Jesus Salas Shares Financial Advice for Recent Grads

In this InvestorPlace article, the professor of finance explains how new graduates can get a handle on their finances right out of school. 

Story by

Emily Collins

InvestorPlace featured advice from Jesus Salas, associate professor of finance, in the article "Money Moves for Recent Grads."

As part of an InvestorPlace series inviting academics from across the U.S. to share their thoughts on aspects of finance that new graduates should know, Salas shares some rules of thumb. 

"First, a graduate’s rent should be no more than a third of your gross salary. Second, you should contribute as much as possible to any 401-K retirement plan that your employer may provide. Thirdly, graduates should save up at least 1-2 months of salary in cash in your checking account," suggests Salas.

He adds that students should pay their credit card bill and required student debt bills fully every month. 

When asked about student loan debt, Salas encourages students with more than $10,000 of student debt to consider paying it down. 

"President Biden may forgive $10,000 of college debt. Therefore, after following my recommendations, if graduates have more than $10,000 of college debt, it could make sense to start paying down some of the college debt. However, it really depends on the interest rate on that debt," said Salas. "If the rate is lower than 4%, then I would not say that it is urgent to pay down the principal. The recent graduate probably should pay down the principal if the interest rate is higher than 4%. If the graduate has the extra money, it’s not a bad idea to pay down the principal (as long as the balance is over $10,000)."

In addition, Salas shares his advice on investments. 

The full article can be read on the InvestorPlace website

Story by

Emily Collins