Times are challenging for college graduates this year.
The job market is tough due to a cooling economy and AI making some entry-level jobs obsolete.
My financial tips for graduates include:
Set out your short-term and long-term financial goals. Setting financial goals will help you guide decisions about money and reduce your stress.
Spend as much time on networking to find a job as you do sending out resumes. I’ve gotten more jobs because I knew someone than I have sending in my resume and filling out applications.
Make a budget. You should make a budget to manage your financial responsibilities effectively, such as student loans and living expenses, while preventing overspending and debt. Budgeting also helps in building strong financial habits that are essential for success after graduation.
Figure out what to do about health care coverage. It may be best to stay on your parents’ health plan until age 26 or if that isn’t an option, look for a policy on the Affordable Care Act marketplace.
Begin saving money and have it taken out of your paycheck. Compound interest is a beautiful thing when you’re young. You have decades before you retire and your nest egg will increase greatly over the years.
Establish an emergency fund. As soon as you get a paycheck, even if you’re working at temporary jobs, set aside money for emergencies. They’re going to happen – your car breaks down, someone steals your phone or computer, or you break a bone. The list goes on and on. Having an emergency fund will keep you from getting freaked out when something goes wrong. Aim for three to six months of your income for your emergency fund.
Figure out how to pay off your student loans. “What Student Borrowers Need to Know About Loan Changes Before July 1, 2026” is a good place to start doing research. Talk to your loan servicer and the U.S. Department of Education to make sure you’re proceeding correctly. Find out if you have a grace period after you graduate and how long it is. If you have extra money, consider paying off your student loans faster. Watch out for scammers who try to trick you in to signing up for bogus plans that will cost you more or steal your money.
Don’t accumulate debt. Moving back in with your parents until you get a job isn’t as bad as racking up a huge amount of debt. While it’s easy to use your credit cards and peer-to-peer transfers, such as Venmo and Cash App, it’s much more difficult to get debts paid off. And, if you’re not paying off your credit card, you’re paying interest and those rates are going up and up.
Look for free and low-cost ways of entertainment. With concert and sports events tickets climbing to record heights, try other activities such as visits to a museum on free day, trips to a farmers market, and thrift shopping. Also try volunteering, walks, free movies from the library, books, board games, hikes, and bike rides.
Start working on your credit history. You can sign up for a credit card and start paying off your student loans on time.
Don’t get your financial advice on social media. Look for a certified financial planner to help you.
Be positive. If you can push back negative thoughts and avoid quarrelsome people, it can improve your life. It can also help you move past your mistakes and move forward.
Look for a side hustle. If you have a hobby you enjoy, making money from it could help you reach your financial goals.
Spend time with those you love. It fills you with joy and is worth more than money can buy.
Help others. Volunteering or helping people you know can improve your life, too.
Never stop learning. It will benefit your life in many ways, ways you may not see now.
Build your network. Meaningful connections are important throughout your life.
Best wishes, new graduates. It’s so exciting to graduate from college. Although times are challenging right now, you’ve done the hard work of getting a college degree and that will benefit you and your earning power in many ways.
