By Liz Mathews
11 March 2004

(U-WIRE) EMPORIA, Kan. - After spending a semester straddling college life and the real world, new graduates are a few short weeks from taking the plunge into life after college.

While all graduates take different paths to jobs or graduate work, each has a similar hurdle to face: personal finances.

"As they’re thrust into the real world, [graduates] are looking at their independence and rent, financial aid [and] car payments," said Tom Thompson, president of Lyon County State Bank. "There are many issues that face students."

Personal finance is defined by eGrad.com as "every aspect of your life that deals with money — everything from buying a ticket to the movies to finding an affordable apartment."

Two of the first items recent graduates look to address are financial aid with repayment plan and a new car, Thompson said. While tackling financial aid is a good idea, he recommends holding off on the vehicle.

"A new vehicle depreciates very quickly [in value] in the first year," he said. "Students should have patience, drive the old clunker for six months and make sure they can put aside enough each month for payments."

Putting aside a monthly payment helps determine what range a person can afford before any contracts are signed and creates a bank of money for a down payment.

"Typically, students go out and get the payment then they realize it’s too much for their comfort level," Thompson said. "They should establish themselves first in their positions and their needs then get the luxury items."

Retirement is also something students should start looking at as soon as they get their first job. Thompson recommends putting aside 10 percent a month, and www.egrad.com says saving anything, even if it’s only a little, is better than not saving at all.

"They should start on the first job," Thompson said. "We feel as if we always have time to prepare for retirement when we’re 20, but then you’re 30, you’re 40 and you haven’t started saving." Perhaps the biggest way to conquer questions about personal finances is to get informed.

From classes at the university like personal finance to talking it over with parents or friends, knowing the terminology can be beneficial in understanding the world of economics.

Copyright ©2003 The Bulletin via U-Wire