Tag Archives: College Graduate

6 Financial Traps New College Graduates Should Avoid

This spring, college seniors across the nation will graduate and start their careers. Financial lifestyle should be top of mind, says the American Bankers Association. ABA has highlighted six traps new college graduates should avoid to fortify their finances as they transition from the dorm to the office.

“Now is the time for college grads to get their financial life started on the right foot,” said Corey Carlisle, executive director of the ABA Foundation. “When it comes to managing your finances in the real world, pulling an all-nighter isn’t the best strategy.  Forming positive financial habits today will set you up for lifelong success.”

According to ABA, new college graduates should avoid the following financial traps:

Not having a budget.  Don’t spend more than you make. Calculate the amount of money you’re taking home after taxes, then figure out how much money you can afford to spend each month while contributing to your savings. Be sure to factor in recurring expenses such as student loans, monthly rent, utilities, groceries, transportation expenses and car loans.

Forgoing an emergency fund.  Make it a priority to set aside the equivalent of three to six months’ worth of living expenses. Start putting some money away immediately, no matter how small the amount. A bank savings account is a smart place to stash your cash for a rainy day. Use your tax refund for this instead of an impulse buy.

Paying bills late – or not at all. Each missed payment can hurt your credit history for up to seven years, and can affect your ability to get loans, the interest rates you pay and your ability to get a job or rent an apartment. Consider setting up automatic payments for regular expenses like student loans, car payments and phone bills.

Racking up debt. Understand the responsibilities and benefits of credit.  Shop around for a card that best suits your needs, and spend only what you can afford to pay back. Credit is a great tool, but only if you use it responsibly.

Not thinking about the future.  It may seem odd since you’re just beginning your career, but now is the best time to start planning for your retirement. Contribute to your employer’s 401(k) or similar account, especially if there is a company match. Invest enough to qualify for your company’s full match – it’s free money that adds up to a significant chunk of change over the years.

Ignoring help from your bank. Most banks offer online, mobile and text banking tools to manage your account night and day.  Use these tools to check balances, pay bills, deposit checks, monitor transaction history and track budgets. To learn about the tools Stock Yards has to offer, visit our website at www.syb.com.

Resource information provided by the American Bankers Association

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8 Money Tips Every College Freshman Should Know

With Labor Day behind us, most colleges are underway with the fall semester. The American Bankers Association encourages college students to get an early start on securing their financial future. Check out these eight tips on how to avoid expenses now and reduce financial burden upon graduation.

  • Create a budget.  You’re an adult now and are responsible for managing your own finances. The first step is to create a realistic budget or plan and stick to it.
  • Watch spending. Keep receipts and track spending in a notebook or a mobile app.  Pace spending and increase saving by cutting unnecessary expenses like eating out or shopping so that your money can last throughout the semester.
  • Use credit wisely. Understand the responsibilities and benefits of credit.  Use it, but don’t abuse it.  How you handle your credit in college could affect you well after graduation.  Shop around for a card that best suits your needs.
  • Lookout for money. There’s a lot of money available for students — you just have to look for it. Apply for scholarships, and look for student discounts or other deals. Many national retailers offer significant discounts for those with a valid student ID.
  • Buy used.  Consider buying used books or ordering them online.  Buying books can become expensive and often used books are in just as good of shape as new ones.  Dedicate some time and research to see what deals you can find.
  • Entertain on a budget. Limit your “hanging out” fund.  There are lots of fun activities to keep you busy in college and many are free for students. Use your meal plan or sample new recipes instead of eating out. If you do go out, take advantage of special offers that occur during the week, like discount movie ticket days or weekly restaurant specials.
  • Expect the unexpected.  Things happen, and it’s important that you are financially prepared when your car or computer breaks down or you have to buy an unexpected ticket home.  You should start putting some money away immediately, no matter how small the amount.
  • Ask. This is a learning experience, so if you need help, ask.  Your parents or your bank are a good place to start, and remember—the sooner the better.

For more tips and resources on a variety of personal finance topics such as mortgages, credit cards, protecting your identity and saving for college, visit aba.com/Consumers.

5 Money Saving Tips for College Grads

For many college graduates, the first few months in the “real world” can be quite the transition. During this time, grads may be searching for a job, moving out, or moving to a different city. No matter what the plan is for post-graduate life, it’s important to keep finances in check. Here are five simple money saving tips:

1. Move in with Parents
If you have the option, moving in with your parents can save an abundance of money. Even if your parents require you to pitch in, it will still be cheaper than spending money on rent, water, utilities, etc.

2. Create a Budget
As you begin working full-time or part-time, take note of how much money you have coming in and how much you are spending. Creating a budget allows you to stay on track with spending. For more information on how to create a budget, check out this website.

3. Sell Old Items
If you have lived in a dorm or off campus housing, more than likely you have acquired some furniture and decor you no longer need. Hosting a yard sale can bring in extra cash and help you get organized for the future. Get rid of those unused textbooks and sell them to get some extra money.

4. Enjoy Free Events
Instead of going out to eat every night or spending money on summer concerts, enjoy free shows or take advantage of special dinner deals on certain nights of the week. Being aware of special events in your community can help you have a great time and save a fortune.

5. Start Planning for the Future
If you haven’t already, open a savings account that can be your safety net. Start putting money away as soon as you have a job or receive money from graduation, summer job, etc. This account will be helpful in the event of a job change, relocation, or an unexpected charge like maintenance for your car.

Graduating college is a huge milestone and is something to be proud of! No matter what the next step is, getting ahead and saving will allow you to be even more successful in the future.