Surviving after university
If you’re leaving university this year, you’ll need to learn how to manage your money in the outside world.
The first few post university months could be tough for the twentysomethings who finish their studies in the next few weeks. Unemployment is at its highest since 1994 and many graduates face debts in the region of £20,000.
However, there are ways to make sure your finances stay on track.
Watch your spending
As soon as you start working, avoid the temptation to spend irresponsibly.
Unless you’ve landed a lucrative job in the city, your monthly pay packet probably won’t go as far as you think. After bills and rent, you may not be left with much in your account for luxuries. Sorry but that’s life.
You’ll only regret it if you start to depend on your credit cards to cover day-to-day expenses and could end up paying off your debt for years to come.
Moving in with mum and dad
After three years of freedom moving back in with your parents might seem like a step backwards. However, it could be the only viable option while you’re getting some money together.
Try to be as accommodating as possible to your family. Letting your parents know you’re staying out and having Sunday lunch with your aunt could be the best way to keep the peace.
When it comes to bills, every family is different, of course. If you do have money coming in, it might be a nice gesture to offer to chip in.
Re-evaluate your bank account
When you apply for a student account, it’s easy to get lured in by freebies and high interest free overdrafts. After you’ve graduated, it makes sense to shop around to see if you could get a better deal on your current account.
Another bank could offer you a more appealing interest rate, overdraft facility or give you a bonus when you join. For example, Alliance & Leicester will give you £100 cashback if you switch to its Premier Current Account.
Entering the job market
Most of us leave university with a dream career in mind – novelist, fashioner designer, computer games programmer. A few people waltz straight into these jobs, most of us don’t.
Many graduates with degrees from good universities may have to accept jobs that are less than ideal. Remember a junior position in your field of interest could be a stepping stone to something more appropriate in the future.
Potential employers tend to become suspicious if you have been unemployed for several months.
For more workplace tips, see ‘Boost your job security’.
Use youth to your advantage
People in their twenties often secure good deals on financial products such as life and private medical insurance.
This is because you are likely to be in good health at this age, which helps reduce the cost of premiums. Statistically, you will probably be paying into the policy for a number of years before you make a claim.
**This material is for information purposes only and should not be considered financial advice. We strongly encourage our readers not to rely solely on this content, but to seek independent advice when making financial decisions.**
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