Brown Bag notes for April 17 presentation “On Your Own” by Sarah Robinson, Jobs for Maine’s Graduates Specialist at Waterville High School
10 Things I Wish I Had Known When I Left College!
1. Credit cards are my enemy!
This is huge. Basically I learned that if you can’t pay in cash, you can’t afford it. But I learned the hard way. As a poor college student, I got credit cards – suddenly everything I didn’t have money for could go on the credit card – groceries, rent, you name it. And they kept sending me new ones!! Credit cards affect your credit rating, so it can be tough to buy a car or house in the future if you own too much or have a history of not paying or paying late. I moved so many times that my bills didn’t always keep up with me –so between my credit cards and school loans, I will be in debt for a very long time. You can and should shop around for the best deals in credit cards and school loans. Do your homework!!! And always read the fine print. You have to be your own best-informed advocate. Credit cards are for emergencies or things you are required to use credit cards for – hotel or rental car reservations, an unexpected car repair, a plane ticket to see a dying relative. Pay them off that month, or as soon as possible!
2. Jobs don’t just fall into the laps of college graduates.
Well, I really believed they did, so I didn’t do anything about my future while I was still in school. I thought “Well, I’ll have a college degree, so I’ll be all set.” Wrong. People did not come looking for me to offer me a job! My degree in Psychology is so general it didn’t really prepare me to do a specific job. When you aren’t sure what you want to do, you can bounce around from job to job, trying to find something you like. That is a mistake, because then your resume looks like you have a horrible work history! Do all the prep stuff while you still have access to help – write the resume, research the companies, do internships, know how much money you need to make, what kind of benefits you want, where you want to live and it will be so much easier to make decisions.
3. Moving is EXPENSIVE!
And I should know, having moved from Maine to Vermont to Connecticut to Louisiana, to Texas, to Colorado and back to Maine. And I’m only 25! You need so much stuff for an apartment! So I would buy everything, and then move…it was less expensive and less of a hassle believe it or not, to leave everything behind and start over that to get a U Haul or store things – but it was not cheap! It also costs so much money to get into a place – with rent, security deposits, getting everything turned on like the electricity, water, cable and phone… I had to learn to shop at yard sales and thrift stores, and that things wouldn’t be glamorous. It sounds awful, but when people die you can usually get really nice stuff at estate sales though, so watch for those!
4. I will be paying off loans for the rest of my life!
I went to college to get ahead, but being hugely in debt is very depressing. Before you leave campus, find out everything you can about your student loans, when they come due (it’s not always all at the same time!), how much, if it makes sense to consolidate your loans or not. Do your own research too. Working at some jobs can get your school loans reduced or ever forgiven. There also deferment programs (where you put off paying the loan for a specific period of time) if you stay in school. Pay every month – if you don’t it goes on your credit report and can hurt you in the future. Pay extra when you can and get out of debt faster. You can even pay every week, which reduces your overall interest costs.
5. Benefits can be worth more than gold!
This is huge in today’s market. Health insurance is expensive – and it’s even worse if you don’t have it. I went to the emergency room for a kidney infection and it cost me $3000. Yes, three thousand. And then I found out there was a free clinic across the street. One job may offer more pay, but no benefits. You have to take it into consideration. You also need to start thinking about retirement NOW! The sooner you start saving, the more money you’ll have at retirement because it accrues interest for so long. So find out about the 401 (k) plan, stock options, etc as well as the vacation and sick time, the schedule, the stress level of the job…all are indicative of the corporate mentality of that workplace, and knowing before you start the job is critical. I work for a non-profit, so I don’t make as much money, but the company is a great employer, my schedule is good, the benefits are awesome and I have what I need. I live as cheap as I can – drive an older car, get my haircuts at the cosmetology school, visit family and friends for vacations. Sometimes I really have to say to myself “I really WANT scallops for dinner, but my budget tells me I NEED to have cereal.”
6. Budget! Budget! Budget!
I began to realize the importance of this when I was in college, really poor and working three jobs, just to be poor. Assess wants versus needs. Be practical and creative. You won’t enjoy life as much if you are obsessed with debt. This really should be at the top of the list because everything else comes from this point – if you know what you need and figure out how much it will cost, that can inform your decision making about which job offer to accept, where to get an apartment, what type of a car you can afford to drive, whether or not you can afford to pay for cable, new shoes or that Florida vacation all your friends want you to join them on.
7. Car mechanics/salesmen and young singles do not mix.
These guys are really good at what they do. And not all of them are dishonest. BUT, when you are getting your car repaired or shopping for a new one, get someone to go with you who knows something. Research. Know about what it usually costs for a brake job or new tires before you get to the shop. When you go to buy a car, do your homework first. Know exactly what you can afford to spend and be strong. Or take someone who will be strong for you!
Know the bluebook value of a car, and what amount of a loan you qualify for. And when you get your car, be sure to do basic maintenance. It goes a long way. Most areas have a local vocational center at the high school with a class looking for cars to work on. You can get work done usually just for the cost of parts. Oil changes are cheap. Repairs to your engine because you forgot about the oil are not.
8. I don’t need to pay for checking.
I grew up in a small town – one bank. No options. Today that’s rarely true. Shop around and read the fine print – if you have to buy the bank’s checks, that’s really not “free” checking! Credit Unions are great because they have no fees and also pay you dividends, and as a member you can qualify for interest rates that are often lower than the banks. Direct deposit is a great option, and on-line banking is a time saver. Debit cards are essential today, and most have a credit line attached to them, (for those occasional emergencies or hotel reservations) so you really don’t need another credit card. So SHOP AROUND.
9. How to see a Doctor without selling an organ if I don’t have medical insurance.
Ask around for the free or low cost clinics in the area. Every city has one. If you are in a city with a medical school – go! Like the car repair class, they are looking for willing victims, I mean patients. Around here Planned Parenthood is great – they do a lot more health care than people know. Once you get insurance, be sure you know when it officially starts – some you have a waiting period for. Finding a Doctor is another thing. It’s harder and harder to find Doctors taking new patients, let alone finding someone you are comfortable with and trust. Ask people to recommend names to you. And be sure to check and see if that office accepts your insurance – that varies too!
10. It’s okay to ask for help.
No one expects that you can do it all on your own. There are so many places to get help – at college, from the internet, from community agencies, at work. Ask. Ask. Ask.