Financial plans help graduates
By Kelsey VanArsdall
Staff
writer
Graduation is a time of excitement, happiness,
sadness, but mostly of relief. New jobs, new experiences and everything
else that comes along with letting go of the college days are being
thrust at the feet of most newly graduated students.
Finally, they can relax; they have paid their dues,
and now it's time for things to start coming to them. Well, maybe not
quite.
Along with all the new and exciting experiences
comes uncertainty and doubt. Where am I going to live? Who am I going
to spend the rest of my life with? Am I in the right profession? Will
I make enough money to support myself? All these daunting questions
flood the minds of new graduates.
One of the biggest obstacles graduates face is
debt. Paying off not only an education, but also possible new car or
house payments can be stressful. Sharon DeVaney, an associate professor
in the School of Consumer and Family Sciences believes in the importance
of planning for life after college.
"The most important thing students can do
is to try and graduate without debt, but if they cannot do this they
need to develop a plan to keep them on their feet and also steadily
help them pay off their debts," says DeVaney.
DeVaney teaches a financial counseling and planning
curriculum in the class Consumer Sciences and Retailing 486 - "Retirement
Planning and Employee Benefits."
One way to insure financial security after college
is to establish an emergency fund. "This fund will help students
with unexpected expenditures. For example, if a roommate moves out and
they are stuck with extra rent payments," said DeVaney.
It is also important for students to have adequate
insurance. While life insurance can be acquired after some time, it
is crucial to have car insurance and some liability from the start.
After all of this is established students can even start saving for
retirement.
The best ways to look into saving money the proper
way is to research on the Internet and take some business or personal
finance courses. DeVaney stresses the importance of setting realistic
goals when it comes to finance.
"Read about personal finances and set goals
that pertain to your personal income level. Make sure the goals are
not too high to reach," said DeVaney. "An example of a goal might be
for a student to say to his or herself, ‘by the end of my first
year on the job I want to have started a regular withdrawal, and have
three months of income in savings,' these are realistic goals."
College is a time of skimping for money in every
aspect. Sometimes just paying a month's rent can cause problems, so
naturally when students get on the job market and start making steady
cash their first urge is to spend it. This is the wrong thing to do.
"Students should try not to splurge on big
things even though money was tight all through college," said DeVaney.
One way to insure money is going to the right place
is to establish a personal finance check up every year. However, tax
time is the wrong time to do this because it will almost always give
a negative outlook. On the contrary, payday is also the wrong time to
do the check up.
"I recommend making the check up the same
day as a birthday or other solid annual event. Check to see if you are
improving, staying steady or spiraling downward, then adjust accordingly,"
said DeVaney.
With all the other unexpected emotions that line
the experiences of life it is important to constantly monitor one of
life’s only securable entities - money.
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