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What They Don’t Tell You When You Graduate

Last Updated: August 9, 2017 BY Michelle Schroeder-Gardner - 55 Comments

Disclosure: This post may contain affiliate links, meaning I get a commission if you decide to make a purchase through my links, at no cost to you. Please read my disclosure for more info.

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Find out what they don't tell you when you graduate. This is a great list!In my post last week I talked about how I’m oh so happy that school is done forever. However, even though there are so many reasons for why I am happy and things I looked forward to when graduating, there are also many things that new graduates are not told about.

Since I have lived on my own since I was 18, and I’ve had to pay for all of my own things (I rented a house at 18 and have worked full-time since 16), I pretty much know all about bills and how much money I will make. There are no surprises and I am very used to income and expenses.

Not to make this a depressing post or anything, but there are soooo many things out there that are not talked about enough. College graduates are always told about all of the positives of graduating, and possibly no negatives (or very little).

Negatives need to be talked about and realized. Some of my friends who graduated from college just assumed that they would be rolling around in cash and that money would be no problem.

 

1. You might not find a job right away.

Luckily I had a full-time job during college, so I wasn’t as worried about money, but of course I still wanted to find something in my field. Some people told me that I wouldn’t find a job right away, and others told me that it would be a piece of cake. Luckily I was able to find several jobs that interested me.

However, I have a lot of friends who either didn’t try hard enough to find a job or they were overly optimistic. Some friends thought that jobs would just land right in their laps and hardly ever applied for a job, or they thought that they didn’t have to try as hard since they had a college degree. BOY were they wrong! You still need to try and put a lot of effort into your applications.

 

2. Bills will add up quickly.

If you’ve never really had a lot of bills before (or any at all), then all of your new bills might throw you off completely. There’s an apartment or house to think about, possible car payments, car insurance, health insurance, food, electricity and everything else.

If you buy a house, then there are many others things to think about. Where and how will you choose your house? What about maintenance costs? These things all add up quickly.

You need to think about how quickly everything will add up, and also think about #3 in the section below.

 

3. Your paycheck isn’t as big as you think it’ll be.

Think you should just take your salary and divide it by 12, and that’s what you have to spend each month? NO! Depending on how your paid, if you just divide it by 12, then some months you will be extremely short.

For example, if your pay is $40,000 (lets forget about taxes for just one second) and you divide it by 12 months exactly, then you will have around $3,333 per month. However, what if you’re paid every 2 weeks and not twice a month? This would leave you with a little less than $3,100 a month. This is a difference of over $200 per month between what you think you’ll have any how much you actually have.

Also, of course taxes and everything else need to be taken into account. Taxes can vary but most new graduates who haven’t had a full-time job before will most likely be extremely shocked by how much is taken out due to taxes.

Before you start buying stuff like crazy, you should get a realistic feel of what your first couple of paychecks will be like. Waiting until you actually receive them might be the best idea before you start buying things.

 

Other things you might not have thought about enough:

  • You might not even like the field that you went to school for.
  • You might find a job that you love that you never thought you’d enter.
  • Your student loans will be a lot more each month than you really think.

What do you wish you knew when you graduated?

 

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55 Comments
Filed Under: Budget, Career, School Tagged With: Budget, Career, School

About Michelle Schroeder-Gardner

Michelle is the founder of Making Sense of Cents, a blog about personal finance and traveling. She discusses how her business has evolved in her side income series. She paid off $40,000 in student loans by the age of 24 mainly due to her freelancing side hustles. Click here to learn more about starting a blog!

Comments

  1. ND Chic says

    October 30, 2012 at 4:45 am

    Well said! I don't think most people realize how much of their money goes to taxes. They are also hit with student loan payback. That can be jarring, too.

    Reply
    • MakingSenseofCents says

      October 30, 2012 at 7:14 am

      I agree! So much money goes to taxes.

      Reply
  2. Allison says

    October 30, 2012 at 5:25 am

    I remember being shocked when I got out of college by the real world. I expected when I got my degree that people would be knocking down more door for jobs and that I would be killing it on the income side. That never happened.
    My recent post I voted today and I almost cried, but I didn't.

