Four financial questions to ask before you graduate from college
Preparation is key when it comes to life after graduation. Regardless of your current financial situation, keep your mind open to exploring new post-graduation ventures and scenarios. Life can change in an instant and if there’s anything we’ve learned from the pandemic, it’s that we have to be adaptable. Here are some pressing financial questions that should be addressed prior to graduating to make a smooth transition to life after college:
1) What are your plans after you graduate from college?
It’s a notorious question that many soon-to-be college graduates are asked during their senior year. There are options abound for college graduates. You can take a break; perhaps enjoy a month or two spending time with family and friends. You could start a new job. You could volunteer or continue on to grad school. Whatever your decision, take note that it will cost money to do so. Aim for the beginning of your senior year (or better yet the summer prior) to make a list of what you see yourself doing after you graduate and then go over the numbers. You’ll then be able to narrow down what you can and cannot afford. Don’t fret if the options you’re left with are not ideal. Nothing is set in stone and you can always save up and prioritize your next post-graduate goals.
2) Where will you live after you graduate?
This goes hand-in-hand with #1 above: your post-college plans. Brainstorm the possibilities, then narrow down to the most likely: Back home with your parents? With roommates? On your own? If you plan to live on your own or with roommates, know that you’ll need the first month’s rent and deposit (usually equal to another month). Here are some other common moving expenses:
A U-Haul or rental car/truck
An airplane ticket (if you’re living on the Mainland) and possibly the cost for transportation from the airport to your new place of residence
Shipping costs for your belongings
Movers if you decide to hire them
Money for cleaning supplies or hiring a professional cleaning service
3) When do you need to start paying off your student loans?
This one is pretty straight-forward, and you can look into it well before graduation so there are no unpleasant surprises. Most federal loans such as the Direct Subsidized, Direct Unsubsidized, or Federal Family Education Loan, will give you a six-month grace period before you are required to begin making payments. Grace periods may change if you’re called upon for active military duty, you’ve returned to school before the end of your loan’s grace period, or if you’ve consolidated your loans.
There are also different repayment options, so check with your lender and be sure they have your current contact information on file. Remember that it’s your responsibility to make loan payments, whether you receive a billing statement or not. Your college advisor or counselor is a great resource to use while you’re still in school. Take advantage of their services, do your own research and follow-ups, and you’ll be set and organized to pay your student loans.
4) Where are you going to work?
Securing a job post-graduation will give you peace of mind and some real money for real expenses. If you’re starting from scratch, research what field you’re interested in around six months prior to your graduation. While you’re researching, request for at least five official transcripts from your admissions office and ask your professors or current supervisor for a letter of recommendation. Keep an open mind when exploring job opportunities. Your first job may not perfectly align with your college major or your interests, however, it could be a good way to gain experience in a particular industry. Be realistic when it comes down to wage or salary negotiations in order to know whether you can financially survive on your own.
Graduating from college is an amazing milestone. Congratulate yourself first and foremost for persevering and achieving this goal. While plans may not go exactly as you imagine, focus on what is in your control and enjoy the adventure in the next season of your life.