“Financial Tips for College Graduates: 7 Essential Steps”

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Seven Smart Money Moves for New Graduates

With college graduation and the onset of adult financial responsibilities, consider these seven smart money moves to get ahead. Setting yourself up for financial success before you walk across that stage may be one of the best choices you make.

1. Gather Your Documents

As you prepare to step into the world on your own, ensure you have all necessary paperwork from your parents. This includes your:

• Birth certificate
• Social Security card
• Insurance cards (car, health, and dental)
• Vaccination records
• High school diploma

You’ll need these documents for various financial situations, such as applying for apartments, credit cards, or filling out a W-4 at your new job. Having them readily accessible can prevent delays in your plans.

2. Understand Your Student Loan Repayment Details

If you have student loans, prepare for repayment. While most loans offer a grace period, it’s crucial to understand your repayment terms, payment due dates, and minimum payment requirements. Consider repaying accrued interest on unsubsidized loans before the grace period ends to avoid increasing your loan amount and payments.

3. Begin Building Credit

Building credit involves adding tradelines, such as loans, credit cards, or utility payments, to your credit report. Credit reports are compiled by Experian, TransUnion, and Equifax. If you have a student loan, you’ve already started building credit. Adding a credit card can expand your credit mix and offer perks. A healthy credit history can help you achieve financial goals, qualify for an apartment, or secure a job.

4. Begin Applying for Jobs

Depending on your financial situation, start applying for jobs several months before graduation. This can help you secure a position and have income soon after graduation. Utilize on-campus resources like the career center to perfect your resume. The average job hunt takes over 20 weeks, so apply early or have savings to bridge the gap between graduation and employment.

5. Find an Affordable Place to Live

Finding an affordable place to live after college may mean living with roommates or family. Rent often consumes a large portion of your income, especially when starting out. Experts recommend housing costs should not exceed 30% of your monthly paycheck. Living with friends or family can help you save while you get on your feet.

6. Start Saving

If possible, start saving money before graduation. An emergency fund is essential for an independent adult. Aim for an initial goal, such as $1,000, and then save for three to six months of post-grad expenses. This includes living expenses, cellphone bills, groceries, and debt payments. Emergency savings can help you avoid debt when unexpected expenses arise. Consider opening a high-yield savings account or Roth IRA for better returns on your savings.

7. Protect Your Identity and Digital Financial Health

As you open more official accounts, take steps to protect your identity. Use different passwords across accounts and avoid staying logged in to financial apps. Be cautious with ads for apartments and never pay upfront for a place you haven’t seen. Developing an awareness of fraud and scammers is crucial as you navigate financial matters as an adult.

Get Your Degree in Personal Finance

For many young adults, college graduation is a financial turning point. If you’re about to become financially independent, it’s important to be prepared and have an action plan. Staying dedicated to saving, living within your means, and building credit can help you achieve long-term goals like traveling or owning a home. In the short term, it requires effort to create a healthy financial foundation, but it will pay off in the future.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We’re here to help you achieve your financial goals!

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