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How can someone who just graduated be financially smart . ?
I am class of 2024 graduate and I plan on going to college, I want to save as much money as I can .
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26 answers
Updated
Harry’s Answer
Hi YK.
Good question and your quest for answers should be a good guide for your entire future decisions and actions - even through eventual retirement.
The first rule to understand is "Don't spend more than you earn nor can pay back." You can charge things but be sure you can pay them back the next month.
Establish good credit by monitor your credit score. Understand what actions effect your score.
Buy the book "The Richest Man in Babylon." It is a small paperback and only runs you about $5. The basic principle is to pay yourself first.
Read up on how others make their money. Warren Buffet is a great source.
Never get caught up in "Get-Rich-Quick" schemes. They never work.
As Amy said above - Set a budget and try to follow it. But remember, it is a budget and budgets change. Just understand why and ask yourself if it makes sense.
Good luck and never stop learning.
Good question and your quest for answers should be a good guide for your entire future decisions and actions - even through eventual retirement.
The first rule to understand is "Don't spend more than you earn nor can pay back." You can charge things but be sure you can pay them back the next month.
Establish good credit by monitor your credit score. Understand what actions effect your score.
Buy the book "The Richest Man in Babylon." It is a small paperback and only runs you about $5. The basic principle is to pay yourself first.
Read up on how others make their money. Warren Buffet is a great source.
Never get caught up in "Get-Rich-Quick" schemes. They never work.
As Amy said above - Set a budget and try to follow it. But remember, it is a budget and budgets change. Just understand why and ask yourself if it makes sense.
Good luck and never stop learning.
Updated
Irene’s Answer
Hello there!
My best advice would be to establish good credit and save as much money as you can. It is so important to learn to use credit cards the correct way and not spend beyond your means. Pay off your credit card each month so you do not collect interest and your credit score will grow before you know it! Good luck!
My best advice would be to establish good credit and save as much money as you can. It is so important to learn to use credit cards the correct way and not spend beyond your means. Pay off your credit card each month so you do not collect interest and your credit score will grow before you know it! Good luck!
Updated
Chad’s Answer
Just by asking this question, you're already on the right path - that's fantastic! Remember, financial responsibility is a lifelong journey, so mastering it early on will make your life a whole lot smoother. Here are some crucial steps to kickstart your journey, and you can build on them as you go:
1. Create a budget and adhere to it - it's essential to live within your means and not overspend.
2. Aim to save at least half of your earnings in an account that you won't touch. But remember, it's also important to enjoy life.
3. If you have any monthly fees, try to eliminate them. You might not have any, but if you do, it's best to let them go.
4. Try to secure an on-campus job as early as possible. The best positions are often snapped up quickly, so the sooner you apply, the better your chances of landing a great one.
5. Keep in mind that everyone's financial situation is unique. Don't get swept up in comparing yourself to others - focus on what's best for you.
Here's to a successful college journey! You've got this!
1. Create a budget and adhere to it - it's essential to live within your means and not overspend.
2. Aim to save at least half of your earnings in an account that you won't touch. But remember, it's also important to enjoy life.
3. If you have any monthly fees, try to eliminate them. You might not have any, but if you do, it's best to let them go.
4. Try to secure an on-campus job as early as possible. The best positions are often snapped up quickly, so the sooner you apply, the better your chances of landing a great one.
5. Keep in mind that everyone's financial situation is unique. Don't get swept up in comparing yourself to others - focus on what's best for you.
Here's to a successful college journey! You've got this!
Updated
David’s Answer
As a young individual, it's crucial to harness your potential to earn a substantial income while also managing your living expenses and savings effectively. To boost your income, consider pursuing higher education, embracing entrepreneurship, or engaging in the business side of your job. It's essential to comprehend how your company generates revenue and offers higher salaries or bonuses, as this knowledge will help you tailor your role to these profit-making activities. This applies even if you're not aiming for a sales-oriented position.
Learn from those driving income & Profit for the company.
Learn to Sell, even if you are not pursuing a role in sales.
David recommends the following next steps:
Updated
Calvin’s Answer
That's an excellent query. In a nutshell, my advice is to focus on the future by saving and investing to the best of your ability. This approach can really empower you to create a secure and prosperous future.
