Money Tips for College Graduates | Richard Banks & Associates, P.C.

The college graduation season has once again returned and with students across the country ready to embark on their next journey, our team at Richard Banks & Associates, P.C. thought it wise to share some valuable money tips!

It’s a well-known fact that more than half of Americans don’t even have $1,000 in their savings account, and in order for this most recent batch of college grads to get started off on the right foot, we’d suggest referring back to our recent blog that deals with saving $1,000 in just six months.

After graduating college, young adults are thrust into the deep end—and the real world. There are jobs to be found, housing to be located and surprise, surprise, bills to be paid. It can seem overwhelming adapting to life outside of academia, but as is shown year in and year out, it is completely possible.

Money is a struggle for practically everyone and in order to get those recent college grads off to a great start, we have compiled a list of five helpful money tips.

1. Plan: By not setting short- and long-term goals for yourself, you could wind up making several financial mistakes, such as racking up credit card debt or buying a brand-new car that puts a strain on your finances when you get that first job. Take a moment to set up realistic short- and long-term goals, and be sure to check up on them regularly.

2. Make a budget: Creating a budget might not seem like a fun way to spend part of your day, but it is crucial to your financial success! You need to be on top of your finances and make sure that you’re not spending more than you’re bringing in each month. You should not be having to fall back to a credit card to cover your living expenses, and without a budget, that’s just what will happen. Figure out how much you spend a week, a month and annually, then be sure not to go above and beyond that.

3. Avoid/reduce debt: If you made it through college without racking up any student loans, we congratulate you. If not, one of your first focuses should be paying those loans down. Think long and hard before deciding to add any other debt to your name.

4. Prepare for retirement: Yes, we know, you just graduated college and retirement is the furthest thing from your mind! Retirement might seem like something you need not worry about until later, but the best way to set yourself up for success in those golden years is to start planning and preparing now. When you get that job, be sure to start contributing to your retirement plan as soon as possible!

5. Be thrifty: If you are careful spending your money, chances are you’ll have more of it around. Being thrifty doesn’t mean cutting all of the fun out of your life, it just means being creative and finding newer, cheaper ways to have that fun! You can save money by packing a lunch instead of going out, utilizing coupons when grocery shopping, and enjoying discount days at movie theaters or other entertainment venues!

We hope that these tips can help get you off to a great start on this next step of your life! Make wise money choices now, so that you don’t have to suffer through the consequences later. Even if you do find yourself in a difficult financial situation, remember that we are always an excellent option if bankruptcy seems unavoidable.