May 20, 2026
Suze Orman is known for her tough-love financial advice.
Back in 2019, she answered a question on NBC News from a caller whose recently-graduated son wanted him to co-sign on a car loan. His son claimed he needed a car to be able to get a job, but didn’t have the income to afford one.
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Orman’s advice was plain and simple: family member or not, don’t co-sign a loan. She said that the caller’s son needed to figure out an alternative means of transportation and start earning some income.
In a recent blog post about financially supporting your kids after graduation, Orman listed her house rules for helping new graduates — something that people in positions similar to the aforementioned caller can refer to.
“As a parent or grandparent, I want you to be smart about how you help,” she writes.
The 3 rules
Orman’s rules might seem harsh to some, but they’re meant to help both you and the recent grad in your life.
Here’s a breakdown of the rules she set:
1. Only help if you can
Or as Orman says “no stipend unless your finances are in great shape.”
If you have a few hundred dollars that you can stand to part ways with to help your recently-graduated child get by, then it isn’t a big harm. However, Orman advises only doing this if you have no credit card debt, a full emergency fund and are on track with your retirement savings. If you don’t have all these things in order, then helping your child could hinder your finances down the road.
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According to a 2025 study from Empower, one in three Americans have no emergency fund and 42% say their current savings wouldn’t help if they lost their job today. If you find yourself in this boat, you’re probably not in a place to be helping your child post-graduation — even if you want to.
“Don’t you dare tell me (or yourself) that a few hundred dollars a month isn’t a big deal. It is very much a big deal if you are within 10 or so years of retirement and aren’t truly financially secure,” Orman says.
2. Needs instead of wants
If you are helping your child, Orman recommends putting the “need vs. want frame on your contribution.”
While your child might think they need a car to get a job, it’s important to think through all the possible ways they could make it work without making such a hefty purchase that relies on you contributing money.
3. If they live with you, they should pay rent
This may be Orman’s harshest rule. After all, isn’t part of the appeal of living at home after graduation the fact that it’s rent-free?
“I am fine if you want to let them just plop down for a month or two and catch their breath. But if they continue to live at home beyond that, it’s time for them to contribute,” Orman writes, advising that you assign your kid household chores and ask them to pay rent and get a part-time job while they continue to seek full-time employment.
“Don’t cringe that this sounds like punishment. It is anything but,” she adds, emphasizing that during the transition period between college graduation and finding a job, having more structure can actually help more than it hurts.
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Em Norton is a Content Specialist at moneywise.com. They have been with the company since 2022.
