How College Grads Should Manage Their Money

How College Grads Should Manage Their Money
Strategy
Like Us On Facebook
Like Us On Facebook

By all accounts, college graduates are leaving school and entering the real world lacking a sufficient amount knowledge in how to handle their finances. The good news? You haven’t screwed up yet. And if you follow a few broad, yet basic guidelines, things might just stay that way.

After a recent report from Finra’s Investor Education Foundation revealed a few worrying statistics about personal finances in the U.S. (19% of Americans spend more than they earn), Fox Business reporter Emily Driscoll consulted experts to inquire, generally, about one thing: What can young people do to better manage their money?

“When you take into consideration the financial turmoil many have faced in recent years and the future of Social Security, it is wise for younger generations to start saving early and thinking about their finances,” finance expert Kimberly Foss told Fox.

The first bit of advice given to young spenders is to create a budget that catalogs prospective savings and costs.

“You will quickly learn where you spend the most money and what you value financially–are you a person who makes impulse buys or do you research your purchases?” said Chanel Green, the manger of financial aid at Peirce College.  “This type of trending becomes valuable when the student is trying to determine if they need to keep spending in check, how well they manage their money and if there are areas where they can improve their budgeting skills.”

It may sound like common sense, but it is nonetheless an important tool to help people avoid the type of spending that those in debt come to regret. And so is the use of a savings account, as well as a consistent system to abide by while putting money away.

“Deposit whatever you can initially, and then aim to contribute 15% of your take-home pay to the fund monthly,” said Foss.

Of course, if you don’t feel motivated enough to use these simple methods — which could, lest we forget, save you much trouble in the future — you could just ask your indebted elders about the type of things they did to land themselves in financial misery.

“They might be able to tell you these are the mistakes we made because we did not start soon enough, so you may be able to learn the great things they’ve done and the things they wish they would have done,” said Dave Richmond, founder of the wealth management firm Richmond Brothers. “You can either step in the potholes that everybody steps in or you can learn to avoid them–it’s much easier and less painful to learn how to avoid them.”

Share Tweet
React
Like Us On Facebook
Like Us On Facebook

Joseph Milord

A Journalism & Media Studies product from Rutgers University, Joseph began his writing days as a blogger in his sophomore year before a twist of fate saw him cross paths with Elite Daily. He hasn't looked back since, only forward towards fulfilling his obsession with words through many more articles for the voice of generation-Y.

More In Strategy

Strategy Gwen Elliot

5 Ways To Get Your Company Acquired, From An Entrepreneur Who Did It By 25

Getting acquired is a dream scenario for many startup CEOs. Getting there, however, is damn near impossible. According to Bloomberg, eight out of 10 entrepreneurs who start businesses fail within the first 18 months. On the other hand, there are those entrepreneurs who move fast, decide faster and build something big. Katherine Hague is one of these […]

Also On Elite

Technology

20 Scary Facts About Technology That Will Make You Want To Throw Your Phone Away

Technology, today, is scary. Each year, technology becomes even more pocket- sized and in the process, life becomes more and more convenient. Nowadays, there’s an app for everything. You need food? Seamless. You need a date? Tinder. You need a date who’s slightly less desperate? Hinge. It’s too easy. You don’t even have to pester […]

Sports

4 Reasons Why The Eagles Are The Only Team That Matters Right Now

Another Sunday in the NFL means another happy Monday for the good folks of the Delaware Valley. The Philadelphia Eagles survived an NFC East battle with Washington and took a 37-34 decision at Lincoln Financial Field. While the football world was fixated on the Super Bowl rematch in Seattle, this back-and-forth contest highlighted the early-game […]