With newly-minted college grads on the job hunt and looking for some much-needed income, what are the key first financial steps they’ll need to make, once they secure a good job and earn some regular income?
It’s a fair question, as college graduates need all the financial help they can get right out of the gate.
According to a new study from Sallie Mae entitled “Majoring in Money,” U.S. 20-something college graduates don’t “know much” about basic financial concepts, like credit or interest.
That indifference to personal financial education has real world consequences.
According to Sallie Mae, while 83% of college grads carry a credit card (or two), a full 40% don’t pay their monthly balance every month. Furthermore, while young college graduates struggle with the concept of interest owed on credit, 70% of college graduates have taken out student loans, Sallie Mae reports.
It’s not like college graduates are running away from the concept of personal finance, and what it means in their life.
A separate study from Laurel Road, an online lending service, shows that 94% of college-educated Americans believe personal money management should be mandatory teaching in both high school and college. Additionally, 75% say that “personal finance education courses would be a more useful college graduation gift than a check for their first month’s rent.”
Consequently, the interest to learn is there, if not the actual effort, for today’s college graduate set. The reality is that getting a grip on some top-tier personal concepts can pay off for the rest of a young American’s life.
These concepts are at the top of that personal finance “get to know” list — and young college graduates should make understanding each one a big priority.