High School Graduation Preparation
So, you’re a senior right? College is just a few months away and you are ready to be done with high school. Senioritis has crept in and you just want to hang with your friends. Well, before you graduate and hang with your friends here are a few pieces of advice from a 2006 college graduate:
1. Save some money!
According to the College Savings Foundation only 44% of students have saved for college before graduation. Having a savings account will prepare you for those unexpected car expenses, college class book expenses, and, yes, those late night pizza runs. By saving you are creating a plan to succeed.
2. Make a plan for your income and expense.
According to CNN Money 76% of people are living paycheck to paycheck. For some people this is because of systemic poverty, but for most of us it’s because we don’t know how to say no to ourselves. Graduating high school is a perfect time to plan out income and expenses and create a plan to live below your means. If you say no to excessive spending now you can say yes to a lot of cool things later. But if you say yes to excessive spending now you’ll pay for it later.
3. Only borrow what you have to have.
In Iowa, the average student graduate leaves college $30,000 in debt according to WHO Channel 13. That means that the average graduate will pay $333 per month for 10 years if the interest rate is 6%. In the end, a $30,000 loan associated with getting your college degree will actually cost you about $40,000! Lastly, a good rule of thumb is to never borrow more than what you expect to make in one year in your job/career. For example, if you anticipate to make $40,000 as a yearly starting salary, do not borrow more than $40,000 for college. Check out this tool from Iowa Student Loan to see how much you will make in your career path.
4. Have a vision for your financial future.
A Harvard study found that two years after graduation 3% of students who wrote down their financial goals achieved more than the other 97% combined. Why is that? Well, they had a plan and a vision of where they wanted to go financially. A vision is where you are going and a plan helps you get there. Before you start college write down a vision of where you want to see yourself in five years. Then write down a plan to get there with all the steps you can think of. Craig Groeschel, a leader and pastor has said, “Everyone ends up somewhere, but few people end up somewhere on purpose.”
By: TS Institute
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