Do you know someone who is about to graduate from high school or college? Chances are they have been taught about many subjects. But money management, accounting, and bookkeeping isn’t likely one of them. To fill the gap, we offer these 4 expert bookkeeping tips for 2024 graduates.
1. Pay Off That School Debt ASAP
Those of you who enjoyed a student loan for the last couple of years have most likely enjoyed the comfort of not paying any interest until now. That all ends with your graduation. The interest on many loans kicks in right after you graduate. It can be a favorable rate, or it can be a soaring rate. Should you pay off just the minimum each month? Should you make early payments? Use this Student Loan Calculator to see how much you can save with early payments.
Did you know? It is projected that over 3 million students will graduate from high school in the United States in 2024? Source: National Center for Education Statistics “Projections of Education Statistics to 2024
2. Begin or Add to an Investment Account
Why pay off student loans AND invest at the same time? In short, your investment will also accrue interest, just like your loan – but in your favor. However, since you won’t be retiring for a good 50 or 60 years, you have that long to collect interest. In fact, many experts recommend you prioritize your investment accounts until they are worth a good $100,000 to get the most when it’s time for you to retire.
3. Take Advantage of Employer Matching
Are you lucky enough to have an employer with an investment or retirement matching program? Take advantage of that to meet your retirement goals. Just think, if you use the above $100,000 as a goal, you will only have to chip in $50,000 of your own money (or maybe less with favorable interest) if your employers matches each of your investments to the dollar.
Did you know? A retirement account based on the S&P 500 has returned 7% every year, even after adjusting for inflation? Source: The Motley Fool
4. Utilize Technology
Unfortunately, your parents probably didn’t always have money management software and especially apps. Be sure to utilize ones that work for you to help you spend, save, invest, budget, file taxes, and much more. Here are just a few to help in no particular order
- Qucken – named best personal finance software by Tech Radar.
- WeBull App – top rated free Finance app on Apple Store.
- CheckBook Pro App – top rated paid Finance app on Apple Store.
- Intuit Credit Karma – top rated free Finance app on Google Play.
- MyMoney Pro – top rated paid Finance app on Google Play.
- Intuit Turbo Tax 2024 – named Best Tax Software by PC Mag.
- Charles Schwab App – named Best Investment App by NerdWallet.
- Betterment App – named Best Investment App for Automated Investing by Bankrate.
More Bookkeeping Tips for 2024 Graduates
Are you a recent graduate who needs a professional to help with your books, taxes, and more? Simply contact us or call us at 281-894-6494 to schedule an appointment to learn more.