As 1.882 million students graduate from college this year with a bachelor’s degree, according to the National Center for Education Statistics. They will enter the workforce armed with knowledge from the past four years—but financial planning, investments and savings isn’t always included in their college curriculum.
School is back in session with financial do’s and don’ts for new college graduates:
Don’t take on too much debt by not exceeding 20 percent of your take home pay each month. Complete this helpful worksheet from the University of Illinois Extension for a true picture of your debt level.
Don’t make bad money habits like morning mochas, daily lunches and happy hours. If you repeatedly waste money now, it will cost you for years.
Don’t wait to save and invest. Work towards achieving your long-term financial goals, like retirement and homeownership, today. To get a picture of how much you could save over time, calculate your savings.
Do live within your means through planning and discipline. First, create a budget by examining your income and expenditures. Next, figure out where you can spend less to achieve your financial goals.
Do appreciate the power of compounding—and save, save, save. When you open a retirement account—such as a 401(k), Traditional IRA or Roth IRA—you benefit from compound interest. These accounts are actively invested and have the potential to make the most benefit.
Do advocate for your own financial security—by better managing your money and making informed financial choices. Don’t rely on someone else or others to do it for you.
To give the gift of sound financial advice for the graduate in your life, visit one of Busey’s many convenient locations, call 1.800.67 | Busey or visit busey.com today.
Investing involves risk and you may incur a profit or loss regardless of strategy selected. Be sure to contact a qualified professional regarding your particular situation before making any investment or withdrawal decision. You should discuss any tax or legal matters with the appropriate professional.
Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC, and are not insured by any financial institution insurance, the FDIC/NCUA or any other government agency, are not deposits or obligations of the financial institution, are not guaranteed by the financial institution, and are subject to risks, including the possible loss of principal. Raymond James is not affiliated with the financial institution or the investment center. Busey Investment Services is independent of Raymond James Financial Services, Inc.
This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Busey Investment Services and not necessarily those of Raymond James. The information has been obtained from sources conserved to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete.
Busey Investment Services
100 W. University
Champaign, IL 61820