While the first challenge for New College graduates is often to acquire jobs, joining the workforce brings other stress, such as navigating new careers and personal finances.
Most of the university graduates this year are Gen Z, according to Ally Bank’s recent Money Reports. Only 34% of adults under the age of 28 feel they are in control of their finances and say they can cover $1,000 in emergency costs without paying their debt.
While ensuring a high salary is helpful, it does not guarantee that new graduates will handle their money. Planning student loan repayments, managing lifestyle creeps, and setting clear boundaries will help you stay on track. And if you’re hired, if you want to climb the ladder or eventually move to another company, understand that networking is on the way.
Here are some things new graduates should keep in mind during and after a job hunt:
What to look for in job descriptions and interviews?
Salary and location may be the first thing job seekers will look for when scrolling through LinkedIn, but Anthony Knierim, managing director of the Americas for the global employee engagement platform’s Reward Gateway, says you should look to other less obvious green lights and red flags.
Knierim recommended taking the time to ask about the company’s culture in his job interview. Knowing how employees work together to talk about the workplace provides valuable insights, he said. Knierim also advises job seekers to ask how they fit into the future of the company, highlighting how soft skills are strengthened and valued in a world where hard skills are rapidly automating.
Knierim and Jack Howard are heads of Ally’s Money Wellness and agree that applicants should also consider the benefits of accepting a position. Beyond the 401(k) match and health insurance plans, some workplaces offer transportation costs, gym memberships, or tuition refunds.
Even if you have already started a new job, we recommend navigating through the old HR portal or reading the long handbook to see the benefits of these additional things. Doing so is worth your time, Knierim said.
“People are only in the office for 15-17 months in the younger demographic,” he said. “They don’t have time to hear from someone else. ‘Did you know our company is doing this?’ … Usually once you get a 30-page onboarding packet, it takes really long to see what’s on offer. ”
Networking will not end
Whether you want to switch companies or move up internally, networking won’t end if you’re hired for your first job after graduation.
Gen Z follows in the footsteps of millennials, dumping stigma around job hopping. Monster career expert Vicki Salemi told USA Today, where Knierim said it’s almost impossible to get a job in today’s market without networking.
“It’s kind of movement, ‘Who is the one you know?” Now they say, ‘What are the three or five angles that can be used to enter this place?’
He encourages young people to maximize their alumni and social networks when they are looking for new jobs, and spend time with senior leaders if they want to be promoted.
“Be aggressive without feeling the pain,” he said. “Go to City Hall. Ask great questions before going to the main executives.”
Knierim suggested asking about new ways the company is using AI. He recalled how businesses relied on youth to take charge of social media strategies in the early 2010s, saying it would help new alumni lead the way in AI implementation in some companies.
Don’t forget about student loans
The bounty period in which graduates must begin paying student loans is often nearing the end of the new graduates’ first job.
After nearly five years of off, student loan borrowers are once again facing the threat of debt collection and are facing the threat of seeing their credit scores dive.
Despite the ongoing conversations about student loan reform and forgiveness programs highlighted during the administration of former President Joe Biden, Howard has simple advice to new alumni.
“You have to pay it back,” she said. “You have to prioritize that. You know it’s difficult because you haven’t made as much money as you want.”
Set boundaries with friends and family
Howard said she left graduate school with a $70,000 debt and actively paid it within two years.
“How did you do that? You have to say ‘No’ to things,” Howard said. “My friends were married. There were several weddings where I had to say ‘no’. ”
She said that talking about money with friends can be difficult, but those conversations are worth it. By explaining that you are refusing to dinner invitations because you are paying off your credit card debt, you can even make your friend accountable when you consider your irresponsible purchases.
Howard added that recent college graduates moving to another state often feel obligated to visit their homes, but that it should be important to note that setting boundaries with friends and family is OK if they can’t afford a trip.
Avoid lifestyle creep
Lifestyle creep happens when people get a pay raise or a new job, and instead of sticking to old spending habits, they start spending more.
After a year with a tight college budget, it’s appealing to use your new salary to eat out, buy new clothes, or splurge. Financial experts agree that it is reasonable to celebrate a new job after landing, but not to buy expensive status symbols such as watches and wallets.
“It creates shame because you bought it knowing you can’t afford it,” Howard said. “We want to get rid of shame. We should enjoy our money.”
Howard says the best way for people to avoid lifestyle creep is to have a detailed budget and ask themselves what “joy benefits” is whenever they buy.
“Being intentional and very intentional about how you use it helps to alleviate some of the creep of that lifestyle. It happens because you’re not paying attention,” she said.
Reach Rachel Barber at rbarber@usatoday.com Follow her at x @rachelbarber_
