Graduation Season: Financial Advice for Grads & Their Families

As the 2025 school year comes to a close, it’s time to celebrate this year’s graduates! Graduation is a time to recognize the hard work of students and their families — but it also marks the beginning of some of the biggest financial decisions young people will begin to make. Whether you’re headed to college or technical school, going straight into the workforce, or supporting a grad, it’s easy to feel overwhelmed by all the options you now face. Here are some practical tips to help graduating students and their families make smart money moves, this season and beyond!

Choosing Student Loans

If you plan on furthering your education after high school, it’s important to know how to finance that decision. The easiest way to fund the next 4+ years of your life is through student loans. But did you know there are two different kinds? Federal loans and private loans. According to FAFSA, “Federal student loans are made by the government, with terms and conditions that are set by law…”, whereas private loans are, “made by private organizations such as banks, credit unions, and state-based or state-affiliated organizations, and have terms and conditions that are set by the lender.” Knowing which loans are best for your circumstances makes it easier to choose which to apply for. When applying for student loans, remember to consider interest rates, repayment plans and refinancing for after school, tax benefits and credit checks. These factors all contribute to how much money you’ll be spending on school in the long run, and shouldn’t slip through the cracks of your financial decision making.

When it comes to loan repayment, there are numerous plans to choose from. There are plans that base your monthly payments on your income each year (IDR), and some that base your payments on how long you’d like to be paying the loan off (Standard). Some plans you can pay as you go while still basing payments on a percentage of your income (PAYE), and others you can extend the payment period up to 25 years to make your payment amounts more manageable (Extended). With these plans and more available, it’s important to go over each one to decipher which will work best for you. Take a look at FAFSA’s repayment plan page here, and don’t forget to try out their loan simulation calculator to get an estimate on what your payments may look like with different repayment plans. Wondering how to pay off your student loans even after you’ve crunched the numbers? Our partnership with Student Choice is a great option for graduates looking to consolidate or refinance their loan payments.

Checking & Savings Accounts

If you’re leaving high school without a checking or savings account, graduation season is the perfect time to establish one! These accounts are imperative to good financial decisions as they form a strong foundation for our money. Savings accounts are where we build and keep our excess money — think of it as your emergency fund. Checking accounts are typically where you keep your spending money, and are linked to a debit card. Both create a healthy balance to begin your financial journey.

When looking for a financial institution to join, consider one that matches your lifestyle best. Look for one that offers services you’re interested in and is available wherever you decide to go to school or move to after graduation. When opening a checking/savings account, does the bank or credit union you’ve chosen have a minimum balance requirement? Are the interest rates for a credit card reasonable? Do they offer a mobile banking app that you can get on your phone? These are all questions you should be asking yourself when deciding where to store your finances.

When you’re still learning to save money, automatic transfers are a great option to build a consistent habit. Once you’ve established your accounts, ask to have a designated amount of money transferred to your savings account each month. This takes the pressure of remembering to save off those who are new to the habit, and the amount transferred can be changed at the account holder’s discretion. When it comes to your personal funds, how you keep them safe is one of the most important financial decisions you could ever make.

Building Credit Responsibly

Building credit is a financial decision that heavily determines your financial future — after graduation is the perfect time to begin to build it. The point of using credit is to build a high credit score. In our blog, Understanding Credit Scores and How to Boost Yours, credit scores are described as “…a number that creditors use to determine your credit behavior, including how likely you are to make payments on a loan.” They determine the jobs we can apply for, the places we can live, and the loans we can receive. The higher your credit score, the better your financial standing. To learn more about what is considered a good credit score, how to boost them with daily habits, and how to maintain a good score, take a look at our blog and others here.

Life after graduation is a great time to begin using credit, as long as you do so responsibly. After applying for a credit card whose interest rate isn’t too high, try making small purchases to get comfortable using credit. This could be your weekly gas station visit, buying groceries every month, or treating yourself to a coffee on the weekend. Starting your credit journey with payments that are manageable will help you cement smart financial habits into your daily life.

It’s important not to get carried away with your credit card at any point of your financial journey. You never want to go over the limit you have to spend as this can damage your credit score, and you should always remember to make your payments on time. Remember — damaging your credit score for a fleeting moment of spending is incredibly easy, but rebuilding your score so you can afford life’s necessities is much harder.

Looking Toward the Future

Life after graduation is an exciting time for students and their families. Help your grad step into this chapter with confidence and financial clarity by showing them how to make financial decisions they’ll appreciate in the future. Your trustworthy credit union is here to help each step of the way!

Scholarships vs. Student Loans: How to Fund College without Debt

The rising cost of college tuition has left many students and families wondering how to pay for higher education without accumulating massive debt. While student loans are a common solution, they come with long-term financial obligations. On the other hand, scholarships offer a debt-free way to fund your education. Understanding the differences between these options can help students make smarter financial choices and minimize or even eliminate student debt.

What are Scholarships?

Scholarships are financial awards that do not require repayment, making them an ideal way to cover educational expenses. They come from a variety of sources, including colleges, private organizations, non-profits, and employers. Scholarships can be awarded based on different criteria, such as:

Merit Based: Awarded for academic excellence, athletic ability, or artistic achievements.
Need Based: Given to students from low-income families or those demonstrating financial need.
Demographic Based: Designed for specific groups, such as first-generation students, minorities, or veterans.
Field Specific: Offered to students pursuing careers in specific industries like STEM, healthcare, or education.
Community or Employer sponsored: Provided by local businesses, credit unions, or employers as an incentive for continuing education.