    Reply
  3. Greg@ClubThrifty says

    October 30, 2012 at 5:26 am

    I wish that I would have been more aware of how much money it takes to live and how big of a burden debt could be. I graduated with a degree that didn't have very good job prospects. Not only were there few paying jobs, but the jobs that did pay didn't pay much. I wish that I would have thought of that – or cared about it – before I spent thousands of dollars and 4.5 years of my life on my degree.
    My recent post What is the Fiscal Cliff and Why Should You Care?

    Reply
    • MakingSenseofCents says

      October 30, 2012 at 7:15 am

      What's your degree?

      Reply
  4. DC@Young Adult Money says

    October 30, 2012 at 6:18 am

    Great tips for people who are still in school. I think some concentrations should be more blunt about the job prospects – i.e. political science, where most people really should be on track for a phd or law school, otherwise there aren't a ton of possibilities for grads.
    My recent post How To Clean Your Gutters Without A Ladder

    Reply
    • MakingSenseofCents says

      October 30, 2012 at 7:15 am

      I agree. My friend is a psychology major and she always thought that she could get a good job with that, until recently.

      Reply
  5. Greg@ClubThrifty says

    October 30, 2012 at 6:56 am

    It is rough out there!~ I think a lot of people go to school and don't end up liking the field that they got their degree in.
    It happened to Greg…and he had to go back to school for a second time. It was worth it because now he is doing something that works better for him.

    My recent post What is the Fiscal Cliff and Why Should You Care?

    Reply
    • MakingSenseofCents says

      October 30, 2012 at 7:16 am

      I agree! You should be doing something that you like more.

      Reply
  6. moneybeagle says

    October 30, 2012 at 7:27 am

    One of the things that I learned the really hard way is that your good work will often not translate into pay. My first job was entry level but I quickly rose to a leadership role, above people who had been in the workforce for 5-10 years. Going into my first evaluation, I expected them to lavish me with bonuses and double digit raises. This didn't happen and I learned later: that's reality. I pretty much learned then that your reward is usually switching jobs/companies, that's often the only way you'll get a double digit increase for performance.
    My recent post The Story Of My Worst Job Ever: Part Two

    Reply
    • MakingSenseofCents says

      October 30, 2012 at 10:23 am

      Yes I definitely had to learn this the hard way as well.
      My recent post What They Don’t Tell You When You Graduate

      Reply
  7. christineslittleblog says

    October 30, 2012 at 7:33 am

    There are days when I really regret getting the degree I did in college. Everyone says Healthcare is the best field to be in but clinical degrees (such as nursing, athletic training, etc.) are such niche degrees that if you ever want to leave that field, it's hard to convince people you are capable of performing other job tasks.
    My recent post Chai Pumpkin Spice Cookies

    Reply
    • MakingSenseofCents says

      October 30, 2012 at 10:21 am

      I am right there with you.
      My recent post What They Don’t Tell You When You Graduate

      Reply
  8. jefferson @SDR says

    October 30, 2012 at 7:39 am

    Graduating college was for me, all about instantly growing up. I was lucky to find a job right away, but the job had demanding hours and suddenly I had responsibilities… I loved it, but it was a major time of change.
    My recent post Consumer Driven Health Plans – A Good Option?

    Reply
    • MakingSenseofCents says

      October 30, 2012 at 10:22 am

      I agree! It was definitely a change.
      My recent post What They Don’t Tell You When You Graduate

      Reply
  9. Leslie says

    October 30, 2012 at 8:10 am

    This stuff always confuses me. I'm with you that I've been living on my own since I was 17 so I can't fathom never paying rent until after college! What! Twenty-one year olds don't know they need to pay electricity bills!? What college tells you that you don't need to apply to jobs they'll come to you?! Does this stuff really happen or we being extreme here? Serious question because if this is real, I don't know how to process it and don't want to live in this world.

