11 Money Tips for College Grads
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.
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These tips from Kerry Hannon, a Forbes Magazine Contributor, provide a basis for college graduates on what to do with their finances:
- 1
Read a book on money basics.
Hannon recommends books written specifically for young adult audiences. - 2
Make a tentative budget.
Be cautious of your activities - eating out, shopping, overbuying products, etc. - 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. - 4
Stay away from debt.
Hannon advises that "Debt is a dream killer." - 5
Get rid of debt quickly.
Hannon believes in thinking of debt as your worst enemy. - 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. - 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. - 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. - 11
Splurge on life experiences.
Hannon says that trips or once-in-a-lifetime opportunities are worth the cost.