Money management tips for college grads

Managing money is not easy for all. How should graduates approach this?

10:12 22 November 2014

Even after securing an undergraduate degree, many college graduates display poor money management skills. The harsh reality is that not many graduates establish a framework for managing money better.

 

It is important for graduates to cultivate the habit of making appropriate financial decisions early. This will help build a solid foundation for a sturdy, healthy, lifelong association with their finances. After all, the way people manage their finances when they are young has a long-lasting bearing on their financial habits for the rest of their lives. For instance, young adults who bank on borrowing will carry on this habit to their last breath.

 

Thanks to the financial turmoil that had a great impact on the finances of many of us, , generation Y are now forced to take stock of their finances early, make retirement savings and wise investments while they are still young. College grads are counselled to stop procrastinating and utilise the all-important tool for saving for retirement; TIME.

 

College students and grads, who saw their parents’ financial state crumble during the depression of 2008, are advised to escape the same consequence and lead better lives by tackling their student loan early, restraining their spending habits, widening the scope of their investment and most importantly, having solid financial plans for the future.

 

They should establish budgets and strive to track all their spending to identify where their money goes. If you are a graduate, tracking your spending provides an opportunity to adjust in areas where you think you are overspending. It will help you realise whether you are an impulsive buyer or you do your homework well before making the purchase. Lastly, college grads and students should continuously evaluate whether they are keeping their spending in check, and try to find a way to develop their budgeting skills.