News & Tips
Top 8 Banking Tips for New Grads
Congrats on graduating—woo-hoo! This is a huge milestone and the start of an exciting new chapter. With this change comes new responsibilities, like managing your money. That’s where post-grad financial planning comes in. Whether you’re looking to save for a home or finance a car, this article covers all the banking basics new grads need to know. These tips will help you take control of your finances and work toward your goals with confidence.
1. Set up direct deposit.
Once you’ve landed a job (congrats!), the next step is to set up direct deposit so your hard-earned money goes straight into your checking account (cha-ching!). To do so, simply fill out a direct deposit form, which will ask for your bank’s routing number and your account number (both of which you can find in the Mobile Banking app or on your monthly statement).
Pro Tip
Set up your direct deposit with a checking account that doesn’t charge a monthly maintenance fee or requires a monthly minimum balance. They are out there — like Free Checking from SCCU that gets you your paycheck up to two days earlier42! With no monthly fees or minimum balance requirements, SCCU Free Checking makes managing your money even simpler.
2. Build your credit.
One of the best ways to start building credit is by opening a credit card. Once you have one, make it a priority to pay off your balance in full and on time every month to avoid accruing interest. Check your statements regularly for any unusual activity. To keep things simple, it’s often wise to start with just one credit card and focus on building a strong credit history.
SCCU’s Visa® Secured credit card is a great option that allows you to build your credit with a deposit as collateral. Once you’ve established good credit, you can explore credit cards that offer rewards programs or lower interest rates. Learn more about building credit here.
3. Make a budget.
A budget will help give you a better picture of your finances. It helps you track where your money is going and identify opportunities to save. Start by using a spreadsheet or a budgeting app to track your income and expenses. A beginner-friendly budgeting method is the 50/30/20 rule—50% of your income goes towards necessities, 30% towards wants, and 20% towards savings. Learn how to create a budget here.
4. Create an emergency fund.
Experts recommend setting aside 3-6 months’ worth of living expenses in an emergency fund. This money should be easily accessible, so it’s best not to lock these funds away in a Certificate of Deposit (CD). To help grow your funds faster, set up automatic transfers from your checking account to your savings account. Double-check the minimum balance requirement for your savings account (and any other potential fees).
Pro tip: Consider opening a Saving Cents account, which rounds up your eligible debit card transactions to the nearest dollar and deposits the difference directly into your savings. It helps put your savings on autopilot to grow your emergency fund over time!
| Balance | Dividend Rate | APY^ |
|---|---|---|
| $0 - $25,000 | 2.25% | 2.27% |
| $25,000.01 and over | 1.25% | 1.26% |
^APY = Annual Percentage Yield.
No minimum average daily balance required. Rates are accurate as of the effective date displayed, and they are subject to change. The APY (Annual Percentage Yield) is a percentage rate that reflects the total amount of interest paid on the account, based on the interest rate and the frequency of compounding for a 365-day period. Fees may reduce earnings on the account.
5. Open a Certificate of Deposit (CD) for longer-term goals.
Once you have your emergency fund, opening a CD can help you grow any additional savings. If you’re looking to save more money for a future milestone, such as a down payment for a house or a wedding, a CD will help maximize your interest earnings. Keep in mind that a CD locks in your funds until the term ends—withdrawing early may result in a penalty fee.
6. Set up a retirement account.
If your job offers a 401(k) plan, a type of employer-sponsored retirement savings plan, take advantage of it. A portion of each paycheck will go into this account before taxes. Some employers even offer a matching contribution, so they’ll match a percentage of what you contribute. If your job doesn’t offer a 401(k), that’s okay, you can explore options such as an Individual Retirement Account (IRA) or ROTH IRA. Learn more about different types of retirement accounts here.
7. Make a plan for your student loans.
Gather details about your student loans—are they federal or private? What’s the total amount that you owe? What are your current repayment terms? Then, explore your options.
Federal loans sometimes offer income-driven repayment to help make your payments more manageable based on your earnings. For private loans, you might want to explore refinancing options to secure a lower interest rate or consolidate multiple loans to simplify payments. Check with the lenders if they offer any discounts on your interest rate if you set up automatic payments.
Taking these steps can help you develop a strategy to manage your student debt efficiently and reduce your financial stress.
8. Take advantage of digital banking tools.
With SCCU’s Online & Mobile Banking, you can conveniently make mobile deposits, manage your cards, and set up transfers. Plus, you could set up account alerts to notify you of your daily balance amount, transactions, and more. These tools help you stay on top of your finances so you don’t miss a beat with your banking.
Additional Resources
Learning these banking basics now will help lay a strong foundation for a brighter financial future. As a new grad, give yourself some grace, take it one step at a time, and remember that it’s okay to reach out if you have any questions. At Space Coast Credit Union (SCCU), we’re happy to help. Additionally, we offer these resources to help you get your financial footing:
- Financial Wellness resources
- Fraud Prevention resources
- Financial calculators
- Home Buying Center
- Auto Buying Center
Why Choose Space Coast Credit Union?
SCCU is a not-for-profit financial institution that provides a variety of checking accounts, savings accounts, CD terms, and loans. SCCU membership is open to relatives of current members and all who work or live in our 34 service counties. A $5 deposit in a Share Savings account establishes membership. SCCU has over 60+ branches and 24/7 Online & Mobile Banking.
