You did it. 4 years later, after all the late nights in the library, crying sessions in the dorm rooms, football games and darties and a last-minute quarantine, you’ve made it. Graduation is here! With your cap and gown and possible ceremony on Zoom with an empty folder that says diploma on it, you stand tall, ready to face down…the rest of your life?
Post grad life can simultaneously be the most exciting and scariest time of your life. Everything changes, especially your financial situation. You may no longer be paying tuition, but do you have student loans? Where are you going to live? There’s no meal plan in real life, so how are you going to pay for food? If these questions are stressing you out, it’s okay. It’s normal to get overwhelmed. Boro knows how hard the transition from college life to real life can be (especially in a pandemic). Here are 3 tips for a smooth transition for financial independence after graduation.
1. Talk with your parents, guardians, or whoever supported you financially through college.
Communication is essential here. We're in the middle of one of the worst economic crises we've ever seen. Sit down and have a frank conversation with your parents or guardians about expectations post-grad. You may need their support for a while and that's okay. Check in on a few expenses: how much money will you be earning? What bills can you afford to take on? Be realistic, but more importantly, be respectful.
2. Make a payment plan.
Lay out all of your expenses so you have an idea what to expect to be paying each month. Include the basics like rent, food, and transportation, but also add in those items you might be dealing with for the first time, like paying off student loans or insurance (remember, you don't have to start paying off loans until six months after graduation). Knowledge is power, and whether or not you have a job lined up, you’ll feel a lot more prepared to tackle real life.
3. Start Building Credit!
Credit is one of those #adulting things they should teach us in college but don’t. It’s so important to start building your credit ASAP, so you can get that apartment or job you’re really wanting. There are a few ways to do this: there’s always the traditional route of getting a credit card and being sure to pay your bills on time. But another way is to try getting BoroCash! It’s convenient, flexible and honest, and can put you on your way to a healthier financial future.
Get up to $2000 and pay back over 1-12 months. Paying back on time can help you establish strong credit history.
Post-grad can be scary, especially right now. But you’ve got this. Get as prepared as you possibly can now so you are able to become financially independent soon.