Also in this playlist...
This transcript is automatically generated
Well they thought college was the hard part that thousands of new graduates are about to find out managing their money.
When they have a small paycheck to pay off all the student loans is even harder.
Personal finance expert Vera Gibbons is here with money last that every new graduate needs to know have a good morning and welcome -- there are are all of its top.
I mean 60% of students take loans to pay for their education and this year's class graduating with 27000.
Dollars on average -- And stay in the hope that -- phenomenal amount of money heads I mean the only way to sort of -- do on this -- and actually keep your credit intact has to have the right repayment -- -- You've got to find one that actually works for you your budget but -- allow you to pay about this out as quickly as possible when -- definitely an income based repayment.
Or stand a repayment or patient -- kind of program.
You can actually you know fiddle around on a site like an -- that Orkut just to see which we payment -- -- -- that's really important -- -- the one that works for you.
There's no -- I had an eighty and we've got six months brace -- -- so.
Or six months after graduate.
Then you got to start.
All right you say number to tip number two prioritize your -- -- this -- if you have a few credit cards and -- the reason I mention this is its biggest two thirds of grads have more than 4000 dollars in credit card debt on average in this debt.
It's not as flexible as a student -- -- would -- -- and you can defer payments to certain situations like you don't have a job for example.
Credit card -- Not as flexible so you might even consider as -- -- the student loan debt goes.
Maybe you know extending that out but you know going for longer periods and can free up a little monthly cash to pay on credit card that make that a prior hiding -- in the coming out of college they're not thinking about retirement.
-- say they -- because that's the last thing on their mind but you know the benefits of starting on cannot be duplicated later in life you've got to start as soon as possible you get your first job.
Sign up for the 401K -- -- company offers it.
You -- reduce your tax liability you're saving for your future at the company's matching a fifty cents on the -- 6% free money three money don't leave it on the table you least want to contribute enough to capture company when I graduated a man stopped me and we -- talking finances and he said.
You're never gonna -- the money go ahead and start now if you if you just getting your first paycheck you're not gonna know your -- you don't miss Larry -- you can actually see -- the effects of -- interest.
Better start right soonest -- and there are some tax benefits you can deduct as far as -- student loan interest goes up to 25 hundred's about something that something you think about those of the limits for 2013.
And really important and I emphasize the importance of actually having a budget because.
One serving -- three quarters of students who borrow.
And having to make financial sacrifices they put off buying a house buying a car they put up getting married you know having kids there's all sorts of financial sacrifices that they actually -- -- Never to prevent yourself from becoming a statistic really important -- Israeli opinion plan have that budget stick to it as it -- I was saying.
-- -- -- -- -- You've got to live within your means right you don't want to seem a whole lot of that you can they really want -- -- unify behind that I remember him telling me at the football games they had this stands that offered.
Three T shirt to sign up for credit card kids do not did not tell it to not do that you're dead thanks god knows -- he -- -- -- good to see you YouTube and.
Filter by section