Updated
Alexis’s Answer
Here are a few key points to remember for effective financial management:
- Maintain a monthly budget that includes all your expenses such as rent, insurance, subscriptions, and so on. This will help you keep track of your spending and manage your finances better.
- Start investing as early as possible! Contributing to a 401K or a Vanguard S&P 500 Account (like VOO) at an early stage can lead to substantial growth over time.
- Consider using Roth IRA, offered by companies like Fidelity, as a savings tool for retirement. These are taxed now, at a time when you're likely in a lower tax bracket, so that when you withdraw them in the future, they will be tax-free.
- Maintain a monthly budget that includes all your expenses such as rent, insurance, subscriptions, and so on. This will help you keep track of your spending and manage your finances better.
- Start investing as early as possible! Contributing to a 401K or a Vanguard S&P 500 Account (like VOO) at an early stage can lead to substantial growth over time.
- Consider using Roth IRA, offered by companies like Fidelity, as a savings tool for retirement. These are taxed now, at a time when you're likely in a lower tax bracket, so that when you withdraw them in the future, they will be tax-free.
Updated
Austin’s Answer
Congratulations on your graduation! Here are some practical steps to help you get started:
Create a Budget:
Track your income and expenses to understand your financial situation.
Allocate money for necessities like rent, utilities, groceries, and transportation.
Set aside a portion for savings and discretionary spending.
Emergency Fund:
Build an emergency fund to cover 3-6 months' worth of living expenses.
This fund acts as a financial safety net for unexpected expenses like medical bills or car repairs.
Student Loans:
Student Loans:
If you have student loans, understand the terms and start a repayment plan.
Explore options for loan consolidation or refinancing to potentially lower interest rates.
Save and Invest:
Start saving for your short-term and long-term goals.
Consider investing in low-cost index funds or other investment vehicles to grow your wealth over time.
Retirement Planning:
Contribute to your employer-sponsored retirement plan, like a 401(k) if available.
Take advantage of employer matching contributions to maximize your retirement savings.
Build Credit Responsibly:
Establish a good credit history by paying bills on time and using credit responsibly.
Monitor your credit report regularly and dispute any inaccuracies.
Build Your Network:
Invest time in networking to create professional connections.
Seek opportunities for career growth and consider additional education or certifications that can enhance your skills and earning potential.
Remember, financial success is a journey, and it's okay to make adjustments along the way. Be disciplined, stay informed, and adapt as needed to achieve your financial goals.
Create a Budget:
Track your income and expenses to understand your financial situation.
Allocate money for necessities like rent, utilities, groceries, and transportation.
Set aside a portion for savings and discretionary spending.
Emergency Fund:
Build an emergency fund to cover 3-6 months' worth of living expenses.
This fund acts as a financial safety net for unexpected expenses like medical bills or car repairs.
Student Loans:
Student Loans:
If you have student loans, understand the terms and start a repayment plan.
Explore options for loan consolidation or refinancing to potentially lower interest rates.
Save and Invest:
Start saving for your short-term and long-term goals.
Consider investing in low-cost index funds or other investment vehicles to grow your wealth over time.
Retirement Planning:
Contribute to your employer-sponsored retirement plan, like a 401(k) if available.
Take advantage of employer matching contributions to maximize your retirement savings.
Build Credit Responsibly:
Establish a good credit history by paying bills on time and using credit responsibly.
Monitor your credit report regularly and dispute any inaccuracies.
Build Your Network:
Invest time in networking to create professional connections.
Seek opportunities for career growth and consider additional education or certifications that can enhance your skills and earning potential.
Remember, financial success is a journey, and it's okay to make adjustments along the way. Be disciplined, stay informed, and adapt as needed to achieve your financial goals.
Updated
Arnav’s Answer
1. Get rid of all consumer debt - make sure you pay off all student and credit card debt ASAP. Credit card interest rates are usually crazy high (24.59%) and you don't want to accrue interest (extra $ to pay) on them. For student debt, these are very hard to forgive (unless you work for a non-profit or the government), so make sure to knock these out as soon as possible.
2. Set up a high-rate savings account: Set up a SOFI or Citizens Access - somethjing with a 4% something interest rate, which will allow you to earn money on your deposits.
3. Create a budget and save aggressively - budget how much you need for expenses, pleasure spending, and savings. Try to minimize the first 2 and maximize the latter
4. Read financial news - read the wall street journal & Yahoo News for events happening in the stock market & broader economy.
