Graduating from college means adult life is upon you.
That means new financial responsibilities, and your kids and grandkids need to be prepared for them. (USA Today)
Graduating from college brings significant financial and lifestyle changes, and it’s easy to feel overwhelmed. While you’re trying to adjust to your new life in the workforce, you must also start paying back your student loans and planning for your future. It’s a lot to tackle at once, and many young college graduates don’t know where to begin.
Everyone’s financial goals and budgets will vary, but there are five key things that every college graduate – no matter their field or salary – should do to start their adult lives off on the right foot.
1. Start an emergency fund
An emergency fund is meant to help you cover unexpected expenses, like a medical emergency, replacing a broken home appliance, a job loss, or filing an insurance claim. Without one of these funds, you may have to charge these expenses to a credit card, or risk falling behind on your payments. Once you’ve gotten into a debt cycle, it’s difficult to get out again, so it is worth putting some money aside now to cushion yourself against unexpected payments.