Introduction
Congratulations on graduating! We know that planning for post-graduation can be a daunting task. As a result, we have put together a guide to help you along the way. We hope this information will help you plan for your future endeavors.
Accepting a Job Offer
Oftentimes, many recent and upcoming college graduates overlook various benefits associated with a new job offer. The salary is an important factor of any job offer; however, it is not the only thing to consider when negotiating with a new employer. On average, only 70% of total compensation comes from salary. Therefore, it is crucial to understand the other benefits. One benefit to look out for is an employer 401(k) match. 42% of employers offer a dollar-for-dollar 401(k) match up to a percentage of the salary. This benefit is free money that all individuals who have the opportunity should take advantage of. In addition to 401(k) matches, many jobs often come with insurance benefits, such as health savings accounts (HSA), health reimbursement accounts, or disability insurance. As health care costs continue to rise, these benefits will become even more valuable. Therefore, individuals should compare added insurance benefits, stock options, and employee stock purchase plans (ESPP) as they evaluate offers.
As workplace benefits continue to evolve, it is helpful to be aware of additional perks that may be included in an offer. While not every company provides them, some employers offer wellness-related benefits such as mental health support, employee assistance programs (EAPs), and health screenings. Others may provide education assistance to help cover the cost of certifications, courses, or continuing education. In addition to formal benefits, it is also important to consider workplace flexibility, including how often employees are expected to work remotely versus in the office.
In addition to analyzing both the benefits and salary of any job offer, college graduates should consider negotiating with employers. Many recent college graduates feel that companies will revoke a job offer if they try to negotiate for a better salary. However, a survey by ResumeGenius found that 78% of those who negotiated walked away with a higher salary. Despite this 55% of people walk away without negotiating. An article by Forbes said that most employers expect, and budget for, negotiations. Therefore, it is worthwhile negotiating job offers with employers prior to accepting a job. Don’t be afraid to ask, you don’t get what you don’t ask for. To learn more about negotiation, you can listen to this podcast.
Budgeting
It is important to establish an individualized budget for yourself that can be successfully carried out after graduating from college. Although it may be easy to create, it can be a challenge to stick to. In effort to maintain a budget, there are several different automated software systems and applications that can be used to keep young professionals on track. There are also many downloadable Excel spreadsheets that can be used to track income and expenses manually by month. Our current favorite budgeting app is Monarch Money. There is an annual fee, but we feel it is worth it.
When budgeting, it is important to learn how much and where money is being spent. For example, expenses such as rent, car payments, and insurance will not change much month to month. Categories that are more variable can be more difficult to track. Also, don’t forget to account for taxes and health insurance if you are not remaining on your parents health insurance plan. If your parents are self-employed, your health insurance may be less expensive if you are on your own plan.
A simple rule of thumb to follow for budgeting is the 50/30/20 rule. This rule designates different proportions of your after-tax income to different categories. Half of your income should go to your needs or non-discretionary expenses, like rent and food. Another 30 percent of your income should go to wants or discretionary purchases, such as clothes or travel. The last 20 percent of your budget should be designated for savings.
Source: https://www.thebalance.com/the-50-30-20-rule-of-thumb-453922
For more information on budgeting techniques, you can reference this article.
For more information on building wealth in your 20s, you can listen to this podcast.
Emergency Fund
Right after graduating from college, contributing to an emergency fund is essential. This fund is to protect yourself from unexpected expenses, as it will provide a safety net if you lose your job unexpectedly or need to cover bills for car repairs, medical or dental expenses. This money should be liquid because you will need quick access in an emergency. A rule of thumb is to save about 3-6 months’ worth of nondiscretionary expenses. Since you probably won’t have 6 months’ worth of expenses to save right after graduating college, it is important to start building this fund early. If saving 3-6 months of expenses seems like too much, start by trying to save $1,000 in your first year as a graduate. An easy way to do this is to designate $20 a week from your weekly paycheck to your emergency fund. If you are paid biweekly, then set aside $40 each time you are paid. By following this strategy, you will have created a small emergency fund by the end of your first year. You should keep yourself accountable to not touch your emergency fund unless you are in a true emergency. To do so, we suggest you open a separate account from your checking account. High-interest savings accounts are a great option for your emergency fund. Also see the retirement section below on Roth IRAs. A Roth IRA can double as a retirement and emergency savings vehicle. It is important to begin saving as soon as possible for an emergency fund, as it will take time to accumulate a full fund.
To learn more about emergency funds, you listen to this podcast.