5. Classes - Take financial classes in college, especially a personal finance class
2. Set up a high-rate savings account: Set up a SOFI or Citizens Access - somethjing with a 4% something interest rate, which will allow you to earn money on your deposits.
3. Create a budget and save aggressively - budget how much you need for expenses, pleasure spending, and savings. Try to minimize the first 2 and maximize the latter
4. Read financial news - read the wall street journal & Yahoo News for events happening in the stock market & broader economy.
5. Classes - Take financial classes in college, especially a personal finance class
Updated
Victor’s Answer
Hi yk.bray,
A good way of saving money is by having strong control over your spendings and investing what is left in the stock market.
A good way of saving money is by having strong control over your spendings and investing what is left in the stock market.
Updated
Tyler’s Answer
I firmly believe that schools should place a greater emphasis on fostering financial literacy among students. During my college years, I enrolled in an elective course that significantly boosted my understanding of finance, yet it was a course that remained largely unknown to many. There is a wealth of valuable courses and resources available online that can help you improve your financial literacy. However, if you're finding it particularly challenging, I would recommend beginning with the simple task of crafting a budget. It's crucial to comprehend your monthly expenditures to effectively plan and establish personal financial goals. Once you've devised a plan, it becomes much simpler to identify unnecessary expenses and trim your monthly budget to suit your specific needs. Additionally, I would encourage you to start building an emergency fund that can cover 3-6 months of expenses as soon as you can. This fund will provide you with the financial stability needed to handle any unexpected emergencies that may arise.
Updated
Patrick’s Answer
yk.bray, first thanks for your question. I will do my best to answer your question. In my opinion recent graduates like yourself can enhance their financial intelligence by :
1. Craft a detailed budget.
2. Classify your expenses to spot areas where you can save.
3. It's recommended to set up a safety net fund that covers three to six months of living costs for financial peace of mind. Be careful about accumulating debt, and make sure to understand your loan conditions and look into different ways to pay it back.
4. Make saving a priority. This can be done by setting up automatic transfers to your savings account and leveraging your employer's retirement plans for long-term financial health.
Additionally, dedicating time to learn about finance, living within your budget, researching scholarships, finding a part-time job, negotiating your expenses, and building connections for mentorship opportunities are key actions for smart financial choices, especially as you step into college.
1. Craft a detailed budget.
2. Classify your expenses to spot areas where you can save.
3. It's recommended to set up a safety net fund that covers three to six months of living costs for financial peace of mind. Be careful about accumulating debt, and make sure to understand your loan conditions and look into different ways to pay it back.
4. Make saving a priority. This can be done by setting up automatic transfers to your savings account and leveraging your employer's retirement plans for long-term financial health.
Additionally, dedicating time to learn about finance, living within your budget, researching scholarships, finding a part-time job, negotiating your expenses, and building connections for mentorship opportunities are key actions for smart financial choices, especially as you step into college.
Updated
Michael’s Answer
Hi YK. Great question and congratulations on your upcoming graduation. And it's great that you are thinking about how to save money. Summer jobs, and part time jobs while in college will help you generate some income. And take the time to apply for as many scholarships as possible through your school's financial aid office. Have fun in school and manage your money between what you need for school like tuition, housing, meals, some savings, and some fun activities.
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Alireza’s Answer
Congratulations on your upcoming graduation in 2024! Developing good financial habits early on can go a long way in setting yourself up for financial success. Here are some tips to help you become financially smart as you enter college and beyond:
1️⃣ Create a budget: Start by tracking your income and expenses. Make a budget that outlines your monthly expenses and sets limits on discretionary spending. This will help you prioritize your spending, avoid unnecessary expenses, and save money.
2️⃣ Save consistently: Establish a habit of saving a portion of your income regularly, even if it's a small amount. Consider opening a savings account and set up automatic transfers from your checking account to make saving effortless.
3️⃣ Minimize debt: Be mindful of taking on excessive student loans or accumulating credit card debt. Only borrow what is necessary and plan to pay off your debts as soon as possible.
4️⃣ Seek out scholarships and grants: Explore opportunities for scholarships and grants, which can help reduce your college expenses. Look for both institutional and external scholarships, and actively apply for them.
