College graduates: educate yourself about credit
Bee Editorial
If you are among the hundreds of college grads returning to Amherst after a few years away, your number one priority is likely to be landing that first job. Your number two priority? Learning how to manage the money you'll make.

In the past months, 1.3 million college graduates flooded the job market across the nation. Locally, in addition to those returning to the area, many graduates of Buffalo State College, Canisius College, Erie Community College, Daemen College, Medaille College, D'Youville College and others have stayed in the Buffalo area to look for their first professional position.

The good news, according to Job Outlook 2007, is that employers say they will hire 17.4 percent more students this year than in 2006. However, with that first post-graduation job comes a new dimension of financial freedom for most young adults, and the financial responsibility that comes with it.

"If you have made it through college with a good credit history, you'll want to maintain and improve that as you enter the job market," said Connie Scherrer, manager of the Transit Road branch of the Summit Federal Credit Union. "With most young people carrying some college loan debt, the last thing you need is more credit card debt piling up. Instead, this is the time when you should look to the future and develop good habits for saving and investing."

It may sound a bit contrary, but Scherrer tells graduates returning to the Amherst area that they need to think not just about themselves and what pleases them today but what they want in the future, possibly including a family and a home of their own.

When you put money away, it's not just for a rainy day, but rather to support long-term dreams and aspirations.

Some helpful ways to think about it: have a plan for each paycheck. Allocate what is needed for student loan payments and living expenses; assign a portion of earnings that automatically gets transferred to savings; and participate in any retirement plans offered by your employer, especially through pre-tax payroll deduction such as 401k plans.

If you already have credit card debt, discuss the best ways to pay it off, now. Carry only one card with a low maximum spending limit and low interest rate, and pay it off in full each month. Debit cards are a great alternative, allowing you to spend only money that is already in your checking account.

Visit "Credit Reports and Reviews" under the member privileges section of the Web site www.summitfcu.org for more information.