Get It Together – The real-world money guide for graduates
Get It Together - The real-world money guide for graduates
Have you ever wondered what would happen if you knew now what most people don’t know until well into their 40s or 50s? What if you had the wisdom to make the right financial choices without having to learn from experience first? And if you could get all of this knowledge in an easy-to-read, easy-to-understand interactive book, wouldn’t that be great????
Get It Together – The real-world money guide for graduates, is a guide to personal finance that includes everything from understanding one’s paycheck to mastering credit, debt, taxes, investments, and health insurance, student loans, and everything else associated with heading out on one’s own after school. Authored by Shannon Prosser and Hallie Hawkins, this interactive book makes a great gift for high school or college graduates.
Make More Cents asked Prosser and Hawkins to answer some of the key financial questions a graduate might have.
What’s the single most important financial thing to do now that I have graduated?
The most important thing to do financially is to start building up your credit and your savings. Both of these things will give you the financial foundation you want as you build your future. The savings you accumulate now will have more time to grow – so start saving!
Do I need to have a credit card to establish good credit?
Having a credit card account that you manage well is a great way to establish credit. Be careful, charge only what you can afford and pay it off every month. Do this and you will start establishing great credit.
What should I do first: invest, save, or pay off my loans?
All three. You can pay down your debt and save for both the long and short term all at once. The best way to do this is to separate your money into “buckets” and create a goal and a monthly contribution amount for each bucket.
I have my first job. How much of each paycheck should I put away?
20% of your paycheck should go to savings, and this should be split between short and long term savings. This is a great time of life to build up a cash reserve while you have fewer obligations and expenses than you may in the future. And the habits you create now will be with you forever!
I’m thinking of buying a house. How will I know it’s the right time in my financial life?
Buying a house is about more than just the house, it is about making a good decision about a financial commitment you will have for years to come. Think about how long you plan to be in the area, how much you can afford to put down on a house, and the stability of your income. If you think you may move in the next few years you should reconsider buying a house. If you are going to be there for a while, have a steady income and a down payment, buying a house may be a good option.
What should I think about financially if I want to go back to school?
The first thing to think about is why you are going back to school. What will the next round of schooling allow you to do that your current education will not? Then figure out how much you can expect to make in your new profession when you gradate – and be realistic, do some research, talk to people in the field. Then figure out how much it is going to cost you to go back to school. Evaluate the cost and the rewards like a business decision, does it make sense both personally and financially to go back to school?
Is my credit score really that important?
In a word –YES!!! Your credit score is important because it is not just used to get credit. It is used by employers as a way to evaluate your level of responsibility. It is used by insurance companies as a part of their calculation of your insurance rate. And of course it is used by financial institutions and lenders when they decide if, and at what interest rate, to lend you money.
What’s more valuable in a job offer, a high salary or good health insurance?
Both are important – look at the numbers. A company can tell you what it costs them to insure you and any dependents you may have. As with all things, know what you need and how much you are willing to pay for it. If you are in good health then a basic plan accompanied by a job with a high salary may be right for you. If you have health issues, then great insurance may offset a slightly lower salary.
When should I start saving for retirement?
NOW! Do not pass go – start saving for retirement. Even if you can only put away a small amount each month because of debt and short term saving needs, put away something. The money that you save now will have time to grow, and time is the best thing that you can give your money. In this case, a little can eventually go a very long way.
I can’t afford my student loan payments, what do I do? Do I really have to pay it all back?
Yes, you do need to pay back your loans. There are special circumstances that you may fall into where you do not have to pay back all of your loans, but don’t count on it. Even if it is a small amount each month, start paying something.
I want to buy a car, what should I know?
Before you step foot into a car lot know exactly how much you are willing and able to pay for a car. Know how much you have for a down payment, and how much you can pay monthly. I recommend that your car loan be no more than 48 months. There are many online calculators that will help you, put in the amount you want to pay each month, the amount of time you will pay, and the interest rate and it will tell you how much the total car cost can be.
For more financial wisdom purchase Get It Together – The real-world money guide for graduates.
Chris
Chris Hayman
804-360-8337
Chris-
Thanks for the posting! We are thrilled that our book has been received so well. Colleges and Universities professors and bookstores to parents and grandparents all see the need for financial literacy for the graduate…and all generations!