Making the change from tertiary studies to the working world can seem scary, especially with the new responsibilities that come with it – including your finances. In this post, we share our 5 financial wellness tips to help you manage your finances as a first time graduate.
1. Understand your relationship with money
As you step into the world of working after graduation, take a moment to reflect and understand your relationship with money. From your spending and saving habits to your financial goals, this will help you navigate the financial change you are about to experience.
Whether you liked to spend more when out with friends, rewarded yourself after passing an exam or saved money when possible, think about the financial habits you formed during your studies and how you want to keep (or change) them as a graduate. As you take the time to reflect on your relationship with money, use this opportunity to anticipate your financial habits, and if required, change them to suit your new financial situation.
2. Create a budget for yourself
In a nutshell, a budget is a plan for your money – how you spend and save your money. As a graduate, you want to get comfortable with knowing how much money goes into your bank account and how much is going out. This is to help you keep track of your spending and saving habits, as well as monitor any new financial products you take on, like your first credit card.
If you need help with creating a budget, read our post on the 5 Things You Need to Consider When Budget Planning. Look into using free budgeting tools or features in your mobile banking app to help you get started.
3. Remember to save money
Like we mentioned before, budgeting is also about saving money, so remember to include this when budget planning. Learn to set aside some money from your salary – whether it is towards a goal like buying a car or towards having an emergency fund. You can take this one step further by looking at different savings accounts that can also help you save on tax like a tax-free savings account.
4. Choose your first credit product wisely
Having a good credit score is important for the many milestones that come after graduation: buying your first car, renting an apartment and buying a new home. Most graduates may not have much of a credit history and so it will take time to build one effectively. Choosing your first credit product is going to be key in helping you, and one of the quickest and easiest ways to build your credit score is to get a credit product like a credit card or personal loan.
As a graduate who is new to the credit world, FASTA is able to look at your unique profile and potentially offer you credit, even if you don’t have a credit history. In 3 steps, you can start your credit journey with us and responsibly build your credit.