Student Loans
Although it is important to begin saving for retirement right away, it is just as important to not let student loans get brushed under the rug. Recent graduates should not panic over them either! After years of accumulating this debt, it is vital to understand these loans, this includes their balance and when they need to be paid back. Federal loans will immediately be set to a 10-year payment plan. This plan does not work for everyone, and if it doesn’t work for you financially, there are ways to extend your payments. If considering this option, it is important to keep in mind that the longer the payments are set for, the more interest will accumulate and ultimately will increase the total amount you will have to pay. If financially possible, repaying loans in the shortest amount of time (without shorting yourself) will be best.
Immediately following graduation there is a “grace period” that allows students to begin their careers while their loans are not bearing interest. Generally, 6 months post-graduation is when interest on loans will begin. Because payment is not required immediately, if students decide not to begin paying their loan, it is important to be ready for the November payment.
Carrying debt is something that no one wants, but there is importance on priority when paying off multiple loans, this priority will be different for everyone. Some like to pay off the smallest loans first to lower the total number of outstanding loans. Although it might feel nice to completely pay off the smallest loan first, it is not always the most financially responsible decision to make. Paying back the largest loan, or the loan with the largest interest rate could decrease the total payment because the large loan or large interest rate would not be compounding. This will be a personal decision and everyone’s method will be different.
Refinancing your student loans is a great option if your student loans come with high interest rates or if you owe multiple student loan payments each month. To refinance your debt, a private lender swaps or combines your original student loan with a new loan. This new loan will have a different interest rate, as well as repayment schedule, than your original student loans. Hopefully, by refinancing these loans, your monthly payments will decrease. Because your credit score has probably increased since you took out your student loans, lenders will most likely refinance your debt at a lower interest rate. Before rushing into refinancing your student loans to reap these benefits, it is important to understand the shortcomings of such an action. For instance, if your new loan has a longer maturity than your original student loan, then you will most likely end up paying more in the long run. Additionally, you will lose all the benefits associated with federal student loan programs. Federal loans have Income-Based Repayment (IBR) and Income-Driven Repayment (IDR) plans, which help recent college graduates pay off their debt. Additionally, refinancing your student loans will disqualify you from any payment grace periods. It is important to consider both the strengths and weaknesses of refinancing your student debt to make sure it is the right decision for you.
To learn more about the pros and cons of refinancing your student debt, you can click here.
The Importance of Credit
If you have not started building credit in college, it is important that you start to do so soon. Having a high credit score can be beneficial in the long run. Your credit score is a number that measures how trustworthy you are at repaying your debt. You can access your credit score 3 times a year for free from TransUnion, Equifax and Experian. It is important that you check your credit score when you can to make sure that there are no problems associated with your credit. Everyone’s credit score is between 300 and 850. The chart below ranks each credit score:
By having a strong credit score, you will have an easier time securing a loan in the future for a lower interest rate. Although you might not be interested in taking out a loan soon, it is important to consider how your actions today will impact you in the future. If you consistently avoid paying off your bills, your credit score will be lower. As a result, when you do decide to purchase your first home or take out a loan to start a business, banks will see you as a risky investment for them. In the best scenario, banks will end up giving you a loan with a high interest rate because your history indicates that you are likely to default on this loan. A higher interest rate increases your monthly payment. However, in some cases, a bank could deny your loan application completely because of your poor credit. Many people do not realize that your credit score can also impact other aspects of your life besides taking out loans. For example, many employers check applicants’ credit scores before they hire an individual. Having a low credit score indicates a lack of financial responsibility, which could become a liability for the employer. Additionally, your credit score will impact other monthly bills, such as rent, cable, telephone, water, and cell phones. Therefore, it is important to monitor your credit score closely.
Right out of college, there are a few ways to improve your credit score. There are five different ways to establish credit. The first being to apply for a secured credit card. To open these credit cards, you will deposit cash in your account, which will act as your credit limit. You will still need to make your credit card payments; however, the cash in your account acts as collateral. Once you have built credit with a secured credit card, you should consider applying for an unsecured credit card. Another option for building credit is to obtain a credit-builder loan or having a co-signer for a loan or unsecured credit card. Another option is to become an authorized user on someone else’s credit card. Authorized users can utilize a credit card as if it is solely theirs; however, the authorized user is not legally responsible for paying off the bill. Lastly, one can establish credit by getting credit for paying rent. Once you have established one of these forms of credit, make sure to pay each bill on time, maintain a low credit utilization (don’t have a credit balance over 30% of your credit limit), do not open too many accounts at the same time, and keep each account open for as long as possible.
