It’s always a good idea to keep one eye on the future and start thinking about how your financial responsibilities change once you graduate. We have compiled a list of things you should start to think about when you graduate below:
Student Loan Repayments: It’s good to get an idea of how student loans work before you graduate. The Student Loans Company offers detailed guidance on repayment schedules based on your income.
Rent/Mortgage Payments: You may have already been renting privately, but if not, this may be your first time after leaving university accommodation or home. Check out our guide to finding housing, or you can reach out to the money and housing advice team for up to four months after graduating.
Council Tax: Once you graduate, you will have to start paying council tax. You can find more information on how council tax is paid and calculated here.
Utilities and Living Costs: Once you graduate, with all of the other responsibilities you are taking on, it can be easy to forget day-to-day living costs and utility bills. If you are looking for a refresher, King’s Money Advice Team have created a guide to cost of living.
Deductions from your pay: When you secure your first full-time job, you may start to notice some additional deductions you had not seen before. Find out more about how payslips are broken down here. You can also take a look at this guide to tax and NIC here.
Professional Expenses: Depending on the career path, graduates may face additional costs such as professional memberships, certifications, and work-related travel expenses.
Credit and Debt Management: With access to credit cards, personal loans, student loans and overdrafts, managing and repaying debt responsibly becomes a critical financial responsibility. This can seem overwhelming at first, but Which and Money Helper have a great guide on repaying debts.
Health and Dental Costs: Graduates may need to pay for prescriptions, dental care, and other healthcare costs. You can apply for an exemption on paying for prescriptions or set up a monthly payment to reduce the overall cost. You can also apply for help with healthcare costs here if you are eligible.
Savings and Investments: Financial planning for the future, including saving for emergencies, large purchases, or investing, becomes an important responsibility as income increases. Consider opening a savings account, or if you have surplus funds, you could explore investment options such as stocks, bonds or mutual funds. It is always good to start saving early if you can!
Further Education Tuition Fees: If you plan to continue your studies, you will have further tuition fees to pay. You should research funding options and how this might affect your financial situation. Look into postgraduate loans and other scholarships or grants available, as well as this guide on funding your postgraduate study. The earlier you can do this the better, as some scholarships and loans have certain deadlines before the start of your course.