Budgeting Tips for New Grads During Uncertain Times
By Garrett Johnson
Whether you are a new grad or a young adult entering your first full-time job, budgeting tips for new grads are more important than ever when you’re learning to live on a tight budget. The internet is full of familiar budgeting hacks, some of which you may have even tried. With inflation and even the looming threat of tariffs, the financial stress can feel overwhelming. Add to that the challenges of a new job, a new income, and new expenses, and it’s clear that navigating your finances isn’t easy. Here are some practical tips for new grads to help adjust to rising costs.
Navigate Rising Costs While Avoiding Instant Noodles
Sure, you can cut out those coffee runs or avocado toast like many people may tell you to do if your costs have risen too much. Instead of cutting out luxuries completely, which can feel impossible, try to find alternatives. For example, instead of opening your delivery app and ordering a meal, check out alternatives such as Too Good to Go. With this app, restaurants and cafés post food and products at heavily discounted prices that would otherwise be thrown away at the end of the day. If there are not many participating businesses in your area, check out social media for groups where people offer low-cost or free goods that they otherwise would throw out. This way, you’re saving both your wallet and preventing (food) waste!
You don’t have to give up your favourite treats—small shifts can make a significant difference over time. When shopping for your groceries as a new grad, buying in bulk is often not an option as it ends up being too much food or product for you to use all on your own. Instead of missing out on the savings that bulk purchases offer, see if a friend or roommate wants to split bigger packages so you can both save on groceries.
Keep Up With Your Social Life While Saving Money
You don’t want to be the friend who never goes out, but coughing up your hard-earned money for social nights while also trying to save money is tough. Instead of avoiding plans, try hosting “BYO” nights. Events like potlucks, game nights, and watch parties let you spend time with friends without stressing over the financial implications of a night out. If you are going out, consider checking with your city for free or low-cost events. Cities or communities will often host free festivals and outdoor movie nights, which can be a smart choice when looking to go out with friends. Lastly, if you recently graduated from university or college, visit your alumni department. Even after you have graduated and lost out on student discounts, many schools’ alumni departments still offer discounts through partnerships with businesses.
The 5 Most Important Things Recent Grads Can Do for Their Finances
Use an Emergency Fund to Create Stability
As a new grad, you are juggling a lot of financial changes, and an emergency fund is probably the last thing on your list. With possible tariffs and rising costs, keeping your budget stable means reassessing what’s essential and having a financial buffer to handle the unexpected. A good starting goal is to build a small buffer of even $10-$20 per pay cheque to avoid overdraft fees or relying on credit if a minor emergency comes up.
One way to make this habit easier is to open a separate, high-interest savings account. Setting up an automatic transfer ensures you are consistently building your buffer without having to think about it. Keeping the account slightly out of reach can help prevent the temptation to dip into it for non-essentials. The most important thing is to create an emergency fund that fits your budget and financial situation. Even a small emergency fund can give you peace of mind, reduce stress, and help prevent setbacks when unexpected expenses arise.
Why It’s Important to Think of Savings as an Important Expense
Reevaluate Utilities and Subscriptions to Save Money
It’s frustrating to see bills go up when you’re already stretched thin and just need to save money. But sometimes, a quick call to your utility service provider can unlock lower rates or bundle discounts you didn’t know about. If you recently graduated, you’re also likely losing access to all the awesome student discounts that once kept costs low, including your banking service fees. Many subscriptions automatically raise the price once your student status expires, so make sure you review your subscription costs carefully. Find which subscriptions have increased in price and decide whether to pause or cancel the ones you use the least to keep your budget in check.
Get Help With Personalized Budgeting Tips
If you’re feeling overwhelmed by rising costs and adjusting to life after graduation, our free webinars, grab-and-go self-directed online courses, and one-on-one counselling sessions can help provide personalized budgeting tips. One of our Credit Counsellors can help review your budget and provide advice specific to your situation. Whether you’re looking for ways to cut costs, improve your budget, or manage unexpected expenses, we’re here to support you with practical tips and solutions tailored to your needs. If you would like help figuring out what solutions might work best, give this short self-assessment a try.
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