    Reply
    • MakingSenseofCents says

      October 30, 2012 at 8:30 am

      I know a lot of people who think this. They think that if you go to college, then you have the easy life with jobs and everything else afterwards. And I think a lot of people think that their parents will help them out with bills, or that they will always have mommy and daddy to fall back on.
      My recent post What They Don’t Tell You When You Graduate

      Reply
  10. Rachel says

    October 30, 2012 at 8:21 am

    I agree with all of these things! It took me 5 months to find a job after applying to about 70 of them. I don't make great money, either and with student loans totaling over $700 a month, it's a little hard. It makes me wish that I had chosen a cheaper college or maybe even a different major of study!

    My recent post Leather Skirts

    Reply
    • MakingSenseofCents says

      October 30, 2012 at 10:22 am

      I agree! Sometimes I wish I wouldn't have attended a private university.
      My recent post What They Don’t Tell You When You Graduate

      Reply
  11. SavvyFinancialLatina says

    October 30, 2012 at 8:30 am

    The biggest shock is always how much I actually take home in pay. About 40-50% of my pay goes to taxes, healthcare, fsa, retirement contributions, espp. It's astonishing :/

    Bills do add up quickly! Beh even though we are earning money and saving a lot, I still struggle with paying bills and timing our choices. I make myself believe we're broke most of the time so I can put away more.

    Reply
    • MakingSenseofCents says

      October 30, 2012 at 10:23 am

      Ugh I know! So much of it is gone by time the money is deposited.
      My recent post What They Don’t Tell You When You Graduate

      Reply
  12. apenny4athought says

    October 30, 2012 at 8:34 am

    Great Tips! I agree with all of them! I was surprised at how little I could stretch my paycheque…..
    My recent post That Time I Almost Lost All of My Financial Data

    Reply
    • MakingSenseofCents says

      October 30, 2012 at 10:25 am

      This is something that most don't realize.
      My recent post What They Don’t Tell You When You Graduate

      Reply
  13. Lance @ Money Life and More says

    October 30, 2012 at 8:43 am

    I think a lot of people will wish they knew to save more of their paycheck for retirement or other future goals. The easiest time to save is when you are not used to the income.

    Reply
    • MakingSenseofCents says

      October 30, 2012 at 10:24 am

      You are right!
      My recent post What They Don’t Tell You When You Graduate

      Reply
  14. Neely says

    October 30, 2012 at 9:01 am

    This is SO TRUE!!!

    Reply
  15. Bobbi Jo says

    October 30, 2012 at 9:05 am

    I wanted to thank you for stopping by my blog.
    Great post! I was just reading some of this information in The Millionaire Next Store. We are currently working on getting out of debt using the Dave Ramsey program. We were out of debt 10 yrs ago then we got stupid with our money. Now we are back on track but it is a long road.
    Enjoy your blog and all the great information. Hugs, Bobbi Jo

    Reply
    • MakingSenseofCents says

      October 30, 2012 at 10:24 am

      Thanks 🙂
      My recent post What They Don’t Tell You When You Graduate

      Reply
  16. Budget & the Beach says

    October 30, 2012 at 9:34 am

    I wish I knew more about personal finance! I wish someone literally sat me down and said if you start right freakin now you will be doing so well later on. But no one did and I was young and stupid. And although I never had student loans or massive credit card debt, I wasn't as savvy as I could have been because I was just having fun. But looking back…I did have a lot of fun! 🙂
    My recent post Are You Brand Loyal?

    Reply
    • MakingSenseofCents says

      October 30, 2012 at 10:25 am

      I agree! I wish I was forced to take a class.
      My recent post What They Don’t Tell You When You Graduate

      Reply
  17. MakingSenseofCents says

    October 30, 2012 at 10:21 am

    Ugh yeah that makes me sick also.
    My recent post What They Don’t Tell You When You Graduate

    Reply
  18. MakingSenseofCents says

    October 30, 2012 at 10:24 am

    Yes this is something that definitely needs to be realized.
    My recent post What They Don’t Tell You When You Graduate

    Reply
  19. MakingSenseofCents says

    October 30, 2012 at 10:24 am

    I agree! I did not apply for enough scholarships.
    My recent post What They Don’t Tell You When You Graduate

