Entering the realm of adulthood is one of the scariest propositions for every student that is graduating college.
According to debt.org, the average student leaves college with about $33,000 dollars in student loan debt. We are introduced to reality of “real life” the minute we are handed our diplomas. So the question is, how do we deal with our newfound financial responsibilities?
- Find a job.
It’s easy to say “find a job,” but it’s an entirely different story when you’re fresh out of college and trying to make a living. Make a LinkedIn account, connect with people you know and build that resume. Sell your skills and hopefully someone buys. Maybe your first few jobs aren’t exactly what you hoped they would be, but that shouldn’t deter you from pursuing your goals.
The unemployment rate for recent graduates in 2014 was 8.5 percent, compared to 5.5 percent in 2007, According to the Economic Policy Institute. In addition, liberal arts degrees tend to have higher unemployment rates than engineering and science degrees.
- Pay your bills on time.
Every year students are graduating with record amounts of debt, and most of us have to start paying that back in about six months. There are three types of payments you should never miss: mortgage, auto and student loans.
Student loans generally cannot be charged off in bankruptcy proceedings, so even if you fall on hard times, the payments will follow you until they are paid off. Your credit is one of the few things that you have absolute control over in this world. Take that control.
- Have a plan (and a savings account).
Many financial planners talk about having a “nest egg.” Ideally, you should have the cash on hand in order to pay your bills in the event that you do not receive income for several months. Although it is difficult as a college student to save money given that going to school is essentially a full-time job, we have to try to protect ourselves from falling into financial instability.
Any amount that you can put into your savings every month is helpful, but strive to put at least 10 percent of your income into an accessible cash savings account in addition to any 401(k) contributions that you may be making at your job; you should always contribute at least the max matching amount, if there is one.
- Don’t be afraid to go home
According to the Pew Research Center, more young adults are living with their parents than at any time in the last 40 years. There was a 4 percent increase in the amount of millennials (ages 18-31) who lived with their parents from 2007-2012, with 36 percent living at home. More students are seeking the financial freedom that comes with living at home and having a stable support network.
Many students may be hesitant when it comes to moving back home, but there is nothing wrong with admitting that you need help. For many students, post-graduation is the first time that we deal with the real world. It’s a scary place, and we all may not be adequately prepared, but you should never be afraid to reach out and get some help.