Tuesday, May 20, 2014

The Unexpected Costs of Graduation

Ah, graduation! They come in all sorts from kindergarten all the way to college. It's a great time for all involved, but for any college graduate, it can be a scary time. It's finally time to fly out of that nest and show what you can do as a full fledged adult. There are quite a few expenses that will creep up, but with some planning, can turn out to be steps in the best direction.

The costs of going to or hosting a graduation party. Usually family will pick up these costs, happy to make the day special. But hosting a whole bunch of people for the after party might cost you a pretty penny. Look at doing a pot luck and everyone bring a bottle of something or other. This will help keep costs low but ensure that there is enough for everyone.

Move out day! Hopefully by graduation day the ex-students have plans as to what their next few steps are, especially if they don't have a job lined up. If not, finding a last minute place and a quick way to move might break the bank. Movers definitely don't come cheap and if you are looking at your own place, look at putting down quite a bit of money for first and last months rent along with a security deposit.

The financial costs of finally being on your own. This is the day some parents have been waiting for their entire lifetime. The day they tell their kids that they are no longer on Mommy's and Daddy's payroll. That it's all up to them. It can be a scary thing if the kids don't know, but most parents start leaving hints months before.

For those that are prepared, the most important thing is having a budget all lined up and understanding what is coming in and what is going out. Whether it be a part-time job down the street or their dream job, expenses will start piling up quickly. And the cost of things, especially essentials, will be quite a shock if your not used to it ( I certainly was not completely prepared). And how about those unexpected expenses? Those life moments? That's when an emergency fund comes into play. For a single person just starting out, $1k is definitely enough to get through most of the typical emergencies like car repairs.

Student Loans. They are the most obvious but along with that, usually forgotten until the bill comes in the mail. Even though there is a six month grace period, it's not a time to relax! A few extra payments during this time can shave quite a bit off the years you have to pay.

As you can see, graduation season is chock full of expenses, especially ones that can lead down a road of a lifetime of bad habits or a short term strapped for cash moments. But there are always frugal ways to celebrate any special event!

Can you think of any other graduation costs? And congrats to all those grads out there! 


  1. We always give new graduates money as a present. Most likely, they need it and really appreciate it. It's so nice to have a bit of money to buy things you will need for your dorm room or apartment.

    1. People always say money is so cliche but in reality it's probably the best gift and will get the most usage.