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Financial freedom Tips for grads on handling money
Welcome to the real world: financial tips for college graduates
Date published: 5/7/2006 By PORTSIA SMITH By PORTSIA SMITH The Class of 2006, set to graduate this month, will soon enter the working world. The lucky ones have already landed a job. The rest are waiting anxiously for an offer. While the job market is projected to be in good shape this year, recent graduates will have a hard time enjoying their first real-world pay checks as they try to make ends meet by paying down their college debt and managing new costs: rent, skyrocketing energy bills, increased monthly credit card payments, and other obligations such as car payments and buying clothes for work. According to the Center for Economic and Policy Research using data from the College Board, the average debt for students graduating in 2003-04, the latest data available, was $15,622 for graduates of public schools and $22,581 for private. Add to that the $2,169 in debt that a 2004 survey by student lender Nellie Mae says the average undergraduate has racked up on his credit card, and the first year's salary could already be accounted for. Counselors at ClearPoint Financial Solutions, a nonprofit consumer credit counseling agency with an office in downtown Fredericksburg, said getting hit with real-world responsibilities and debt can be both frightening and demanding. But with the right preparation, college graduates can make a smooth transition into the next phase of their lives. "Graduating from college is a major milestone in a person's life, and new graduates are suddenly faced with real-world responsibilities such as career and personal finance," said Ann Estes, vice president of counseling delivery at ClearPoint. "While it can seem overwhelming, facing these new challenges with the knowledge of how to handle them can make the transition a lot easier." The following are some useful tips offered by ClearPoint Financial Solutions on how to make the most of a recent graduate's new income. Develop a budgetAn organized budget will put new graduates on track with spending and financial goals. They should first document regular monthly expenses such as rent, utilities, car payments, insurance and credit card bills. For bills that do not vary each month, setting up automatic payments is a good idea. Once the bills are paid, it is easy to determine how much money is left over each month for other spending. If the person is unable to follow the plan, spending should be re-evaluated. Share the burden
Read more stories about Fredericksburg Date published: 5/7/2006
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