Where to Find Scholarships

To maximize scholarship opportunities, students should explore multiple sources, such as:

FAFSA (Free Application for Federal Student Aid), which can reveal eligibility for grants and institutional aid.
University financial aid offices, which often have lists of available scholarships.
Online databases like Fastweb, Scholarships.com, and the College Board’s scholarship search.
Local organizations and non-profits, including community foundations, credit unions, and religious groups.

What are Student Loans?

Student loans are borrowed funds that must be repaid with interest. They are typically used when scholarships, grants, and savings are not enough to cover tuition and other expenses. There are two main types of student loans:

Federal Student Loans – These are government-backed loans with lower interest rates and flexible repayment options. They include:
- Subsidized Loans – The government covers interest while the student is in school.
- Unsubsidized Loans – Interest begins accruing immediately upon disbursement.
Private Student Loans – These are issued by banks, credit unions, and other private lenders. They often have interest rates that depend on your circumstances, and may require a cosigner.

The Long-Term Cost of Student Loans

To minimize the need for student loans, consider these strategies:

Prioritize Scholarships & Grants – Apply for as many scholarships as possible to maximize free funding.
Consider Community College First – Attending a community college for the first two years can significantly reduce costs before transferring to a four-year institution.
Explore Tuition Reimbursement Programs – Certain employers and organizations offer tuition assistance for employees.
Use Savings & Smart Budgeting – Setting aside money in a college savings account can help cover tuition without relying solely on loans.

Scholarships are a powerful tool for funding college without the burden of student debt. While student loans may sometimes be necessary, they should be a last resort after exploring scholarships, grants, and other financial aid options. Taking the time to research and apply for scholarships can save students thousands of dollars in the long run.

At York Educational Federal Credit Union, we are committed to helping our members make informed financial decisions. Contact us today to learn more about financial planning, student loan options, and scholarship opportunities!

5 Financial Habits to Start Before the New Year

As 2024 comes to an end, there’s no better time to review your finances in preparation for 2025. Looking to improve how you save and spend your money? By analyzing your previous financial practices throughout the year, you can pinpoint which ones are worth bringing into the new year, and the ones better left in the past. Adopt these smart financial habits by the end of the year and give yourself a head start to a successful 2025!

1. Track Your Spending

We’ve heard it all before – keep track of how much you spend in order to truly see how much money we’re losing rather than saving. It’s the oldest trick in the book. But what they don’t tell you is that this trick really does work! It’s easy for small expenses to add up over time (think that morning coffee run or an impromptu shopping spree), but when coupled with larger expenses like monthly bills? That means a lot of money is leaving your account rather than accumulating. When you track your spending and come face to face with just how much of your money is being spent, it’s easier to cut out the expenses we can live without. This way we can guarantee the funds for more expensive costs, like rent, car payments, and other bills. Keep yourself in the loop of your own spending by tracking them month by month.

2. Automate Your Savings

Most people have heard of automatic bill payments that are taken out of their account each month, but did you know you can do the same thing for your savings account? It’s recommended that 10% of each paycheck be deposited into your savings, but truly any amount is better than none! This is a great option for those who struggle with consistently building up their savings – whether it be because we don’t prioritize it, or simply because it slips our mind. Once these automatic transfers are set up, you can focus on other things while being assured that your savings is slowly growing.

3. Create A Budget

Creating a budget is an extremely important step to saving money, and typically goes hand in hand with tracking your spending. By calculating how much money you spend each month, you budget those funds by deciding which areas of your life you can afford to spend more, and which ones you need to spend less. If you see that you’re spending more on impulse purchases yet come up short for bills, try cutting back on those costs. Best practice calls for us to decide what expenses are non-negotiables and adjust our spending around them. Things like bills, rent, credit card or other loan payments, etc. would be defined as things we can’t live without, and they should always be paid first. Money should also be set aside for everyday, affordable costs, as well as emergency funds for expenses we can’t foresee, such as car troubles or a cracked phone screen. Everyone’s budget is specific to them, and it’s the best financial act of preparation you can take for every year of your life.

4. Tackle Debt

Make the effort to improve your debt in the upcoming year by making payments when you’re able. You can have your payments automated monthly to ensure consistent payments, or you could even pay them in advance if that fits better into your budget. Diminishing debt can be a time consuming job, which is why any attempts to pay it back is best practice. After all, any payment is better than none! You never want to let debt go unchecked, so start paying it back slowly and your debt will decrease over time. If what you owe seems unmanageable, speaking to a professional like our loan officers is an irreplaceable resource. They can aid in breaking down what you owe and creating a payment plan that works best for you. You can schedule a meeting with a YEFCU loan officer here.

5. Set Clear Goals

Like any goal, it’s important to be as specific as possible with what you’re trying to achieve. Are you looking to grow your savings in the upcoming year? Do you have a loan you’d like to pay off completely? Once you decide what you’d like to accomplish, write down every step you need to take to get there. This allows you to visualize the process and make it less daunting, and more doable. How much can you budget to go towards this goal? Can you increase potential payments to speed up the process? These are all important questions to consider when planning just how you want to tackle your goals in 2025, and the first step in working towards materializing them.

Looking back on the previous year is imperative to improving the one ahead. By doing so we analyze what practices worked, what didn’t, and what we can improve on. Adopting better habits not only improves our daily lives, but our financial futures in the long run. Consider tweaking the way you interact with your money and 2025 could be your most financially successful year yet!