New Grads' Top Three Money Worries: Expert Advice to Face Finances as An Adult
As more than 1 million college graduates prepare to enter the workforce, based on historical data from the U.S. Bureau of Labor Statistics, many of these young adults feel financially unprepared. Not surprisingly, Gen Z money concerns may also resonate with millennials and Gen X.
Learn More:
Find Out:
Chime spending officer Janelle Sallenave weighs in with tips to combat the top three financial fears of new graduates, as revealed in a new survey from Chime by Talker Research.
Four-in-10 (44%) of new graduates are worried about finding a job in their field. These fears may be unfounded, as 69.6% of 2024 graduates are now employed. However, the right tactics and smart networking moves can increase your odds of finding a job faster.
'The traditional 'apply online and wait' approach isn't always enough,' Sallenave said.
Recommending building a professional network, Sallenave suggested reaching out directly to recruiters.
'Keep in mind, many job openings aren't posted on job sites,' she said.
However, online efforts should still play a role in your job hunt.
'Curate your LinkedIn feed with intention,' she said. 'Follow recruiters, career coaches, and industry pros who regularly share helpful tips or job leads.'
Most importantly, don't settle for a role that isn't a good fit if you can wait. 'Jumping into just any job can set you back. A little patience now can lead to a role where you're valued, growing, and genuinely happy to show up every day.'
Students graduating from a public university leave with an average of $31,960 in student loan debt, according to EducationData.org. It's no wonder that 35% worry about paying off their student loan debt without sacrificing future financial security.
Sallenave suggested that small steps are best. 'Tackle high-interest debt first, but don't ignore your savings,' she said. 'Having a small emergency cushion can go a long way to keep you out of more debt.'
She recommended setting up autopay to avoid missed payments and make sure to balance saving, investing, and making the minimum payments on your student loans.
'Investing early gives your money more time to grow, so you don't have to choose between tackling debt and preparing for what's ahead,' she advised.
One-third of survey respondents said they have concerns about managing their monthly bills as they embark on adulthood. Sallenave suggested setting up online bill pay to avoid late payments and fees. 'Still, check your statements regularly to catch any errors or unexpected charges,' she said.
New grads just learning how to manage money can also take advantage of technology tools to stretch their money between paychecks. Find a bank that allows an overdraft with no fees in case you run short of cash. Early direct deposit can also help you avoid late payments by putting money into your account two days faster than it would usually clear.
With a solid foundation of financial knowledge, managing money can quickly become a habit that will serve new graduates well through every stage of life.
More From GOBankingRates
6 Big Shakeups Coming to Social Security in 2025
8 Common Mistakes Retirees Make With Their Social Security Checks
This article originally appeared on GOBankingRates.com: New Grads' Top Three Money Worries: Expert Advice to Face Finances as An Adult
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hill
an hour ago
- The Hill
US gained 562K millionaires in 2024, far outpacing other countries
A strong stock market helped mint 562,000 new millionaires in the U.S. last year, according to a new report. The nation's high-net-worth population grew by 7.6 percent to 7.9 million in 2024, far outpacing the 2.6 percent global rise, Capgemini's World Wealth Report 2025 shows. That domestic surge helped push the number of millionaires worldwide to a record 23.4 million. High-net-worth individuals (HNWIs), defined as those with $1 million or more in investable assets, benefited from double-digit returns in the U.S. stock market, resilience fueled by stronger-than-expected economic growth and sustained enthusiasm for artificial intelligence and tech stocks. It was also a year of wealth concentration, with the ultra-rich emerging as the clear winners. Globally, the number of so-called 'millionaires next door' — individuals worth between $1 million and $5 million — grew by 2.4 percent. Meanwhile, the ultrawealthy population — those with investable assets of $30 million or more — grew more than twice as much, at 6.2 percent. 'Ultra-HNWIs remained resilient during market volatility with greater exposure to high-growth opportunities, whereas Millionaires Next Door focused on safer, low-yield opportunities like fixed-income and real estate,' the report reads. The wealthy continue to favor traditional investments like real estate, stocks and fixed income assets, but alternative investments like currencies, private equity and digital assets have gained traction in recent years. As of January 2025, HNWI investors parked 15 percent of their portfolios in alternative investments, including private equity and cryptocurrencies, up from just 9 percent in 2018. The report also highlighted the looming 'great wealth transfer,' with older generations expected to pass on an estimated $83.5 trillion to Gen X, millennials and Gen Z by 2048. Within the next decade, women are projected to receive a significant share of that wealth. The massive transfer presents an opportunity for wealth managers but also considerable risk, Capgemini warned. 'The next-generation of high-net-worth individuals arrive with vastly different expectations to their parents,' Kartik Ramakrishnan, CEO of Capgemini's Financial Services Strategic Business Unit and Group Executive Board Member, said in a release. Ramakrishnan urged wealth management firms to shift away from 'traditional strategies' and equip advisors with digital capabilities, 'potentially augmented with agentic or generative AI.' Outside the U.S., India and Japan were standouts, with both countries registering 5.6 percent growth, adding 20,000 and 210,000 millionaires last year. Meanwhile, China's HNWI population declined by 1 percent. In Europe, the high-net-worth population also declined by 2.1 percent, primarily due to economic stagnation in major countries such as the United Kingdom and Germany. The number of high-net-worth individuals shrank in the Middle East and Latin America too.
