Graduation season is here, and the Class of 2025 is stepping boldly into a new chapter of life. Whether you’re starting your first job, pursuing further studies, or exploring what’s next, one thing is certain: your financial future starts now.
Today’s grads face unique challenges and opportunities. From student loan payments resuming to inflation and rising living costs, navigating your finances might feel overwhelming. But the good news? Building a strong financial foundation is absolutely achievable with a few smart steps.
Here are five practical money moves to help set yourself up for success:
1. Build a Realistic Budget—and Stick to It
A budget isn’t about restriction; it’s about clarity and control. Start by listing your monthly income and fixed expenses (like rent, utilities, and minimum debt payments). Then plan for flexible spending (like groceries, entertainment, and travel) and set aside something for savings. There are plenty of apps that make budgeting easier, but even a simple spreadsheet works.
Pro tip: Check in with your budget regularly, especially when your income or expenses change.
2. Prioritize Saving (Even If It’s Small)
Saving might feel like a stretch when you’re just starting out, but getting in the habit is key. A good rule of thumb: aim to save at least 10% of your income if you can. If that’s not realistic yet, start smaller and build up.
Consider setting up automatic transfers to a savings account—you won’t miss what you don’t see. UKRFCU’s High Yield Savings Account is a great option to get started, with incentives to help your savings grow. Share Certificates are also great options to start saving, but they come with more restrictions. Learn more about the differences by reading about our saving methods and what might be the best option for you.
3. Tackle Student Loans Strategically
For many graduates, student loans are a significant financial burden. Take the time to understand your loan terms, including interest rates, repayment options, and grace periods. Explore strategies for repaying your loans efficiently, such as signing up for automatic payments or refinancing at a lower interest rate.
To learn more about how to get and stay out of debt, read our previous post, “Paying Off Debt: One Step at a Time.”
4. Start Building Credit Wisely
Your credit score plays a huge role in your financial life—from renting an apartment to buying a car or even landing certain jobs. If you don’t have a credit card yet, consider opening one and using it responsibly. Pay off your balance in full each month to avoid interest and keep your score strong. Already have loans or credit? Keep paying on time, and monitor your credit report regularly to catch errors or fraud early.
5. Don’t Wait to Plan for Retirement
It might sound wild to think about retirement when you’ve just graduated, but starting now is the smartest move you can make. Thanks to compound interest, even small amounts can grow into something big over time. Look into your employer’s 401(k) plan if they offer one, especially if there’s a match! Or start an IRA with UKRFCU to enjoy tax advantages and solid growth over the years.
Bonus Tip: Ask Questions and Keep Learning
You don’t need to figure it all out overnight. Financial literacy is a lifelong journey, and the more you learn, the more confident you’ll feel. UKRFCU is here to help with resources, advice, and personalized support every step of the way.
Congratulations, Class of 2025! We’re excited to cheer you on as you take these next big steps. Got questions? Stop by your local UKRFCU branch or check out our online resources to learn more.