A Financial Checklist for New College Grads

As a recent college graduate, you have a lot on your mind, including your resume, job search, interviews, and so much more. Add to that a tightening job market that's making some grads realign their salary expectations just as student loan repayment kicks in.

With all this on your plate, we thought it would be helpful to have an easy checklist of ways to get your finances on the right track so you can focus on the job front.

Mind the grace period

For many federal student loans, you may have a six-month grace period following graduation before repayment begins. Not all federal loans have a grace period though, and interest accrues during this time. The most important thing you can do right now is be in touch with your loan servicer. Confirm they have your current number, email and mailing address, and let them know if this changes.

Did you know you can get yourself an easy 0.25% interest rate deduction on Direct Loans by simply automating repayment from your checking or savings account? And if you can, start making payments during the grace period to reduce the amount of interest charged.

If you're ever having trouble making payments, contact your loan servicer right away. You may have options for a lower monthly payment or an income-based repayment plan. It's critical to never ignore repayment issues because they only get worse.

Know and grow your credit

Your credit score can be impacted by so many factors when you're starting out, so use the free My Credit Score tool in our Online and Mobile Banking to monitor your score in real time. You can also review your credit report and set up credit monitoring alerts. We won't be the first or the last to remind you that paying bills on time helps keep your credit score healthy, so automate monthly payments with our Bill Pay everywhere you can.

Reconsider your budget

Your income and spending changes a lot after graduation, so check out our budgeting Start Here Guide to understand how to approach it. You'll need to know your mandatory or unavoidable expenses such as rent, loan payments, and insurance — versus discretionary expenses like entertainment, eating out, and subscriptions.

This will help you size up what your fixed expenses are, and let you focus on discretionary spending that can sabotage your budget and financial growth.

Never leave money on the table

If your employer offers you a 401k or 403b option, take it especially if the employer matches your contribution in any way. It's free money that grows exponentially when you start early. It makes it easy to invest in yourself and once again, automates the process for success. Watch this Breaking Down the 401k video here and come up to speed on this free money.

Don't get caught up in lifestyle inflation

As a student, you probably had to watch every dollar. But as you start to make more money, you may feel the urge to spend more. What was once an occasional splurge (sushi anyone?) becomes a regular must-have. You order out more, cook at home less, buy fancier clothes, book more expensive entertainment and so on. Suddenly, you realize your budget is overwhelmed and your credit lines stretched. This is lifestyle inflation. Recognizing it is the first step. Help yourself recognize lifestyle inflation and avoid it here.

Remember to pat yourself on the back!

Adulting can be stressful, but you should always be proud of what you've accomplished so far by getting your degree and preparing for your next chapter. All of us at VCCU are on your team and we look forward to helping you reach your life and financial goals.