    Reply
  20. therandompath says

    October 30, 2012 at 10:41 am

    "You won't find a job right away" :Truth. I totally didn't. It was so frustrating. There were times where it was like, ummmm why did I go to college if I can't find a job? It took about 6 months until I did get a job. All I can say to new graduates is be patient. Everything will work out.
    My recent post The Road Less Travelled

    Reply
  21. Hannah says

    October 30, 2012 at 11:16 am

    These are all spot on! Honestly when I first heard my starting salary I was jumping for joy… now I am like…seriously? Once all the tiny little bills add up and taxes are taken out it doesn't seem like much at all. Gotta budget!

    Reply
  22. LenaAtOnMySide says

    October 30, 2012 at 11:39 am

    I wish we knew that after 6 months of looking Hubby wouldn't be able to find a better job. On the other hand, we at least didn't have student loans to pay. It scares me to think how we would scramble right now if we had another $500 bill every month!

    Reply
  23. Meg says

    October 30, 2012 at 11:48 am

    what do i wish i knew? that being an adult is not very easy that sometimes i would like to hang out with friends but no one will go buy paper towels and lightbulbs for me if i don't. you are right you might not find a job right away, and my second thing is don't expect people to owe you a job or anything else even after that degree, getting the degree is just the beginning of when the hard and real work actually begins

    Reply
  24. Veronica Hill says

    October 30, 2012 at 11:50 am

    One thing that I wish I knew before getting out of college is – your degree might be worthless. I regret for not getting an accounting or finance degree vs this business degree I have now. It taught me nothing. Heck, looking back… I wish I'd invest all of that school loan money into a crash course on ROR programming in San Francisco. (I suppose I can still do that)
    My recent post 3 Tips to Save Money on Prescription Drugs

    Reply
  25. Lovebird Productions says

    October 30, 2012 at 12:51 pm

    Such a fabulous and honest post! There are a lot of lessons that school can never prepare you for until you are faced with them. Sometimes the perfect job doesn't come along until you fifth try or you create it. Keep a positive mindset!
    My recent post Apple Orchard Fall Engagement Session

    Reply
  26. mycanuckbuck says

    October 30, 2012 at 1:26 pm

    I'm pretty lucky – I graduated with a good job and salary waiting. For me, it was just the shock of having a full time job, and learning when to say yes (and say no) that were the hardest things to adjust to!
    My recent post My stats for the month of October 2012

    Reply
  27. Sarah_Helfgott says

    October 30, 2012 at 1:32 pm

    It's important to think about these things. I make pretty decent money but I still feel like I'm broke all the time. You pretty much nailed all the reasons why!
    My recent post Happy Halloween Eve! And how you can help with Sandy relief.

    Reply
  28. MoneyMasterMom says

    October 30, 2012 at 1:33 pm

    No one told me that being an apprentice for a trade, rather then a college grad may result in a better paycheck. I'll be the first to say that money isn't everything, but you're fooling yourself if you say it doesn't count at all!
    My recent post Preparing for Hurricane Sandy: A Mommy’s Guide

    Reply
  29. Elease says

    October 30, 2012 at 2:17 pm

    what useful and valuable information! Thanks for sharing! xoxo

    Reply
  30. Kim@Eyesonthedollar says

    October 30, 2012 at 3:01 pm

    I wish I'd made more of an effort to control lifestyle inflation and pay off loans before buying "stuff". Overall, I landed a good job and have few regrets other than that.
    My recent post What Happens Before and After Foreclosure?

