Dear College Graduate: 5 Money Lessons You Need to Know
Graduation season has officially arrived. You may be writing checks and buying congratulations cards, attending open houses, or celebrating your own graduation. No matter what this month is bringing to your household, we all know it is a huge accomplishment and worthy of celebration.
I’m dedicating this newsletter to all the college graduates and young people who are making their way in this world. If you know a graduate and think they would find this beneficial, please pass this on to them!
Dear Graduate,
Congratulations! YOU DID IT! No literally, you survived one of the most challenging years we have seen in a while. As a gift from me to you, I wanted to share a little advice.
Twenty-three years ago I graduated from college with excitement and a bit of relief. I found a job and couldn’t wait to get started in my chosen field. What I didn’t know, however, is how to manage the money I was being paid. It’s funny how you work so hard to make money, but when you get it you don’t know what to do with it. Because of this disconnect and the large amount of debt I had to dig out of I became a financial coach to solve this problem.
Here are the biggest money lessons I wish I knew as a recent college graduate…
Credit Cards are a Trap
You will have so many credit card companies begging you to get that card. They will even give you a super low introductory interest rate. Just don’t do it. It’s a trap! Once you start using them, it is hard to stop. Paying cash for your purchases keeps you in the driver’s seat with your money and decision-making.
Keeping Up With Joneses Isn’t Worth It!
In today’s world, the Joneses could be someone like the Kardashians or the Tiktoker who just bought that fancy sports car. Just because the trend is #tiktokmademebuyit doesn’t mean you have to. Distinguishing needs from wants is so important. Keeping up with others by buying things you don’t need will land you in tons of unnecessary debt.
The B Word (Budgeting that is!) Isn’t A Bad Word
A budget is simply a plan for your money before you spend it. Budgeting doesn’t have to be horrible. Once you learn how to create one, it actually begins to give you more freedom. Planning is a mature and responsible way to take care of your hard-earned cash.
Those Student Loans Aren’t Free Money!
Yes, you have to pay back all of the student loans you signed for. Of course, you do have 6 months of no payments so you can get settled a bit in your career but those loans aren’t going anywhere. Planning for the payments, getting on the right repayment plan, and potentially consolidating your loans will help you manage the loans better. Ignoring those loans is probably one of the worst things you can do at this stage of life. Don’t do it!
Save Like Your Life Depends on It!
Because it does! The one thing all of my clients have in common is that they wish they had begun saving earlier. Time is on your side. If you start saving for your future now it will become a habit. One of my favorite quotes is: “The best preparation for the future is the present, well-tended.” Saving now helps you create the future you desire.
