Financial Advice for Graduating Students and Recent Graduates
Develop a Budget
Following a budget will help you stay on track with your financial goals.
Document regular monthly expenses such as credit card bills, rent, utilities, and
car payments. After paying your bills, you will be able to tell how much is left
over for your other spending activities.
Once you have established a budget, open up a savings account and, if applicable, take advantage of the 401K or other retirement plan offered by your employer. Any savings accumulated in your account will help tremendously when you can handle emergency expenses without a credit card.
Put the amount of money that you want to spend on a debit card with a national bank with nearby ATMs that you can use to withdraw cash. Decide before the semester begins how much money you will allow yourself to spend each month.
If you have a cell phone, make sure it has service on campus and that you have an appropriate plan that allows for cheap long distance communication. Careful how you use the features of your phone that can rack up additional fees, like internet access, texting and downloading files.
If you need assistance in establishing a budget or developing strategies to save more money, contact a credible consumer credit counseling agency.
Check Your Credit Report
Check your credit report regularly and order one free report every year by
going online to annualcreditreport.com. Learn how to keep your personal and
financial information in check and avoid inaccuracies in your report. If
you do find inaccuracies, contact the credit bureau in writing to resolve the
dispute. Protect yourself from identity theft by shredding any financial
information that contains account numbers or your social security number.
Split Financial Costs
The financial responsibilities the first few
years out of college may be tough. Chances are you may not be making as
much money as you would like at your first job and therefore making it difficult
to cover all your expenses. Consider sharing your rental costs with a
roommate, thereby reducing your utility costs and saving you more money that you
can put in the bank.
Budget Wisely
This sample allocation of your income should help you take the salary from
your first job (don't forget to take OUT the taxes) and see how much you should
put toward your living expenses, including those student loan payments.
Monthly Expense | Approximate Percentage of Monthly Income |
Housing | 23-33% |
Life and Car Insurance | 4-6% |
Food | 12-20% |
Transportation | 7-10% |
Personal Debt Repayment | 8-18% |
Entertainment and Recreation | 4-6% |
Clothing | 4-7% |
Savings | 5-10% |
Medical | 3-5% |
