Helpful tips offered for college graduates

Rebecca Gramuglia

Special to Village News

With nearly 3 million students graduating from college in 2020, many are facing an unprecedented time.

As graduates face this new chapter in their lives, they will be presented with different financial learnings and obstacles including earning a salary for the first time, starting their own business or anything in-between that brings them face-to-face with finances.

To make the adjustment to adulthood a little easier here are five helpful post-grad finance tips.

Build your credit.

In today’s world, the importance of credit can be found in almost every aspect of life. From applying for a credit card to purchasing a car, a credit score is used to determine creditworthiness. As a young adult and recent college graduate, you should always be conscious of how your financial decisions affect your credit score. If you didn’t have a credit card during college, find a card that best suits your needs and lifestyle and get one now. Whether you use it or not, having a credit card in your name helps you establish credit, and the longer you have a credit history, the better.

Implement a budgeting tool.

No matter what job you have, try your best to save and budget your income. It’s important now more than ever to secure your funds early on. So, whether you’re starting your first full-time job or signed up for a brand-new credit card, lots of dollar signs can get thrown around and it’s important to know where to begin implementing an easy budgeting tool. The 50/20/30 rule is key to building your savings. You should spend only up to 50% of your after-tax income on essentials, such as housing and food; 20% on financial priorities, such as savings and any debt; and 30% on lifestyle choices, which can include treating yourself.

Start an emergency fund.

Especially if you received cash gifts from graduation, it may seem exciting to have some extra money in your pocket to spend right now, but take a step back. The money you received from your friends and family is the perfect start to an emergency fund. Whether it’s a portion or all of the money you received, adding to your emergency fund can eliminate any future financial stress and frustration when something major occurs that you would typically need money for.

Shop smart.

The days of paying full price are long gone. Implement easy, saving tips into your shopping habits by knowing that you can typically get a lower price on anything. Whether you compare prices at different stores before purchasing, shop the sale and clearance sections or time your purchases by waiting until a holiday weekend to shop to score the best deals, these are simple ways to save money. Bonus points if you shop through a cashback site like http://TopCashback.com to earn a percentage of your purchase back in cashback on qualifying purchases from stores like Nike, Sephora, GNC and more.

Focus on yourself.

It’s can be extremely easy to compare yourself to others in real life or on social media and want to buy the latest and greatest sneaker, phone, vacation, etc., but don’t be fooled. Focus on yourself – the more you save now, the cooler stuff you can do later without having to worry if you’ll be able to pay your bills.

Rebecca Gramuglia is a personal finance expert at TopCashback.com.