Smart Financial Habits Can Pay Off for College Grads
Transitioning from college to the working world may be less of a shock to young adults if they employ smart money habits early on. Eager to gain new customers, many banks offer deals and promotions to recent graduates, such as cash awards for opening a checking or savings account, according to Informa Research Services.
The hard-earned first paycheck usually encourages a new worker to spend it, but creating a budget and training oneself to allocate a portion of it towards a savings account will build smart money habits. Young adults may be less tempted to spend their earnings if they employ an automatic transfer of funds to their savings account, Informa suggests.
Building a strong credit score is a must for recent graduates who may one day want to purchase a vehicle or a home. Young adults should shop around for low-interest-rate credit cards with minimum fees, the research service recommends.
The period following graduation molds most young adults into the kind of savers and spenders they’ll be. Setting financial goals and spending limitations will establish money management habits that will help them accomplish their goals.
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Date: May 25, 2010
Categories: Credit Score