Interesting Facts about Money That College Graduates Must Know for a Better Future

College Graduates

College life is all about attending classes, staying carefree, finding space for yourself, celebrating life with friends, hanging around, exploring freedom and so on. However, after that it is time for you to plan for the future, and know what money is all about. Some students are torn in between relative safety of college and the messy world of adulthood. You have to be careful about the time that follows after college life. It can be a testing time, full of insecurity as the job market is volatile.

You should start recognizing the value of money early so that you do not have to repent later. A part-time job can be an advantage but expenses here and there such as sophisticated-looking outfits, high rents, can be a spoilsport. Most people spend their twenties messing up their money, their thirties trying to figure out what they did wrong, their forties trying to dig out of the hole, and their fifties trying to catch up for retirement. Here are some interesting things about money that every college graduate must be aware of so that they can understand its value right from the beginning.

Student loans can be costly

I would recommend you not commit the mistake of borrowing student loans more than you require, because the less assets you borrow, the less amount of money you have to repay after completing your graduation. This can take a toll on your treasury when you consider other expenses such as room rents and meal plan (if any). So it is important that you borrow student loans as much as you need. Research shows that 41% of millennials have the student loan, which compels them to delay their matrimony and purchasing a property at higher interest rates than previous generations. This is because the student loans take a toll on their treasury.

There are two kinds of student loans available- subsidized and unsubsidized. While subsidized loans are free from interest while you are a student, unsubsidized loans increase interest which you have to repay during your time in college.

Comparing job opportunities and making salary negotiations

Your first job is always a very exciting event. While landing with a job, it is important not to consider only your salary package or CTC, but also other employee benefits like those of health insurance and retirement benefits. Ignoring them can be a huge mistake on your part. To measure which job offer is best, it’s crucial to reckon each benefit your new job might provide –comprising of salary, paid holiday trip, retirement benefits, medical expenses, and others. Compare the job opportunities and offers and negotiate the terms and conditions with the employer. 

Debt is Dangerous

If you want to stay stress-free and have complete peace of mind after college, do not get into consumer debts such as mortgage loans, credit card debt, furniture loans, car loans etc. It will also drain your funds and will be an unnecessary burden if not repaid in time. Failure to repay the debt can lead to frustration and eventually making you bankrupt.

Remember that the credit card debts are always dangerous. The average credit card interest rate today is about 15%. Credit cards are enticing and enable you to go on a shopping spree or dine in a fine restaurant; however with those credit card interest fees will just keep on growing out of control landing you in complete quandary. In a nutshell high credit card interest rates make it a serious menace to a fresher’s financial health.

Create a budget from the beginning

Remember time is your biggest money, so start planning early. Creating budget is a powerful habit and one of the best ways to reach your financial objectives. With it, you will find it easy to chalk out their lifestyle design as well as short-term needs such as buying books for semesters and an exotic vacation with the friends. It will keep a track of all your transactions including all the debit and credit such as semester fees, class books, transportation, health care, food, entertainment, and groceries.

A contingency fund is crucial

Life is full of uncertainties and bad things happen abruptly. So it is important for you to create an emergency fund to meet unexpected expenses like medical expenses due to a sudden illness. 

Invest wisely

Diversify your funds for better investment and wealth management. Invest in lucrative schemes that yield compound interest so that you can reap the benefits later on your life. Initially, you need to come up with a solid investment plan for better wealth management. A savings account is just fine to get started, however, you can also consider opening an IRA or take advantage of your company’s savings schemes.


If you are a college graduate, these are the things you must know about money to save and manage it in a better way for a secured and peaceful future.

Which of the following things about the money you found most interesting as a college graduate? Share your comments.