Graduating college is exciting but it can also be overwhelming—especially since most students receive little education in personal finance. A recent WalletHub study shows grads’ top concern is joblessness, followed by student debt and credit card debt.
Here are few key money tips for new grads who are just entering the workforce:
1. Use the 50/30/20 budgeting rule:
• 50% for essentials (rent, debt, car payments)
• 30% for wants (dining out, travel)
• 20% for savings and investments (including a home or retirement)
2. Build an emergency fund to cover up to a year of expenses, if possible.
3. Take advantage of employer-sponsored savings plans like 401(k)s, especially if they offer matching contributions.
4. Know what you owe. New grads should be sure to fully understand their loan requirements, interest rates and monthly payment dates. Automate payments if possible.
If you don’t have a job yet, budgeting is even more crucial. With no income but ongoing bills, focus on finding low-cost short-term funding.
• Prioritize repaying student loans and credit card debt
• Live within your means to avoid digging a deeper financial hole
Feel free to give us a call if you need any help. We’re here to provide you with the structure and peace of mind you need as you or a family member makes the transition from college to the workforce.