I graduated from college during the great recession. Many of my classmates struggled to find jobs in fields anywhere close to their college degree. It was easy to feel like we might be stuck at the bottom of the totem pole forever. But ten years later, I can honestly say that’s not true. My peers and I did volunteer years, went to graduate school, worked our way up the ladder through low paying jobs, changed career paths, and so much more. While it certainly wasn’t easy, we made it — and, despite the hurdles they’re facing with this pandemic — so will today’s grads.
Still, it’s probably going to be tough going in the job market for a while. Here’s what I hope new grads will keep in mind:
Showcase Your Skills: Take advantage of the resources your college offers to help get your career off to a good start. Ask the staff of your college career center and alumni in your field for help as you prepare your resume and cover letter. When you apply, make sure to include key words from the job description to maximize your matches with jobs posted online.
Tip: There are many skills today’s increasingly virtual workforce needs that you likely have but wouldn’t think to market — think words like social media, tech-savvy, ability to adapt to a virtual working environment, video editing, or webinar creation. While you may not think of these as “skills,” today’s workforce does. Don’t overlook them in your application process.
Remember, Where You Start Isn’t Where You Will Finish: If you find yourself taking a low-paying job that has nothing to do with your degree, be patient and work hard. Pay attention to what you like and dislike about it — these things can help you find the right fit when you search for your next job. Leverage your college’s alumni network as well as your network of family and friends to connect with people in the field you’d like to be in. See if there are opportunities — even unpaid ones — you can take advantage of in the meantime to upgrade your skills.
Tip: Because it’s easy to get stuck when you’re in a job you don’t like, set aside time every week to work on your skills and connect with your network. Even an hour or two each week can help you keep the momentum going.
Weigh the Value of Graduate School: Whether you have debt or not from your undergrad education, make sure this additional schooling will be meaningful to your future employer and worth the additional cost to you. Talk to people who are currently in your chosen field and get their perspective. Still eager to continue your education? If you can, work full- or part-time while getting your degree so you can gain some work experience and pay for part of your education as you go.
Tip: Instead of committing to a full degree program, consider acquiring the skills you need by taking individual courses at a university, getting a specific certification, or upping your skillset using courses on LinkedIn Learning so you can really focus in on your specialty and gain marketable skills with less investment of time and money.
Make a Plan for Your Debt: This isn’t the most fun step, but ignoring your debt won’t make it go away. Make a comprehensive list of how much you owe, what repayment plans are available to you, your interest rate, your monthly payment amount, and any forgiveness options you might be eligible for. Take advantage of the student loan grace period to get ahead on your payments. Keep the monthly debt payment amount in mind as you’re looking for jobs.
Tip: Student loan repayment can be confusing. The tips in this blog post about things I wish I’d known about student loan repayment when I graduated can save you some time and money.
Create a Spending Plan: Set yourself up for financial success by piecing together a plan for how you’ll use your money — in other words, make a budget. Include your fixed expenses (like rent, internet, cell phone bill, and student loan payments) as well as your variable expenses (like eating out, groceries, utilities, and clothes shopping). One of these Google Sheets Budget Templates is a great place to start.
Tip: Use an app like Mint to make tracking your spending and sticking with your plan even easier. The app will even warn you when you’ve gone over budget in a specific category — which can keep you from digging a hole you don’t want to have to get out of.
Use Credit Wisely: If you’ve never had a credit card before, you might be considering getting one … or, you might be tempted to run up a bill on the one you have while you’re settling into your new home or waiting to get hired. Remember, any money you spend has to be paid back — and if you delay beyond the bill’s due date, you’re paying it back with interest. Those seemingly small purchases will end up costing more than you think. Get a clear sense of the money you have in the bank and do your best to spend only what you have. Use these tips to avoid credit card debt.
Tip: Already got yourself into debt? Follow these steps to create a plan to repay it.
Maximize Your Benefits: Once you land your first job, take the time to understand the insurance, retirement account match, employee discounts, health/wellness services, and any other perks you may receive. They’re all a part of your compensation package — don’t hesitate to make good use of them.
Tip: If your employer offers you a retirement match, contribute enough to at least meet the match. Do it before your first paycheck and you won’t even miss the money. Be sure to make a percentage contribution (instead of a fixed dollar amount) each month so your contribution will increase with your income. If your employer offers you the opportunity to “auto-escalate” (automatically increase your contribution by a percentage each year), be sure to “opt-in” to that program. You’ll be setting yourself up for success today and tomorrow.
What guidance would you share with this year’s college grads?