In today’s rapidly changing financial landscape, ‘Gen Z’ college grads are gearing up for an uncertain job market and rising living costs. According to financial planners, however, implementing smart financial habits early can pave the way for a more secure future. Here’s their essential advice to help you navigate these challenging times.

Guard Against Lifestyle Creep

It’s tempting to splurge after graduation, but experts caution against lifestyle inflation. Gloria S Garcia Cisneros, CFP®, warns that this can undermine your ability to save. The key is to live within your means until your earnings naturally increase. “It’s normal for your needs to take up a large portion of your income right now, and that’s okay,” she advises.

Budgeting Wisely

As ‘Gen Z’ grads transition from academia to the workforce, creating an effective budget is crucial. “You already have a budget; it just might be out of control,” asserts Andrew Rotz, MBA, CFP®. He suggests adopting a zero-based budget, where every dollar has a purpose, whether toward debt, saving, or enjoying life’s pleasures.

Building Credit Responsibly

While credit card debt is a significant concern — with national balances soaring, paying more than the minimum on your credit is vital. “You’ll end up paying way more than you actually borrowed,” says Garcia Cisneros. For young grads, secured credit cards are a prudent choice to establish a credit history without falling into debt traps.

Maximize Savings and Investments

The importance of starting savings early cannot be overstated. High-yield savings accounts and the power of compound interest can turn small efforts today into significant earnings tomorrow. “Time is your most valuable resource,” Rotz emphasizes. In just a decade, early financial discipline can yield substantial benefits.

Understand and Manage Student Loans

Handling student loans effectively involves understanding your obligations and exploring repayment options that align with your career aspirations. Investigate federal repayment plans, refinancing, or loan forgiveness programs that cater to your circumstances.

Seek Guidance and Support

Financial wisdom isn’t always intuitive. Reach out to nonprofit credit counselors, financial advisors, and banks offering tools for financial literacy. Whether it’s saving for grad school, planning an international adventure, or simply managing daily expenses, strategic planning can alleviate stress and prepare you for a prosperous journey ahead.

Arming ‘Gen Z’ grads with these money strategies not only mitigates financial anxiety but also empowers them to achieve their goals with confidence and clarity. As stated in Business Insider, laying the groundwork now ensures a brighter economic future.