You’ve passed the test, but can you do the real-world math and keep up with budgets and bills?
Life after college can be stressful, especially when it comes to money.
According to the Federal Reserve, the unemployment rate for recent college grads has risen to 5.8%, up from 4.8% in January.
And a new report from Oxford Economics says unemployed recent grads account for 12% of the 85% rise in national unemployment since mid-2023.
But with the right tools, you can stay financially fit — even in a tough market. So, what can grads do to keep their finances afloat?
Start with a simple budget using the 50-30-20 rule: 50 for needs, 30 for wants and 20 for savings.
Odds are you already have a credit card. Use less than 30% of your credit limit to keep your credit score strong.
And don’t forget to check for hidden perks like cellphone protection, extended warranties, purchase protection and travel points!
And use job offers to your advantage.
“Be shopping and fighting for the highest compensation, the best benefits package you can,” said financial planner Chet Cowart.
Evaluate health insurance, 401(k) match, paid time off, and whether the company offers a matching health savings account.
And now is the time to start paying off your school debt. The average student loan debt is over $39,000. Start paying what you can now to reduce interest and stress.
“If you carry hundreds of thousands of dollars in student loan debt into your 40s and 50s, that’s really going to weigh you down,” said Cowart.
Managing money post-college doesn’t have to be overwhelming, just start small, stay consistent, and learn as you go.
A few more tips:
- Set bills to autopay so you never miss a due date
- Enable round-ups on purchases to automatically build a savings buffer.
- Start investing $300 a month at age 25, and you could retire with over $1 million by 65 without winning the lottery.
Want to save even more? Every time you get a raise, increase your contribution by at least 1%.