7 Money Management Tips for College Grads

(Photo by Jessica Hromas/Getty Images)

Not quite what we meant when we said “study your finances.” | Photo by Jessica Hromas/Getty Images

Graduating from college can be downright scary. You’re now financially independent, and with that independence comes a lot of responsibilities, such as paying bills, holding down a job, and ensuring you’ve got a healthy savings account. It may seem overwhelming, but becoming financially independent is definitely doable. So take a breath, relax, and check out these seven money management tips.

1. Take on a moderate amount of debt

Recent grads often lean one way or the other when it comes to debt. Some enjoy the thrill of swiping their plastic a little too much, begin racking up debt, and get bogged down with interest rates and fees. However, U.S. News & World Report writes that avoiding debt altogether is also a mistake. There are loans, such as student loans for grad school or a mortgage, that are good investments.

Using credit wisely also allows you to start building a solid credit history, which will come in handy when you’re ready for a loan. So how do you maintain the balance between too little and too much debt? Build your credit history slowly. Open up accounts in your name, use your cards responsibly and then make sure you pay the cards off in full and on time.