For more tips on increasing your credit score, listen to this podcast.
Retirement
Although many college graduates are focused on paying off student loans, it is important to consider opening a retirement account in your 20’s. The earlier that you can start saving for retirement the better because of compounding interest. Compounding interest is when you earn interest on interest that was earned in previous periods. If you have $100 in your savings account and earn 10% interest, at the end of year 1, you will have a balance of $110. Year 2 will begin with a $110 balance and earn 10% interest, leaving you with an end balance of $121. Year 3, you will earn interest at 10% on the $121 balance to end with $133.10. The interest rate in this example is extreme, but it shows how money can grow via interest. Although it does not sound like a lot, it can increase the ending balance by a significant amount. For example, Sarah contributes $100 a month for 40 years and Mike contributes $100 a month for 35 years. Sarah will end up with $100,000 more than Mike in retirement because she had 5 more years of compounding interest. For many years, people have relied on Social Security to fund a portion of their retirement needs. However, Social Security is not guaranteed and currently the program is slowly running out of money. Thus, it is imperative to start planning for retirement as early as possible. A common rule of thumb for retirement is to save 10% annually for basics, 15% for comfort, or 20% to escape.
Source: https://www.businessinsider.com/compound-interest-retirement-funds-2014-3
Once you have accepted a job offer, you are able to open an employer sponsored retirement plan. This includes 401k, 403b, 457 retirement plans, and pensions. These retirement plans are all very different from one another and it is important to understand these differences in advance. Here is a breakdown of different retirement account options:
401(k): This is a popular retirement plan offered by the employer. Typically you have the option of making traditional or Roth contributions. Traditional contributions go in pre-tax dollars, which will reduce employee’s income tax during the years contributing, they grow tax-free and are taxed upon distribution in retirement. Roth contributions go in after-tax, meaning your contributions do not reduce your taxable income today, but all of the growth and qualified withdrawals in retirement will be tax-free. Roth 401(k) contributions may be a strong option for recent graduates and young professionals who expect to be in a higher tax bracket later in life. You can use this calculator to help you determine if a Traditional 401(k) or Roth 401(k) is best for you.
This plan allows both the employer and employee to contribute. Oftentimes, employers create incentives to their employees to save more money for retirement by offering a match program. The program could be a percentage match or dollar for dollar (both to a certain point). This is something that is sometimes overlooked, but could increase your retirement funds drastically due to interest, especially when beginning in your early 20’s. There is a limit for contributions, $24,500/year for 2026.
Since choosing the investments for your 401(k) can be an intimidating process for some, selecting a target date fund can be a great start. These funds make it easy to invest like a professional. The only thing you need to figure out is an estimated date for when you would like to retire. For example, if you plan to retire at 65 and you are 25 today, you should choose a target date fund for 2065. The investments for these funds will adjust over time taking into consideration the year of retirement. As a result, these funds are easy for those who are looking for simple retirement funds. If you would like to learn more about these funds, Fidelity, T. Rowe Price, and Vanguard all offer target date funds. Additionally, if you have an account with Fidelity they have a free tool called Portfolio Selector, that can serve as a solid starting point.
Traditional IRA: There are no eligibility requirements to contribute to this retirement plan and contributions to this plan can be made until age 70 ½. Like a 401k, contributions to this IRA are tax-deductible in the year the contribution is made and are taxed in the year it is distributed. Traditional IRA’s require required minimum distributions (RMDs) to be taken out beginning at 70 ½. Distributions can begin as early as 59 ½, but any earlier distributions will be subject to a monetary penalty.
Roth IRA: Roth IRAs are all after-tax money that grows. There are certain eligibility requirements regarding income regarding Roth IRAs. These change throughout the years and by filing status. For 2026, income could not exceed $153,000 (single filer) and $242,000 (married filing jointly). The maximum contribution is $7,500. Roth IRA’s can grow tax free throughout one’s life without ever needing to be distributed. Contributions from the Roth IRA can be withdrawn at anytime without a penalty (compared to the Traditional IRA). Only the principal can be withdrawn without penalty before the age of 59 ½. The earnings and withdrawals from this account are tax-free in retirement.
To learn more about the difference between a Roth IRA and Traditional IRA you can listen to this podcast.
403(b): This is a retirement plan that is only offered by employers of non-profit organizations, employers within the government, and teachers. Most employers (although it is possible) do not provide employer matches to these plans.
