Financial Advice for Recent Graduates: Budgeting and Managing Student Loans 

Graduating from college is a big achievement that comes with a new level of financial responsibility. From student loan repayment to monthly budgeting and saving for the future, learning to manage your money early on may make all the difference. Whether you’re entering the workforce or still figuring out your next steps, building healthy financial habits now could set the foundation for long-term success. 

Here are some practical tips that may help you navigate financial planning for graduates, including budgeting after college and  student loan repayment strategies. 

Step One: Know Your Student Loan Details 

Before you create a financial plan, get a clear picture of your student loans. This means understanding: 

• Your total loan balance 

• Loan Servicer Information 

• Your interest rates 

• The type of loans you have (federal, private, or a mix?) 

• Your repayment start date 

Using a student loan repayment calculator may help you estimate your monthly payments based on your loan amount and interest rate. You may also want to investigate available student loan repayment metrics to compare how different strategies such as income-driven repayment or refinancing could affect your long-term costs. 

Pro tip: Service Credit Union has partnered with Student Choice to provide members with the additional funds needed along with all the features you want. 

Step Two: Explore Your Repayment Options 

Not all student loans are created equal, and neither are your options for paying them back. Here are a few of the most common student loan repayment strategies to consider: 

• Standard Repayment: Fixed monthly payments over 10 years. You could pay less in interest over time. 

• Graduated Repayment: Payments start lower and increase every two years. This may be a better option if you expect your income to grow quickly. 

• Income-Driven Repayment (IDR): Monthly payments are based on your income and family size. This plan could help if your student loan payments take up too much of your budget. 

• Public Service Loan Forgiveness (PSLF): If you work for a qualifying nonprofit or government agency, you may be eligible to have your student loans forgiven after 10 years of making qualifying monthly payments under an accepted repayment plan and while working full-time for an eligible employer. 

Looking to pay off student loans faster? Try making extra payments when possible, even if it’s just $25 more a month. You may also want to tell your loan servicer to apply your extra payment towards your principal balance, and not future payments. 

Step Three: Build a Budget That Works for You 

Budgeting after college might seem daunting at first but it’s all about understanding where your money goes and making a plan that fits your life. Try this simple method: 

50/30/20 Rule 

• 50% Needs – rent, utilities, food, insurance, minimum debt payments 

• 30% Wants – eating out, streaming services, entertainment 

• 20% Savings – emergency fund, paying off debt beyond the minimum requirements, retirement 

There are plenty of apps that could make tracking your spending easier, or you can use a spreadsheet if you prefer to do it manually. The key is consistency. 

If you’re just starting out, try focusing on the essentials: cover your bills, avoid overdraft fees and don’t spend more than you earn. 

Step Four: Build a Safety Net 

An emergency fund could be one of the most important tools for managing personal finances more effectively. Try to set aside a small amount from every paycheck – even $10 adds up over time. 

Once you have $500 saved, try to build up to three months’ worth of expenses. This fund may give you flexibility in case of a job change, car repair or other unexpected costs. 

Step Five: Start Saving for the Future 

Retirement might seem far off, but the earlier you start, the more your money could grow thanks to compound interest. If your employer offers a 401(k) with a match, try to take full advantage! 

Your Next Financial Chapter Starts Now 

The path to financial independence doesn’t happen overnight, but taking the first few steps today may set you up for long-term success. From mastering your budget to making smart decisions about your student loans, every choice you make now could be an investment in your future.