New graduates have a lot on their minds: landing a job, deciding where to live, tackling student loan debt, and more. While it’s easy to get caught up in those immediate needs, it’s important for new graduates to realize that the steps they take today—or neglect to take—can shape their financial future.
In other words, new graduates’ goals should be about adopting healthy financial habits that can help contribute to future stability. If you’re a new graduate and just starting out in your career and earning potential, try focusing on these five best practices to help build habits for long-term financial success:
Without a budget, it’s so much more difficult to plan and save. Understanding what’s coming in (income), what’s going out (expenses), and why puts you in a more proactive financial position. Today, there are plenty of online tools and apps to help make and manage a budget.
Of course, a budget isn’t any help if you don’t follow it. According to a recent survey from Discover, adhering to a budget is a struggle for many Americans. While 86% of respondents indicated that they use a budget regularly, only 22% actually stick to it. It’s important for new graduates to realize that the real work starts once their budget is established. Spending decisions should be considered before a payment is made, not after the bill shows up.
When you’re just starting out, saving can be tough, especially as new financial responsibilities emerge. But when you prioritize saving, you create a financial safety net that can help you handle emergencies and unexpected expenses.
A good rule of thumb is to have the equivalent of at least six months of essential living expenses in your savings account. Of course, that amount can be a daunting figure for someone who’s fresh out of school or still in the early stages of a career. To make building this emergency fund easier, start small, striving to build the habit of saving with an initial goal of one month of income in the bank by a certain date and then build from there. Additionally, it’s smart to keep your emergency savings separate. Consider establishing two bank accounts: a checking account for receiving your income and paying budgeted expenses and an interest-earning savings account for growing your emergency and long-term savings.
Most graduates start off in their careers with some level of debt. In fact, about 60% of graduates from the class of 2026 have student loans, higher education expert Mark Kantrowitz told CNBC. Additionally, the average balance on those loans is around $30,000, which translates to a typical monthly payment of $304. Credit card balances and auto loans also figure into the debt mix for many.
Overall, taking a proactive approach to debt management is critical. You must be realistic about what you can afford to borrow and pay back, whether it be on credit, a long-term vehicle loan, or mortgage. Ultimately, how you handle debt early on will shape your credit score, which impacts your ability to borrow in the future.
The value of insurance can be a tough sell when you’re young, healthy, and on a limited budget. After all, something has to go wrong for insurance to kick in, whether that’s a severe illness or injury, car accident, or home break-in. For young adults, those scenarios generally feel improbable. Yet having insurance, and more importantly, having adequate insurance, is essential. At this stage in your life, your greatest asset is your earning potential. For example, if you injure someone in a car accident, that person could go after your future earnings. Since the average person’s lifetime earning potential can be in the millions, insurance can be a powerful tool to help protect that future.
Whether it’s hacks, identity theft, phishing scams, or social media fraud, new graduates face a wide range of cyber risks that can come with significant financial implications. According to the FBI’s 2025 “Internet Crime Report,” cyber-enabled crimes defrauded Americans of nearly $21 billion, a 26% increase from 2024.
While you can never eliminate your cyber risk, you can be proactive about understanding and addressing your potential vulnerabilities. Following good digital hygiene basics, like frequently updating passwords, minimizing the personal information you share online, and staying up to date on the latest scams can help protect you.
Also, as you transition from student to professional, being aware of how you use social media is more important than ever. How you engage and portray yourself on social media impacts your personal brand, and you don’t want anything online about you that could compromise your career and earning potential.
No doubt, investing in your financial well-being takes time and patience, but the habits you build now can have a lasting impact. By budgeting thoughtfully, saving consistently, managing debt, addressing risk, and protecting your digital footprint, you’ll be better positioned to navigate this next stage of life with confidence.
Amy Massaro is a senior vice president with Aon Affinity, the administrators of the AICPA Professional Liability Insurance Program since 1967.