5️⃣ Be cautious with credit cards: If you decide to get a credit card, use it responsibly. Pay your bills on time and in full to avoid interest charges. Use it for essential expenses and build a good credit history.
6️⃣ Track your expenses: Use budgeting apps or spreadsheets to keep a record of your expenses. It will give you a clear picture of where your money is going and help you identify areas where you can cut back.
7️⃣ Seek financial guidance: Take advantage of any financial education resources provided by your college or seek guidance from a financial advisor. They can help you navigate complex financial decisions and provide personalized advice.
8️⃣ Be mindful of lifestyle choices: Make conscious decisions about your lifestyle and spending habits. Differentiate between wants and needs, and prioritize your financial goals accordingly.
9️⃣ Explore part-time jobs or side hustles: Consider taking on part-time jobs or side hustles to generate additional income. This can supplement your savings and help cover your expenses.
🔟 Invest in your education: College is an investment in your future. Choose a degree program that aligns with your interests and career goals, and remember to balance the cost with potential earning potential.
By implementing these strategies, you can develop good financial habits and save money as you navigate through college and beyond. Best of luck in your financial journey! 💰🎓
1️⃣ Create a budget: Start by tracking your income and expenses. Make a budget that outlines your monthly expenses and sets limits on discretionary spending. This will help you prioritize your spending, avoid unnecessary expenses, and save money.
2️⃣ Save consistently: Establish a habit of saving a portion of your income regularly, even if it's a small amount. Consider opening a savings account and set up automatic transfers from your checking account to make saving effortless.
3️⃣ Minimize debt: Be mindful of taking on excessive student loans or accumulating credit card debt. Only borrow what is necessary and plan to pay off your debts as soon as possible.
4️⃣ Seek out scholarships and grants: Explore opportunities for scholarships and grants, which can help reduce your college expenses. Look for both institutional and external scholarships, and actively apply for them.
5️⃣ Be cautious with credit cards: If you decide to get a credit card, use it responsibly. Pay your bills on time and in full to avoid interest charges. Use it for essential expenses and build a good credit history.
6️⃣ Track your expenses: Use budgeting apps or spreadsheets to keep a record of your expenses. It will give you a clear picture of where your money is going and help you identify areas where you can cut back.
7️⃣ Seek financial guidance: Take advantage of any financial education resources provided by your college or seek guidance from a financial advisor. They can help you navigate complex financial decisions and provide personalized advice.
8️⃣ Be mindful of lifestyle choices: Make conscious decisions about your lifestyle and spending habits. Differentiate between wants and needs, and prioritize your financial goals accordingly.
9️⃣ Explore part-time jobs or side hustles: Consider taking on part-time jobs or side hustles to generate additional income. This can supplement your savings and help cover your expenses.
🔟 Invest in your education: College is an investment in your future. Choose a degree program that aligns with your interests and career goals, and remember to balance the cost with potential earning potential.
By implementing these strategies, you can develop good financial habits and save money as you navigate through college and beyond. Best of luck in your financial journey! 💰🎓
Amy Kent, MSPM, CSM
Enterprise Systems Manager- I manage BSAs and Software Developers
1
Answer
Updated
Amy’s Answer
Love that you are thinking about this! I wish I had when I was younger. Here are my thoughts for you:
As a college graduate, it's important to develop financial responsibility to ensure a stable future. Here are some tips to help you achieve this:
1. Budgeting and Planning: Develop a budget and stick to it. This will help you manage your expenses and avoid overspending.
Plan for the future by setting financial goals and making decisions that align with those goals
2. Avoiding Debt
Be mindful of taking on excessive debt, including student loans and credit card debt. It's important to graduate with minimal debt to avoid financial strain.
3. Saving and Investing: Start saving and investing early to build a financial cushion for the future. Even small contributions can make a significant difference over time. Have you opened a High Yield Savings Account? If not, you are losing money. Consider investing in options like exchange-traded funds (ETFs) or mutual funds for steady growth.
4. Financial Education: Continuously educate yourself about personal finance. Understanding financial concepts and strategies will empower you to make informed decisions .
5. Responsible Credit Card Use: If you have a credit card, use it responsibly. Pay your bills on time, follow a budget, and avoid accumulating unnecessary debt .
6. Long-Term Planning: Think about your long-term financial stability. Consider factors such as retirement planning, insurance, and emergency funds. Start slowly and build out a 6 month emergency fund for when issues arise.
