Paul Socia, CEO and president of Miramar Federal Credit Union has some advice on how to manage expenses for new grads. When it comes to your finances, sadly there is no such thing as “summer break.” It’s important to stay vigilant in our financial planning because in the wise words of P Diddy, with “mo money,” comes “mo problems.” Now that school is out for the summer and an overwhelming number of new grads are moving back home (according to Pew Research, over 32% of adults aged 18-34 live with their parents), many families may find this time of year more stressful than most.
Not to fear creating and sticking to a budget IS possible. Below are three simple tips for new grads and their families to avoid the financial hot seat this summer.
- Get ahead of your debt –According to loan expert Mark Kantrowitz, the average 2016 college graduate holds $37,172 in student loan debt. New grads should find ways to lower how much they pay in interest and prioritize paying off student loans. If you aren’t able to find a job right away there are still options! Consider refinancing, or joining volunteer programs like the Peace Corps, which offers student loan relief.
- Keep track of what you spend-Keep a record of what you spend on necessities like groceries, gas, utilities and other monthly “musts” so you have a clear budget for your occasional splurges like eating out. Many times, when you write down a list of the things you buy each month, many of what we believe are necessities are in fact quite the opposite, and it can be easy to lose track of how much frivolous spending you actually do each month. Try putting all your shopping receipts in a single envelope. As you shop, add the amount of each new purchase onto your total.
- Automate your savings -Many banks offer automated ways to help you save without you needing to set a reminder. Options like MFed’s Kasasa® Saver takes care of the heavy lifting, thanks to automatic deposits of your monthly Kasasa checking rewards. Just link the two accounts and relax for the rest of the summer your part is done! All you have to do is determine how much you want to save. A great rule of thumb is to save $2 for every $10 you spend. This simple step ensures that for every purchase you make, you are adding to your savings balance.
About Miramar Federal Credit Union (MFed)
Miramar Federal Credit Union (MFed) was founded in 1952 by the civilian employees of Naval Air Station (NAS) Miramar to serve members’ banking needs. MFed now serves all branches of the armed forces and their families and has grown to and is currently serving over 6,800 members. MFed offers 28 branch locations to serve members through the CO-OP Shared Branch network in San Diego County and over 6,400 shared branch locations nationwide. MFed is responsible for providing financial services and educational tools to the military population in San Diego, while maintaining the positive and welcoming culture its’ members have come to trust.
This article reflects the thoughts and opinions of the author and is being provided for educational and informational purposes only. It should not be considered financial or tax advice. Please consult your financial or tax advisor about your situation.