May brings an exciting time with spring in full bloom and graduation season at hand. High school and college graduations mark a significant step in a young person’s life, whether they are leaving high school behind or getting ready to join the real world.
Financial responsibility is an important skill for new graduates because it will help them budget throughout their entire life. Your graduate will face unique monetary challenges in college or in adjusting to the world outside of school, so Iowa State Bank is here to help. We’ve put together this “gift basket” of financial wisdom to help the graduate in your life stay financially responsible and live a little easier as they transition in life.
A Few Financial Tips for our Graduates
- Student and other loans- sure, an extra little bit of money couldn’t hurt. Or can it? Borrow only what you need, whether it’s for tuition or replacing a totaled vehicle. Anything extra is just more interest you will have to pay out of your pocket.
- Be smart during your grace period- if you’ve just graduated from college, you will most likely have a six-month grace period before you have to start loan payments. Be sure you are taking this time to save money and create a smart budget to incorporate loan payments.
- Save for emergencies- cars need repairs, you can get sick or injured or you can even lose your job. Having money stashed away for these emergencies will help you keep your head above water.
- Easy on the credit cards- you’ll be targeted by credit card companies with offers that seem too good to be true, because they are. Credit cards should be used almost exclusively for emergencies, and only if you know you will be able to pay the balance off quickly.
We’re not saying you will never face financial difficulties if you follow these rules. Life happens, and new costs can pop up at inconvenient times. However, if you have a solid financial foundation established, you can make it through just about anything.
Iowa State Bank would be glad to help our high school and college graduates any way we can. Don’t hesitate to call or come by any of our locations today for help!