As nearly 2 million U.S. college students graduate this spring, Flanagan State Bank is stressing the importance of a sound financial lifestyle. Flanagan State Bank has highlighted financial tips recent college graduates should consider to position themselves for financial success as they embark on their next phase of life.

“Budgeting is critical for young adults as living expenses and student loan bills add up quickly,” said Jordan Kessinger, a Flanagan State Bank branch manager and loan officer who specializes in student loan refinancing. “Saving as much money as you can and paying down debt right out of the gate will help position you for lifelong financial success.”

Flanagan State Bank recommends the following financial tips for recent college graduates:

Set a budget and stick to it.

Supporting yourself can be expensive, and you can quickly find yourself struggling financially if you don’t take the time to create a budget. Calculate the amount of money you’re taking home after taxes, then figure out how much money you can afford to spend each month while contributing to your savings. Be sure to factor in recurring expenses such as student loans, monthly rent, utilities, groceries, transportation expenses, and car loans.

Common First-Time Expenses to Watch Out For:

• Rent and security deposits

• Health insurance or out-of-pocket medical costs

• Internet, phone, and utility bills

• Car maintenance and gas

• Clothing for work

• Groceries and household supplies

• Subscriptions or streaming services

 

Pay bills on time

Missed payments can hurt your credit history for up to seven years and can affect your ability to get loans, the interest rates you pay, and your ability to get a job or rent an apartment. Consider setting up automatic payments for regular expenses like student loans, car payments, and phone bills. Take advantage of any reminders or notification features. You can also contact creditors and lenders to request a different monthly due date from the one provided by default (e.g., switching from the 1st of the month to the 15th).

Avoid racking up too much debt

Understand the responsibilities and benefits of credit. Shop around for a card that best suits your needs and spend only what you can afford to pay back. Credit is a great tool, but only if you use it responsibly.

Plan for retirement

It may seem odd since you’re just beginning your career, but now is the best time to start planning for your retirement. Contribute to retirement accounts like a Roth IRA or your employer’s 401(k), especially if there is a company match. Invest enough to qualify for your company’s full match – it’s free money that adds up to a significant chunk of change over the years. Automatic retirement contributions quickly become part of your financial lifestyle without having to think about it.

Prepare for emergencies

Hardships can happen in a split second. Start an emergency fund and do your best to set aside the equivalent of three to six months’ worth of living expenses. Start saving immediately, no matter how small the amount. Make saving a part of your lifestyle with automatic payroll deductions or automatic transfers from checking to savings. Put your tax refund toward saving instead of an impulse buy.

Get free help from your bank

Many banks offer personalized financial checkups to help you identify and meet your financial goals. At Flanagan State Bank, you can also take advantage of our free digital banking tools that let you check balances, pay bills, deposit checks, monitor transaction history, and track your budget.

Frequently Asked Questions (FAQ)

How much should I save from each paycheck?

Aim to save at least 20% of your income if possible. This includes emergency savings, retirement, and any other goals. If 20% feels out of reach, start small—consistency is key.

Should I pay off student loans or save for retirement first?

It depends on your situation. Try to make the minimum loan payments while also contributing to a retirement account—especially if your employer offers a match. Paying off high-interest loans quickly should also be a priority.

How do I start building credit responsibly?

Start with a low-limit credit card, use it for small monthly purchases (like gas or a streaming service), and pay the full balance each month. Avoid maxing out the card or making late payments.

Common Financial Mistakes to Avoid

• Only making minimum payments on credit cards or student loans

• Failing to track spending, leading to overdrafts or credit card debt

• Not checking your credit report for accuracy or fraud

• Using credit as an extension of income instead of a tool

• Skipping health or renters insurance, which can be costly in emergencies

Need help getting started?

Get more timely tips on how to save money even if you are living paycheck to paycheck. Flanagan State Bank is here to help you navigate your financial future with confidence.

Questions? Submit a question using our Contact Us form.