As many students are getting ready to graduate it is common for stress to arise from the many changes coming in the near future. From planning graduation, interviews for a full time job, evaluating job offers, finding a city to live in and an apartment or house to stay, to even just the thought of managing your money on your own, these daunting tasks all seem to come at once. But, with a little planning ahead many of these stressors can be limited or avoided all together. By thinking ahead and planning for post graduate expenses, creating a budget, and by utilizing and being aware of employer benefits you can set yourself up for post grad success.
- Consider ALL post grad expenses:
There are many expenses that students don’t anticipate after graduating and many expenses that are more than anticipated. Planning ahead and researching these expense can be very beneficial in feeling successful about money management after college. There are many factors to consider when estimating post grad expenses:
- Where you will be living: Manhattan has a lower cost of living compared to many bigger cities, if you anticipate moving to larger city, it is common to find significantly higher rent prices and higher prices of goods and services across the board. Consider this factor when evaluating your job offer. If you plan to move to places like California or New York, you may need a higher salary to compensate for the cost of living difference. One way to estimate possible overall expenses is by using this cost of living calculator such as https://www.nerdwallet.com/cost-of-living-calculator.
- What current expenses will you start paying for: Many students starting to live on their own post college will begin to pay for expense that their parents or family members had typically paid for in the past. Examples of this could be a phone bill, car payment, insurance, medications, etc. Every situation is different, but check with anyone that helps pay for your expenses to determine which ones you will begin paying upon graduation.
- What new expenses may arise: There will be many new expenses that arise after graduation, it is important to sit down and determine which expenses you will have, but here are a few examples. Rent payment, utilities, pet expenses, happy hours with coworkers, business travel, insurance, doctors’ visits and medications, kitchen and cooking supplies, home décor, etc.
- Create a budget
Once students go into the work force and start receiving a full time salary, it is easy for people to overspend. A full time salary goes a lot further than money most students made in college so it is common to want to buy more with your salary. When starting to make a full time income, it is important to create a budget to understand how much you are making and spending and adjust accordingly. Below are a few resources that are helpful in creating a budget
- Powercat Financial budgeting page: Powercat Financial offers may great resources and tips in creating a budget through the following link, https://www.k-state.edu/powercatfinancial/budgeting/
- Online Apps: there are numerous apps that can sync to your online banking to help you manage your money through your phone. https://www.nerdwallet.com/article/finance/best-budget-apps
- Paper or a spreadsheet: you can also create a simple budgeting by tracking income and expenses either on paper or on a spreadsheet, these are easy to create on your own and provide you flexibility when starting a budget.
- Take advantage of employer benefits
Companies provide a wide array of benefits that can help you with saving money, managing your money, and numerous other benefits. Here are just a few examples to keep in mind.
- Retirement plan and matching: Companies will put extra money into your retirement account if you make contributions as well, this differs between companies, but always try and maximize the amount you put into your account so you can get the most benefit from your company.
- Office perks: many offices offer free lunch, free gym membership, free haircuts, and more. If your office has any of these perks, make sure to take advantage of them to save money.
- Financial planning credit: many companies will offer a stipend each year to see a financial planner, take advantage of this if your company provides this perk.
Overall, there are many changes that come with graduation and starting a new job, but with a little time and effort in setting up a strong financial foundation, you can ease the stress and manage your finances with confidence. Congratulations soon to be graduates!
Cameron Jones
Peer Counselor II
Power Financial
302 K-State Student Union, Third Floor
918 N. 17th Street
Manhattan, KS 66506-2800
785.532.2889
www.k-state.edu/powercatfinancial
PowercatFinancial@k-state.edu
