College Graduate Savings Accounts

College graduates nowadays are coming out of school with a lot of financial baggage in the form of student loans out the ying yang, and many times they start a job at the bottom of the totem pole and have a hard time even scraping by paying their existing bills, let alone putting away money in any kind of savings account.

Many times college grads nowadays are carrying twice or thrice the load that college students 20 years ago or more were carrying, because the rate of college tuition has skyrocketed as of late.

The first thing a college graduate student should do is start their 401k, this is the most important savings account a new worker can have, and it actually many times pays you to have one of these accounts since many times corporate and private employers will match your contributions up to a certain point.

Not only that, you are getting a nice little tax savings by having a 401k, in other words, your taxable income is reduced AND you’re saving money.

As far as actual savings accounts, if there is anything left over to stash away, you may want to stay away from savings accounts unless they offer a considerable return (interest) on your money. Otherwise, you are just letting your money stagnate.