Smart money tips for new graduates
CHICAGO (WLS) -- As high school and college graduates begin a new chapter in life, making sure they're financially conscious could play a major role in their success.
Andrea de Fraga, Business Management Professor at Columbia College Chicago and author of the "Piggy Bank Book" visited ABC 7 to share some helpful tips.
Three valuable money tips for millennials include:
1. Throwing out the taboo that it is rude to talk about money. You don't want it to be all you talk about, but you should try to find some like-minded friends and start a money club. These are the people you talk to about job offers and the salary they are offering, benefits, saving and budgeting. You are all in the same boat, so having a group of people you share your goals with is essential. They can also help you assess the reasonableness of your budget (do you really need to spend $500 on shoes?). You can help to hold them accountable and they can hold you accountable in return. And who knows, eventually this might turn into your investing club!
2. Embrace the phrase, "I didn't budget for that but how about this?" Making a budget sets the priority of how you will spend your money, don't let other people change that on you. The "thing" in question is probably something you could afford, but do you really want to rearrange your budget for it? Most people won't argue with budget, it sounds official, and if you follow up with something else, you won't be a killjoy. For example, your friends want go out to a fancy brunch, but it's not something you budgeted for. Say, "I can't afford brunch, but how about we have a picnic in the park?" Chances are you and your friends will have way more fun having mimosas and eating bagels than spending lots of cash at a restaurant.
3. Be a good roommate! Your rent expense will most likely be the single most expensive item in your budget. Keeping this expense reasonable is key for having money to save and money to do fun things. Being a courteous roommate is the easiest way to have lots of living situations available to you. And sometimes, the best roommates are you parents. Many young adults said they don't want to live with their parents because they don't feel like an adult. But it is the cheapest and most economical option. Andrea's advice: be a good roommate, offer to pay some of the utilities, start grocery shopping for yourself. Do the things that make you a courteous roommate and you and your parents will feel like you are a full-fledged grown-up!
