As new college graduates step into the job market, they face a myriad of challenges beyond securing employment. Navigating personal finances and adapting to a new career environment can be daunting, especially for Gen Z, who reportedly experience high levels of financial stress. A recent report from Ally Bank highlights that only 34% of adults under 28 feel in control of their finances, with many unable to cover a $1,000 emergency expense without incurring debt. While a high salary is beneficial, it does not ensure financial stability. New graduates need to have a clear plan for managing student loan repayments, avoiding lifestyle creep, and setting boundaries. Networking also plays a crucial role in career advancement.
Understanding Job Descriptions and Interviews
When scrolling through job listings, graduates often prioritize salary and location. However, Anthony Knierim, managing director for Reward Gateway, suggests looking for less obvious indicators of a good workplace. Asking about company culture during interviews can provide valuable insights into employee collaboration and future opportunities. Knierim emphasizes the importance of understanding how one’s soft skills will be valued in an increasingly automated world. Beyond salary, applicants should also consider benefits like transportation coverage, gym memberships, or tuition reimbursement. Even after starting a new job, it’s crucial to explore the company’s benefits thoroughly, as these can significantly impact financial well-being.
The Importance of Networking
Networking remains essential throughout one’s career. Whether aiming for a promotion or seeking opportunities in a different company, building and maintaining professional connections is critical. Gen Z, like Millennials, is increasingly comfortable with job hopping, which requires robust networking skills. Vicki Salemi, a career expert at Monster, and Knierim both stress the importance of networking in today’s job market. Graduates should leverage alumni networks and social platforms to explore job opportunities. Engaging with senior leadership through town halls and asking insightful questions can also pave the way for career advancement.
Managing Student Loans
The grace period for student loan repayments often ends as graduates settle into their jobs. With the resumption of debt collection, it’s crucial to prioritize loan payments. Despite discussions on loan reform and forgiveness, graduates must focus on repayment. Howard, head of Money Wellness at Ally, advises, “You just have to pay it back.” Prioritizing loan payments over other expenses is essential, even if it means making sacrifices.
Setting Personal Boundaries
Managing personal finances may require setting boundaries with friends and family. Howard shares her experience of aggressively paying off $70,000 in student debt within two years by saying no to certain social obligations. Honest conversations about financial constraints with friends can improve relationships and accountability. Graduates should also feel comfortable declining trips or visits that strain their finances.
Avoiding Lifestyle Creep
Lifestyle creep is a common pitfall for new graduates. As incomes increase, it’s tempting to elevate spending habits. However, maintaining a budget and focusing on the “return on joy” from purchases can help mitigate this. Howard advises being mindful and intentional about spending to prevent lifestyle creep. A detailed budget and conscious decision-making are key to financial stability.
Note: This article is inspired by content from https://www.usatoday.com/story/money/2025/06/19/career-financial-tips-new-grads/84165470007/. It has been rephrased for originality. Images are credited to the original source.