planning for their future financial security now. He stresses the importance of paying off debt, diversifying a portfolio, and not relying entirely on stocks. 

He also recommends keeping a certain amount of cash available. “The coronavirus pandemic will hopefully teach many lessons to modern society. Among the most important ones is the need for risk management. It sounds like a complicated thing to do, yet the idea is pretty simple: you should always be prepared for the worst-case scenario,” he writes.

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Paolo Pasquariello is a professor of finance at the University of Michigan Ross School of Business.

Media Contact: Bridget Vis, Public Relations Specialist, visb@umich.edu