After four (or more) years of hard work, thousands of college seniors will finally walk across the stage, receive their diplomas, and enter the working world. While things like job and apartment hunting are important, so is setting a strong financial foundation that you can build upon throughout your adult life.

Here are five pieces of financial advice for every graduate to consider.

Make a Plan to Pay Off Student Loan Debt

In Arkansas, the average student loan debt for Class of 2025 graduates ranges from $35,639 to $39,550. The good news is, you don’t have to start paying off your student loans right away.

Federal student loans – and most private loans – normally offer a six-month grace period after graduation. This gives you some time to assess your loan situation and make a plan.

First, update your information with the loan server – including your address and email – to ensure everything is accurate.

Next, make a payment plan. Review your budget and determine how much of your income goes toward your debt payments. If you have multiple loans, try to focus first on paying off the debt with the highest interest rates.

If you have student loans with high interest rates, you could consider refinancing them to get a lower APR.

Finally, the smartest way to ensure you make sure your student loan payment every month is to set up automatic payments through your loan service provider. Many offer a 0.25% interest rate reduction with autopay, so you’ll also save a few extra bucks each month.

The 50/30/20 Rule

Budgeting is important throughout life, and it's easier to keep as a habit if you start early. We suggest using the 50/30/20 rule.

Start by writing down your income and monthly expenses. You aim to spend 50% of your income on essentials, including rent or mortgage payments, student loan debt, food, utilities, health insurance, and car payments or other commuting costs.

20% of your budget should be put away in savings, an emergency fund, and investments, such as retirement funds.

The last 30% of your budget can be spent on nonessential expenses like travel, eating out, and shopping.

Build an Emergency Fund

We would advise everyone to have an emergency fund. At last check, more than half of all Americans couldn’t afford a $400 surprise expense.

A surprise expense could be a wide range of things, from unexpected medical bills to appliance or vehicle repairs, to a speeding ticket.

Most financial experts believe you should have enough money in your emergency fund to cover at least 3 to 6 months' worth of living expenses. Don’t let that amount overwhelm you. What’s most important right now is to start saving.

Set up a separate savings account – one with a higher interest rate if possible – and have a percentage of each paycheck automatically deposited into it to ensure that it grows regularly.

Start Building Your Credit Score

We’re not saying you should go out and sign up for a bunch of credit cards and start using them. That would be irresponsible.

That said, when you want to make your first major purchase – like a new car or a house – having a good credit score is going to be vital.

A credit score is a rating that financial institutions look at to determine how likely you are to pay off your debts. It can help you secure lower loan interest rates and better credit card offers, making your life more affordable.

If you have no credit history, you can start by either opening a secured card or becoming an authorized user on someone else’s credit card.

If you choose to open a credit card, search for options with low interest rates and low spending requirements to earn rewards. Also, be sure to set up automatic payments with your bank and continue to monitor your transactions and payments often.

Remember, it’s not enough to just have a credit card; you do have to use it. Credit cards can have a negative or positive impact on your life, so make sure you choose and use them wisely.

You can also become an authorized user on someone else’s credit card to increase your credit score. The primary cardholder is responsible for making the payments, so if they have good credit habits, it can boost the authorized user’s credit score as well.

However, make sure you have a clear agreement with the primary cardholder so you’re repaying them for any charges you make each month. You don’t want to put their credit score — or yours — at risk by not paying off the balance on time each month.

Be Open to Career Opportunities

We know you just spent years working toward a degree and are now looking for your dream job in that field. But one thing we would say to every college graduate: don’t stress about it. You're still young. You have time to get there.

Honestly, many people have found rewarding and fulfilling careers in industries completely different than what they thought they would love.

So don’t be disappointed if you can’t get that one job you’d hoped for right out of the gate. Be open to whatever opportunities come your way, even if they’re just dream-job adjacent.

Real-world experience is invaluable. So too are finding a place you enjoy working or a job with opportunities for growth or advancement. Don’t be so focused on finding the perfect job that you miss a unique opportunity to advance your career.