Yahoo
3 hours ago
- Yahoo
Prof G says 10% to 30% of those on Social Security don't need it and are hurting young Americans. Is he right?
Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. The future of Social Security benefits is a top concern for Americans, but Professor Scott Galloway isn't convinced the program is essential for everyone. 'Somewhere between 10% and 30% of people who get Social Security right now should not receive it. Because they don't need it,' the New York University professor, who is known for his controversial takes, said in an episode of his podcast, The Prof G Pod. "I'll go as high as a third of senior citizens should not be getting Social Security." Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how BlackRock CEO Larry Fink has an important message for the next wave of American retirees — here's how he says you can best weather the US retirement crisis Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Galloway suggests this not just as a way to reduce economic inequality in the U.S., but also as a potential solution to cut costs in a program that faces insolvency issues due to shifting demographics. Without reform, the Social Security trust funds will be depleted by 2035. As a result, benefits for all recipients would be automatically cut by 17%. Here's why Galloway thinks serious reform and dramatic benefit cuts are required. Galloway described American seniors as 'the wealthiest generation in the history of this planet,' raising concerns about the fairness of the current Social Security system. Each year, approximately $1.2 trillion is transferred from younger workers — many of whom are struggling with debt, rising living costs and stagnant wages — to retirees, according to Galloway. In 2025, around $1.6 trillion in benefits will be distributed, with about 80% going to retired workers and their dependents. Galloway argues that this transfer places an unfair burden on Gen Z and millennials, who shoulder most of the Social Security costs through payroll taxes. To help correct this imbalance, he proposes cutting or eliminating benefits for the wealthiest 10–30% of retirees. 'I think it's called the Social Security tax — not the Social Security pension fund — because we don't actually have a guaranteed right to it at 65,' Galloway said. 'The idea that 'I paid in, so I should get it back' doesn't hold up, since most people end up withdrawing far more than they ever contributed.' With the top 10% of Americans holding an average net worth of $7.8 million, according to recent Federal Reserve data, many in this wealth bracket likely wouldn't be significantly affected if their Social Security benefits were reduced or eliminated. Galloway criticized the payroll tax cap, which limits Social Security contributions to the first $176,100 of income. As a result, a CEO earning millions pays the same as someone earning $176,100. Removing the cap on earnings above $400,000 is one favored policy fix, according to a National Academy of Social Insurance survey. However, the Manhattan Institute notes that this wouldn't fully solve the program's funding shortfall — only delaying trust fund exhaustion by about 20 years. Read more: Rich, young Americans are ditching the stormy stock market — The institute supports Galloway's view that Social Security now redistributes wealth upward, not downward. According to the report, 'Raising Social Security taxes (rather than addressing benefits) would accelerate the largest and most inequitable intergenerational wealth transfer in world history." Reducing your dependence on Social Security is essential for long-term financial stability, particularly as the program faces ongoing funding issues. To take control of your financial future, it's important to build your savings, invest wisely and diversify your portfolio with tools like gold, real estate and alternative assets. Investing in gold is a way to grow your wealth and reduce your reliance on Social Security, as it tends to act as an enduring store of value over time. The price of gold has also jumped by more than 40% since 2023. JP Morgan projects that it will hit the $4,000 mark by 2026. If you're optimistic about gold, there's no need to visit a bullion shop to purchase gold coins or bars. Instead, you can choose a gold IRA, which allows you to invest directly in precious metals to hedge against market volatility. Priority Gold is an industry leader in precious metals, offering physical delivery of gold and silver. Plus, they have an A+ rating from the Better Business Bureau. If you want to convert an existing IRA into a gold IRA, Priority Gold offers a 100% free rollover, as well as free shipping and free storage for up to five years. Qualifying purchases can also receive up to $10,000 in free silver. To learn more about how Priority Gold can help you reduce inflation's impact on your nest egg, you can download their free 2025 gold investor bundle. Investing in real estate can be another effective way to build