457(b): This retirement plan is for organizations who qualify as state or local government, or other tax-exempt organizations outlined by the IRS. The money that is contributed and money earned in these accounts are both tax-deferred.
For more information about early retirement, you can listen to a podcast and read the article here.
Health Savings Account
Depending on your health insurance plan, it may be in your best interest to open a Health Savings Account (HSA) right out of college. HSAs are most beneficial for individuals who have high-deductible health plans (HDHPs) because you may need to pay various medical expenses that HDHPs don’t cover. Deductibles range anywhere from $1,400 to $6,550 for individuals and from $2,800 to $13,100 for families. These costs can be a heavy and unexpected burden for many young adults. Therefore, HSAs are a smart investment. HSAs are a great place to save for future healthcare costs if you want to start a business or take a gap year. You can use this savings to pay for your healthcare then. Some HSAs even allow you to invest in mutual funds for the future. As a recent graduate, you should highly consider opening a health savings account for these reasons.
HSAs are pre-taxed saving accounts that allow you to save for qualified medical expenses. These expenses include deductibles, copayments, coinsurance, and various other expenses associated with health care. These accounts roll over every year and some even earn interest on the savings. However, there are limits to your HSA contributions. In 2026, the maximum contribution for an individual is $4,400 and the maximum for a family is $8,750. Fidelity and Vanguard Health Equity both provide great HSA accounts. Since these accounts earn interest and are not taxed, they provide a great safety net for unexpected medical expenses.
If you want to lean more about HSA accounts, click here.
Renting
For many recent and upcoming college graduates, this will be the first time you are responsible for renting your own place. There are a few things to consider before renting. One of the most important factors to consider is making sure that you can afford your rent. Kiplinger has a great household budget worksheet to help you figure out how much you can afford in rent. You should consider finding a roommate to share the costs of renting (Facebook, Instagram, and roomates.com are great websites to match you with a roommate). In addition to the rent, make sure to save enough in advance to cover the application fee (about $50), the security deposit (equivalent to one-month’s rent), deposit for electricity, deposit for gas, and other unforeseeable fees. Once you have found apartments that you can afford, it is important to see the apartments in person. Apartments can tend to look different in person than they do online because the advertisement won’t show the negative aspects of the space. You would not want to sign a lease only to find out the apartment is falling apart. Before signing the lease, ask about utilities. Are you responsible for the utilities or is your landlord? The costs of utilities can add up quickly. If you are responsible for all the utilities, make sure that these costs are within your budget. Once you finally sign the lease on a property, you should get renter’s insurance. Your landlord will have insurance on the building itself but not on your own personal belongings. Therefore, it is important to protect yourself. Renters insurance will only cost you between $150 to $250 a year ($12 to $21 a month).
For more information on renting, listen to NPR’s podcast.
Savings Accounts
After securing a job after graduation, it is important to figure out how much of your income you will be saving versus spending. Saving for retirement is not the only thing to consider. Instead, you need to strategize how you will save for all the big purchases you hope to have in the future. For instance, how will you afford that dream vacation next year or the home you would like to buy in five years. A simple strategy to make these goals a reality is to create different savings buckets to fund each goal. Therefore, you will hold yourself accountable for these funds by separating them from other uses.
It is also just as important to consider what type of institution you are saving your funds in. Many recent graduates do not understand the differences between Credit Unions and Banks. Therefore, they are not saving in an institution that is the best fit for them. The biggest distinction is that banks are for-profit and credit unions, which are customer owned, are non-profit. Credit Unions are recognized for their great customer service, low fees, and high interest rates. While Banks are praised for having more locations, technological efficiency, mobile access, and rewards. Since banks have more locations, they are a better option for those who are always traveling and need banks or ATMs close by. Because of these distinctions, it is important to weigh each option before joining a Bank or Credit Union.
Source: https://www.thestreet.com/personal-finance/credit-unions-vs-banks-14626262
Online bank accounts have started to become a better alternative from traditional savings accounts for many individuals. In addition to improved convenience and efficiency, online bank accounts earn higher interest rates than traditional banks. With higher interest rates, savings will increase faster because of compounding. This idea is illustrated in the graph below. Some banks have minimum balances for these rates, so check.
(Traditional bank: 0.11% vs On-line bank: 1%)
Source: https://levelfa.com/not-all-banks-are-created-equal/
Side Hustle
Many young adults have been looking to earn extra cash in addition to their ordinary income to increase their savings or pay down their debt. As a result, side hustles have become more and more popular, especially as technology has been advancing. Today, there are countless side hustles one can do just from using their cellphones. For example, you can easily sell items you no longer use for easy cash. Additionally, driving for Uber or Lyft is another great option. Since these side hustles have flexible hours, you can easily work them into your busy schedule.
