Cost of living and budgeting
First-time borrowing
Managing debt
Employment uncertainty
Approximately 2.5 million students are starting their freshman year of college. That’s a lot of new comforters, laptops, mini fridges, and school spirit swag! It can also mean a lot of new financial hurdles and important decisions. How do I pay for books? What if I want to order a few extra things? Do I need a checking account and debit card? What about a credit card? What’s the right option for me? And what if college isn’t my thing; how do I make the most out of each paycheck?
No need to worry—here’s four important pieces of financial advice for recent high school graduates, whether you’re headed straight for campus, the job market, or just taking it easy this fall.
Cost of Living and Budgeting
As you step into adulthood, understanding how to spend and save effectively is key to building financial confidence. Start by tracking your monthly income and expenses, and set realistic spending limits for essentials like housing, food, transportation, and savings. Advia Credit Union encourages building strong money habits at an early age, and one great way to start is with our Assurance Checking account, which comes with a free debit card and no overdrafts or Courtesy Pay fees. Pair it with digital banking tools to manage your money on the go.
Budgeting can seem overwhelming; it’s very easy to make purchases (especially online) and lose track of your remaining balances. Thankfully, with the available balance and transaction history tools in Digital Banking, you’ll know when the amounts you spend are pending and when they have cleared your account. Staying on top of much you can spend, save, and grow your accounts is essential to financial freedom.
First-Time Borrowing
One of the most important steps on your financial journey is establishing good credit history. An impressive credit report will help you in the future to apply for a car or credit card, move into an apartment, and more.
You may be offered credit cards on social media or through email. Before accepting these offers, there are three things you should know about the Terms & Conditions:
- The credit card rate: You may be offered a great offer or bonus for signing up, but after the promotional period, you’ll be stuck with a high rate that you’ll be charged on your purchases if the amount owed isn’t paid in full each month.
- Paying your balance: Strive to pay your balance in full every month to not rack up unwanted debt. If you are unable to pay your full balance, then the (often high) interest rate charge will be applied to your balance to pay the following month.
- Benefits: Are they right for you? When looking at the cash-back options or travel rewards, how often are you really traveling? What kind of purchases are you making each month? If you are typically making dining and grocery purchases, opt for a card that gives you more points or cash-back options for those purchases.
Don’t have credit? Advia’s Visa® Platinum Credit Cards are a great option for first-time borrowers. Available in Platinum Variable rate or Platinum Advantage Points options, our cards offer a low rate with no annual fees and robust fraud protection. Making payments on time and keeping your balance low is the best way to kickstart your credit history!
Managing Debt
Once you’ve started establishing credit history for your first credit card loan, it’s important to know how to manage the payments responsibly.
- Always make payments no later than the due date to avoid late fees or negative impact to your credit reporting.
- When possible, always pay more than the minimum amount due to avoid paying extra interest over time.
Stuck in debt? There’s a way out. If you’re unable to afford monthly payments or just want to combine those balances into one simple payment, a debt consolidation loan is a great option. Advia offers several useful refinance options designed to lower your interest rates, reduce monthly payments, and save you money.
Employment Uncertainty
Entering the job market, either before, during, or after college (or instead of it) can be exciting—but also unpredictable. Whether you're starting a part-time gig, full-time job, or still exploring your career path, it's smart to prepare for periods of unemployment or income instability. Building an emergency fund is a great first step. Aim to save at least three to six months’ worth of essential expenses and consider setting up automatic transfers to a savings account to make it easier. A certificate of deposit (CD) is another great option for earning the maximum amount of interest on your nest egg. Investing in a CD is safe and easy and offers a guaranteed fixed interest rate for a variety of term-length options.
By following these basic steps, you’ll be well on your way to a long and successful financial future with a strong foundation of spending, saving, and money management skills. Remember that Advia Credit Union is always available by phone, online chat, and in-branch to answer all your money questions and concerns! Providing you with the right tools and techniques is our highest priority and we can’t wait to see our recent high school graduates begin to thrive this fall. Congratulations on starting this exciting new chapter!
About Advia Credit Union : Advia Credit Union’s mission is to provide financial advantages to its members. With $3.7 billion in assets, Advia seeks to provide quick and easy access to money and time-saving financial tools to nearly 200,000 members in Michigan, Wisconsin and Illinois. Advia’s team of over 600 professionals delivers excellent service and innovative products at 34 locations and via digital and mobile platforms. Advia is guided by its core values: driving progress, acting with integrity, building and strengthening relationships, and keeping people at the core. Visit adviacu.org to learn more about how Advia provides Real Advantages for Real People™.