6 Essential finance tips for new college graduates

By Corey Buhay | Published on October 21, 2025

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It’s exciting to get your first post-college job — and even more exciting to get that first paycheck. But being out in the real world without a safety net can make some new graduates feel adrift. You likely have new bills, new routines, and new responsibilities to juggle. How can you stretch your savings to cover it if you don’t have a job yet? And if you do, how can you make sure your new paycheck covers it all?

As our graduation gift to you, we talked to a handful of financial advisors and experts to dial in the most critical financial advice for new graduates. Here are their top tips:

Negotiate Your Salary

One of the first financial decisions you’ll make after graduating college is deciding where you’ll work — and how much you’re willing to work for.

“You absolutely have to know what you’re worth,” said Mike Watts, vice president of One Wealth Management in Santa Monica, California. “And that just means doing your homework.”

Nabbing a top starting salary can not only mean more money in your bank account up front, but will lead to exponentially more later on, when you are in line for pay increases and promotions.

Watts recommended starting your homework by comparing the industry you want to work in with the area where you live. Also research average living expenses in that area, and add up any student loan debt payments or other financial obligations you’ll know you have. Figure out the minimum you need to live. Then see where you can get the most bang for your buck.

“It’s expensive to live in New York City, Chicago, Los Angeles, or San Francisco,” Watts said. Your cost of living might be less in smaller or more inland cities like Tulsa or Toledo, where you can score cheaper rent.

Check out online job boards or sites like Glassdoor to get an idea of what your starting salary could be. And ask around. It’s a great opportunity to start networking while gaining valuable information.

“Try to find other people in the profession that you are trying to get into,” Watts said. “and reach out them and go, ‘Look, I’m starting out but I’m trying to get a sense of what I should be making right out of the door.’”

Check Your Credit Score

Your credit score is a critical piece of your financial health as you start building up your credit, paying student loans and, eventually, securing lines of credit for major purchases such as a car or home. You can check your credit score by pulling your credit report, which you can do for free once per year from annualcreditreport.com. Your credit report will also have information about all your outstanding debts, including loans. This is a good way to check that you aren’t missing any payments and to make sure you’re on track with your financial goals.

“It’s key to look at your credit report to make sure you have all your student loans tracked down,” said credit expert Jeanne Kelly, the author of The Credit Makeover. “I have college grads coming to me where they thought they had their loans under control, but then there was this one they took out that they forgot about, and they had everything going to their parents address.”

And just like that, missing payments on one small loan could mean a hit to your credit rating, which can take years to rebuild.

Kelly recommends everyone check their credit report at least once a year and check carefully for mistakes. If you do find a credit reporting error — like an outdated address or an outstanding debt you’re sure you paid off — be sure to contact the credit bureau right away to dispute it.

Set a Budget

This can be a tough task for recent college graduates who aren’t used to having to think about rent, utilities, car payments, loan payments, and other expenses their parents may have taken care of in the past. Fortunately, there are a few ways to make budgeting easier.

“Embrace technology right from the start by using budgeting programs and apps,” said Jennifer E. Myers, a certified financial planner and president of SageVest Wealth Management in McLean, Virginia. Apps like Trim and RocketMoney can help you identify areas where you’re spending too much, flag unused subscription services, and keep track of your spending in real time.

Budgeting after college is especially important, Watts said, when you haven’t yet landed that first job, or you have only recently started work. Take just 30 minutes, he said, to review your expenses.

“It’s really important to sit down and have an honest conversation with yourself about, ‘What do I need? How am I spending this money on a month to month basis?’” he said.

That doesn’t mean you can’t enjoy life, Watts said. Want to go clothes shopping for work? That’s okay, within reason. Eating out every night? That’s money you could be saving. Try to set a savings goal for each month, even if it’s just putting away $50 to $100 in a savings account each month to start building up your emergency fund.

“Don’t fall into the keeping-up-with-the-Joneses trap. Start your career by being yourself and living within a budget you can afford,” Myers said.

Maintain a Healthy Credit Score

Many grads make the mistake of being afraid of using credit, Kelly said. In reality, credit is healthy for your financial future as long as you don’t abuse it.

“You’re using the credit card to invest in your credit report,” Kelly said. Using credit cards responsibly can show credit bureaus that you’re capable of managing your money and sticking to a repayment plan.

Kelly uses the MyFICO Loan Savings Calculator to show her clients how much a good — or bad — credit score can impact future loan payments.

As an example, if you take out a 60-month new car loan for $18,000, according to the loan savings calculator, your monthly payment would be $342 if your credit score was between 720-850, which is considered very good. Your interest rate would land around 4.5% (fixed APR) and you’d pay about $1,420 in interest over the life of the loan.

But if you’ve got a lower credit score of between 500-549, that same car loan will cost you $434 per month with a 17.1% fixed interest rate, which means you will pay $5,821 in interest over the lifetime of the loan.

Start Saving for Retirement

It may seem a little early to start thinking about retirement, given that you’ve only just started working, but it’s a critical piece of the financial puzzle.

“It’s not sexy and it’s certainly not something that 22-year-olds think of when they get out of college,” Watts said of retirement planning. But the sooner you start saving, the better off you’ll be in your golden years. If your company offers an employer match on 401k or IRA contributions, be sure to take advantage of that. “If you have the ability to put 6% of your check away [in a retirement account], and your company matches a quarter of that, so 1.5%, that’s free money,” said Watts. “They’re literally giving you free money.”

And if you start saving at 22 versus waiting until you are 32, that’s an extra 10 years of employer contributions and investment growth.

“The more time you give yourself to build up that nest egg, especially when some of it is free money coming from your employer, you absolutely have to take advantage of that,” said Watts.

Refinance high-interest private student loans

The other smart choice you can make after graduation is to examine your current debts. Are your federal loan payments high and difficult to manage? You might want to consolidate them and see if you qualify for an income-based repayment plan through the federal government. Did you get stuck with high interest rates on any of your private student loans? Now might be a good time to refinance those loans¹. Refinancing gives you the opportunity to qualify for a lower interest rate. A lower rate won’t just lower your monthly payment — it can also help you save money over the life of your loans². That can put you on the fast track to reaching your financial goals.

If you’re considering a refinance, the first step is to shop around. Check out different lenders, compare interest rates, and see where you can get the best deal. Also research each lender’s reputation, especially where customer service is concerned, and check out the perks each one offers. Earnest, for example, gives all borrowers a 0.25% rate discount just for signing up for AutoPay³, and lets borrowers skip one payment per year without penalty⁴. See how much you could save with our free rate check today. It only takes a couple of minutes, and it won’t impact your credit.