Conclusion
Congratulations on beginning this new chapter. We hope these tips and guidelines will help you in your new endeavors post-graduation. We wish you the best of luck in the beginning of your career.
Summary of Each Section
Accepting a Job
When accepting a job offer, it will be important to take all things into consideration- this means looking past the salary and focusing on what other benefits are being offered. Sometimes these benefits can be deal breakers of offers, pay close attention to 401k matches and various healthcare benefits.
Budgeting
Although it is easy to start a budget, it can be hard to stick to. Technology is making budgeting a little bit easier- there are now apps for desktops and phones that can help users create and stick to different budgeting systems.
Emergency Funds
Emergency savings are crucial to have. Although it will take time to accumulate, it is something that would be essential to begin contributing to immediately. This savings account should ideally hold 6 months of nondiscretionary expenses.
Student Loans
Keeping track and paying off student loans on time is important for all debtholders. Learning about debt and refinancing is just as important as paying off these loans. Finding a payment method that will save you the most money and has a payment plan that achievable is essential.
Credit
It is important to establish credit as soon as possible. This will help in the future when it comes to taking out loans for cars and homes. Banks will be more willing to lend money if you are not seen as a risky investment.
Retirement Accounts
When it comes to retirement accounts, a “one size fits all” will not do the trick. This article briefly covers the different type of retirement plan options. It will be important to discuss with your employer the benefits they may offer and analyze your income before deciding what retirement plan to pursue.
Health Savings Accounts
Health Savings Accounts (HSA) can be used by individuals who have high-deductible health plans. If an HSA is offered by an employer, it is important to consider. This is a pre-taxed saving account that allows you to save for qualified medical expenses
Renting
When young graduates begin to move out, renting is generally the first step. It is important to know that there are more things to consider when making the move then just the monthly payments.
Savings Accounts
It is important to not just have a retirement savings account, but to also have savings for both short term and long-term goals. Physically placing your money into other accounts that offer competitive interest rates and meet other needs will be essential to meet these goals.
Side Hustle
Side hustles are a great way to earn extra cash to increase your savings or pay down your debt. Since many side hustles are easily accessible through cellphones and have flexible schedules, they are a great option for recent graduates.
References
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El Issa, Erin and Bev O’Shae. “How to Build Credit.” NerdWallet. https://www.nerdwallet.com/blog/finance/how-to-build-credit/. Accessed 19 May 2026.
Eneriz, Ashley. “Student Loan Refinancing: The Pros and Cons.” Investopedia. 28 Jan. 2026.https://www.investopedia.com/articles/personal-finance/011916/student-loan-refinancing-pros-and-cons.asp. Accessed 19 May 2026.
“Health Savings Account (HSA).” HealthCare.gov. https://www.healthcare.gov/glossary/health-savings-account-hsa/. Accessed 19 May 2026.
Indeed Editorial Team. “25 Types of Employee Benefits To Look For in a New Job.” Indeed. Updated 15 Dec. 2025. https://www.indeed.com/career-advice/career-development/types-of-employee-benefits. Accessed 19 May 2026.
Irby, Latoya. “5 Reasons Why Having Good Credit Is Important.” The Balance. 13 Sept. 2018. https://www.thebalance.com/reasons-why-good-credit-matters-960178. Accessed 19 May 2026.
Kagan, Julia. “Wellness Program.” Investopedia. 29 Nov. 2026. https://www.investopedia.com/terms/w/wellness-program.asp. Accessed 19 May 2026.
McCamish, Bethany. “How to Build an Emergency Fund after Graduation.” Savingforcollege.com, 16 Jan. 2019. https://www.savingforcollege.com/article/how-to-build-an-emergency-fund-after-graduation. Accessed 19 May 2026.
Spors, Kelly. “Traditional IRA vs. Roth IRA.” RothIRA.com, https://www.rothira.com/traditional-ira-vs-roth-ira. Accessed 19 May 2026.
“The Guide to Saving for Retirement.” The College Investor. https://thecollegeinvestor.com/ultimate-retirement-savings-guide/. Accessed 19 May 2026.
“What Is a Good Credit Score?” Experian. https://www.experian.com/blogs/ask-experian/credit-education/score-basics/what-is-a-good-credit-score/. Accessed 19 May 2026.
