Financial Tips for Graduating Students
As you embark on this new chapter, First Federal Bank wants to help you be financially prepared. Take a look at these tips: for graduating students.
Fine-tuning your budgeting skills is essential for your future success. If you need help getting started, check out our article on creating a simple budget.
As you complete your budget, set up a few savings goals for yourself. For example, if you want to save $1,500 for your next spring break vacation, set aside $125 each month for a year. By saving a little bit each month, you will be less likely to drain your savings account for big purchases. To keep yourself on track, set up automatic transfers from your checking account to your savings account.
Although it may seem far away, establishing savings goals at a young age can make a substantial difference when it comes to retirement. Don't just take our word for it. Take a look at this savings calculator to see how your savings adds up.
Once you begin working full-time, First Federal Bank recommends you put 10% of your income towards retirement and aim to save at least three months of your income for emergencies.
Responsibility Starts Now:
Opening a new credit card can be easy, but paying off high-interest credit card debt is anything but easy. Receiving a store discount or free gift to open a credit card is not worth struggling to get out of debt.
You often hear conflicting information about how to improve your credit score, but if you use a credit card, plan to pay it off completely each month. If you can't, don't use it.
A $1,000 balance with 24.99% interest will take 87 months to pay off at $25 a month, meaning you will pay $1,177.62 in interest.
Do you have a windfall of old-fashioned checks from your graduation party? Put them safely in your checking or savings account. You can do this from anywhere using mobile deposit simply by snapping an image of the check with your phone.
Check to see what solutions your bank has to bank on-the-go, especially if you are moving after graduation. First Federal Bank offers tools like People Pay, Bill Pay and OnLine Banking to make it simple to bank from home or any new locations you may be off to.
Life beyond graduation is fun, but it can be confusing to figure out how to get established and be financially sound. Remember, First Federal Bank's team is always willing to help guide you through life's milestones. Just stop by a branch in Ohio, Michigan or Indiana, or give us a call.