    Reply
  31. savvyscot.com says

    October 30, 2012 at 3:37 pm

    Good post… I would add that your paycheck will be even smaller than you might expect if you relocate somewhere expensive. Moving from Scotland to London was a massive increase in costs. Although I got a starting salary higher than almost all my fellow engineering cohort, I probably have less disposable income because of London prices! It is ridiculous… Good job I have a side hustle 😉
    My recent post Inspirational Motivation for Today

    Reply
  32. holly says

    October 30, 2012 at 6:20 pm

    I was overly optimistic that I would immediately find a job after school. I graduated with a Master's Degree right at the downturn of the economy and it took me 7 months to find the right job. Then again, I didn;t settle but it was tough for awhile!

    xx
    Holly Foxen Wells
    GlamourMash

    Reply
  33. Your Fab Life says

    October 30, 2012 at 9:57 pm

    Luckily, like you, I had a job all through college, but I was still surprised at how much the payments were! I have friends who earned degrees in liberal arts and such, and are unable to make their payments today. What I really think is interesting are the amount of people that go to grad school and pay $100k+, not fully understanding what they want to go into, and/or with unrealistic salary expectations afterwards.
    My recent post We love our iphones, but not the cost

    Reply
  34. eemusings says

    October 31, 2012 at 1:28 am

    I don't think I had any big surprises. I moved out of home in high school, worked all through uni, and was fortunate to go straight into a full time job.

    It's the little things, I think, the nuances of the working world that creep up on you (my thoughts on this here: http://nzmuse.com/2012/05/18/friday-five-things-y…
    My recent post Things I’ve been pondering…

    Reply
  35. Canadianbudgetbinder says

    October 31, 2012 at 11:39 am

    I believe there are alot of misconceptions about what happens after you graduate especially when it comes to money and finding a job. Depending on what field you are in you could struggle finding a job. I'm fortunate that my career is well in demand so I wouldn't struggle but some of my mates are still looking for work that I met while in school. I just encourage them to never give up, get out and network. The pay can suck when you first start but that's something I understood that with time and experience you will earn more. I think that's just the way it goes. If there is one thing I learned is that learning from a book is one thing but hands on using what you learned is a whole other ball game and where all my experience and learning really comes from. Great post. Cheers Mr.CBB
    My recent post Reader Question:Do I Have To Share My RRSP With My Spouse When I Get Divorced?

    Reply
  36. MoneySmartGuides says

    October 31, 2012 at 11:51 am

    I was in the group that when I graduated I thought all of my problems were over. I would find a job paying be $100,000 per year and would have no other worries…and I was completely wrong! I had a hard time finding a job and got depressed, then started spending money I didn't have. Luckily I got out of that spiral and am doing well now.
    My recent post Payment Protection Insurance Under Fire

    Reply
  37. Brick By Brick says

    October 31, 2012 at 10:10 pm

    When I graduated I felt like I got a visit from the mob… Seriously! I went out (was lucky enough) to get a job then was told I was going to hand over about 25% of my paycheck every month. Call me naive but I didn't think taxes were that much. Add a 5% State tax in there plus ghost fees and taxes on utilities, cell phone, etc and I was left with about 2/3rds of my paycheck!
    My recent post October Income 2012

    Reply
  38. Terry Sprouse says

    November 1, 2012 at 9:54 am

    I think it would have been nice to know that social science majors are generally not really very marketable, except perhaps as teachers. But, even if I had known this, I'm not sure that I would have changed my major.

    In almost any field of study, I think it's valuable to think about starting a business on the side to make sure you have a steady income.
    My recent post 5 Keys to Sell Books Like Hotcakes with YouTube

    Reply
  39. Michaela says

    November 1, 2012 at 2:08 pm

    Eek! Can't wait to graduate, but nervous at the same time for these very reasons! 🙂
    My recent post {Birthday!} Twenty Two Things for Twenty Two Years

    Reply
  40. Jason Clayton says

    November 2, 2012 at 3:49 pm

    #3 is so, so, TRUE!! When I graduated with my engineering degree I thought I was a millionaire with my first job. Don't get me wrong, I was paid well, but it is never as much as you think. The money is gone super quick!
    My recent post Great Reads of the Month (Monthly Roundup for October – 1st Addition) + a Video to bring in November with a smile

    Reply
  41. Katie Foster says

    March 14, 2013 at 8:59 pm

    I am a recent college graduate and I just stumbled across your blog and have been looking around at all your different posts for a while now. Very interesting and informative blog. Thank you for sharing all these very real and personal subjects pertaining to debt and school.
    My recent post We Are the Frugal Fosters

    Reply

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