As a college graduate, it's important to develop financial responsibility to ensure a stable future. Here are some tips to help you achieve this:
1. Budgeting and Planning: Develop a budget and stick to it. This will help you manage your expenses and avoid overspending.
Plan for the future by setting financial goals and making decisions that align with those goals
2. Avoiding Debt
Be mindful of taking on excessive debt, including student loans and credit card debt. It's important to graduate with minimal debt to avoid financial strain.
3. Saving and Investing: Start saving and investing early to build a financial cushion for the future. Even small contributions can make a significant difference over time. Have you opened a High Yield Savings Account? If not, you are losing money. Consider investing in options like exchange-traded funds (ETFs) or mutual funds for steady growth.
4. Financial Education: Continuously educate yourself about personal finance. Understanding financial concepts and strategies will empower you to make informed decisions .
5. Responsible Credit Card Use: If you have a credit card, use it responsibly. Pay your bills on time, follow a budget, and avoid accumulating unnecessary debt .
6. Long-Term Planning: Think about your long-term financial stability. Consider factors such as retirement planning, insurance, and emergency funds. Start slowly and build out a 6 month emergency fund for when issues arise.
Updated
Justine’s Answer
1. Make an effort to apply for all available scholarships. Also, explore opportunities on campus that could cover your tuition and/or housing costs, such as becoming a resident assistant (RA).
2. If your chosen major permits, consider working while studying. I managed to work full-time during my college years, which helped cover most of my tuition fees. Many employers will reimburse tuition and books/fees up to a certain amount per year. However, I understand that this might not be the ideal college experience for everyone.
3. Develop your credit history - apply for a credit card and use it responsibly. Treat it like a debit card, only buying what you can afford, and ensure you pay off the balance every month.
4. Begin saving immediately! Open a Roth IRA and contribute as much as you can. Starting early allows students to benefit from the power of "compound interest," which is the interest earned on your interest. This is something I wish I had been more consistent with!
5. Once you secure a job, aim to contribute as much as possible towards your retirement.
6. Before long, you may wish to buy a house! Gradually start setting aside money for a down payment. Most lenders require at least 3.5% of the house price as a down payment. Aim to buy when interest rates are low.
2. If your chosen major permits, consider working while studying. I managed to work full-time during my college years, which helped cover most of my tuition fees. Many employers will reimburse tuition and books/fees up to a certain amount per year. However, I understand that this might not be the ideal college experience for everyone.
3. Develop your credit history - apply for a credit card and use it responsibly. Treat it like a debit card, only buying what you can afford, and ensure you pay off the balance every month.
4. Begin saving immediately! Open a Roth IRA and contribute as much as you can. Starting early allows students to benefit from the power of "compound interest," which is the interest earned on your interest. This is something I wish I had been more consistent with!
5. Once you secure a job, aim to contribute as much as possible towards your retirement.
6. Before long, you may wish to buy a house! Gradually start setting aside money for a down payment. Most lenders require at least 3.5% of the house price as a down payment. Aim to buy when interest rates are low.
Updated
Moataz’s Answer
Congratulations on your upcoming graduation and your plan to attend college! Being financially smart as a recent graduate is a valuable skill that can set you on the path to financial stability. Here are some tips to help you manage your finances wisely:
1. Create a Budget:
Develop a detailed budget outlining your income, expenses, and savings goals. Be realistic about your spending habits and identify areas where you can cut costs.
2. Emergency Fund:
Start building an emergency fund to cover unexpected expenses. Aim to save at least three to six months' worth of living expenses.
3. Track Expenses:
Keep track of your daily expenses to identify spending patterns. Use budgeting apps or tools to help you monitor your financial habits.
4. Live Within Your Means:
Avoid unnecessary debt by living within your means. Be mindful of your spending and prioritize needs over wants.
5. Save for College:
If possible, start saving for college expenses. Explore scholarships, grants, and part-time work opportunities to help fund your education.
6. Part-Time Work:
Consider taking on part-time work during college to help cover living expenses and reduce reliance on loans. Look for on-campus job opportunities.
7. Student Loans:
If you need to take out student loans, borrow only what is necessary. Understand the terms and conditions of the loans, and explore federal aid options before private loans.
8. Maximize Scholarships and Grants:
Continuously search for scholarships and grants. Many organizations and foundations offer financial assistance for students.
