Whether you got an online bachelors degree or went to a traditional four year institution, graduation from college is a great moment of celebration.. It is a moment that indicates the hard work that you put in over the last 4-5 years of your life. While life at the university is more than just studying, the primary goal is to obtain this piece of paper that will help you for the rest of your life. Graduation from college may sound like the best moment in your life. It certainly is something to be celebrated, but it is only the beginning.
Life Changes after Graduating from College
The truth of the matter is that after graduation, there are many significant changes that often come about. Graduation from college in the U.S. almost certainly guarantees cutting the financial umbilical from the parents. This is moment that I faced just a few years ago. For most college graduates, this means more expenses.
Life after graduation doesn’t just mean more financial obligations. It also means a change of life. Young adults are faced with more new responsibilities at this period in their life than any other time. College graduates are forced to deal with the new changes in life in a short period of time. This is part of the reason that this blog was created.
The Challenges after Graduation from College
As I mentioned, there are many challenges that come with graduating from college. It isn’t just new financial obligations, although it is that, but also a change in life.
- Finding and Furnishing an Apartment: Finding your first place after college is one of the biggest challenges. The impacts of this decision will influence later parts of your life. You are forced to choose where you want to live. Whether this means staying near your university, returning to your home town, or even finding a new place to live. Often it will be connected with a job, but this isn’t always the case. Once you find that place, you have the challenge of furnishing an apartment. I often brag about how I furnished my apartment for $600. It may be difficult, but you can find quality material for cheap if you buy it used.
- Getting a Job: In this economy, landing a job can be quite difficult. Some companies are hiring though. You may be forced to move to a new place, but it can be well worth it. The best way to tackle this challenge is to put your name out there as soon as possible. It’s best to start applying before graduation from college.
- Insurance: This has historically been the point where young adults are forced to get their own insurance. I was forced to get my own car insurance after college. It can be difficult as you learn new vocabulary such as premiums and deductibles, but you will get the hang of it. Most likely, you have someone to guide you through the process. It never hurts to ask.
- Investing/Retirement: Although these can be considered different things, investing and planning for retirement is something that everyone should start doing. If you invest now, you will reap the benefits of compound interest. You may be wondering what your first investment should be, but it’s best to jump in and start asking questions. Don’t let the fear of the unknown prevent you from investing.
Thus, while I have only covered some of the basic challenges that come after graduation, you can see that it is an important moment in your life. Take this time as an opportunity to learn all you can in order to pave a smoother road for your future. Remember that graduation from college does not mean the end of learning. In fact, it is only the beginning – a new beginning. What you do with it is up to you.
If you feel overwhelmed, just remember that I’m here to help you tackle these challenges. Subscribe to my RSS feed if you want to receive email updates when new material is posted.
When you were in your early 20′s, what obstacle was most challenging for you? If you are still in your early 20′s, what seems most challenging?
|
Budgeting for Beginners
Learn how to take control of your finances one month
at a time. Subscribe for your FREE copy of my budgeting ebook.
|
|
|
We hate spam just as much as you
|
I am 25 right now and the most challenging thing for me is transitioning away from the traditional ‘work experience’. I have been learning over the last two years that I crave a lot more freedom. I have college under my belt, no debt other than a mortgage to pay off in about a few years and that’s it. Maybe I’m just bored…I’m not sure. I’ve always been one to try doing things now, instead of down the road.
That sounds like a great plan! Why not try to do things that you enjoy?
I don’t think I had any real financial challenges immediately after graduating from college (2007 – pre-recession!) – I definitely had some personal ones with financial implications.
I’d say my biggest financial challenge a while after graduation was shopping for, buying, and beginning to maintain my own car. I didn’t have a car in college and lived car-free for one year immediately after. That was difficult because it was uncharted territory for me (securing a loan?! down payment?!) and I bumbled through it OK so I’m proud of that accomplishment.
I also found furnishing my home such a challenge that I just avoided it! I spent <$400 over the course of a year to scrape some basic furniture together. I'm pretty sure the Spartan feel of my apartment made people very uncomfortable. I also slept on an air mattress for 2.5 years but that's another story for another time…
That sounds great! I envy people who graduated pre-recession.
Wow – I don’t think I could do an air mattress for over 2 years! More power to you. Granted, we got a mattress from the inlaws (it was their old bed). It’s probably past its normal use, but we will still use it for a couple of more years. haha
I graduated in 2009, but could not find a job, I returned to school and finished a bachelor of education in 2010. I unfortunately also cannot find a teaching job. Thankfully I was able to find a completely not related to my degree job that pays relatively well. My biggest financial challenge is saving enough money for a house/rainy day fund. I went to school in state and worked during the term. This thankfully allowed me to graduate with a very small student loan. Do you have any advice to increase savings?
I do not own a car, I pay my credit cards monthly, no student loan, but my groceries/rent is killing my paycheck.