generational wealth and lessen your reliance on Social Security. For the 12th year in a row, Americans have ranked real estate as the best long-term investment in 2024, according to a new Gallup survey. With the help of First National Realty Partners (FNRP), you can invest in necessity-based commercial properties and potentially create lasting wealth for yourself and your family. FNRP specializes in grocery-anchored retail centers leased by major national brands like Walmart, Kroger and Whole Foods, providing investors with potential steady cash flow through rental income and long-term appreciation. As an accredited investor with a minimum of $50,000, you can access high-quality real estate investments without the hassles of property management. You can also invest in alternative assets such as art to diversify your portfolio and lessen your reliance on Social Security. Art investment has emerged as a substantial asset class. The global art market size was valued at $552.03 billion in 2024 and is projected to reach $585.98 billion in 2025, according to Straits Research. In the past, only the ultra-wealthy could invest in art, but now services like Masterworks have opened the door to art investing. So far, over one million members have joined the platform. Here's how it works: Instead of spending millions on a single painting, you buy fractional shares of blue-chip paintings by iconic artists such as Pablo Picasso, Basquiat and Banksy. All that's left is to choose the number of shares you want to buy, and Masterworks handles everything else for you. See important Regulation A disclosures at JPMorgan sees gold soaring to $6,000/ounce — use this 1 simple IRA trick to lock in those potential shiny gains (before it's too late) Are you rich enough to join the top 1%? Here's the net worth you need to rank among America's wealthiest — plus a few strategies to build that first-class portfolio You're probably already overpaying for this 1 'must-have' expense — and thanks to Trump's tariffs, your monthly bill could soar even higher. Here's how 2 minutes can protect your wallet right now Access to this $22.5 trillion asset class has traditionally been limited to elite investors — until now. Here's how to become the landlord of Walmart or Whole Foods without lifting a finger This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12 hours ago
- Yahoo
401(k) savings rate hits record but balances drop 3%: Fidelity
(NewsNation) — Workers are putting away more in their 401(k) plans than ever, but market volatility dragged retirement account balances lower in the first quarter, a new analysis shows. Average 401(k) balances fell 3% to $127,100 in the first three months of the year, according to Fidelity, one of the nation's largest retirement plan providers. Fidelity attributed the drop to 'market swings,' which also impacted individual retirement accounts, where average balances fell 4% to $121,983. Americans tapping 401(k)s to pay for financial emergencies But market fluctuations didn't stop workers from saving, with the average 401(k) savings rate hitting a record 14.3% in the first quarter. That included an employee contribution rate of 9.5%, plus a 4.8% employer contribution. 'Although the first quarter of 2025 posed challenges for retirement savers, it's encouraging to see people take a continuous savings approach which focuses on their long-term retirement goals,' Sharon Brovelli, Fidelity's president of workplace investing, said in a release. The most recent 14.3% savings rate is the closest it's ever been to Fidelity's 15% recommended rate. What is a Roth IRA for kids, and how does it work? Five years ago, in 2020, the total savings rate was nearly a full percentage point lower at 13.5%. While that difference may seem small, over several decades, it can add up to tens of thousands more in a nest egg. Roughly 17% of workers with Fidelity 401(k) accounts increased their savings rate in the first quarter, while just 5% decreased. Fidelity's quarterly analysis of 25,300 corporate plans covering 24.4 million participants also revealed significant differences between industries. Employer 401(k) contributions were highest in the airline and petrochemical sectors at 8.2%, while retail and scientific & technical industries saw the lowest at 3.1% in the first quarter. Meanwhile, the employee contribution rate was highest in the tech sector (12.8%), followed by pharmaceutical employees at 12.1%, Fidelity found. 401(k) savings rates and account balances also vary by age, with those nearing retirement contributing more. Here's how different generations at Fidelity compared in the first quarter of 2025: Baby Boomers (born 1946-1964) Avg. balance: $239,600 Total savings rate: 17.2% Gen X (born 1965-1980) Avg. balance: $187,400 Total savings rate: 15.4% Millennials (born 1981-1996) Avg. Balance: $66,800 Total savings rate: 13.5% Gen Z (born 1997-2012) Avg. balance: $13,900 Total savings rate: 11.2% Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
