Finally, you’ve reached the home stretch, graduating uni after years of hard work and extraordinary expense. But now what? The coming-of-age milestone not only represents a new chapter, looking ahead to a new phase in your personal development, but it also comes with financial realities you may not be ready to face.
Coming up with the money for college costs is hard enough, but now you’re ready to join the ranks of productive UK workers, bringing home full-time earnings. The intimidating process doesn’t always go as expected – and that’s if you’ve already figured out exactly how to earn a living. For many recent graduates, the jury is still out on employment preferences, making it hard to move full steam ahead following graduation.
Financial concerns, both large and small, are in store for recent university graduates preparing to step up to a new level of responsibility. Among the many pressing money matters on their mind, the following financial considerations are helping graduates sort out their financial lives following graduation.
Settle Your Living Situation
Your years attending uni stand like an island; your lifestyle before and after are likely very different, compared to the time spent pursuing your degree. While it’s important to enjoy your time at university, you must also move on when the time comes – and that means finding a post-uni living situation that accommodates the next phase of your professional life.
This year’s graduates are stepping into an expensive housing market, so moving back home is in the mix for some of them. If the prospect of returning to your parents’ house doesn’t resonate, your options are staying put in your university town, or settling in a new locale.
Deciding where to spend the years after uni is a weighty concern, fraught with financial considerations. Though your job placement may ultimately decide the matter for you, you should have accommodation in place for at least a few months after earning your degree.
Establish a Graduate Bank Account
Some student bank accounts automatically roll over into graduate accounts after three years, which isn’t always good news for account holders. Your student status grants certain bank account privileges, including zero per cent overdraft. The courtesy is crucial during lean uni years, helping students make ends meet during school. However, when your student account converts to a regular graduate account, you may lose the zero per cent rate and suddenly owe interest on your overdraft balance.
Selecting the right graduate bank account can help you avoid interest on your student overdraft, enabling you to pay the balance over time, without adding excess interest charges. Depending upon your employment situation following school, you may also be eligible for fast funding online – even with bad credit.
Don’t Worry About Student Loans Just Yet
Student loans represent substantial debt for many graduates. However, the loans’ terms don’t require you to make payments until your earnings rise above a particular income threshold. Even then, your payments are based on what you make, so your monthly student loan repayment stays within your means.
Though you may not like having the debt hanging over you, there are more pressing priorities to focus on when you’re fresh out of school. You’ll have plenty of time later to stress about your debts, so resist getting worked up about it right after graduation.
Job vs Career
In addition to career concerns following your uni graduation, you may also face financial pressure to get a short-term, transitional job, whilst laying the foundation for work in your chosen field. A retail position, job at the pub, or even a one-off earning opportunity can help keep you afloat whilst you pound the pavement, seeking to break into a career position.
Graduating university is cause for celebration, but the momentous milestone is also marked with financial trepidation. As you move from your uni lifestyle to the next chapter in your life, facing these financial concerns can help you make a smooth transition to a rewarding career.