Share

Graduation season is a time of celebration for many families. College graduates are celebrating the completion of many years of education and their families are celebrating the symbolic beginning of their children’s adult lives. After graduation, new college graduates are faced with a lot of new challenges, including managing their money effectively to become financially independent. Because many high schools and colleges do not require students to take financial education classes to graduate, many college graduates graduate with little knowledge of financial management. Here are some good money management tips for new college graduates that will get you on the right path to financial independence.

Start Budgeting

One of the most important money management tips for new college graduates is to start budgeting as soon as you are in charge of your own finances. Establishing a monthly budget is essential for long-term financial health because it helps you see how much money is coming in and how much you are spending for different expenses. There are many personal finance apps that can help you with this aspect of money management, including the budgeting app Mint. These apps monitor your bank account and credit card balances, track your spending, and categorize your transactions into budget categories automatically.

Limit Your Expenses

Many new college graduates get into financial trouble because they let their expenses grow uncontrollably until they are living paycheck to paycheck to make ends meet. While there will always be new things to spend your money on, limiting your expenses so that you still have money left over for saving will put you in a much better financial position for the future. Having savings available will help you handle unexpected financial emergencies without having to worry about using expensive credit, obtaining personal loans, or borrowing money from friends and family.

Have A Plan For Paying Off Student Loans

According to a recent study conducted by Edvisors, more than 70 percent of bachelor’s degree recipients will graduate with student loans, and the average 2015 graduate will have more than $35,000 of student loan debt. Having a plan in place to pay off these student loans as quickly as possible will help you eliminate this debt and have more of your income available for saving and other needs. While it may be tempting to limit the amount you pay on your student loans to have more money immediately available for more desirable purchases, the sooner you pay off the loans, the less interest you will pay in additional costs for the loans, potentially saving yourself thousands of dollars.

Join our newsletter

Screen_shot_2017-04-25_at_1.05.57_pm

Subscribe to get the latest "Engineer Your Finances" content via email.

Powered by ConvertKit
About the author

Join our newsletter

Subscribe to get the latest "Engineer Your Finances" content via email.

Powered by ConvertKit

ModestMoney.com Top Finance Blogs

Archives

SSCP   CAS-002   9L0-066   350-050   642-999   220-801   74-678   642-732   400-051   ICGB   c2010-652   70-413   101-400   220-902   350-080   210-260   70-246   1Z0-144   3002   AWS-SYSOPS   70-347   PEGACPBA71V1   220-901   70-534   LX0-104   070-461   HP0-S42   1Z0-061   000-105   70-486   70-177   N10-006   500-260   640-692   70-980   CISM   VCP550   70-532   200-101   000-080   PR000041   2V0-621   70-411   352-001   70-480   70-461   ICBB   000-089   70-410   350-029   1Z0-060   2V0-620   210-065   70-463   70-483   CRISC   MB6-703   1z0-808   220-802   ITILFND   1Z0-804   LX0-103   MB2-704   210-060   101   200-310   640-911   200-120   EX300   300-209   1Z0-803   350-001   400-201   9L0-012   70-488   JN0-102   640-916   70-270   100-101   MB5-705   JK0-022   350-060   300-320   1z0-434   350-018   400-101   350-030   000-106   ADM-201   300-135   300-208   EX200   PMP   NSE4   1Z0-051   c2010-657   C_TFIN52_66   300-115   70-417   9A0-385   70-243   300-075   70-487   NS0-157   MB2-707   70-533   CAP   OG0-093   M70-101   300-070   102-400   JN0-360   SY0-401   000-017   300-206   CCA-500   70-412   2V0-621D   70-178   810-403   70-462   OG0-091   1V0-601   200-355   000-104   700-501   70-346   CISSP   300-101   1Y0-201   200-125  , 200-125  , 100-105  , 100-105  , 1Z0-803  , 400-051   EX300  , CISM   100-105  , 000-106   400-201   642-732   220-902   70-410  , MB6-703   810-403   70-243  , CAS-002  , AWS-SYSOPS   70-462   70-410   2V0-621   LX0-103   70-461  , 220-902   1Z0-144   70-178   70-270   350-080  , 1Y0-201   1z0-808  , NSE4   102-400  , ADM-201   SSCP  , 200-125  , 640-911   000-104   640-692   300-320   350-060   000-089  , 000-017   1z0-808   700-501   1Z0-051  , 70-177   M70-101   300-209   70-461   3002   N10-006   VCP550   70-487   300-320  , 3002   700-501   NS0-157  , 1V0-601   CAS-002