If you or someone you know could use a little help in the financial planning department, check out these tips from Forbes Magazine Contributor, Kerry Hannon.
Upon graduation from college, most students have worked a few part-time or summer jobs to earn some extra cash. But when they graduate, it becomes more of a responsibility to work full-time and budget all earnings.
These tips from Kerry Hannon, a Forbes Magazine Contributor, provide a basis for college graduates on what to do with their finances:
Hannelore Foerster, Getty Images Hannelore Foerster, Getty Images 1 Read a book on money basics. Hannon recommends books written specifically for young adult audiences. JenWaller, Flickr JenWaller, Flickr 2 Make a tentative budget. Be cautious of your activities - eating out, shopping, overbuying products, etc. Dave Goldman,Townsquare Media Dave Goldman,Townsquare Media 3 Look for free rent. Hannon says that living with one's parents can cut back enormously on costs. Plus, it allows one to save more money. Joe Raedle, Getty Images Joe Raedle, Getty Images 4 Stay away from debt. Hannon advises that "Debt is a dream killer." Kevin Winter, Getty Images Kevin Winter, Getty Images 5 Get rid of debt quickly. Hannon believes in thinking of debt as your worst enemy. Chung Sung-Jun, Getty Images Chung Sung-Jun, Getty Images 6 Start an emergency fund. This is a TOP priority. Set aside a certain amount of income each month, and don't touch the stash until you've built it up to at least 6 months worth of living expenses. John Moore, Getty Images John Moore, Getty Images 7 Invest. Buy stocks, and let your money grow. Don't move it around too soon. 8 Take advantage of retirement plans. Employers will offer such programs to you as an employee, it is important to understand and utilize them. 9 Don't use your 401k too soon. Let the money values build over time, you'll need it once you retire. Adam Berry, Getty Images Adam Berry, Getty Images 10 Take health insurance when it's offered to you. Just because you're young does not mean you won't need health insurance. Take advantage of the offer when it's presented to you. Brendon Thorne, Getty Images Brendon Thorne, Getty Images 11 Splurge on life experiences. Hannon says that trips or once-in-a-lifetime opportunities are worth the cost.