Financial Tips for College Graduates

Congratulations!!! You’ve graduated college…what a huge accomplishment. There is so much for you to be proud of and, we are sure, lots of planning you must now consider. As you start this new chapter of your life, be sure to bring with you these 5 financial tips for college graduates:

1. Start creating a budget by writing down your income and expenses (see our article HERE for how to create a budget)
2. Consider applying for a credit card (with a low credit limit), if you haven't already, so you can start building your credit. Owning a good credit score will help you accomplish many of your financial goals in the years ahead.
3. Develop a plan to tackle that student debt! The average student debt upon graduation after 4 years of college is $25,000-$30,000. If you have a federal student loan, there is usually a grace period of 6-9 months after graduation before you have to begin making payments to pay it back. If you have a student loan with a higher interest rate, consider refinancing. But make sure to tackle it head on.
4. Begin saving for your retirement. This may seem unnecessary in your early 20s; however, history has shown the earlier you start saving for retirement the greater potential for growth you will have.  For example, reinvested interest and dividends, plus potential for increase in value over time, will result in a higher balance if you start contributing to a retirement account as early as you can.  As your salary grows, increase your savings percentage.
5. Build an emergency fund: a good rule of thumb most experts suggest is to set aside 3-6 months worth of income. Consider setting this up with payroll distribution through your employer.