Going to college and graduating successfully involves much more than simply graduating with good grades. A large amount of debt when graduating from college will lead to stress, especially if securing employment is not guaranteed. Remember, just because you have a college degree doesn’t mean you’re guaranteed to get a high-paying job the day after graduation.
By following these tips, you can be well on your way to a healthy financial future after graduation.
#1: Pay Credit Cards Off Quickly
Some people think it’s best to tuck their credit cards in the sock drawer for emergencies only. Truth is, as long as you are responsible in using them, credit cards can prove to be of the utmost value, especially during emergency situations. Just remember, when you make charges to your credit cards, the most responsible thing to do is pay them off as quickly as possible; this helps ensure you are paying as little as possible in interest.
#2: Open a Checking Account
Opening a checking account while in college is one of the best choices you can make. Not only does it teach you financial responsibility, but it also allows you to see the financial havoc that can be caused by not keeping a proper balance sheet on your credits, debits, and deposits. At Mercer Savings, we have an excellent checking account option that comes with a free debit card, which simplifies making purchases or withdrawing money from your account from an ATM. You can also take advantage of our direct deposit feature, allowing you to have faster access to cash.
#3: Save Money Automatically
Many people are unaware they can have a predetermined amount of money withdrawn from their checking account each month that gets directly deposited into a savings account. The predetermined amount can be decided by you, such as $30 a month; this would equal out to be $360 a year being automatically moved into your savings without you having to do anything. Having this type of extra money on hand is excellent for emergencies.
#4: Be Aware of Your Spending Choices
If you are constantly spending money, you should carefully review what you’re spending it on. If the money is being spent on necessary bills, then it’s okay. If, however, the money is being spent on luxuries and amenities that are beyond your means of living, you should consider which expenses and bills are necessities and which ones aren’t. In doing this, you will find it much simpler to cut back on the unnecessary expenses in the event your income becomes less than your expenditures.
#5: Increase Your Knowledge about Personal Finance
You can’t secure your financial future if you don’t know how; this is why it’s so important to ensure you learn as much as possible. In today’s technologically advanced world, it’s a great time to learn. From webinars to email courses and other online resources, such as Mercer Savings Financial Planning, there are numerous ways to learn about 401K plans, IRAs, checking accounts, and many other types of financial and investment vehicles.
To learn more about financial tips for college students and graduates, including how to properly budget, make sure to contact Mercer Savings today. Our financial knowledge can help you secure a healthy financial future.