6 Tips to Help New College Grads Get a Jumpstart on Financial Responsibility

Your first savings goal should be to set up an emergency fund. Life can take unexpected turns and this is a great way to ensure peace of mind should a job layoff or other unforeseen circumstances occur.  Make it a priority to set aside the equivalent of 3 to 6 months’ worth of living expenses. Start putting some money away immediately, no matter how small the amount. There are multiple ways your financial institution can offer advice on savings tools and strategies. Bank of the James is always happy to have this conversation to get you started!

Did you know that every time you miss a payment, your credit history can take a hit for up to 7 years? This can affect your ability to get loans and the interest rates you pay on loans. It could even affect your ability to get a job or rent an apartment. Consider setting up automatic payments for regular expenses like student loans, car payments, medical bills, and utility bills.

Credit cards can be very tempting and offers are everywhere. Often, new promotions offer very attractive rates for an introductory period and then skyrocket. Take time to understand the responsibilities and benefits of credit before locking yourself down with a new credit card. Shop around for a card that best suits your needs and has a solid rewards program. Avoiding store credit cards can also help save you from unnecessary debt. Once you have a credit card, spend only what you can afford to pay back in the next 30 days, otherwise you will get charged high interest rates and increase what you owe. Credit is a great tool if used responsibly.

It may seem odd to think about long-term financial goals since you’re just beginning your career. However, it’s never too early to start thinking about your retirement! If your employer offers a 401(k) or retirement plan, set up regular contributions, especially if there is a company match. And be sure to invest enough to qualify for your company’s full match – it’s free money!

View our Tip Sheet for Developing a Habit of Saving.

Most banks offer online, mobile, and even text banking tools to manage your account 24/7. Use these tools to check balances, pay bills, deposit checks, monitor transaction history, and track budgets. Many banks also offer alert options for you to stay on top of your finances. You can set up alerts based on transaction type, merchant category, and even spend limit.