9. Financial Aid Counseling:
Consult with your college's financial aid office for guidance on available resources and managing educational expenses.
10. Build Credit Responsibly:
If you choose to use a credit card, do so responsibly. Pay your bills on time, avoid carrying high balances, and be mindful of your credit score.
11. Cook at Home:
Save money by cooking at home rather than eating out frequently. Meal planning can help you control food expenses.
12. Buy Used Textbooks:
Look for used or digital versions of textbooks to save on education-related expenses.
13. Set Financial Goals:
Establish short-term and long-term financial goals. This could include saving for a specific purchase, building an investment portfolio, or planning for future expenses.
14. Seek Financial Advice:
Consider seeking advice from financial advisors or mentors who can provide guidance based on your individual circumstances.
15. Avoid Lifestyle Inflation:
As your income increases, resist the temptation to inflate your lifestyle. Continue to prioritize saving and living frugally.
16. Learn Financial Literacy:
Educate yourself about personal finance topics, including investing, taxes, and retirement planning. Many resources and online courses are available.
17. Take Advantage of College Resources:
Utilize resources offered by your college, such as financial literacy workshops or counseling services.
18. Plan for Retirement:
If possible, start contributing to a retirement savings account early. Compound interest can significantly benefit long-term savings.
19. Network and Explore Career Opportunities:
Build a strong professional network and actively seek internship and job opportunities to enhance your earning potential.
20. Be Mindful of Social Spending:
Be mindful of social activities that can quickly accumulate expenses. Look for cost-effective ways to socialize with friends.
By adopting these financial habits early on, you'll be better positioned to manage your finances, save money, and make informed decisions throughout your college years and beyond.
1. Create a Budget:
Develop a detailed budget outlining your income, expenses, and savings goals. Be realistic about your spending habits and identify areas where you can cut costs.
2. Emergency Fund:
Start building an emergency fund to cover unexpected expenses. Aim to save at least three to six months' worth of living expenses.
3. Track Expenses:
Keep track of your daily expenses to identify spending patterns. Use budgeting apps or tools to help you monitor your financial habits.
4. Live Within Your Means:
Avoid unnecessary debt by living within your means. Be mindful of your spending and prioritize needs over wants.
5. Save for College:
If possible, start saving for college expenses. Explore scholarships, grants, and part-time work opportunities to help fund your education.
6. Part-Time Work:
Consider taking on part-time work during college to help cover living expenses and reduce reliance on loans. Look for on-campus job opportunities.
7. Student Loans:
If you need to take out student loans, borrow only what is necessary. Understand the terms and conditions of the loans, and explore federal aid options before private loans.
8. Maximize Scholarships and Grants:
Continuously search for scholarships and grants. Many organizations and foundations offer financial assistance for students.
9. Financial Aid Counseling:
Consult with your college's financial aid office for guidance on available resources and managing educational expenses.
10. Build Credit Responsibly:
If you choose to use a credit card, do so responsibly. Pay your bills on time, avoid carrying high balances, and be mindful of your credit score.
11. Cook at Home:
Save money by cooking at home rather than eating out frequently. Meal planning can help you control food expenses.
12. Buy Used Textbooks:
Look for used or digital versions of textbooks to save on education-related expenses.
13. Set Financial Goals:
Establish short-term and long-term financial goals. This could include saving for a specific purchase, building an investment portfolio, or planning for future expenses.
14. Seek Financial Advice:
Consider seeking advice from financial advisors or mentors who can provide guidance based on your individual circumstances.
15. Avoid Lifestyle Inflation:
As your income increases, resist the temptation to inflate your lifestyle. Continue to prioritize saving and living frugally.
16. Learn Financial Literacy:
Educate yourself about personal finance topics, including investing, taxes, and retirement planning. Many resources and online courses are available.
17. Take Advantage of College Resources:
Utilize resources offered by your college, such as financial literacy workshops or counseling services.
18. Plan for Retirement:
If possible, start contributing to a retirement savings account early. Compound interest can significantly benefit long-term savings.
19. Network and Explore Career Opportunities:
Build a strong professional network and actively seek internship and job opportunities to enhance your earning potential.
20. Be Mindful of Social Spending:
Be mindful of social activities that can quickly accumulate expenses. Look for cost-effective ways to socialize with friends.
