May and June are the months to celebrate graduations – to some, the beginning of adulthood. Whether you are graduating from high school or college, there are certain money tips recent grads should follow to get started on the right food – and avoid debt and other financial problems. Here are our top five picks:
- Be smart with credit cards – Always try to pay off your balance in full to avoid running up debt. Also, sign up for cards that provide rewards such as points for air fare and other incentives.
- Pay off student loans– Some loans are interest-free for the first six months after graduation. If you can, pay them off quickly to avoid the interest charges. Remember to keep in mind that paying off these student loans should not be at your saving’s expense. Check back next week for a more in-depth look at your loan repayment options and savings plan.
- Understand your taxes –Look into certain tax breaks for students and recent graduates with benefits of Roth IRAs and 401(k) plans.
- Live like a thrifty student – Only buy what you can afford. The more you continue to save, the more prepared you will be for large or unexpected expenses in the future.
- Consider waiting to go to graduate school – In order to avoid more student loans, consider waiting to go to graduate school and gain some work experience to build up your professional credentials. Sometimes your employer will cover a percentage, even all, of your tuition.