According to a survey commissioned by the Urban Institute, one out of every four workers with a bachelor’s degree is overqualified for their jobs. This may come as sobering news to many college graduates, but a college degree is not and never has been a guarantee for either employment or a specific earning potential when graduates enter the work force.
To be better prepared for new financial realities and responsibilities graduates will be facing whether they are pursuing new careers or graduate school, here are key personal financial tips to consider:
BUILD A TRANSITION FUND. These are the funds you will need to establish yourself when you leave Denton and roommates behind. Security deposits and other minor charges can easily add up quickly. We recommend for students to bank $1,500-2,000 in a transition fund. If they are relocating to a more expensive cost of living area, the fund will need to be more.
CREATE A TRANSITION BUDGET. Having a plan of expected income, saving contribution, and spending can help alleviate much of the pressure and stress graduates feel when it comes to assuming full responsibly of their financial lives.
DECONSTRUCT JOB OFFERS. The most expensive financial decision most graduates make will be a job offer. Before you say ‘yes’ make sure the offer is both competitive (fair market value) and livable (meets your financial obligations and lifestyle expectations). Always remember competitive salaries are not always livable salaries and hiring managers only talk in terms of gross salary (before taxes and other pre-tax contributions).
TAKE OWNERSHIP WHEN JOB OFFER IS ACCEPTED. The worst thing to have is buyer’s remorse, especially if it relates to a job offer. Don’t rush into accepting a job offer. Do your due diligence when an offer is extended. Take time to make an informed decision and understand the possible consequences should you decide not to accept the offer.
TIME TO PARTY…NOT YET
By Paul Goebel, SMMC Director