University students and recent graduates have plenty of things to worry about. Finding employment is a key concern, as is securing a financial future. Below are five key pieces of advice they should consider following.

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In a recent interview, billionaire investor Warren Buffett stated that he has been buying stocks his entire life and that stocks in general are one of the best asset classes to invest in. An important caveat is that investing in stocks could require a very long investment time horizon to see a good return, but this should be of little concern to teenagers, because they have one of the longest investing timeframes of any demographic out there. Stock returns are one of the highest-returning classes out of all investment options.

An adult will be needed to open an account for a teenager under the age of 18. These are known as custodial accounts, but can be transferred over outright when the teenager reaches adulthood. A custodial brokerage account is a great option to help a young person become familiar with investing. These accounts are taxable, but buying into some great companies and holding them for years on end will help minimize the payment of capital gains, which must be paid only when a stock is sold at gain. Holding on to it allows unrealized gains to build indefinitely.

Consider All Your Investing Options

There are many asset classes beyond stocks that teens might want to consider. Mutual funds can be invested solely in stocks, but let a professional manager take care of the individual security selection. The other more traditional asset class is bonds, which can also be managed for total return and boost growth beyond the minuscule yields that most bonds pay these days. Alternative assets can also boost growth potential, but teens need to be careful to pick among hedge funds, private equity, as well as derivatives to boost returns over the long haul.

Learn Your Own Investing

Do-it-yourself is a worthwhile endeavor that can save a young person thousands and even millions of dollars over his or her lifetime. Keeping costs low and finding investments that appreciate in value are extremely important factors in achieving financial independence. Some financial advisors charge too much for their services and diversify into too many investments. For these reasons, learning to be your own financial advisor makes sense.

The Bottom Line

Achieving financial independence is easier said than done. The majority of Australians save far too little and are caught in their 50s or 60s with inadequate savings for retirement. But there are others who have had a long-term plan and saved diligently through their working years while living below their means. Avoiding debt is another key component to being able to enjoy one's retirement with sufficient savings levels.