Graduation is one of the biggest milestones in any student’s life. After studying and working hard through high school or completing college, graduates are finally ready to carve their own path in the world. As a graduate, you most likely will celebrate and be congratulated by friends and family with gifts of checks and cash. While it is fun imagining all the things you plan to do after graduation with your monetary gifts, it is beneficial to plan for your financial future and tie up any loose ends. Consider the following to determine the best way to use your cash and check gifts.
Debt and Financial Pressure
After graduating, cost-of-living expenses like housing, food, and transportation appear and student loans could soon be due. The resulting financial pressure forces graduates to adapt their lifestyles to account for debt and living expenses. Consider setting aside some of your graduation money to pay off some debt to liberate yourself as you start on your new journey. If you are looking for a job after graduating, consider Core Bank and visit our job postings.
Expect the Unexpected
Unexpected expenses from auto repairs to medical bills can come out of nowhere. Being prepared with having an emergency fund and continuing to build on it is a key to future financial success. Starting out small but saving up enough to cover three to six months of expenses is a goal to set for the future.
Core Bank’s Core Savings account is a great place to start. With a low minimum account balance of $100 and a competitive interest rate, a Core Savings account is a great way to build up your savings and invest in your future.
Maintaining Good Credit
Most newly appointed graduates are not financially prepared to make a major purchase like a home or expensive car. Effectively managing student loans and other expenses sets the stage for future credit victories. New graduates may struggle to keep up with financial obligations, due to low starting salaries and reduced career opportunities. In many cases, deferring student loan repayment or consolidating college debt makes the transition easier for recent graduates. Consider overdraft protection, which can save you money on hefty overdraft fees. If your car is on its last leg and you received a cash gift, you may want to combine a down payment with an auto loan.
Lifestyle Adjustments
Graduates face several social adjustments when finishing coursework. Landing employment, for example, may require relocation from family and friends. Compared to hyper-connected campus life, getting started on the career path can leave some graduates feeling isolated. Recent graduates may struggle to find a balance between their careers, family, and social obligations. Consider setting aside some of your gift money to treat yourself with entertainment with your networks before a move or new career path.
Core Bank offers easy financial solutions that fit your lifestyle and goals. Remember to use Remote Deposit with your checks received or deposit your financial gifts into a savings or checking account.
If there is a graduate in your life, you can also use Zelle as a fast, safe and easy way to send money as a gift.