ISB Blog

Graduation is a time of change. While change can be exciting, it can also be daunting. But with the right attitude and education, it doesn’t have to be scary. For many new grads, finances are one of the largest focus areas – and for good reason! Stepping out of school into the “adult world” can mean a host of new expenses never previously encountered. 

If you’re graduating from high school and going to college, for instance, there are many things you’ll need to keep in mind financially: 

• How much does college cost?

• How do I get the best degree possible for my buck?

• Will I live in campus housing or in an apartment? Should I live with myparents to save money?

• How do I budget and save for groceries and necessities?

• How can I save money when I have new expenses to cover?

If you’re graduating from high school and going directly to the workforce, you might be asking things like: 

• How do I budget my paycheck for my necessities?

• Can I make this my living, or should I work somewhere with a largerpaycheck?

• How do I pick a bank that sets me up for my financial goals, includingsavings, mortgages, and investments?

Finally, if you’re graduating from college and entering the full-time workforce for the first time, the questions get even bigger: 

• Is my career profitable, and can it work within my budget?

• Will I be able to afford my desired lifestyle?

• Can I pay off my student loans and still buy a home? 

• Can I buy a car or take a vacation now that I’m out of college?

• Can I afford marriage or children on my current salary?

• How does my credit score affect my ability to fund the things I want?

While many of the above questions can apply to anyone in any stage of life regardless of education, graduating from school tends to put a sharper focus on our careers and our goals. Although many of these questions are relevant at any stage of life, graduating from school often brings our goals and careers into sharper focus. Whether you're finishing high school or college, it's always the right time to continue growing your financial literacy.

Financial Advice for Every Stage

No matter where you are graduating from (high school, college, trade school, etc.), there’s always time to put a focus on finances and your life goals. Learning to be smart with money and budgeting is a life skill that will be with you for the rest of your life, so no time like the present! There are many things anyone who is graduating can do to level-up their finances. 

Create a budget

While this sounds simple, in practice it is often difficult for many people to create and manage. A budget is essential for anything you do in your life, be it groceries, gas, trips, or paying off loans. Make sure you’re paying off necessities like bills and food before allocating to discretionary spending or fun allowances. Keep in mind where your savings are and be consistent with keeping up a rainy-day fund. Many people find it helpful to follow the 50/30/20 rule: allocate 50% of your monthly income to necessities, 30% to wants, and 20% to savings. 

Use an app or a program to track your spending

There are numerous free or inexpensive apps to help track your spending, and even a simple program like Excel can be used to monitor your budget and weekly expenses. Keeping your receipts and recording your purchases and charges is also a great way to manage your income. You can also see financial trends and how your spending is changing over time, then adjust accordingly – this comes in handy when you’re trying to save for a bigger purchase like a home or vehicle. 

Work with your bank or financial planner

If you’re currently banked, your bank can help guide you with the best uses of your money, such as savings accounts that accrue interest, investment opportunities, and credit or debit cards that return the most points or cash back for purchases. In many cases, it’s possible to make your spending go further than just the numbers on the check. Your bank can also help you secure a variety of loans for different needs, ranging from business lines of credit or capital purchase loans to home loans and other financial needs for different stages of life. 

Listen to financial podcasts

As you age into your finances and your goals, you’ll want to hear more and more from others about how they manage and keep their budgetary affairs in order. There are many excellent financial podcasts to tune in to, with all of them providing a varied and valuable focus for whatever your monetary goals may be. 

No Matter How You Spend, Practice!

Just like in school, when it comes to your personal finances, there will be some homework. But practice makes perfect! Every time you spend money or work on your budget, you’re creating an opportunity to improve a life skill that will be essential no matter where you go. There is no perfect way to budget or spend, and one of the most valuable lessons you’ll learn is how to spend and save in ways that are right for you. Graduating your financial education will always pay off.