Orlando, Fla. (Ivanhoe Newswire) — life after college can be stressful, especially when it comes to money. A new report from oxford economics says unemployed recent grads account for 12 percent of the 85 percent rise in national unemployment since mid-2023. But with the right tools, you can stay financially fit — even in a tough market.
You’ve passed the test, but can you do the real-world math and keep up with budgets and bills?
According to the federal reserve, the unemployment rate for recent college grads has risen to 5.8 percent, up from 4.8 percent in January.
So, what can grads do to keep their finances afloat? Start with a simple budget using the 50-30-20 rule. 50 for needs, 30 for wants and 20 for savings.
Odds are you already have a credit card. Use less than 30 percent of your credit limit to keep your credit score strong. And don’t forget to check for hidden perks like cellphone protection, extended warranties, purchase protection and travel points!
And when it comes to job offers, use them to your advantage!
“Be shopping and fighting for the highest compensation, the best benefits package you can,” said Chet Cowart, Financial Planner.
Evaluate health insurance, 401k match, PTO, and whether the company offers a matching health savings account.
And now is the time to starting paying off your school debt. The average student loan debt is over 39 thousand dollars. Start paying what you can now to reduce interest and stress.
“If you carry hundreds of thousands of dollars in student loan debt into your forties and fifties, that’s really going to weigh you down,” said Cowart.
Managing money post-college doesn’t have to be overwhelming, just start small, stay consistent, and learn as you go.
One more tip, set bills to autopay so you never miss a due date. Enable round-ups on purchases to automatically build a savings buffer. And here’s a tip that could turn you into a millionaire, start investing 300 dollars a month at age 25, and you could retire with over one million dollars by 65 without winning the lottery. Want to save even more? Every time you get a raise increase your contribution by at least one percent.
Contributors to this news report include: Cliff Tumetel, Producer; Bob Walko, Editor.
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Sources:
https://www.cbsnews.com/news/college-graduate-unemployed-technology-artificial-intelligence/
https://www.newyorkfed.org/research/college-labor-market#–:overview
https://www.nerdwallet.com/article/finance/nerdwallet-budget-calculator
https://www.forbes.com/advisor/credit-cards/best/recent-college-graduates/
https://www.cnbc.com/select/financial-advice-for-new-college-grads/
