Moves for college grads starting out during an economic slowdown

05/08/2020

 

What financial advice do you have for grads if they have a job?
In these times of economic uncertainty it is important to not make any long term commitments especially when it comes to housing and transportation until you are certain of your job stability. It is also important to spend more like you are still in college and not increase expenses just because you are earning more.
 
What is an important step that college grads might not make?
Building a rainy day fund should be a priority given that job stability might not be strong for the first few months on the job. Finding that money will require different choices for living arrangement and keeping expenses lower to have the funds to build the savings.
 
What other financial advice should new grads be following?
Begin building smart money habits that they use everyday. This includes having a spending plan, comparison shopping on all their purchases, and spending less than they earn so they can build that rainy day fund. This can be difficult for new Grads who might be making more money than they ever did so they might start spending more than they ever did.
 
What if they don’t have job or their offer was rescinded?
It is really important to stay in touch with their school resources and continue to look for opening. If they had an offer, keep in touch with that organization. Situations can change and they likely will be first in line if the company begins to rehire.  Also, call any places that they received an offer from and declined, those companies might have had people who decided not to accept after all.
 
Should they be concerned about looming student loan payments?
It will be important for them to find out their options for deferrals until they are working full time. Some options include up to 3 years deferment when they are not working depending on the loan provider. And of course there is the recently enacted 6 month federal deferment that was approved.
 
Whether they have a job or not, is there any other advice?
All should keep building their skills and stay up to date on sectors that are thriving so they can pivot from original career focus and move to where they can find a job. This is a great time to build their social network and connect with people who are thought leaders in their field or other fields. Even though they are out of school, they need to continue to focus on learning.

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