So, you just graduated college—congrats! That’s a huge achievement. Once the glory and occasion settle, your final grades are in, and your degree posts, you’ll probably feel like the world is your oyster. And it is! However, as you venture out into the great unknowns of young adulthood, there are a few financial priorities that are important to have in check.
See, the financial habits that people develop in young adulthood often carry on into the rest of their adult lives. So, just like it was vital to hit the books and study up for your college courses while you were still in school, it’s important to start learning the financial tips that will help you develop healthy habits for life!
Check out these five must-know financial tips for recent college grads, and start applying them to your life today.
Table of Contents
Know your major expenses
You must be aware of how much money you are spending and on what. Too many individuals fall into the trap of not knowing how much money they spend on dining out each month or even how much of their salary they devote to basics like rent and food. It’s critical to have a sense of your expenditures before you can start being serious about your financial strategy.
As a recent college grad, one of the most significant expenses likely at the top of your mind is your student loan. While charting out all your major expenses, be sure to sit down with a reliable student loan calculator to work out exactly how much you can devote to paying down your balance each month. If you need it, it might also be wise to look into refinancing your student loan. Refinancing can come in handy if you struggle with repaying your loan. Therefore, replacing the existing loan with a new one from a private lender with better terms is a good decision. Students can refinance with the Citizens Bank student loan refinance program, which offers them favorable interest rates.
Devise a working budget
Your parents and teachers probably told you at some point that it was important to budget. And guess what? They’re right. Having a solid budget is an essential part of any approach to personal finances. It’s not enough to simply know where your money tends to go. You should also plan to have it go toward certain things. Sitting down with pen and paper—or your favored budgeting app—to create a budget should be the next step after determining your biggest expenses.
Learn the lingo
So much of learning about finance is just learning what the common terms mean. You’ll likely encounter tons of different financial terms as you navigate your way through banking, investing, and lending institutions. Be sure that you take the time to research everything that you hear.
It’s critical that you’ve done your homework before meeting with an investment broker, a bank representative, or a car dealership. The last thing you want is to be caught off guard by something that sounds like a good deal but might be a trick. Building an excellent financial profile as a young adult requires investing time in studying financial language, techniques, and even money scams.
Get savvy with your career
It should go without saying, but one of the most important financial tips is to start earning money whenever you can. Savings tips, budgeting, and expenditure analysis can all help. Still, the only way to be financially secure is to have enough money coming in to pay all of your expenses each month.
Finding a job will very certainly be required to achieve financial freedom. Although your first work as a young adult may be entry-level or in the service sector, getting experience and earning a salary on your own merits is a crucial aspect of living as a financially self-sufficient individual.
Pro tip? Find a mentor in your desired career path to help you make the smartest moves possible.
Plan, plan, plan
No matter what stage of life you’re in, creating a financial plan is essential. Financial plans are the backbone of any significant financial choice; whether you’re preparing your post-college spending budget or getting ready to have your first kid, having a plan to guide you along the way is vital to success. With a solid plan—and these five tips—you’ll be well on your way.