By adopting these financial habits early on, you'll be better positioned to manage your finances, save money, and make informed decisions throughout your college years and beyond.
Updated
deborah’s Answer
Hello YK! I appreciate that you are wanting to start your life on a firm financial foundation.
Budget - plan your monthly expenses, and live within the budget. One model is the 50/30/20 budget. 50% on Needs, 30% on wants and 20% on savings. Take a look at your expenses and budget every month to see if you are on track. And, adjust as income or expense goals change.
Savings - first, save for an Emergency Fund so you will have enough money for unexpected costs. Some say try to build enough for a few months of living expenses. Also, shop around for higher interest savings accounts. Put "compounding interest" in your favor. And, by starting early, your savings will grow exponentially over time.
Debt - use carefully. Credit card or loan (car) will help you build credit. However, pay off credit card each month. There are some newer programs like Debit cards that can help you build credit.
Set "SMART" Goals - specific, measurable, attainable, realistic, and time-bound (short-term, medium-term and long-term) for your financial future.
Then, stick to them!
https://www.nerdwallet.com/article/finance/nerdwallet-budget-calculator
Budget - plan your monthly expenses, and live within the budget. One model is the 50/30/20 budget. 50% on Needs, 30% on wants and 20% on savings. Take a look at your expenses and budget every month to see if you are on track. And, adjust as income or expense goals change.
Savings - first, save for an Emergency Fund so you will have enough money for unexpected costs. Some say try to build enough for a few months of living expenses. Also, shop around for higher interest savings accounts. Put "compounding interest" in your favor. And, by starting early, your savings will grow exponentially over time.
Debt - use carefully. Credit card or loan (car) will help you build credit. However, pay off credit card each month. There are some newer programs like Debit cards that can help you build credit.
Set "SMART" Goals - specific, measurable, attainable, realistic, and time-bound (short-term, medium-term and long-term) for your financial future.
Then, stick to them!
deborah recommends the following next steps:
Updated
Bryan’s Answer
Remember to keep a close eye on your expenses and create a detailed budget. It doesn't need to be elaborate, just something that gives you a clear picture of your spending habits. By saving money and assigning a fixed sum for certain activities like dining out, you'll find it easier to manage your finances. This approach will definitely aid in your financial journey.
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Brandon’s Answer
Hello, I appreciate your question! Not too long ago, I was in your shoes as a fresh graduate, having just moved into my own place. The thought of budgeting and saving money was a bit daunting, but I've found ways to navigate it. I meticulously monitor my earnings and maintain a comprehensive record of my expenses to ensure I'm aware of my spending and the remaining balance.
As you're gearing up for college, I'd like to propose a strategy. Consider securing a summer job in your hometown. This way, you can earn during your breaks and if time permits, perhaps take up a part-time job while studying. This approach will provide a steady income stream. I'd also recommend opening a savings account to stash away your earnings.
But remember, your education should always be your top priority. So, balance your work and studies wisely. This journey might seem challenging, but with careful planning and determination, you'll definitely succeed!
As you're gearing up for college, I'd like to propose a strategy. Consider securing a summer job in your hometown. This way, you can earn during your breaks and if time permits, perhaps take up a part-time job while studying. This approach will provide a steady income stream. I'd also recommend opening a savings account to stash away your earnings.
But remember, your education should always be your top priority. So, balance your work and studies wisely. This journey might seem challenging, but with careful planning and determination, you'll definitely succeed!
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Nic’s Answer
You can 100% be financially smart at your age. You are already on the right track with saving money. They key thing with being financially smart is allocating every dollar you are bringing in to a purpose. You need to spend money to live your life, but if you can create a budget and allocate a certain $ amount from every paycheck to personal spending, you can then begin to allocate the rest of your money to saving strategies.
In terms of saving, there are a few important things to know. First, the dollar get weaker every year with inflation, so you want to put your money places where it will appreciate to offset the depreciation in the value of the dollar. Ideally, your money will appreciate more than the dollar depreciates. Some good ways to do this is invest your money in the stock market, put your money in high yield savings accounts, purchase a CD (certificate of deposit), put money in a retirement account. Each of these strategies has its own list of pros and cons, so take some time to do some research on each strategy before putting your money there. For someone just graduation high school who may want to save some money to spend in the near-future, I would suggest the high yield savings account.
