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!