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Tips for Managing Money and Paying Off Student Debt After Graduation

May 20, 2020 You did it. You graduated. You tossed your cap and drank champagne, and now it’s time to...adult. Yikes. You may be feeling overwhelmed, and that’s okay. Navigating life after college is hard, but like college, you can take it one lesson at a time. Here are some money tips to help guide you through the transition:

1. Get Acquainted with Your Student Loan.

Figure out how much money you owe and when you need to start paying. Some student loans have a grace period of about six months, while others require payments to start right after graduation. Either way, mark your calendar! If you have multiple student loans, keeping track of due dates and minimum payments can be confusing. In this case, it might make sense to consolidate your loans and refinance into one monthly payment. With a  , you may also be able to lower your interest rate and save some money in the long run.

2. Establish a Monthly Budget That Includes Saving Money (Even Just a Little).

You’ve landed a job and gotten into your new routine; this routine now includes a large chunk of money every two weeks or so! This newfound financial freedom can be hard to navigate when you throw happy hours, workout classes, iced coffees and nightlife into the mix. The best thing you can do for yourself is create a monthly budget. Filling out a   is a great place to start. We recommend tracking your spending every month for at least three months to get a sense of your new financial life. Once you’re in the money mindset, set a monthly savings goal. It can be small. Like, really small. You can even set up automatic savings deposits from your paychecks so you don’t even have to think about it.

3. Start Contributing Money to Your Retirement. Seriously!

Retirement may seem like a far-off concept when you’re in your twenties, but the sooner you start saving, the more time your money will have to grow. Contribute to your retirement account at least as much as your employer will match. If your employer doesn’t offer a retirement plan, open an  . Does talk of retirement, stocks and taxes have your head spinning? You’re not alone!  , and we can talk you through it.*

4. Pay More Than the Minimum on Your Student Loan.

You’re making money moves, and as you advance in your career, it may be a good time to prioritize loan repayment. Paying more than the minimum on your student loan is a good investment that can save you money in the long run, but don’t press pause on your money saving habits to do so. Just pay more when you can. You can always go back to paying the minimum for a few months if your budget gets tight.

5. Track Your Credit Score.

Building a good credit score and maintaining it is imperative if you plan on taking out any kind of loan or credit card. Your credit score can even be checked when you are renting an apartment or applying for a job. It is essentially used as a tool to provide proof of your trustworthiness and responsibility. If you are looking to raise or build credit, here are some tips to get it done:
  • Pay bills on time, every time! (Setting up auto-payments is a great way to do this one!)
  • Pay off your credit card bills in full every month, if you can.
  • Keep your oldest line of credit open.
  • Avoid maxing your credit limit.

6. Open a Secondary Savings Account.

Life after college will probably look a little different five years out. The idea of adulting isn’t as foreign; it’s just life. You could even be thinking about bigger purchases like buying a car or a house. Now is a good time to open a secondary savings account so you can start saving for those goals. You may even want to read up on   to see if you could start earning a higher savings rate on the money you’ve already set aside.

7. Start an Emergency Fund.

Things like car repairs, unexpected travel, home maintenance and hospital bills are unfortunately a harsh reality, especially when you are not prepared. According to the   report, 40% of Americans would be unable to cover a $400 expense. If you set aside even $20 every two weeks, you’d have almost $500 after a year, which is a great start to an emergency fund. Even small amounts really start to add up after a while. Keep in mind, this emergency fund is separate from your secondary savings account that you are using for your future financial goals.  Life after graduation is challenging enough without having to stress about your finances. If you need help managing your money after college,   with a Summit financial coach, and we’ll be more than happy to help you develop a strategy that fits your needs and lifestyle.  
*Securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution. FR-3049332.1-0420-0522 You might also be interested in Financial success isn’t how much money you have — it’s feeling good about what you’re doing with the money you have. Here are some tips on how to prioritize your debts and bills, negotiate with creditors and get your late payments back on solid ground. Even in these challenging times, there's  whole lot of good happening! At Summit, we've always believed financial success happens together and that's been truer than ever this past month. Here's what "together" has meant for our community. Navigating finances after college is hard, but you can take it one lesson at a time. Get tips for managing money and paying off student debt after graduation. Navigating finances after college is hard, but you can take it one lesson at a time. Get tips for managing money and paying off student debt after graduation. If you’re not sure if something is a scam, it’s ALWAYS better to act like it could be! Fraudsters are always coming up with creative new ways to steal from you and quick to take advantage of a crisis. Here are some of the most popular recent scams to watch for. With a little planning, you may be able to actually save a little money during the holidays. Check out these tips to keep costs down without missing out on the holiday fun. Some scams go right for your money; others try to get you to part with personal information – like account numbers, Social Security numbers, passwords, and personal identification numbers (PINs). Find out what you should look for and how to protect yourself. The holidays can be stressful & that’s why it’s important to prioritize your self-care. Use these tips to reduce stress without draining your bank account. Your home is your castle, your refuge and—let’s face it—a place where it can be very easy to sink a big chunk of money. Which is why you’re always on the lookout for “sweet spots”:  those home improvements that add comfort, safety or a little zing of style while you’re living in your house and will boost the asking price when it’s time to sell. And if you can find a way to save money on those improvements or cut home expenses at the same time, well that sweet spot just got a little sweeter! Featured Products Certificates Checking Accounts Home Equity Loans Home Loans Business Banking Certificates Checking Accounts Home Equity Loans Home Loans Business Banking Financial Education Upcoming Events Programs Tools & Calculators On-demand Webinars Podcasts Upcoming Events Programs Tools & Calculators On-demand Webinars Podcasts About Equity in Money™ About Summit Careers News Community Giving Equity in Money™ About Summit Careers News Community Giving Help & Support Contact Us Member Support Center Schedule an Appointment Find a Branch Contact Us Member Support Center Schedule an Appointment Find a Branch Please read the following before proceeding to: The website you are about to visit is solely the responsibility of the merchant or other party providing the site. The content of this third-party site, including materials and information, is solely the responsibility of the provider of the site. The Credit Union is not responsible for any such third-party content. Any transactions that you enter into with a vendor, merchant or other party that you access through this third-party site are solely between you and that vendor, merchant or other party. The Credit Union does not endorse the content contained in this third-party site, nor the organization publishing the site, and hereby disclaims any responsibility for such content. The Credit Union Privacy Policy does not apply to this third-party site, and for further information you should consult the privacy disclosures of the third-party site. NCUA Insurance Estimator Privacy, Security & Accessibility Rates, Fees, Terms & Disclosures Routing Number *  The Wisconsin's #1 Mortgage Lender designation is based on the number of loans in 2022, gathered from the Home Mortgage Disclosure Act data compiled annually by the Consumer Financial Protection Bureau. The results of the data were obtained through the LEI: 254900NTAC4H10MGSU23 **  SBA Lender of the Year Award for Credit Unions as awarded by the Small Business Administration of Wisconsin in 2023. Copyright 2024 © Summit Credit Union. All rights reserved. If you are using a screen reader and are having problems using this website, please call 608-243-5000 for assistance. Insured by NCUA