Planning for your future post-college

Life can seem a whole lot different after graduating college. Landing your first full-time job, getting adapted to a different schedule, and planning for your future (sometimes decades in advance) can be a huge ask of recent graduates.

Financial habits that will help you for a lifetime

Good financial habits are foundational to planning for a life of stability and comfort. You may have already established these habits during college or even high school. Still, it’s best to review them once you’ve graduated to maintain your financial well-being. 

• Set up checking and savings accounts complete with direct deposit to prevent delays in receiving funds.
• Utilize online banking options and mobile apps, such as the UBTgo app, to manage your finances from anywhere.
• Begin establishing credit by getting your own credit card and/or signing a budget-appropriate apartment lease or car loan, then keeping up with monthly payments.
• Practice the 50/30/20 rule, allocating 50% of your budget to needs (rent/mortgage, utilities, car payment, groceries, etc.), 30% of your budget to wants (dining out, entertainment, hobbies, shopping, etc.), and 20% of your budget to savings. While it’s not always possible to stay within these limits, it’s a great general framework to guide your purchasing decisions.
• Be safe with peer-to-peer payment apps. Only send money to people you know well and use apps like Zelle® which tie directly to your bank account, ensuring that no funds are being held within the app itself.

What legal documents are necessary to have?

There are certain documents that are necessary to have in place throughout adulthood and beyond. A great time to get these documents in order is after college graduation, as they reflect what you would like to do with your assets and belongings, offering peace of mind for you and your family if you were to pass away or otherwise become incapacitated.

HIPAA authorization

A HIPAA release form authorizes healthcare providers to share information about your medical condition with your parents. After turning 18, parents cannot directly access their children’s medical records or make any decisions on their behalf. Therefore, without HIPAA authorization, making care decisions could prove to be difficult in a worst-case scenario.

An estate plan

You may wonder, do young adults really need an estate plan so early in their lives? The answer is yes — while you may not yet own a home or possess other large assets, estate plans cover what happens with your cash, pets, and other personal belongings. Without an estate plan in place, you won’t be able to ensure your wishes are accurately reflected, and your family may end up in the lurch as they determine what will become of your things. Ultimately, it’s best to work with an attorney to answer your questions and ensure you have proper documentation in place. 

To that end, here are a few documents to keep updated in your estate plan:

• Last will and testament. This document outlines what you want to happen after your passing. It covers naming an executor (the person who will carry out the will); guardianship for minor children, dependent adults, and pets; and distribution of your belongings/assets.
• Beneficiary designation documents. This allows you to transfer accounts/assets directly to an individual (a beneficiary). This document takes precedence over a will, so it’s important to review your beneficiaries after major life events (getting married, having children, etc.) to make sure your money goes where you want it to.
• Advanced healthcare directive (living will). Your living will is just that — a will for when you’re still living, but require life-sustaining treatment due to extreme circumstances. This can cover do-not-resuscitate and do-not-intubate orders, mechanical ventilation, tube feeding, comfort care (or palliative care), and organ/tissue/body donations.
• Power of attorney (POA) documents. POA documents allow someone else to act on your behalf in the event of your incapacity. There are separate documents to give access to financial decisions and healthcare decisions.
• Trust. Trusts allow a third party (a trustee) to hold assets on behalf of beneficiaries. They offer some planning features that are not included in a will. They also keep records private since they are not subject to the probate process.

More estate planning resources

Wanna do some extra research and planning for your estate, or even talk to an expert? Take a look at some of the estate planning and administration resources in our Learning Center.