Hope this helps!
In terms of saving, there are a few important things to know. First, the dollar get weaker every year with inflation, so you want to put your money places where it will appreciate to offset the depreciation in the value of the dollar. Ideally, your money will appreciate more than the dollar depreciates. Some good ways to do this is invest your money in the stock market, put your money in high yield savings accounts, purchase a CD (certificate of deposit), put money in a retirement account. Each of these strategies has its own list of pros and cons, so take some time to do some research on each strategy before putting your money there. For someone just graduation high school who may want to save some money to spend in the near-future, I would suggest the high yield savings account.
Hope this helps!
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Ben’s Answer
Great job on initiating a personal finance plan before embarking on your college journey! Establishing a monthly personal budget is crucial to understanding where your funds are being allocated and identifying areas where you can potentially save. There are numerous apps and ready-made excel sheets available to assist you with this. Remember, your health and well-being should never be compromised, so avoid excessive cost-cutting on nutritious food and mental health necessities. Opting to cook your own meals is a cost-efficient alternative to dining out. Meal-prepping can be a practical strategy to stick to your budget while ensuring you always have wholesome, nutritious food at hand. Consider taking up a job during the summer to accumulate funds for the semester. Alternatively, a part-time on-campus job can provide income while offering flexibility around your class schedule.
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lavita’s Answer
Absolutely, start saving now! It's perfectly fine to skip a social evening with loved ones now and then to secure your FUTURE. Trust me, your future self will be grateful!
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Sangita’s Answer
Establish a personal budget.
Saving is great but it's also important that you are investing. Focus on investing and think about long term (outside of investing).
Saving is great but it's also important that you are investing. Focus on investing and think about long term (outside of investing).
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Emmanuel’s Answer
Just get a part time job. If you have a car you can also do Uber, lyft, or grubhub, etc.
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Erica’s Answer
1. Work leading up to starting school and save as much of it as you can.
2. Apply to any and all scholarships or grants that you can. The more money you get to aide in paying for school, the less debt you will have afterwards and the less you will need to pay monthly out of pocket while in school.
3. Budget what you have saved up throughout the school year.
4. Hold a job even if it's only seasonal during winter and summer breaks from university.
5. Invest if you can.
2. Apply to any and all scholarships or grants that you can. The more money you get to aide in paying for school, the less debt you will have afterwards and the less you will need to pay monthly out of pocket while in school.
3. Budget what you have saved up throughout the school year.
4. Hold a job even if it's only seasonal during winter and summer breaks from university.
5. Invest if you can.
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Samantha’s Answer
It's fantastic that you're already considering this. Many individuals don't begin to adopt this mindset until much later, so you're ahead of the curve.
There's a multitude of strategies to be financially savvy, and you'll need to customize them to fit your unique needs.
Establish a budget and adhere to it.
Remember to allocate funds for savings and unexpected costs as well.
Try to steer clear of debt when you can.
Exercise caution with credit cards and ensure timely payments.
Occasionally, this might involve making hard decisions. For instance, when you start earning after school and can afford luxuries like a new car, you need to take a moment and evaluate your decision. Will this be beneficial in the long run?
Invest. The world of investing is full of endless possibilities. The most crucial investment would be in your future. Begin contributing to your company's 401k or retirement plan as soon as you land a job.
Persistently challenge and motivate yourself to expand your financial knowledge. Identify what level of risk you are comfortable with.
The fact that you're posing these questions at this stage indicates to me that you're already on the path to becoming financially savvy.
There's a multitude of strategies to be financially savvy, and you'll need to customize them to fit your unique needs.
Establish a budget and adhere to it.
Remember to allocate funds for savings and unexpected costs as well.
Try to steer clear of debt when you can.
Exercise caution with credit cards and ensure timely payments.
Occasionally, this might involve making hard decisions. For instance, when you start earning after school and can afford luxuries like a new car, you need to take a moment and evaluate your decision. Will this be beneficial in the long run?
Invest. The world of investing is full of endless possibilities. The most crucial investment would be in your future. Begin contributing to your company's 401k or retirement plan as soon as you land a job.
Persistently challenge and motivate yourself to expand your financial knowledge. Identify what level of risk you are comfortable with.
The fact that you're posing these questions at this stage indicates to me that you're already on the path to becoming financially savvy.