In this post, I will be sharing on financial challenges for fresh graduates.
A big portion of this sharing is based on my personal experience. The other portion would be from my reading and observing sharing by others.
4 financial challenges for fresh graduates
Here are my 4 financial challenges for fresh graduates:
1. Getting a car
One of the top financial challenges for fresh graduates is to get a car.
Personally, in my early days, I used a bus or a coursemate’s car for daily commute to attend lecture and classes.
After graduation, my late father bought a second-hand car for me. I am truly thankful to my late father for his thoughtfulness and kindness.
Even though it was a second-hand car, I continue to use the car for a good 5 years.
I noticed nowadays, quite a number of parents will buy a new car for their children when they are graduating. A previous customer of mine who is a local car dealer also said that it is common for parents to buy a new car for their children.
Some parents bought the car when their children started to attend college. While some parents bought the car when their children started to work.
Overcome getting a car challenge
A car is important for our daily commute. This is especially true if you stay in places with less public transport such as Kuching.
In big cities such as KL, you have more public transport choices. So, having a car is optional.
But, you can consider other types of transportation too such as e-hailing. Among the common e-hailing such as Grabcar is getting more and more popular nowadays. With Grabcar, you don’t have to worry about car maintenance, car insurance and parking space.
Other than e-hailing, you can also consider a motorbike as a temporary transport for a shorter commute. Maybe it is not that cool, but you can save a lot of money by using a motorbike.
The other way would be getting your family member to send you to your workplace.
I can see that, in Kuching, many office workers are doing this. The family member will drop them off in the morning and pick them up in the evening.
The disadvantage would be, no transport during lunch hour. To solve this, you can pack your lunch at the office. Or, carpool with other colleagues for lunch. Or, get a Grabcar for lunch.
2. Getting a job
Another top financial challenge for fresh graduates is to get a job.
That’s why the first thing that I did as a fresh graduate was sending my resumes to prospective employers. Even before I graduated, I already started to look around for job opportunities.
My first employment was as a research assistant at a local university. The pay was not great. But it is sufficient for me.
Also, during that time, the economy was quite bad. So, there are limited job opportunities, especially for fresh graduates.
Even though the pay was not so good, but I still managed to save some from my monthly salary.
As time goes by, I got employed at more established companies. The salary also increased steadily. My monthly saving increased. So do my monthly expenses.
Overcome getting a job challenge
I can understand if a fresh graduate quickly applies for jobs and hope to get landed on a job.
Some lucky ones will easily get employed. Some even receive multiple job offers at one time.
Maybe the way they write the resume somehow attract prospective employers. Or maybe their performance during interview session give prospect employers confidence to hire them.
So, try to brush up on your resume writing skills and handling interview session skills.
While waiting for job employment, fresh graduates can do temporarily or part-time jobs.
Not only they are receiving an income but also expose them to more experience which is crucial in the corporate world. With working experience, one can easily stand out among other applicants.
So, don’t compare with other coursemates or university mates. Instead of comparing and complaining, do self-analysis to find solutions. Do have planning in everything you do.
3. Pay study loan
The other top financial challenge for fresh graduates is to pay their study loans.
For my case, a few months after my graduation, I received an official letter from PTPTN on study loan repayment. I was employed. PTPTN also sent a copy of the letter to my employer.
My then employer quickly instructed the Finance department to make a deduction from my monthly salary. That is how I started to pay my PTPTN study loan.
When I joined the corporate workforce, I make it a point to promptly pay my PTPTN study loan. I made a commitment to myself that I will pay the study loan according to the schedule.
I even plan to pay off the PTPTN study loan faster so that I save on the interest charges.
Eventually, I managed to pay off the study loan earlier than scheduled. On top of that, I also enjoy a 20% discount on the PTPTN study loan balance.
Overcome pay study loan challenge
It will be good if fresh graduates are thinking about paying their study loan upon graduation. Because there are graduates who forgot about PTPTN who once financed their tertiary education.
Some purposely ignore the repayment reminder letters or emails sent by PTPTN.
It is wise to follow the PTPTN repayment schedule which was stated in the PTPTN study loan agreement.
This is especially true if fresh graduates are employed. Furthermore, the PTPTN study loan repayment amount is reasonable.
If you are not employed yet, use your creativity and knowledge gained to earn money.
It is easy to find all kinds of excuses for not having sufficient money to pay the monthly repayment. But, that is not the right thing to do.
If you have tried your best but still failed to prepare the fund for PTPTN repayment, reach out to PTPTN. And get their advice for an alternative solution. Don’t just ignore the PTPTN reminder email or reminder letter.
Read more: Why you should pay your PTPTN study loan
4. Apply for credit cards
Another financial challenge for fresh graduates is to have their own credit cards.
Most probably, their existing credit card is a supplementary card given by their parents. I can understand that fresh graduates are excited and eager to have their own credit cards.
As for me, I don’t have a credit card when I was studying. I got my first credit card after I’ve been working for about 4 years.
And I only use my credit cards to facilitate my payment transactions and not for the ‘credit’ purpose. In other words, not as a cash advance for me.
But, during that time credit cards is not as important as today. Because today, a credit card is a necessity. You need it for online purchases, air tickets and hotel bookings, and many more.
Overcome apply for a credit card challenge
Nowadays, it is easy to apply for credit cards. You can even apply for one online in the comfort of your own home. For this, you may want to read my sharing on how to apply for a credit card online.
No matter what, fresh graduates should really use their credit cards very carefully. Always remember only to use the credit card as a tool to replace your cash. Don’t use the credit card as your future money.
Make it a commitment to pay monthly statements. Never allow yourself to make the minimum payment and bring the balance to next month. The interest charge is very high. It is not worth it.
Final thoughts
I hope my sharing above on 4 financial challenges for fresh graduates is beneficial to you. I believe other than the 4 challenges mentioned above, there are more financial challenges for fresh graduates.
Feel free to share your financial challenges as a fresh graduate in the comment below.
Let’s hope that our sharing will be able to help others to make better and wiser financial decisions.
Read more: 20 best financial advice for college graduates
photo credit: Can Pac Swire Graduates procession via photopin (license)