It definitely sounds like you are committed! Congrats! The two most practical tips for increasing savings is to reduce your expenses and increase your income. It may not be possible to get a raise at work, but do you have any extra time to pick up a side job? Maybe something simple like mowing a yard, watching your neighbor’s dog, or even starting a blog. If groceries and rent is killing your paycheck, try looking for a cheaper apartment. Or, set a limit for how much you will spend when you go to the grocery store each time. Take a look at my Frugal Tips series too – that might help you find creative ways to save money.
At the risk of sounding a little immature, it would be figuring out what I REALLY wanted to do. I have degrees in math (cause it came easy for me), psychology (trying to figure out myself), and religious education (cause I thought God would like me more)….none of which, obviously, are good reasons to figure out a career. Maybe that’s why I now help other figure that out – cause I had such trouble!
Some stat say the other day showed that 80% college grads are working in a field unrelated to their degree 10 years after graduating. So that makes me feel a little better about my past choices!!
Now that is a super interesting career path! When the top 10 in demand jobs for 2016 haven’t been invented yet, you’re probably not too bad off!
Well, when I was in my early 20s I was living the post Soviet Union life. But in the US, I can see that the greates challenge for students is finding jobs. Job market sucks. People need to be really flexible and willing to move around the country.
It’s true. It’s much easier to find a job if you are willing to travel – picking up and moving across the country is hard though. It can be worth it, but it’s hard.
My biggest problem was lifestyle inflation. When you go from having no money to a nice check every two weeks, spending can get out of hand. It was great to have fun and go out every weekend for a while, but fortunately I moved on.
Agreed – this is another challenge that young people have to resist.
Take your time to figure out what you want to do. Life is a marathon, not a sprint. And it’s no shame to live with mom and dad for awhile.
That’s great advice for my readers – Thanks Barb.
My only obstacle was my ambition. I am a natural planner so I started getting the experience I needed to make big money in my field while in college as a sophomore. I graduated with 3 years of experience and ready to make a decent living. I had a brief stint of life style inflation but seeing my mother go through a divorce snapped me back from the grasps for the Joneses
My biggest obstacle is money management. I have learned so much in my 20′s but I am still learning. I have improved a lot with how I manage my money but I still overspend in some ways. I am constantly working at making this better especially when it comes to investments and retirement planning. I agree with RB40 too- lifestyle inflation has definitely been a learning curve.
Getting used to the higher costs can be the toughest. Rent, especially in a big city, is not priced for college grads. Think about going in with some roommates you trust. It will reduce the costs significantly.
[...] from 20s Finance talks about Graduation from college and its challenges. This is a bit of the contrast to the post from the rant [...]
[...] Fund Now?Cory at 20′sFinances discusses the challenges one faces after earning your degree: Graduation from College and it’s Financial ChallengesThe Jenny Pincher shares some tips on how to plan your spending: Instead of Creating a Budget Why [...]
Wish I had a resource like you after graduating. I was a bit lost. Did some traveling and finally figured out what I was going to do. Car insurance and investing didn’t really pop into my head till much later. Awesome job leading the way for young people today!
[...] presents Graduation from College and Its Financial Challenges posted at 20s Finances, Graduation from college marks a pivotal point in young adults’ lives. [...]
[...] presents Graduation from College and Its Financial Challenges posted at 20s Finances, saying, “Graduation from college marks a pivotal point in young [...]
[...] at 20s Finances presents Graduation from College and Its Financial Challenges, saying “Graduation from college marks a pivotal point in young adults’ lives. It [...]
[...] presents Graduation from College and Its Financial Challenges posted at 20s Finances. Graduation from college marks a pivotal point in young adults’ lives [...]
[...] are near the end of your post secondary studies and you have one important decision to make after graduation from college; should you travel down south or to Europe? Yes, I know that not many young people will have the [...]
[...] will allow me to pay it off.” While many people are forced to graduate from college with the financial challenge of paying back school loans, it doesn’t make it okay. In fact, going to college does not guarantee a higher paying job. [...]
[...] like what you see here, you may want to subscribe to receive email updates. We all know that graduating from college has its many financial challenges. This period in someone’s life usually marks the changing [...]
[...] I have talked about how I avoided college debt, it is a commonly accepted fact that people who are graduating from college are doing so with record levels of debt. The many pressures that college has often forces students [...]
[...] to admit it or not, moving in with your parents can be a great option. As I have discussed before, graduation from college has its financial challenges that college students are forced to deal with all at once. By moving [...]
[...] While leasing a car may not be for everyone, it does have its benefits. As I can tell, leasing a car gives you the advantage of not having to worry about selling the car after a few years. This may not sound like a lot, but for those who are strapped for cash, this may be an answer to prayer. Otherwise, imagine this. You want to upgrade your car and you have some cash to buy the next car. In order to keep your cash reserves in place, it means selling your current car. But, you can’t just sell your car without a new one. Often, it means that you buy a car, scrape buy for a few months while hoping and praying that you sell the car. This can be stressful as any other financial challenge. [...]