The Dean's List: Top Five Financial Moves, Decisions and Actions New Grads Should Take

Graduating from college marks an exciting new chapter, but it also comes with important financial responsibilities. Sandeep Mazumder, PhD, the William E. Crenshaw Endowed Dean of the Hankamer School of Business, shares his top five steps every graduate should take to establish a strong financial footing. 

5. Seek the Wisdom of Others

Financial planning can get complicated quickly, particularly as one moves further in their career. It’s good to spend time planning and studying this yourself, but we all have blind spots. I recommend hiring a financial planner to analyze your decisions as well. 

4. Plan for the Future

As part of one’s savings goals, think about what expenses may lie ahead. Perhaps it’s a wedding to pay for, a car to buy or a vacation to take. Having those future goals set now enables one to start saving and investing today accordingly. 

3. Make a Budget

Develop the good habit of forming a monthly budget and sticking to it. This helps new grads maintain a good balance of spending their earnings in ways that help them enjoy life, but also ensures they set aside enough to pay bills and anticipated expenses that may be forthcoming. 

2. Don’t Be Afraid to Take Risks 

As graduates further in their careers, their risk profile may change. But early on, most people can afford to take on more risks with their investments, and new grads should not shy away from this. Of course, financial markets have up years and down years, but early-career professionals should not be deterred by down markets. 

1. Start Saving

New grads have many years until they retire, but they need to start saving immediately, particularly to take advantage of compound interest. It’s also a good idea to develop the habit of saving early so that one can maintain that practice well into the future.