Publish Date: May 2023
Graduation is filled with excitement and anticipation! It can also be overwhelming with new freedoms and responsibilities. Whether you’re headed to further your education or are simply ready to embark on your professional journey, establishing a solid foundation for your financial future is essential.
“Managing your money wisely from the start will help you achieve your goals and set you up for financial success,” said Kim Pins, Regional Customer Service Representative (CSR) at Fidelity Bank & Trust. “It can be a lot to manage, but Your Hometown Bank is a great resource and can help you save money,” added Kim.
Learn more as Kim details tips, advice and common mistakes recent graduates should consider:
I know…boring, but it’s also the only way to really get a true picture of your finances. If you don’t know where your money goes, how can you get ahead? The good news is, if you don’t want to do it manually, there are lots of apps out there that can help.
Once you know where your money is going, it’s time to start making a plan, which is often referred to as “creating a budget.” However, it’s less about budgeting and more about figuring out your disposable income. Instead of putting limits on certain categories like a traditional budget, simply figure out what is left over after you’ve paid all your bills and set aside some money for savings.
Pay yourself first may sound cliché, but it’s another critical aspect of personal finance.
It can be hard to strike a balance between enjoying your hard-earned money and saving for the future, but instead, look at it as an investment while you create a solid foundation for your finances.
Start with building your emergency fund. This should be a separate savings account to use for unexpected expenses like car repairs or medical bills. Consider setting up automatic transfers into your savings account from online/mobile banking, or use an app to help you save small amounts at a time.
If you are a college graduate, you should start saving for retirement in addition to your emergency fund. It may seem far off, but starting early can give you a significant advantage when it comes to building wealth over time. If your employer offers a retirement plan, like a 401(k), be sure to enroll and contribute enough to take advantage of any matching contributions.
Investing is another way to grow your wealth over time, but it doesn’t have to involve the stock market (though another option to explore). Investing in your own education and skills can help you increase your earning potential and advance your career.
If you’re investing in education, student loans are likely a way to help you pay for tuition. At Fidelity Bank & Trust, we partner with ISL Education Lending to offer private loans to help you pay for college as well as refinance existing student loans.
In addition to loan options, ISL Education Lending is a great resource for articles geared toward high school students, college graduates and parents. You can also plan smart for college and avoid overborrowing with free college planning tools as well as scholarship opportunities.
Student loans are also a great way to build credit when you start repayment. Good credit is essential to your personal finances because it not only is a qualification to borrow money, but it can also help you get approved for rental agreements and even help you get a job.
ALERT: Because student loans can be confusing and are a popular news item, scammers try to target student loan borrowers. Always be wary of people or companies offering assistance for a fee. Your lender or servicer will not charge you for assistance or information.
Congratulations to our recent graduates! Set yourself up for financial success and don’t be afraid to visit Your Hometown Bank for guidance as you navigate your newfound responsibilities. Find a lender or contact us today!